Banning offshore organizations from being concessionaires for housing and communal services law adopted in Russia

Russia has adopted a law banning offshore organizations from being concessionaires for housing and communal services. This measure will prevent offshore organizations from entering the housing and communal services sector, which will help improve the safety of such facilities and the quality of services provided by concessionaires.

According to the adopted law, for heat supply facilities, centralized hot and cold water supply and sanitation systems, and individual facilities of such systems, a concessionaire cannot be a foreign legal entity, organization, and other entity established following the legislation of a foreign state and not having accredited representative offices on the territory of the Russian Federation or two or more legal entities that operate under a joint activity agreement and which include these foreign legal entities, as well as a legal entity that is registered in offshore zones, and entities controlled by him.

The law also clarifies the specifics of submitting applications for participation in the tender for the right to conclude a concession agreement and their conclusion for such objects.

The law comes into force on September 1, 2024. The changes do not apply to concession agreements concluded before the date of its entry into force.