“Putin signs decree allowing temporary takeover of foreign energy company subsidiaries in response to possible asset seizures”

Russian President Vladimir Putin signed adecreetemporarily taking over the Russian subsidiaries of two foreign energy companies, thus suggesting that if Russia’s overseas assets are seized, Russia may also take similar actions against other international companies.

The decree outlines Russia’s possible retaliation if its assets abroad are compromised. The decree shows that Russia has taken action against the Russian branch of the German company Uniper and the Russian assets of the Finnish company Fortum Oyj.

The decree said Russia needed to take urgent measures in response to related actions by the United States and other countries that were “unfriendly and violated international law.”

European Council President Charles Michel said in October last year that the EU was considering using the confiscation of thefreezeof Russian assets to help rebuild Ukraine.

The chief executive of Russia’s state-owned bank VTB PAO said on Monday that Russia should consider taking over the assets of foreign companies in Russia, such as Fortum, and only after the West lifts sanctions imposed on Russia over the Ukraine war. return these assets.

The decree states that the shares of Uniper and Fortum Oyj have been temporarily taken over by the Federal Assets Administration established by the Government of the Russian Federation. According to a report by the TASS news agency, the Russian Federal Assets Administration said that more foreign companies may find their assets under temporary Russian takeover.

“The decree does not deal with ownership issues and does not deprive the owner of assets. This external management is temporary in nature, which means that the original owner no longer has the right to make management decisions.”

In February, U.S. Treasury Secretary Janet Yellen said Russia should bear the heavy toll of its war on Ukraine, but she also noted that there were “significant concerns” over the seizure of key Russian assets that had been frozen. Legal Obstacles”.

In November last year, the United Nations adopted aresolutiondemanded that Russia take responsibility for launching military operations against Ukraine in violation of international law, and demanded that Russia provide compensation for the material and life losses it caused in Ukraine.

The resolution states that Russia “must bear the legal consequences of all its internationally wrongful acts, including compensation for any damage caused by such acts.”

It was no surprise that the assets of both companies were temporarily taken over.

Fortum has warned its shareholders that its assets in Russia may be confiscated.

Uniper holds an 83.73 percent stake in its Russian subsidiary Unipro, which has been supplying gas to Germany for many years. Even before Russia launched military action against Ukraine, Uniper tried to sell its stake in Unipro. It has found a buyer, but Russian authorities have not approved the deal.