The Ministry of Industry and Trade has proposed broadening a special procedure that governs transactions involving assets owned by foreign companies in countries deemed unfriendly. Specifically, the plan would extend the required state approval to situations where intellectual property rights are alienated or pledged. This shift was reported by Kommersant.
Since March 2022, such approvals have been necessary for the sale of shares, stakes, or real estate. The current proposal expands the scope to cover transfers of rights to brands, technologies, patents, and software programs.
Analysts note that many prominent Russian brands remain under foreign control, creating a risk that these rights could be moved to neighboring jurisdictions, as seen in discussions around the Carlsberg Group.
Lawyer Alexey Sapozhnikov argues that tighter controls are needed to localize production, including in the pharmaceutical sector. He warns that foreign entities might secure more favorable deal terms due to the risk of transferring rights abroad.
According to Alexey Fedoryaki from Redl and Partners, the reform is likely to affect firms seeking to safeguard intellectual property when exiting the Russian market. Such companies may be compelled to monetize their assets at prices favorable to domestic interests.
In early November, U.S. authorities tightened sanctions related to Russian financial activities, influencing banks and ramifications around the St. Petersburg Stock Exchange.
Meanwhile, residents and market participants have discussed practical steps to manage costs amid evolving regulatory conditions.