Russia’s Ministry of Economic Development is developing a bill to create a scheme for attracting investment through SPAC-companies. This, сообщают «Izvestia».
In the ministry’s plan, regulation should simplify access to the exchange for private companies.
«This mechanism will enable attracting investors’ funds into promising companies through the placement of shares or digital assets of the newly created project company (SPV),» the Ministry of Economic Development’s press service said.
Currently, exchange-traded and crowdfunding mechanisms are used for this. The use of SPAC companies will allow domestic private firms to “more easily find sources of financing — the initiative will save them time and money on listing,” added the Ministry of Economic Development.
According to an excerpt from the roadmap seen by the publication, SPACs are intended to invest in the shares of promising companies at the originator’s discretion, who is typically a successful investor with a business reputation.
Regulation will require such SPACs to keep raised funds in escrow accounts, impose investor qualification requirements, set a maximum price for one SPV share, and define the lifespan of such SPACs.
In May 2021, the government and the Central Bank approved a roadmap for financing investments, which among other things envisages introducing in Russia a new mechanism — SPAC. There is currently no legislative framework for it.
On 1 January 2020, Russia enacted the law “On attracting investments using investment platforms” (the “Crowdfunding” law), which, among other provisions, establishes general principles for conducting ICO.
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