Putin: Russians can be compensated with US assets in Russia

Russian President Vladimir Putin signed an executive order last week allowing US assets held in Russia to be seized and used to compensate Russians whose overseas assets are seized through US action.

‘The President has instructed the Government to establish a special procedure for compensating damages caused to the Russian Federation or its Central Bank if Russian owners’ property title to said property is unjustifiably seized by the decision of the US authorities,’ the presidential office said in a notice, 23 May.

It explained: ‘Under this procedure, a Russian rightsholder is entitled to request a court (subject to Russian rules of jurisdiction) to confirm that they have been deprived of their ownership rights to their property and sue for damages. The court shall request the Government Commission on Monitoring Foreign Investment in the Russian Federation to provide a list of US assets that can be used as compensation for damages. This refers to real estate and movable property located on the territory of the Russian Federation, securities, shares in Russian companies and property rights held by the United States or US persons. By a court ruling, their rights to such US assets shall be terminated and transferred to the Russian aggrieved party in compensation for the damage done to them.’

Putin’s order follows this week’s announcement by the EU that it has authorised the seizure of profits from Russia’s frozen assets in the European Union to benefit Ukraine.