State Duma backs restrictions on foreign investment in Russia

MOSCOW: Russia’s lower house of Parliament backed new restrictions on foreign investment Wednesday, limiting access to strategic sectors like oil and gas, aerospace and mass media.

The legislation – which widens the Russian security services’ power in business transactions – has raised concern among foreign investors.


The State Duma passed the bill in its final reading by a vote of 384 to 55, sending it on to the upper house, the Federation Council. It then goes to the Kremlin for the president’s signature.

The legislation stipulates that any private foreign company seeking to buy more than 50 percent of a company in one of 42 “strategic” sectors will need authorization. A commission made up of Russian economic and security officials would review such deals.

IHT