Foreign-controlled manufacturers of processed fish products in Russia will not be exempted from the provisions of a new foreign investment bill recently signed into law by President Vladimir Putin.
The new law concerns foreign investments in organisations, "whose activities are of strategic importance for the defence and security of the state," the Russian Federal Agency for Fishery (Rosrybolovstvo) said on Tuesday, March 10. "It also applies to fisheries activities that ensure [Russia's] food security."
Rosrybolovstvo said foreign investor-controlled producers of fish products sell those products mainly abroad.
"This interferes with the stable operation of Russian enterprises for harvesting (catching) and deprives Russians of affordable fish products," the agency explained.
"Therefore, for transactions involving the acquisition by foreigners of assets (shares, shares, property) of enterprises that produce fish products, it will be necessary to obtain the approval of the Government Commission for Control over Foreign Investments."
Rosrybolovstvo said the commission's approval is necessary due to "current geopolitical conditions."
Previously, the special procedure for foreign investment applied only to fishing. Now the strategic list also includes the production of fish products and pasture or pond-based aquaculture of Pacific salmon.
An enterprise will be classified as strategic if the share of revenue from its sale is 50 per cent or more of the total revenue for the year, and the value of assets exceeds RUB800 million (US$10 million).
