We’ve blogged about the role of legal and financial translations in the area of foreign investments in the USA. Anyone representing a client with foreign investments in Russia – particularly in the mineral and natural resources sectors – should be aware of the new restrictions implemented last July. In summary, the new restrictions apply to investments in the oil, gas and hard mineral fields, some power transmission companies, along with telecoms, media, aviation and other industries.
The law has a direct sphere of application, and requires prior government approval for the above-mentioned foreign investments. Although the scope of regulations is wide, there are many loopholes. The entire approval process, which mandates multiple levels of review, can take up to six months.
The approval process is based on a detailed application, which must be submitted in Russian. For this reason, an accurate translation by a foreign language legal translator familiar with the Russian legal system is highly recommended. If one fails to comply with the regulation, all transactions can be voided and disinvestments ordered.