Rashist assets: what property of the invaders will be seized by Ukraine

Rashist assets: what property of the invaders will be seized by Ukraine 1536 768 Олександр Шкелебей

And what the new law implies

The full-scale aggressive war that the Russian Federation has unleashed and is waging against Ukraine and the Ukrainian people forces our state to defend its interests on all fronts. Thus, from March 7, 2022, the forced seizure of property rights of the Russian Federation and its residents in favor of the state of Ukraine is carried out without any compensation (reimbursement) of their value. The relevant Law of Ukraine “On the Basic Principles of Forced Seizure in Ukraine of Property Rights of the Russian Federation and its Residents” Verkhovna Rada adopted March 3, 2022 (№2116-IX). What does the document provide and what assets Ukraine can get, explained Mindmanaging partner of ESQUIRES law firm, attorney Oleksandr Shkelebey.

According to the new law, the Cabinet of Ministers should introduce to the National Security and Defense Council of Ukraine (NSDC) a project of the relevant decision, which should be approved by a decree of the President of Ukraine. The decision on forced seizure is taken by the NSDC and put into effect by the decree of the President of Ukraine. The above-mentioned document should be regulated by compulsory free seizure in favor of the State of Ukraine of objects of ownership of the Russian Federation and its residents. It is subject to movable and immovable property, funds, deposits in banks, securities, corporate rights, other property (assets) located (registered) in the territory of Ukraine and directly or through affiliates belong to the Russian Federation and its residents.

This decree of the President of Ukraine is the basis for registration of ownership of the forcibly seized property under the state of Ukraine in the person of the Cabinet of Ministers of Ukraine. Property, registration of ownership of which is not required in accordance with the law, goes into the ownership of our state from the date of adoption of the decree of the President of Ukraine.

Currently, the above documents have not yet been made public.

Whose property is subject to seizure?

Residents whose property is subject to compulsory free seizure in favor of the State of Ukraine, according to the Law №2116-IX include legal entities (their branches, representative offices) operating in accordance with the legislation of Ukraine on the territory of Ukraine. It refers to legal entities, the founder (participant, shareholder) or beneficiary of which directly or indirectly is the Russian Federation and/or in which the Russian Federation directly or indirectly has a share in the authorized capital, shares, shares, other membership (participation in any form) in a legal entity.

Forcibly seized in accordance with the Law №2116-IX objects of property rights of the Russian Federation and its residents are transferred to economic management on a temporary or permanent basis to a specialized state enterprise. The latter, if necessary, is created by the decision of the Cabinet of Ministers of Ukraine on the basis of seized property rights of the Russian Federation and its residents (integral property complexes).

Depending on the type of object of ownership of the Russian Federation and its residents (movable and immovable property, corporate rights, deposits in banks, etc.), forced withdrawal in favor of the State of Ukraine will have its own peculiarities.

For example, if the real estate is forcibly seized, the ownership of it will be subject to registration by the state of Ukraine, namely, the property will be transferred to the economic entity (if necessary) to a specialized enterprise created by the decision of the Cabinet of Ministers of Ukraine on the basis of seized property rights of the Russian Federation and its residents (integral property complexes).

What will happen to the staff of seized enterprises?

In addition, the law does not provide for automatic preservation of jobs or personnel in case of forced seizure of property in favor of the state of Ukraine.

However, it is logical that staff is needed to ensure economic activity on forcibly seized property. It is likely that this issue will be resolved taking into account social interests in each individual case.

When will the deletion start?

Since March 7, the NSDC and the President of Ukraine have already been empowered to forcibly seize обʼєктів property rights of the Russian Federation and its residents.

The decree of the President of Ukraine on the introduction of the NSDC decision on forced seizure is the basis for registration of ownership of seized property under the state Ukraine.

Not later than in the six-month period after the cancellation or completion of martial law in Ukraine, the decree of the President of Ukraine, which put into effect the decision of the NSDC on the forced seizure of property rights of the Russian Federation and its residents in Ukraine, is subject to approval by the Verkhovna Rada of Ukraine by adopting the relevant law.

The Law of №2116-IX does not exclude and does not limit the rights of the State of Ukraine to demand in accordance with the norms of international law the prosecution of the State of the Russian Federation, including to demand reimbursement (compensation) of damage caused by a full-scale aggressive war, which the Russian Federation has unleashed and leads against Ukraine and the Ukrainian people in violation of international law, committing crimes against humanity.

Source: Mind.ua

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