Putin decree Streamlines Asset Sales Amidst Frozen Russian funds Debate
MOSCOW – A new presidential decree signed by Vladimir Putin accelerates the nationalization and sale of assets linked to entities deemed “unfriendly,” a move widely interpreted as retaliation for Western discussions regarding the use of frozen Russian funds to aid Ukraine. the decree, announced this week, alters procedures for selling federal assets under decisions made by the President, shortening timelines for valuation, registration, and transfer of ownership.
According to anti-corruption expert Ilya Šumanov, speaking to the autonomous Russian market portal, the decree represents a measure of “exclusive, accelerated nationalization.” The document itself cites actions by nations “headed by the United States” as justification, framing the move as protection of national interests.
The decree mandates that market value for assets sold under the new procedure be determined within 10 days. PSB Bank, specializing in defense sector transactions, will handle the sales. Šumanov explained the decree primarily targets large assets already confiscated from foreign owners and currently under external management, though it could theoretically apply to property seized from Russian citizens. He noted a previous, more protracted legal process for privatizing such assets, which this decree circumvents.
The move follows a European initiative to perhaps utilize approximately $140 billion in frozen Russian assets to provide a compensatory loan to Ukraine, repayable only upon Russian payment of war reparations. European Union leaders are scheduled to discuss the proposal this Wednesday, with German Chancellor Friedrich Merz recently voicing support.
Sence 2023,Putin’s decrees have authorized the temporary management of foreign companies operating in Russia. According to law firm NSP, the value of property taken from foreign owners by the Russian state over the past three years totals 3.9 billion rubles. Some Western companies continue to operate within Russia despite the ongoing geopolitical tensions.
