The Executive Order was signed as a follow-up to the measures set out in Executive Order No. 81 On Additional Temporary Economic Measures to Ensure the Financial Stability of the Russian Federation, dated March 1, 2022, Executive Order No. 95 On a Temporary Procedure for Meeting Obligations to Certain Foreign Creditors, dated March 5, 2022, and Executive Order No. 618 On a Special Procedure for the Execution (Implementation) of Specific Kinds of Transactions between Certain Individuals, dated September 8, 2022.
The Executive Order stipulates, in part, that contracts and transactions that lead, directly or indirectly, to the establishment, change or termination of the rights of ownership to more than 1 percent of shares/stakes in the statutory capital of a Russian lending or insurance organisation, private pension fund, microloan provider or managing company of a joint-stock investment fund, share investment fund or private pension fund shall be executed on the basis of a permit issued by the Government Commission on Monitoring Foreign Investment in the Russian Federation. Such permits are necessary if at least one of the parties to a transaction are foreign citizens with connections to unfriendly states. The Executive Order also lists transactions where this does not apply.
The Executive Order authorises the Central Bank to issue permits for making certain kinds of payments related to obligations to certain foreign lenders with regard to residents that are lending organisations and non-lending financial organisations, and authorises the Ministry of Finance, in coordination with the Central Bank, with regard to other residents.
In addition, the Central Bank shall have the right to issue permits to export foreign currency in cash and/or cash instruments from the Russian Federation in amounts exceeding the amount set out in the Executive Order No. 81, dated March 1, 2022, namely, more than the equivalent of 10,000 US dollars.