Putin signs decree on retaliatory measures on sanctions

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

The preamble of the document, published on Tuesday, says it was adopted due to the “need to take urgent measures” to respond to unlawful actions of the United States and other countries, in connection with seizure of the property of Russia, its companies and citizens.

The Russian property and assets (securities and stakes in charter capitals of Russian companies) of entities from those nations will be placed under temporary administrative receivership In case of such unfriendly moves or if there is a “threat to national, economic, energy and other types of security” and defense capabilities.

The Russian Federal Agency for State Property Management (Rosimushchestvo) will be the administrative receiver by default.

The administrative receiver will perform the duties of an owner “except for the powers to dispose of assets.” It will also take inventory of the property which is under external management and safeguard it.

“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,” the document adds.

The decree came into force on Tuesday.

The document also contains a list of assets placed under external management. It currently has three entries, related to stakes held by foreign shareholders in electric power distribution company Unipro and energy company Fortum.

Rosimushchestvo was granted temporary management of the 83.73% stake in Unipro (owned by German-based Uniper SE) , 69,8807%-stake in Fortum (owned by Fortum Russia B. V.) and 28.3488%-stake in Fortum belonging to Fortum Holding B. V.