A Russian parliamentary proposal that cleared its first hurdle this week would compensate the country’s so-called financial elite for any assets seized as part of international sanctions imposed on Moscow for its military activities in Ukraine.
The first part of the measure – which passed the lower house of parliament by a vote of 233-202 - authorizes any individual who has property or assets seized abroad to seek direct compensation from the Russian state budget.
The second part empowers the Kremlin to seize any property in Russia of any foreign citizens instigating such cases against Russians abroad. In the absence of property, the bill would permit authorities to seize state property of that country in Russia, even if protected by diplomatic immunity.
The law is a bold attempt to arm the government of President Vladimir Putin with a powerful weapon of retribution, granting the power to directly compensate his cronies, some of whom could have possibly persuaded Putin to reverse course in Ukraine.
The proposal must still be approved in Russia’s upper house of parliament and be signed into law by the president to become law. It is unclear exactly how much impact the legislation would have if it becomes law, but Western corporations do hold billions of dollars worth of assets in the energy-rich country.
Russia’s news media has been referring to the bill as the “Rotenberg Law,” after Arkady Rotenberg, a wealthy industrialist and former judo-sparring partner of Putin. Rotenberg reportedly lost access recently to about $40 million worth of real estate in Italy as part of the sanctions on the country’s financial elite.
Comments