The government will probably end strategic dispute of ministries with Federal Security Service at October 19 meeting, but this bill is notorious for being crossed out from the cabinet’s agenda at the last moment.
Photo: Sergey Semyenov
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Govt Gets Bill on Foreign Investment Restrictions
The RF Industry and Energy Ministry has submitted to government a bill limiting foreign investments in strategic enterprises of Russia. The restricting list sets forth aircraft engineering, atomic power engineering, military industrial system, natural monopolies and development of federal fields and deposits.
Past week, Industry and Energy Ministry submitted to the government a bill on procedures for direct foreign investments in the stock capital of Russia’s commercial companies of strategic significance for the RF national security, said Deputy Industry and Energy Minister Ivan Materov.
As it is, a year proved not long enough so that the bill’s masterminds have agreed on the size of foreign interest in such enterprises on level of government’s ministries, departments and services. Another challenged issue is the time of considering the deal by regulatory authorities.
So, the government has received the bill with no sanction of the Federal Security Service. In today’s revision, the bill empowers foreign investors to acquire up to 50 percent in strategic enterprises with no OK of the federal bodies, while the purchase of majority ownership would require authorization of the government’s commission. Moreover, its negative decision is to be approved by the cabinet.
According to sources, the Federal Security Service advocates authorization for the stake of over 30 percent and calls for at least six-month term to check a potential partner. Industry and Energy Ministry and Economic Development and Trade Ministry first insisted on three months but yielded to the possible prolongation for another three months.
Another achievement was trimming the list of strategic activities from 19 offered at first to just 7. The list of branches potentially banned for foreigners sets forth production of special machinery, production of weapons and military machinery, aircraft engineering, space activity, nuclear energy uses, activities executed in conditions of the natural monopolies, development of subsoil of federal significance.
There is some hope that the government will end this strategic dispute of departments at October 19 meeting, but the bill is notorious for being crossed out from the cabinet’s agenda at the last moment and could be still recalled for further agreements.
www.kommersant.com
All the Article in Russian as of Oct. 16, 2006
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