On 8 August 2024, amendments entered into force simplifying the procedure for registering private foundations and addressing a number of pressing issues in their operation¹:

• Not only the founder, but also third parties may now contribute assets to a private foundation on a gratuitous basis.
• Information about the founder of a private foundation will be removed from the Unified State Register of Legal Entities (USRLE), and the charter will no longer be available for public access.
• Private foundations have been removed from the competence and oversight of the Ministry of Justice, and the Law on Non-Profit Organisations will no longer apply to them.
• The application for registering a private foundation must now be submitted electronically to the Federal Tax Service by a notary, with registration completed within three working days.
• The founder of a private foundation may prohibit themselves, through a special clause in the charter, from amending the charter, management terms, or internal documents, thereby distancing themselves from the foundation.
• Transfers of currency valuables (foreign currency, foreign securities, digital rights) from the founder to the private foundation and from the private foundation to beneficiaries are now permitted.
• The application of foreign law to a private foundation is permitted where there is a foreign element (e.g. a foreign citizen or a foreign organisation).
• The charter of a private foundation may now contain an arbitration clause, allowing disputes between the foundation, the founder, beneficiaries, and the foundation’s governing bodies to be referred to arbitration.
• Private foundations are now fully subject to anti-money laundering legislation.
• Private foundations have been granted the status of qualified investor, giving them access to international exchanges and market instruments unavailable to ordinary market participants.
• The provisions on private foundations now apply to international private foundations, and the asset value threshold for their registration has been reduced from RUB 5 billion to RUB 500 million.

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