Russia Sets Economic Sanctions Against Turkey (02 Dec 2015)
Russia: Economic Sanctions on Turkey (31 Dec 2015)
On 28 December 2015, the Russian President signed Decree No. 669 clarifying and extending special economic measures against the Republic of Turkey introduced by Decree No. 583 dated 28 November 2015. Decree No. 669 was officially published and came into force on the same day.
The Decree clarifies and extends the ban or restrictions on performance of certain types of works/services in Russia under contracts with suppliers that are either (a) organisations subject to jurisdiction of the Republic of Turkey (the "Turkish organisations") or (b) organisations controlled by Turkish citizens or Turkish organisations.
For this purpose, "control" is assessed in accordance with Law No. 57-FZ "On Foreign Investments into Strategic Entities" (i.e., by reference to direct or indirect control on any basis over more than 50% of voting shares in the company, as well as other instances of control, such as rights to influence the company’s activities under various shareholders arrangements, right to appoint CEO, etc.). Therefore, the ban is extended to apply to direct or indirect subsidiaries of Turkish organisations in Russia and Russian entities whose activities are otherwise influenced by Turkish citizens or organisations.
The list of types of works/services subject to the ban is yet to be adopted by the Russian Government, together with the list of contracts that are excluded from the ban.
Please refer to our December 2015 Special Alert on Decree No. 583 for details on other sanctions and restrictions against the Republic of Turkey.
These special economic measures will apply until they are abolished by a presidential decree. White & Case is actively monitoring the developments.
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