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Decree on response to seizure of assets to help ensure energy sector's stability — Kremlin

In general, it is noted that the decree mirrors the actions of the enemies of Russia

MOSCOW, April 26. /TASS/. The decree signed by President Vladimir Putin on how to respond to the seizure of Russian assets abroad outlines that a special compensation fund is to be created in case such actions are taken on foreign territory. The document is designed to reduce the risks surrounding the stable operation of the country's energy sector, Kremlin spokesman Dmitry Peskov told reporters on Wednesday.

"The main goal of the decree is to set up a compensation fund for the possible use of tit-for-tat measures in response to the illegal expropriation of Russian assets abroad. External management is introduced pointwise in respect to generating assets, which are of paramount importance for the stable functioning of the Russian energy sector. This will allow us to simply ensure the stable operation of companies important for the economy, to eliminate any risks when the position of unfriendly countries will negatively affect our economy. This is how we hedge our own risks," he explained.

According to the Kremlin spokesman, if necessary, the list of enterprises in which external management is introduced by decree can be expanded.

When asked on what basis this list will be expanded, the press secretary said that it concerns companies from unfriendly countries.

In general, he noted that the decree mirrors the actions of the enemies of Russia.

"The decree is a response to the aggressive actions of unfriendly countries, which are aimed at creating a regulatory framework for the actual seizure of assets of Russian companies abroad. This initiative reflects the attitude of Western governments towards foreign assets of Russian companies," Peskov explained.

He stressed that in a number of states, there is a systematic transition from temporary management to the actual seizure [of Russian assets]," he said.

In this regard, Peskov drew attention to the difference between this measure and the actions of Western countries. "This decree does not deal with property issues and does not deprive owners of their assets, since external management is temporary and only means that the original owner no longer has the right to make management decisions," the Kremlin spokesman said.

"As for the external manager, he receives powers that allow him to ensure the efficiency of enterprises in accordance with their importance for the Russian economy," Peskov concluded. He did not answer a question about whether the owner can sell assets during the external management, noting that "the decision is still made by the external manager."

About decree

The document was published on April 25. It establishes the possibility of introducing temporary management for foreign assets in Russia in the event of seizure of Russian property abroad. Such measures have already covered 83.73% of the shares of Unipro and 98% of the shares of Fortum (these companies were subsidiaries of international holdings in Russia).