Putin signs decree taking over seizure of Russian assets abroad

Moscow: Russian President Vladimir Putin has signed a decree to place assets from unfriendly countries under administrative receivership in response to the seizure of Russian property abroad.

Outlining possible retaliation if Russian assets abroad are seized, the decree showed Moscow had already taken action against Uniper SE’s Russian division and the assets of Finland’s Fortum Oyj.

The shares in the two entities have been placed in the temporary control of Rosimushchestvo, the federal government property agency, the decree said.

In February, U.S. Treasury Secretary Janet Yellen said Russia should bear the costs of damage caused by its war on Ukraine, adding that there were “significant legal obstacles” to confiscating major frozen Russian assets.

The CEO of state-owned bank Bank VTB PAO had on Monday said Russia should consider taking over and managing the assets of foreign companies such as Fortum, only returning them when sanctions are lifted.

Rosimushchestvo said more foreign firms could find their assets under temporary Russian control, TASS reported. The agency would ensure the assets were run in accordance with their importance to the economy.

“The decree does not concern ownership issues and does not deprive owners of their assets. External management is temporary in nature and means the original owner no longer has the right to make management decisions,” TASS cited the agency as saying.

“Expenditures, related to administrative receivership of property, will be covered by incomes from its use. Administrative receivership can be terminated by the Russian president’s decision,” it said.

Last October European Council President Charles Michel said the EU was looking at using Russian assets frozen under sanctions against Moscow towards rebuilding Ukraine.

Asset sales by investors from “unfriendly” countries – as Moscow terms those that imposed sanctions against Russia following its invasion of Ukraine – require approval from a government commission and, in some cases, the president.

In February, Uniper valued its majority stake in Russian division Unipro at a symbolic 1 euro to reflect the likely chance a planned sale to a Russian buyer would fall through. Fortum had already warned shareholders there was a risk its Russian assets could be expropriated.

The decree came into force on Tuesday. The document also contains a list of assets placed under external management.

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