On 8 April 2022, a draft bill on nationalization of assets belonging to persons associated with “unfriendly” states (“Bill”) was submitted to the Russian State Duma.
The Bill defines persons associated with “unfriendly” states very broadly to include foreign citizens and legal entities, their beneficiaries, affiliates and persons under their control. The Bill allows nationalization of all kinds of assets owned by such persons as of 24 February 2022 and located within Russia, including real estate assets, movable goods and property, cash, bank deposits, securities and equity.
The Bill directly provides that no compensation will be paid to the owners of the seized assets and vests the power to take decisions on nationalization in the authorities of Russian regions.
The Bill has not been scheduled for hearing yet and there is no information if its adoption will be supported by the Russian government.
