Liability abroad where the assets are in Russia

Source: Consul Group

Yesterday the State Duma passed at first reading a bill amending the Code of Administrative Offences so that Russian citizens, foreign citizens, stateless persons and foreign legal entities may be held administratively liable for offences committed outside the country, if those acts are directed against the interests of Russia.

The main provisions of the bill

Liability is established under the Russian Code of Administrative Offences for offences abroad that are directed against the interests of the Russian Federation, even if the offender is outside the territory of Russia.

• A special procedure for notification is introduced: through representatives, by email, or by telephone number.

• Property in Russia may be arrested in order to secure enforcement of the decisions.

• Liability extends to foreigners and to foreign companies "on the general grounds".

Sergei Pivovarchik, managing partner of Consul Group, explains how the mechanism would be applied:

If an individual or a legal entity abroad does something that is treated as directed against the interests of Russia (for example, discrediting the armed forces, or spreading false information), that person may be held liable in absentia. Notice is sent remotely, by email or by telephone, including details taken from open sources (data held on the Gosuslugi public services portal, personal web pages, or social networks). If the fine is not paid, enforcement proceedings are opened, which may lead to the arrest and sale of the offender's assets in Russia.

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