Russia Plans to Ban 'Foreign Agents' from Transferring Real Estate and Intellectual Property Without Payment
Russia's Justice Ministry intends to impose new restrictions on individuals labeled as 'foreign agents,' prohibiting them from making free-of-charge transfers of real estate and intellectual property to circumvent special account requirements.
Deputy Justice Minister Oleg Sviridenko announced at the St. Petersburg Legal Forum that the authorities plan to bar individuals designated as "foreign agents" from transferring real estate and intellectual property without payment, including transactions that currently do not require notarization. Sviridenko said that "foreign agents" use such transactions to bypass the requirement to transfer funds to special accounts. "As things stand today, it turns out that through a simple gift deed or a prenuptial agreement they transfer rights fictitiously and avoid the special account requirement," he stated. The Justice Ministry wants all transactions by "foreign agents" to go through a notary.
At the end of 2024, the State Duma passed a law requiring that income earned by "foreign agents" be deposited into special ruble accounts. These accounts are to receive earnings from creative work, proceeds from the sale or rental of real estate and vehicles, interest income on bank deposits, and dividends or other income from equity participation in companies. Funds from these accounts can only be accessed after the "foreign agent" designation has been lifted.
"Foreign agents" must open the special account themselves. If they fail to do so, the responsibility falls on whoever is paying them to open the account instead.
