Putin welcomes foreign investments in strategic companies
A total of 45 foreign companies have lately delivered bids for Russian strategic assets, Russian Prime Minister Vladimir Putin said in a government meeting yesterday. That shows that foreign companies’ interest in Russia remains high despite the crisis, the premier said.
-Our main objective is to actively facilitate favorable conditions for the promotion of these investments in our economy, Putin stressed in his meeting with the members of the Government Commission on the control of foreign investments yesterday.
He confirmed that about 45 foreign companies recently have delivered bids on the takeover of assets in strategic Russian companies. The assets are within the field of space technology, transport and mineral production, he added, a government press release reads.
-In other words, despite the well-known consequences of the world financial crisis, the interest in the Russian economy remains high, Putin said, adding that a tense competition for the strategic assets is likely to unfold as the crisis comes to an end.
The premier underlined that the control regulations on strategic foreign investments must be facilitated.
According to Russian legislation on strategic resources, foreign companies need the approval of a government commission when bidding for 50 percent or more of a strategic company.
If the foreign company is state-controlled, Russian government approval will be needed also for acquisitions of 25 percent stakes. As previously reported by BarentsObserver, conditions will be even tougher for foreign companies seeking stakes in the mineral extraction industry. In those cases, foreign companies need government approval when they want to buy more than 10 percent of a company. If the foreign company is partly owned by a state, the limit is only five percent.
