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PM Will Okay Foreigners' Purchases
Foreign companies will have to have the agreement of the prime minister to buy shares in Russian companies developing the country's largest natural resources deposits, writes Vedomosti newspaper. That is one of the stipulations of a new edition of the draft law “On the Access of Foreigners to Strategic Sectors,” which will have its second reading in the State Duma on March 19.
Foreigners wishing to acquire stock in companies on the “strategic” list will have to apply to an “authorized organ.” Foreign companies that have government capital will have to receive permission to buy more than 5 percent of the stock in Russian strategic companies, which include those developing oil, gas, mineral, diamond, uranium, gold and other deposits. All foreign companies need permission for acquisitions that exceed 25-50 percent, depending on sector.
Almost 21 percent of Gazprom stock is registered to the Bank of New York, the depositary bank for the monopoly's ADR, which are traded on overseas exchanges. Norilsk Nickel has 40 percent of its stock in ADR and Polyus Zolota has 35 percent in ADR. Gazprom spokesmen said that the new law should not apply to companies with more than 50 percent state ownership.
The text of the law has been changed many times. Its first reading took place in November 2007. It concerns a total of 39 forms of activity, including arms manufacturing.
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