11:11 05.03.2022

Ukrainian govt imposes moratorium on fulfillment of obligations to Russia, persons associated with Russia

3 min read

The Cabinet of Ministers has introduced a moratorium (ban) on the fulfillment of obligations to Russia and persons associated with the Russian Federation.

In particular, according to Resolution No. 187 dated March 3, the government, in order to ensure the protection of national interests in future claims by the state of Ukraine in connection with Russia's military aggression, established a moratorium (ban) on the execution, including by force, of monetary and other obligations by creditors (claimants) for which the Russian Federation or persons associated with the aggressor state are: citizens of the Russian Federation; legal entities established and registered in accordance with the legislation of the Russian Federation; legal entities established and registered in accordance with the legislation of Ukraine, by the ultimate beneficial owner, member or participant (shareholder) having a share in the authorized capital of 10 percent or more, which is the Russian Federation, a citizen of the Russian Federation or a legal entity established and registered in accordance with the legislation of the Russian Federation.

"The specified restriction does not apply to citizens of the Russian Federation legally residing on the territory of Ukraine, and legal entities established and registered in accordance with the legislation of Ukraine, the ultimate beneficial owner, member or participant (shareholder) of which are exclusively citizens of the Russian Federation residing in territory of Ukraine legally or exclusively citizens of Ukraine and citizens of the Russian Federation legally residing on the territory of Ukraine," the document says.

The moratorium also applies to the alienation, pledge, any other actions that should or may entail the alienation of real estate, securities, corporate rights, vehicles, aircraft and ships, inland navigation vessels by persons associated with the aggressor state, except for free alienation in favor of the state of Ukraine.

In addition, the prohibition applies to the alienation, pledge, any other actions that should or may entail the alienation of real estate, securities, corporate rights, vehicles, aircraft and ships, inland navigation vessels in favor of persons associated with the state - aggressor, or in favor of the Russian Federation.

Among other things, the government has established that: transactions (including powers of attorney) concluded in violation of the moratorium specified in paragraph 1 of this resolution, including if they provide for a corresponding alienation in the future, are void; notarial certification of transactions that violate the moratorium is prohibited.

According to the decision, the decision comes into force from the day of its publication and is valid until the entry into force of the law on the settlement of relations with the participation of persons associated with the aggressor state, but not more than one month from the date of termination or cancellation of martial law.

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