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Russia Has Introduced a Law Seeking to Protect the Rights of Sanctioned Russians
President Vladimir Putin signed a bill on June 8, 2020 designed to provide legal recourse, in certain cases, to Russian (and foreign) persons who have been sanctioned by foreign states. The bill was officially published as Federal Law No. 171-FZ, setting out amendments to the Arbitrazh Procedure Code of the Russian Federation (the “Foreign Sanctions Law”). The Foreign Sanctions Law will come into force on June 19, 2020.
The Foreign Sanctions Law grants exclusive competence to the Russian arbitrazh (commercial) courts (“the Arbitrazh Court”) over disputes involving a party who has been sanctioned by a foreign state and over disputes involving a Russian and/or foreign party if such dispute arises between such Russian and/or foreign party and restrictive measures against the Russian party is the basis of the dispute.
The aim of the Foreign Sanctions Law is to protect Russian individuals and companies who have been impacted by foreign sanctions and who are therefore potentially unable to receive adequate protection in foreign forum due to their status.