Introduces additional restrictions targeting individuals and entities from "unfriendly" foreign States

On August 4, 2023, the Russian Federation enacted Federal Law No. 422-FZ, amending the Federal Law of December 30, 2006, No. 281-FZ, which deals with special economic measures. This new law introduces additional economic restrictions targeting individuals and entities from "unfriendly" foreign States. Special economic measures can be initiated by the President based on proposals from various governmental bodies, and the specific actions prohibited by the law are determined by the Government. Restrictions may include freezing financial assets, imposing non-financial limitations, suspending cooperation programs, altering customs duties, restricting access to Russian ports and airspace, and limiting tourism activities. Restrictions on various financial activities include receiving funds in Russian accounts, including pensions, scholarships, and social benefits. The Bank of the Russian Federation is responsible for overseeing compliance with these measures and has the authority to impose penalties, including activity restrictions and fines of up to 5 million rubles. The law will come into effect on 1 February 2024.

• Type:

  • Treatment and operation (Operational conditions )

• Industry:

  • Not industry specific

• Sources:

  • publication.pravo.gov.ru, Федеральный закон от 04.08.2023 № 422-ФЗ "О внесении изменений в отдельные законодательные акты Российской Федерации", http://publication.pravo.gov.ru/document/0001202308040014?index=11, 04 Aug 2023
  • Stonebridge Legal, Дополнены ограничительные меры в отношении недружественных иностранных лиц, https://stonebridgelegal.ru/ru/analytics/dopolnenyi-ogranichitelnyie-meryi-v-otnoshenii-ned, 07 Aug 2023