The State Duma of the Russian Federation adopted at first reading draft law No. 104796-8 “On external administration for management of organisation.” The document will allow the appointment of external administration for companies with at least 25% of foreign capital.
If the draft law is signed into law, all major international shareholders will be at risk of losing their investments and property in Russia.
In essence, the draft law, supported by the Russian parliament, gives the state unlimited opportunities to influence business entities that have a foreign beneficiary in their composition and allows the micromanagement of covert nationalisation of enterprises with foreign capital.
“Russia has long since abandoned any rules established in the world. Now, they are preparing to extend their barbaric practices to foreign business. The proposed draft law actually legitimises state raiding. After its adoption, any foreign company will be in danger of losing property in an instant. I appeal to international businesses that are still operating in the Russian market and once again urge you to leave Russia before it is too late. This is the last chance to save not only your reputation but also your property,” said Minister of Foreign Affairs of Ukraine Dmytro Kuleba.
It should be noted that the draft law runs counter not only to the international treaties signed by Russia but also to the norms and principles of the Constitution of the Russian Federation, which prohibits the arbitrary alienation of property by the state.