Saeima restricts Russian and Belarusian stakes in critical infrastructure
The Saeima has adopted in the final reading amendments to the National Security Law barring Russian and Belarusian-affiliated persons from acquiring significant holdings in Category D critical infrastructure entities. The amendments were proposed by the Ministry of Economics.
Members of the Saeima on Thursday approved in the final reading amendments to the National Security Law put forward by the Ministry of Economics. They prohibit persons affiliated with Russia or Belarus from acquiring a significant stake or decisive influence in entities that fall under Category D critical infrastructure.
What the amendments provide
The ministry says the aim is to improve the mechanism for assessing and preventing threats to critical infrastructure and to companies, associations and foundations important to national security. The changes are also meant to reduce the administrative burden on public administration and private individuals, and to clarify some editorial wording.
Category D covers infrastructure whose destruction, reduced capacity or interrupted services would seriously endanger public and state security during a state of emergency or war. It includes entities involved in areas such as food production and trade, heating supply and the circulation of medicines. Unlike Categories A, B and C, specific infrastructure objects cannot be identified here, because the "criticality" lies in the process of providing and organising services.
Persons affiliated with Russia or Belarus also will not be able to become ultimate beneficial owners of such entities or hold indirect influence. A beneficial owner's stake is defined as at least 10% of share capital or voting shares.
Enforcement and transitional rules
The sector ministry will take the restrictions into account when identifying future entities and will monitor compliance among existing ones. The Ministry of Defence, together with the sector ministry, will determine whether Category D already includes entities with significant Russian or Belarusian participation or influence, and will submit proposals to the Ministry of the Interior for removing them.
The amendments also specify which IT service providers may be designated as important to national security, when the Cabinet decides so based on an opinion from a state security institution. In future, a permit will no longer be considered granted automatically if the government has not made a decision within the set deadline.
