Temporary management of property of foreign persons

Legal Digest News
According to the text of the Decree, temporary property management is introduced with respect to foreign persons - residents of unfriendly foreign states, or persons who are under their control. The temporary management measure is applied to the following assets of foreign persons:

  • movable or immovable property located in the Russian Federation;
  • securities, shares in the authorized capitals of Russian companies;
  • property rights.

The temporary management procedure is applied in the case of:

  • deprivation of the Russian Federation, its legal entities or individuals of the right of ownership of property located on the territories of unfriendly foreign states, or property rights;
  • restrictions on these rights;
  • occurrence of the threat of deprivation or restriction of such rights;
  • emergence of a threat to the national, economic, energy or other type of security of the Russian Federation.

The the Federal Agency for State Property Management (abbreviated in Russian as “Rosimuschestvo”) has been appointed temporary manager of foreign property. It is assigned with:

  • the powers of the owner of assets, with the exception of the right to dispose of property;
  • functions for conducting an inventory of the assigned property and ensuring its safety.

Please be reminded that countries that commit unfriendly actions against Russia, its individuals and legal entities are recognized as "unfriendly" foreign states. The specified list includes:

  • Australia
  • Great Britain
  • Member States of the European Union
  • Iceland
  • Canada
  • Liechtenstein
  • Monaco
  • Norway
  • Republic of Korea
  • USA
  • Taiwan (China)
  • Ukraine
  • Montenegro
  • Switzerland
  • Japan, etc.

A more detailed list of such states is indicated in the Order No. 430-r approved by the Government of the Russian Federation dated March 5, 2022.

Acsour carefully monitors these legislative changes and is ready to advise on issues of interest to you in this area.