The Ministry of Justice has developed a procedure for the confiscation of property of foreigners in Russia

In May 2024, Vladimir Putin signed a decree providing for the possibility of judicial compensation for damage caused by property of the United States and related foreign entities, including securities and shares in the capital of Russian companies.

According to the draft law of the Ministry of Justice, claims for proportional damages must be submitted to the Arbitration Court of the Moscow Region. The plaintiffs can be the Russian Federation itself, the Bank of Russia, a federal executive body appointed by the government or the Prosecutor General’s Office.

The accused will be foreign states. When the list includes assets of a natural or legal person, they will be included in the lawsuit as a co-defendant. The court’s decision to satisfy the claim is subject to immediate execution, as indicated in the document.

The amendments proposed by the Ministry of Justice are the authorities’ reaction to the ongoing debate in foreign countries over the possible confiscation of the sovereign assets of the Central Bank, Anton Namenov, senior partner at the Pen & Paper law association, suggested in an interview. with Vedomosti. .

“This measure is a response to the US law adopted in April 2024, which allows the confiscation of Russian sovereign assets,” confirmed Maria Udodova, senior lawyer in BGP Litigation’s compliance and sanctions legal practice. So far it is “dormant”, so it is premature to talk about a real seizure of foreign assets, the expert added.