Measures to ensure economic sovereignty and economic security have been specified
Pepeliaev Group advises that new amendments Federal Law No. 600-FZ “On amending individual items of the legislation of the Russian Federation” dated 19 December 2023.
to Federal Law No. 127-FZ “On measures impacting (counteracting) hostile actions of the United States of America and other foreign states” dated 4 June 2018Below in the text referred to as "Federal Law No. 127-FZ dated 4 June 2018".
have come into force.
The purpose of introducing the amendments is to make more specific the provisions related to the corrective actions applied that are aimed at ensuring financial stability of Russia and to specify the time for which the corresponding provisions are in effect.
The corrective actions specified in article 4.2 of Federal Law No. 127-FZ in the new version are called as follows: “corrective actions aimed at ensuring the economic sovereignty and economic security of the Russian Federation”.
Please be reminded that these measures are introduced by the Russian President. The following powers are provided for as new measures:
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to establish the specifics of creating, reorganising, and liquidating Russian legal entities as well as of their legal status, including the provision of information about their activities and transactions, including notary certificates and record keeping, and the specifics of recording information about securities;
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to establish a special procedure for public law entities and residents to perform obligations to hostile foreign states;
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to introduce temporary administration with respect to movable and immovable property located in Russia and belonging to persons from hostile states, as well as their property rights, their securities, shares or interests in issued (joint) capitals of Russian legal entities;
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to establish a special procedure for levying execution on monetary funds, securities and other property that must be credited to special accounts (booked on special accounts), including seizure and other provisional remedies;
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to establish a special procedure for preparing, agreeing, adopting and enforcing subordinate regulations governing relationships associated with entrepreneurial and other economic activities.
Comment
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In fact the list of measures is not exhaustive. Specifying the contents of a measure is most likely aimed at enshrining already existing practice that has been reflected in already adopted Presidential Decrees on similar issues.
- Federal Law No. 600-FZ explicitly provides that article 4.2 of Federal Law No. 127-FZ (as amended) applies to relationships arising from 24 February 2022. This negates any discussions of whether it is legitimate to introduce certain restrictive measures by Decrees of the Russian President and eliminates uncertainty in the legal classification of such measures.
Help from your adviser
Pepeliaev Group’s legal team has extensive experience in advising on issues associated with subordinate regulations adopted to ensure economic stability and to apply special economic measures.
We are ready to provide comprehensive legal support to legal entities whose activities are subject to the restrictive measures introduced by the Russian President’s Decrees.
Translated by the Translation Department of Pepeliaev Group.