Siluanov named the reasons for the introduction of external management in foreign companies

The Russian authorities are introducing external management in the structures of foreign companies in response to similar actions of Western countries in relation to the “subsidiaries” of Russian organizations. Finance Minister Anton Siluanov told reporters about this.

The minister recalled that since 2022, Western countries have gradually tightened sanctions against Russian citizens and organizations. In particular, work is underway to create legal conditions for the confiscation of frozen Russian assets, external management is being introduced in relation to the subsidiaries of Russian companies, and “the property rights of Russian legal entities and individuals are illegally deprived or limited.”

“Russia is taking retaliatory measures by introducing external control of a number of companies from unfriendly countries. <...> However, it should be especially noted that this happens in exceptional cases when companies do not comply with their obligations, incl. of a social nature, or violate the legislation of the Russian Federation,” Siluanov said.

The minister noted that “conscientious companies” receive support from the government and relevant departments on issues related to the continuation and adjustment of activities in RUSSIA. The relevant appeals are considered by a government commission.

According to the European Commission, more than €200 billion ($215 billion) of assets of the Russian Central Bank are blocked in EU countries . Also, according to the EC, €24.1 billion of assets belonging to sanctioned Russians and companies have been frozen. In September, the United States estimated the total value of frozen Russian assets worldwide at approximately $280 billion.

Russian authorities consider the sanctions illegal. In April 2023, President Vladimir Putin signed a decree “On the temporary management of certain property,” providing for the introduction of external management for movable and immovable property of persons from unfriendly countries. The same measures can be used in relation to their property rights, securities and shares in the capital of Russian legal entities. The decree calls such a step “a response to unfriendly actions.”