MOSCOW, July 12. /TASS/. Russia’s State Duma (lower house) has passed in the third and final reading a bill extending specific rights of banks under sanctions to restructure. The bill’s provisions were formalized as amendments to the second reading of the bill on the seizure of residential property from corrupt officials.

The document extends for one year (until December 31, 2024) the right of credit institutions blacklisted by foreign states and international entities to reorganize in the form of a separate, new legal entity that is not a credit institution, which is then provided with assets frozen as a result of the restrictions imposed.

In July 2022, a law came into force that enables sanctioned banks to carry out a reorganization: to set up a new legal entity, transfer to it the assets blocked due to restrictions, as well as liabilities in the form of obligations to foreign creditors. It was suggested that after that all payments on debts to non-resident clients would be made at the expense of the assets of the new company.