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Russia proposes squeezing more budget funds from state asset seizures
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Russia proposes squeezing more budget funds from state asset seizures
Oct 4, 2024 8:21 AM

Oct 4 (Reuters) - Russia's government has proposed

ordering state companies that acquire assets and property

through court decisions to pay 50% of the assets' market value

to the federal budget, a note published by the lower house of

parliament showed.

More than 1 trillion roubles' ($10.54 billion) worth of

strategic enterprises and assets, seen as critical for

developing Russia's economy and defence capabilities, were

transferred to state ownership by Russian courts last year,

Prosecutor General Igor Krasnov said in March.

The draft law, if passed, would come into force in 2025, and

the assets would be subject to an independent valuation, the

note published on the State Duma's website said.

After winning approval in the Duma, the law would also need

to be passed by Russia's upper house of parliament and signed by

President Vladimir Putin.

It was not immediately clear whether the government would

extend the law's proposed powers to assets seized from foreign

hands in the wake of Russia's war in Ukraine, which has seen

scores of foreign companies leave the country.

Moscow has placed several foreign assets under "temporary"

state ownership, including Finnish utility Fortum

and Danish brewer Carlsberg.

Those assets currently remain under the control of Russia's

federal property management agency, Rosimushchestvo, but French

yoghurt-maker Danone saw its assets seized and a sale

to a pro-war Russian businessman forced through.

The RBC daily quoted a lawyer as saying that the law would

probably not be applied retrospectively.

($1 = 94.9000 roubles)

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