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Cancelled Buy-Back: Federal Law No. 319-FZ and Court's Discretion on Seller Compensation

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Summary

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  • The President of the Russian Federation signed Federal Law No. 319-FZ on 4 August 2026, introducing significant changes for foreign investors.
  • This law adds a new Article 20.1 to the Federal Law on Foreign Investments, impacting buy-back options for departing sellers.
  • Russian courts are now empowered to cancel these buy-back options, which were previously utilized by many foreign investors.
  • The law raises questions about compensation, as it places the decision in the hands of the court, potentially altering investor protections.

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