The Bank of Russia has promulgated the Code of Responsible Investment tailored for institutional investors allocating capital in equities. The Code delineates comprehensive recommendations on the organization of responsible investment processes, issuer monitoring, the exercise of corporate rights, conflict of interest management, and disclosure practices. Particular emphasis is placed on engagement with joint-stock companies and the coordination of actions among investors.

Adherence to the Code, it is underscored, will foster:

• sustainable business development over the long term;

• enhanced investment appeal of companies;

• increased returns on equity investments;

• and the achievement of the national objective—to boost the capitalization of the Russian stock market.

Partner Alexander Kuznetsov, alongside lawyers Delgira Akuginova and Vasilisa Lopatina, have prepared an alert providing an in-depth analysis of the Code’s provisions and their implications for institutional investors and the joint-stock companies in which they hold stakes.