The EU Commission (Commission) consulted stakeholders during the summer to evaluate the Regulation (EU) No 2019/452 (EU-Screening Regulation) and recently published the survey’s results. The consultation is part of the EU’s ongoing evaluation of the current FDI screening framework and follows the recent release of its third "Annual Report on the screening of foreign investments into the Union", as we noted in an earlier briefing. As the Commission is expected to formally propose revisions to the EU Screening Regulation by the end of 2023, the survey’s results highlight the various stakeholders’ views on the framework, which are likely to inform the upcoming changes. Key findings include the following:

The German Federal Ministry for Economic Affairs and Climate Action (BMWK) released its report on the evaluation of the current legal framework for the screening of foreign investments (“Evaluation of the First Act Amending the Foreign Trade and Payments Act as well as of the 15th - 17th Ordinance amending the Foreign Trade and Payments Ordinance”) in September this year. The European Commission (“Commission”) followed shortly thereafter and released its third “Annual Report on the screening of foreign investments into the Union” on 19 October 2023. Both underline that there is an ongoing need for an effective screening of foreign investments, especially during times of crisis, such as Russia’s war of aggression against Ukraine.

On August 9, 2023, the President of the United States, Joe Biden, signed an Executive Order on Addressing United States Investments In Certain National Security Technologies And Products In Countries Of Concern. The Executive Order is the first step towards a so-called outbound investment control, which is to complement the export control and inbound investment control of the U.S. Can the U.S. outbound investment control serve as a model for the EU?

BLOMSTEIN Senior Associate Dr. Leonard von Rummel wurde im Rahmen der gestrigen Mitgliederversammlung des Forum Contracting e.V. in den Vorstand des Vereins gewählt.

BLOMSTEIN advised Helsing, as it did on the previous Series A financing 2021, together with YPOG on the recent Series B financing round with a total volume of EUR 209 million. BLOMSTEIN supported with regard to investment control law. A big thank you goes to Helsing as well as to the entire YPOG team for the trust placed in us!

Mit dem letzten gegen Russland verhängten EU-Sanktionspaket wurde eine ab dem 30. September 2023 geltende Nachweispflicht für die Einfuhr von bestimmten Eisen- und Stahlerzeugnissen eingeführt. So soll sichergestellt werden, dass keine Erzeugnisse in die Union gelangen, die in Drittstaaten unter Verwendung russischer Vorprodukte erzeugt worden sind. Die Frage, wie diese Pflicht für Importeure umzusetzen ist, hat zuletzt für erhebliche Unsicherheiten gesorgt. Auch die „Frequently Asked Questions“ (FAQs) der EU-Kommission, die die Verwendung von sog. Mill Test Certificates (MTCs) vorschlagen, brachten dahingehend keine abschließende Klarheit, sondern weitere praktische Umsetzungsprobleme. Nunmehr hat die Generalzolldirektion sich allerdings zu der Frage positioniert und erklärt, dass auch alternative Nachweise anerkannt werden. Damit wird voraussichtlich die praktische Umsetzung für deutsche Einführer erheblich erleichtert. Wir erläutern in diesem Briefing die Hintergründe und Details.

BLOMSTEIN hat den deutschen Mobilitätsspezialisten ZF Friedrichshafen AG erfolgreich beim Verkauf seiner Anteile an der ASAP Holding GmbH an eine Tochtergesellschaft des indischen Technologieunternehmen HCL Technologies, Inc zu investitions- und fusionskontrollrechtlichen Aspekten beraten. Die Transaktion wurde zwischenzeitlich von den zuständigen Behörden, insbesondere dem Bundesministerium für Wirtschaft und Klimaschutz, genehmigt.

CELIS Institute invited BLOMSTEIN partner Roland M. Stein to join the Institute as Deputy Director. This appointment marks yet another milestone in the yearlong collaboration between CELIS Institute and BLOMSTEIN, further strengthening their shared commitment to advancing strategic dialogue amongst various stakeholders on foreign direct investment policy and economic security.

Any company who has recently applied to the German Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle – BAFA) for an export licence or any other sanctions-related enquiry has had to reckon with long processing times. To speed up these processes, BAFA has, as announced on 1 August 2023, introduced five new and amended several other general export licences (Allgemeine Genehmigungen – AGGs) as well as implemented further procedural changes.

In its judgment of 13 July 2023 in Case C-106/22 Xella, the ECJ ruled that the objective of ensuring the security of supply to the construction sector, in particular at the local level, with respect to basic raw materials such as gravel, sand and clay cannot justify a restriction on the freedom of establishment. The judgment is the first time the ECJ has taken a ruled on the scope of Regulation (EU) No 2019/452 (EU-Screening-Regulation). In addition, it tests the interference with the freedom of establishment by a national investment control regime against established, strict criteria.