Starting from 23 June 2022, participation of Russian and Belarussian citizens and legal entities in a company or partnership having an importance for the national security is restricted

On 23 June 2022 amendments to the National Security Act come into effect stipulating that the citizens and legal entities of Russia and Belarus are forbidden from:

1. acquiring a qualifying holding or a decisive influence in a company having an importance for the national security;
2. becoming an ultimate beneficial owner of a company / partnership having an importance for the national security;
3. becoming a member of a partnership having an importance for the national security;

If, however, such a person is a member, then beginning from tomorrow the respective member is not entitled to represent the partnership and arrange its records. On the other hand, if such a person is a shareholder having the decisive influence or the qualifying holding or an ultimate beneficial owner, then the respective shareholder (including those persons through whom the ultimate beneficial owner exercises the control / shareholding) cannot exercise the voting rights. Upon establishing the quorum, the respective shares are not to be taken into account.

Provisions of the articles of association or agreement which are contradictory to the said restrictions shall not be valid with respect to the part that does not conform to the restrictions.

A transaction or an action that serves as grounds for acquisition of the right in contradistinction to the restrictions shall not be valid in Latvia from the time of conclusion of the respective transaction or taking of the respective action.