Update On EU Foreign Direct Investment (FDI) Screening Framework And Sanctions Interaction

EU Commission Updates FAQs on FDI Screening Regulation (EU) 2019/452

On 14 May 2025, the European Commission published an updated version of its Frequently Asked Questions (FAQs) concerning the implementation of the EU Framework for the Screening of Foreign Direct Investments (FDIs), including guidance on its intersection with the EU's restrictive measures (sanctions).
This update impacts for all stakeholders engaged in cross-border investments, particularly those involving third-country investors, including from Russia and Belarus.

Key Updates:

1. The Commission has revised its FAQs on the implementation of Regulation (EU) 2019/452, which establishes a unified EU framework for screening FDIs that may affect security or public order in the Union. It clarifies the scope, process and key risk indicators for Member States conducting FDI reviews.