MOSCOW. Sept 8 (Interfax) - The government has submitted to the State Duma a bill on the formation of a list of strategic defense companies. These companies cannot have foreign capital, and other transactions associated with the sale of shares can only be conducted with the consent of the president and subject to some conditions.
The bill has been published in the parliament's electronic database.
Under the bill, a list of strategic defense industry companies will be formed in Russia. Currently, there is only an aggregate register of defense companies in the legal field, which is formed by the Industry and Trade Ministry under the law on industrial policy, and a list of economic entities that have strategic significance for the defense of the country and the security of the state under the law on foreign investment.
The government will submit to the president proposals on the formation of a list of strategic companies in the defense sector. Shareholders of these companies conduct transactions to alienate shares (or transactions in which shares can be alienated or transferred into trust management) with the consent of the president.
"Transactions conducted without such consent are void," the bill said.
Besides, even if there is the president's consent, transactions can be conducted subject to some conditions, including ensuring the possibility of Russia's involvement in the management of an economic entity and keeping the priority areas of operation. The bill also proposes keeping the "resolutive condition" in transactions, which occurs when a company systematically fails to achieve target performance indicators. These target indicators will also be determined by the government.
According to the amendment to the law on procedures governing foreign investment, only Russian legal entities and private individuals can be beneficiary owners of shares (stakes) in strategic defense companies.
If adopted, the document will take effect ten days following its official publication.