The EU Commission issues Guidance on FDI from Russia and Belarus and calls for greater scrutiny due to increased risk of harm to security or public order

On 6 April 2022, the European Commission (“Commission”) issued Guidance to Member States on how to screen foreign direct investment (“FDI”) from Russia and Belarus into the EU, in light of the ongoing military conflict in Ukraine (“FDI Guidance”). Following Russia’s unjustified attack against Ukraine, with the active support of Belarus, the Commission is concerned that these two governments may have strong incentives to interfere with investments related to critical activities in the EU that may pose a threat to security and public order. The Guidance is intended to remind Member States that, given the current circumstances, any inward FDI that may have a direct or indirect connection to Russia or Belarus should be scrutinised carefully. The Commission FDI Guidance Since the beginning of

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Authors

  • Herbert Smith Freehills (New York)
  • Herbert Smith Freehills (Brussels)
  • Herbert Smith Freehills (Brussels)
  • Herbert Smith Freehills (London)

Quotation

Joe Falcone, Kyriakos Fountoukakos, Daniel Vowden, Veronica Roberts, The EU Commission issues Guidance on FDI from Russia and Belarus and calls for greater scrutiny due to increased risk of harm to security or public order, 6 April 2022, e-Competitions April 2022, Art. N° 106217

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