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Russian Law Proposes Foreign Asset Seizures to Compensate Those Affected by Ukraine Sanctions

Posted October 09, 2014

Under Economic Issues, International Trade Issues

(Mark Hanrahan – IB Times)

Russia took the first step Wednesday toward enacting a law that would allow foreign-owned assets to be seized and used to compensate citizens and companies that have been targeted by Western Sanctions over the war in Ukraine.

The legislation is known unofficially as the “Rotenberg Law” in Russia, named after Arkady Rotenberg, a wealthy industrialist and close ally of Russian President Vladimir Putin who had $40 million of real estate in Italy seized by authorities there under U.S. and EU sanctions.

The bill stipulates that Russians whose “rights are infringed” by foreign courts can apply for compensation from the Russian state. Russian courts can then order the seizure of assets owned by the country in question in Russia, to recoup the cost, according to the Financial Times. The types of assets that can be seized for compensation include diplomatic real estate. Read more here.