To keep foreign companies in Russia, Russian Government has elaborated a draft law on external administration of foreign companies.
External administration (control over the company by the state) is introduced in case the CEO left Russia and does not manage the company, the company is subject to unreasonable closure or bankruptcy. The draft law says that “unreasonable” is when there is every reason to continue the business, but the company is closed anyway (contracts terminated, employees dismissed etc.). The law directly says that public announcements on closure mean that the company is closed “unreasonably”.
The draft law applies to companies with assets of more than one billion rubles or with a team of more than 100 people.
A company may raise an objection against external management and resume its activities. This right is given only once.
It is highly recommended to abstain from making public announcements, support your Russian employees and keep your Russian business running as long as possible.
The lawyers of m|legal support European and international clients in Russia for more than 20 years. We’ve been together throughout all kinds of business and political situations. Our lawyers, accountants and tax advisers will help to keep your business afloat under any conditions. As always, with outstanding quality and care.