The Canadian Government imposes strict new rules on FDI from Russia in light of the Russo-Ukrainian war

On March 8, 2022, the government of Canada issued a policy statement regarding the review of Russian investments under the Investment Canada Act (ICA). The policy statement was issued in response to Russia’s invasion of Ukraine, which the government called “unprovoked and unjustifiable”, and affects the application of both the ICA’s “net benefit” review process and its “national security” review process. Net Benefit/National Security Reviews The net benefit review process under the ICA requires that all foreign acquisitions of control of a Canadian business that exceed certain thresholds must obtain government approval that the acquisition is of “net benefit” to Canada. Historically, there have been very few foreign investments blocked on net benefit grounds. Rather, almost all reviewable

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Authors

  • Davies Ward Phillips & Vineberg (Toronto)
  • Davies Ward Phillips & Vineberg (Toronto)

Quotation

Mark C. Katz, Jim Dinning, The Canadian Government imposes strict new rules on FDI from Russia in light of the Russo-Ukrainian war, 8 March 2022, e-Competitions March 2022, Art. N° 105837

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