FAQ: How are foreign investments regulated in Russia?

6 June 2025

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Strategic sectors and control mechanisms

The official list of activities considered to be of strategic national importance is extensive, and includes activities related to the space industry, nuclear energy, and transport security. A full list is available here.
Investment in these sectors is governed by Federal Law No. 57-FZ (“On Procedures for Foreign Investment in Business Entities of Strategic Importance for Russian National Defence and State Security”).
Foreign investors wishing to engage in these activities must have their investment approved by the Russian government.

Foreign investments are governed by a number of legislative acts.

Federal Law No. 160-FZ (“On Foreign Investments”).
Article 19.1 of Law No. 2124-1 of the Russian Federation dated 27 December, 1991 (amended on 23 November, 2024) “On Mass Media”. In particular, foreign investors may not act as the founders of broadcasting organisations, media outlets, or their editorial offices. They may hold no more than a 20% share in Russian mass media.
Article 6 of Law No. 4015-1 of the Russian Federation dated 7 November, 1992 (amended on 28 February, 2025) “On Structuring the Insurance Sector in the Russian Federation”. Insurance companies that are more than 49% foreign-owned are not permitted to provide certain types of insurance, including life insurance and compulsory insurance.
Federal Law No. 395-1 dated 2 December, 1990 (amended on 28 February, 2025) “On Banks and Banking”. This law establishes quotas for the participation of foreign capital in the Russian banking sector.
Land Code No. 136-FZ of the Russian Federation dated 25 October, 2001. Foreign nationals and legal entities are prohibited from owning land in Russia’s border territories. Additionally, they may only own agricultural land on a leasehold basis.

Licensing is carried out in accordance with Federal Law No. 99-FZ dated 4 May, 2011 (“On the Licensing of Certain Types of Activities”).
Several commercial activities are subject to mandatory licensing, including in pharmaceuticals and healthcare, chemical production, telecommunications, and transport.
The licensing process can take up to 60 days and requires the submission of documents confirming staff qualifications, equipment safety, and payment of state duties.

Check whether your sector is classified as strategic.
Carry out a detailed analysis of your plan by studying materials provided by the Federal Antimonopoly Service (FAS) and the Ministry of Economic Development and consulting experts in Russian corporate law.
Consider partnering with local companies to mitigate regulatory risks.
Consider any localisation and technology transfer requirements that may be required when entering the market.
Engage legal support for licensing procedures and transaction approvals.