During the last week the government of Russian Federation adopted a number of resolutions and amendments to the current legislation.
The government has imposed a temporary ban on the export of sugar and grain.
The government has imposed restrictions on disclosure of information to protect stock market participants, including:
- shareholders holding at least 5% of the voting shares have the right to access to part of the documents and information about a public joint stock company;
- the list of information for credit, non-credit financial organizations providing services in the financial market that is subject to disclosure and/or provision may be determined by a decision of the Board of Directors of the Bank of Russia.
According to the draft law developed by the Government of the Russian Federation, in case of termination of the management of the organization's activities, an external management administration can be introduced with the combination of the following criteria:
- "persons of foreign states, which are committing unfriendly acts", are controlling persons of the company or own in aggregate, directly or indirectly, at least 25% of its voting shares;
- the book value of the organization's assets is more than 1 billion rubles as of the last reporting date and (or) the average number of employees of the organization exceeds 100 people.
The functions of the external administration will be performed by the State Development Corporation of the Russian Federation, and in relation to financial organizations – the state corporation "Deposit Insurance Agency".
Russian insurance companies are prohibited from entering into transactions with insurers, reinsurers and insurance brokers from unfriendly states.
A number of resolutions aimed at supporting the Russian economy have also been adopted.
A number of arrangements have been made to increase the stability of Russian economy in the face of sanctions.
The government will allocate more than 163 billion rubles for the construction and reconstruction of roads.
The Rosselkhoznadzor has granted permits for the import of food products to Russia over the past month and a half to more than 140 foreign enterprises, including from Turkey, India, China, the Republic of Belarus, Azerbaijan, Kyrgyzstan and Kazakhstan.
The Russian government has produced a counteraction draft plan to Western sanctions, which contains more than 100 initiatives. The amount of funding will be about one trillion rubles.
03.16.2022
Russia will make payments today on two issues of its sovereign Eurobonds worth $117 million:
The Ministry of Finance has already instructed to transfer funds to the international depository and clearing system Euroclear, then the depository will transfer the money to bondholders. The payment order is given in dollars - for its execution, it is necessary to withdraw this amount from the frozen Russian reserves. Russia intends to fulfill its obligations in any case. If the order in the dollars is not executed, it will be withdrawn, and the amount will be transferred to investors' accounts in rubles (at the exchange rate of the Central Bank on the day of payment).
However, we would like to note that a number of provisions and the application of these regulations require further clarification.
IGK Group specialists, within the framework of current reports are interviewing the management of various Russian companies on a daily basis, which allows finding out the current situation in Russian companies. Summarizing the responses of the companies, as well as publicly available information, the following practical conclusions can be made:
1. Payments on trade transactions are carried out abroad normally. To date, all the necessary currencies are available for conversion, all payments have been received by recipients.
2. The main problem at the moment is logistical. According to the magazine "Expert" dated 03/14/2022, according to various estimates, there are more than 300 thousand containers stuck on the way to Russia. Market participants say that up to 50% of the goods imported to Russia and up to 60% of Russian exports have been blocked due to the container boycott. The foreign sea carriers MSC, Maersk, CMA CGM Group, Hapag-Lloyd, ONE, Yang Ming, who announced the boycott, control about 70% of the global container cargo shipping business. Due to the refusal of logistics companies to work with Russian cargoes, the Ministry of Industry and Trade recommended that Russian producers of mineral fertilizers suspend exports. This creates obvious risks of crop failure and, as a result, food shortages in Western and Eastern Europe, Latin America, South and Southeast Asia.
