Foreign Direct Investments

Foreign Direct Investments

About
Experience

ALRUD’s Foreign Direct Investments (FDI) Practice combines the leading specialists in this field and brings excellent outcomes to our clients from different industries. We provide our clients with the full scope of services, in particular: national security clearance of transactions with the Government Commission for Control over Foreign Investments, support in the process of disclosure to the authority of the beneficiaries, beneficial owners and controlling persons of a foreign investor, representing interests before the Federal Antimonopoly Service (FAS Russia) during investigations and in court disputes with the regulatory authority.

Our full-service offering is a key factor in attracting blue-chip domestic and international clients. Our Foreign Direct Investments team routinely works with our top-ranking M&A and Dispute Resolution Practices. This enables us to advise on the full spectrum of a client’s complex requirements and provide the scale of resources needed to service even the most demanding cases. Our multilingual approach is a significant advantage, allowing us to provide legal services in English and Russian as well as multiple other languages, including German, French and Japanese.

As the Foreign Direct Investments team is the part of our Competition and Antitrust Practice, all specialists involved in the projects have wide experience of interaction with FAS Russia. This gives us a deep understanding of the principles and practices of how the regulator is functioning and allows us to provide our clients with extremely valuable advice.

We have assembled one of the strongest teams in Russia, to support projects in the field of legal regulation of strategic investments. Our Practice includes 15 lawyers, having extensive experience in advising on deals coordination, with the Governmental Commission for Control over Foreign Investment in the Russian Federation.

Our Foreign Direct Investments Practice is headed by Vassily Rudomino, Senior Partner and co-founder of ALRUD. Vassily is widely regarded as one of the most experienced competition lawyers in Russia. He brings his deep experience in all aspects of Russian competition legislation, as well as regulation of foreign direct investments in Russia, including national security clearance of complex transactions and investigations. He is also recognised as one of the most influential practitioners in the enforcement of effective competition and antitrust law-making in Russia.

Partner German Zakharov also has a wide experience in consulting on the various aspects of the foreign direct investments’ regulation in Russia, as well as Russian competition legislation. His previous experience as a FAS Russia’s official offers our clients rare and valuable insights into the workings and thoughts of the Russian competition authority. Partner Sergey Petrachkov leads the dispute resolution direction and has a wide experience in representing clients in high-profile disputes related to the foreign investments in the litigation and arbitration proceedings. Our team is reinforced by two Partners of ALRUD’s Corporate and M&A Practice, i.e. Anton Dzhuplin and Andrey Zharskiy, who have unique experience in supporting Russian and cross-border mergers and acquisitions, which require coordination with the Government Commission for Control over Foreign Investments in the Russian Federation.

Our services

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Our specialists advise on the applicability of both the Strategic Investments and the Foreign Investments Laws. Our services cover the full spectrum of issues related to the regulation of foreign direct investments including, inter alia, assessment of the necessity to receive national security clearances/submit post-closing notifications/perform disclosure of beneficiaries, analysis of the relevant risks in a particular situation and a transaction, advice on procedural issues. We help our clients to better understand the law and give them insights into how it works in practice, with the focus on a specific industry, in order to choose the best possible strategy.

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<> <>National security clearance<>

Our practice has vast experience in representing clients in high-profile transactions during clearance under the Strategic Investments Law, as well as the Foreign Investments Law. We provide our clients with a full range of services related to the consideration process: from collection of all the required documents to receiving the final decision. Inter alia, our team has successful experience of negotiating national security remedies with FAS Russia, when they are requested by the Government Commission in complicated cases as a condition for clearance. In addition, ALRUD supports our clients in the process of preparation and submission to FAS Russia of post-closing notifications required under the Strategic Investments Law.

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<> <>Disclosure of beneficiaries<>

We have extensive experience in the procedure that has become very important for validity of transactions in Russian strategic sectors. We advise clients on different issues related to the process of preparation and submission to the regulatory authority of the information on beneficiaries, beneficial owners and controlling persons of the foreign companies that intend to invest in Russian strategic sectors. We assist with determination of whether such disclosure is obligatory, as well as in preparation of the necessary documents. We support our clients during the whole process until successful receipt of confirmation from FAS Russia that the proper disclosure has been made.

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<> <>Investigations<>

Our services cover all issues related to the investigations in the field of foreign direct investments’ regulation in Russia. In particular, our specialists provide full support during investigations on potential violations of foreign direct investments legislation, including preparation of positions, statements, applications, responses to the information requests, as well as other related issues. We handle complicated administrative cases related to violations of foreign direct investments’ regulation.

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<> <>Disputes<>

ALRUD team also has a unique experience in most remarkable and precedent-setting FDI disputes in Russia. We represent our clients in the court of all instances, including the Supreme Court and the Constitutional Court, providing our clients with a full range of services related to the litigation starting from the collection of evidence and elaboration of the legal position to the close cooperation with state authorities and conducting settlement negotiations. Our specialists also advise clients on different issues of FDI regulation, which arise in foreign courts and arbitration, and have considerable experience of giving expert opinions on Russian law.

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Highlights of recent domestic and international work

CEFC China Energy Company Limited

In national security clearance with the Government Commission for Control over Foreign Investments of the acquisition of 14.16% of shares in Rosneft Oil Company.

Siemens AG

In clearance with FAS Russia and the Government Commission for Control over Foreign Investments of its merger with Alstom S.А. valued at $ 17 billion.

Natura &Co

On obtaining national security and merger control clearances for the acquisition of Avon Products, Inc.

One of the world's largest investment funds

In court proceedings regarding a lawsuit, filed by FAS Russia, alleging violation of the Strategic Investments Law in relation to one of the largest Russian metallurgical plants.

VimpelCom

In national security clearance with the Government Commission for Control over Foreign Investments regarding the acquisition of an IT outsourcing company.

Large telecommunication company

In giving an expert opinion to a US court, on issues related to clearance of its M&A transaction in accordance with Russian merger control and foreign direct investments’ regulation.

Global drilling contractor

In litigation with FAS Russia in the state commercial courts, the Supreme Court and the Constitutional Court of the Russian Federation. FAS Russia did not approve the acquisition of the Russian company claiming that the deal should have received national security clearance.

China National Gold Group

On national security issues of the acquisition of a controlling stake in the company operating in subsoil plots of federal significance. The acquisition was based on an intergovernmental agreement between Russia and China.

French aerospace, space, defence and security group

In the acquisition of a digital identity and security group, assisting our client with successful receipt of the national security and merger control clearances.

Gold mining company

On antitrust and national security risks associated with acquisition of shares within corporate conflict.

Five largest world’s investment funds

Within simultaneous legal support on proper disclosure of their beneficiaries prior to closing. This was to prevent risks under the Strategic Investments Law. We also assisted with preparing and supporting post-closing notifications.

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