In the last year and a half, a line of Russian court decisions has been actively developing on the forfeiture of shares (interests) of companies “strategic to national defense and state security” by the Russian Federation due to non-compliance by their shareholders (controlling persons) with the requirements of Federal Law No. 57-FZ dated April 29, 2008 “On the Procedure for Making Foreign Investments in Business Entities of Strategic Importance to National Defense and State Security” (hereinafter, “Law No. 57-FZ”). The development of this line of court decisions was reflected in the amendments to Law No. 57-FZ, which entered into force on May 9, 2023. According to the amendments, invalidity of void transactions (actions) executed by a foreign investor intentionally in violation of Law No. 57-FZ may result in direct forfeiture by the Russian Federation of shares (interests) of the “strategic” company and its fixed production assets, or income derived by the parties as a result of such transactions (actions).

Nextons experts have prepared an overview of the impact of Presidential Decree 585 of August 8, 2023 on IP royalties, particularly involving licensing and franchising.

On July 31, 2023, the President of Russia signed two Federal laws that amend Federal Law No. 149-FZ of July 27, 2006 (the “Law on Information”) and introduce new requirements.

On 8 August 2023, the President of the Russian Federation issued Decree No. 589 "On the Special Procedure for Settlements Under Foreign Trade Contracts for the Supply of Russian Agricultural Products" (Decree 589). The document, which took effect on the date of its official publication, was posted on the online legal information portal on 8 August 2023.