The Limits For Interested-Party Transactions Defined

On 2 May 2017 the Central Bank of Russia published a Directive¹ in which it defined limits for application of the Corporate Laws on interested-party transactions². The limits are taken into account when the price or book value of the transaction does not exceed 0.1% of the book value of the company's assets. Book value of assets is determined according to the company's accounting (financial) statements as of the last reporting date.

Depending on the book value of the assets, the following limits are set:

RUB 20 million for an asset value not exceeding RUB 25 billion;
RUB 50 million for an asset value from RUB 25 billion to RUB 100 billion;
RUB 500 million for an asset value from RUB 100 billion to RUB 1 trillion;