Russian lawmakers approve reciprocation for foreign asset seizure

MOSCOW, Dec 25 (PRIME) – The Federation Council, the parliament’s upper house, on Friday approved a bill to reciprocate for illegal seizures of the country’s property abroad, which allows the government to limit jurisdictional immunity of foreign property in Russia on the principle of mutuality.

A foreign country, which filed a suit to a Russian court, engaged in proceedings in a Russian court or took any other action on the merits will be acknowledged as a state that has rejected its jurisdictional immunity. The bill says that the law will be in force only if Russia and a foreign country cannot reach an agreement.

Deputy Justice Minister Dmitry Aristov earlier said that Russian legislation is based on the principle of absolute immunity, while legislations of other countries are often based on the principle of limited immunity putting Russia at a disadvantage when protecting its interests and property.

To become law, the draft must be further signed by President Vladimir Putin.

The Permanent Court of Arbitration in Hague ruled on July 2014 that Russia must pay a U.S. $50 billion compensation to former owners of Yukos for the company’s bankruptcy and nationalization. Russia refused to fulfill the court order, and the shareholders sent claims to several countries, asking them to help fulfill the court order. Belgian and French bailiffs earlier arrested assets of the Russian government and state-run companies.

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