Termination of an "Unfriendly" Foreign Investor’s Right to Buy Back Russian Assets

Legal Alert

On 24 July 2026, the Federation Council approved a law introducing a judicial mechanism for terminating the repurchase rights of investors from “unfriendly” jurisdictions in relation to Russian assets. The law is expected to enter into force once it is signed by the President of the Russian Federation.

The new legislation significantly reshapes the allocation of risks in transactions involving the sale of Russian assets concluded after February 2022. It also simplifies the redomiciliation process to Russia by easing the requirements for confirming a company’s deregistration from a foreign corporate register. These amendments are relevant both for companies considering redomiciliation to Russia and for businesses that have already completed the process. The streamlined procedures are expected to facilitate redomiciliation in the current environment, where foreign restrictive measures continue to impede the completion of corporate migration to Russia.

Finally, the law once again extends the duration of the Economically Significant Organisations (ESO) regime, allowing the suspension of the corporate rights of “unfriendly” foreign holding companies until the end of 2028.

For a detailed overview of the new legislative provisions and their practical implications for businesses, please refer to our Legal Alert.

This publication was prepared by Nato Tskhakaya, Partner and Head of Regulatory Practice; Igor Ostapets, Partner and Head of Corporate Practice; Daniil Ivanov, Counsel, Corporate Practice; Anton Sheronov, Senior Associate, Regulatory Practice; Dzhan Chelenk, Associate, Regulatory Practice; and Nikita Sinitsky, Associate, Corporate Practice.