New Legislation Aims to Address Business Concerns Over Asset Seizures
Background: Surge in State Seizures of Private Property
MOSCOW, April 17 – A new Russian draft law would set a 10-year limit on legal claims disputing privatisation deals, after business leaders complained about a surge in state seizures of private property since the start of the military campaign in Ukraine.
Scope of Asset Seizures
Prosecutor General’s Statement
Russian Prosecutor General Alexander Gutsan said this week that private assets worth $52 billion have been seized by the state through various legal claims, including cases involving allegedly illegal privatisation or foreign ownership of strategic assets.
High-Profile Cases and Economic Impact
The seizures, which have included one of Moscow’s biggest airports, the former largest grain trader, a major gold miner and dozens of other companies across multiple sectors, have fuelled concerns that the process could spiral out of control.
Business Lobby Response
RSPP’s Appeal to President Putin
Russia’s largest business lobby, the Union of Industrialists and Entrepreneurs (RSPP), wrote to President Vladimir Putin last December, asking for a statute of limitations for privatisation claims.
Property Guarantees for Investors
“Such a decision will signal property guarantees to individuals who have developed and invested in enterprises for many years, even in cases where not all procedures were carried out in accordance with the law during the privatisation of property more than ten years ago,” it said.
Draft Law Details and Legislative Process
The draft law is intended to provide assurances to current owners, according to an explanatory note accompanying the bill, which was submitted for a hearing in the lower house of parliament on Friday.
Privatisation in Russia: A Controversial Legacy
Privatisation remains a fraught issue in Russia, since some of the biggest business empires were built through hastily organised auctions of state property in the 1990s, which most of society still considers unfair.
Official Statements
“Our fundamental position is that when initiating lawsuits for de-privatisation on any grounds, these norms should apply,” Alexander Shokhin told reporters on Friday.
Additional Information
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(Reporting by Elena Fabrichnaya and Olesya Astakhova; Writing by Gleb Bryanski; Editing by Louise Heavens)