The bill on external management of foreign companies that left Russia was approved in the first reading

The State Duma approved in the first reading a bill that allows the introduction of external management of Russian assets of companies from "unfriendly" countries.

External management, it follows from the document, can be introduced by a court decision in Russian organizations with the participation of foreign companies, which, after February 24, 2022, “in the absence of obvious economic grounds for this,” announced the termination of their activities in the Russian Federation. We are talking about companies where representatives of "unfriendly" countries own at least 25%.

The bill spells out the criteria that a company that is going to introduce external management must meet, for example, such a decision can be made if we are talking about a manufacturer of socially significant goods or essential goods. At the same time, it is indicated that other companies may also fall under external management if the interdepartmental commission under the Ministry of Economic Development decides so.

External managers will decide on the sale of the company at auction. The new owners will have to keep jobs and ensure the continued operation of the company for at least a year.

• The Russian Union of Industrialists and Entrepreneurs (RSPP), recalls Interfax , asked to amend the bill, for example, to increase the share of "unfriendly" foreign participation in the Russian organization from 25% to 50% in order to make a decision on the introduction of an external administration in it.
• According to the Yale School of Management, as of mid-May, since the beginning of the war in Ukraine, about 1,000 foreign companies have announced their withdrawal from Russia or restrictions on activities in the country.