Right of some large Russian cos to make decisions without removed unfriendly co-owners extended through 2026 - decree

MOSCOW. Jan 12 (Interfax) - Russian President Vladimir Putin has extended the right of a number of Russian companies in the energy sector, including electricity, engineering and trade companies, to disregard the votes of co-owners from unfriendly jurisdictions in corporate decision-making until the end of 2026.

Decree No. 1010 amending Presidential Decree No. 16 of January 17, 2023 on the temporary decision-making procedure for the bodies of certain Russian economic entities has been published on the official legal information website.

Companies in the energy sector received this right in January 2023 if they simultaneously met three criteria - if sanctions have been introduced against their Russian co-owner, if the share of unfriendly co-owners is no more than 50% and if the revenue of a group of the Russian organization's entities exceeds 100 billion rubles for the preceding year.

According to the temporary rules, the votes of unfriendly co-owners and their appointed individuals in management bodies will not be taken into account when determining a quorum and voting results if such a decision is made by the company's other co-owners.

These rules were in place initially until the end of 2023 and were then extended at the end of each subsequent year.