The RF lifted restrictions regarding real estate transactions of non-residents from “unfriendly” countries

On March 22nd 2022, RF authorities decided to lift restrictions regarding real estate transactions carried out by non-residents from “unfriendly” countries. These restrictions where first introduced in the beginning of March 2022.

These restrictions have resulted in suspension of project financing by banks in the real estate sector until enough evidence was available to prove that the ultimate beneficiaries of relevant entities qualify as residents of the RF. The Ministry of Finance of the RF announced the week before, on March 17th 2022 that a Government Commission subcommittee for the control of foreign investments considered the petitions and appeals of individuals in such transactions and took a decision to allow RF residents to sell real estate to non RF residents associated with “unfriendly” countries committing unfriendly actions against RF persons and legal entities.

Moreover, as a result of the relief of such restrictions, RF residents are also permitted to purchase real estate from non RF residents associated with the aforementioned states. However, funds for such transactions will have to be transferred and/or deposited to a type “C” account, in the manner prescribed by the Presidential Decree No. 95.

Lastly, residents of the RF are now permitted to fulfill obligations under agreements on participation in shared construction and evidently, are permitted to conclude such agreements, with non RF residents associated with unfriendly countries. More information on the facilitations announced on March 22nd 2022 by RF authorities can be found here (in Russian).