Vladimir Putin has authorized the imposition of temporary state control over the property of companies in cases where state authorities determine that firms are not adequately protecting important facilities, including against drone attacks. Putin signed Decree No. 604, “On Measures to Ensure the Security of Critical Infrastructure Facilities of the Russian Federation,” on Aug. 24. The document was published on the country’s official legal information portal and has entered into force.
Decree No. 604 “On Measures to Ensure the Security of Critical Infrastructure Facilities of the Russian Federation”
Grounds for imposing temporary control may include failure to take security measures or a delay in taking them, the violation of established requirements, creating a threat to the facility’s normal operation, or even a delay in restoring it after damage was incurred. The decree separately mentions “ineffective implementation of measures” aimed at preventing drone attacks.
Russian authorities will be able to place all or part of a company’s movable and immovable property, its securities and stakes in Russian legal entities, and its property rights under temporary control. The decision will be made by the government on Putin’s instructions. The Federal Agency for State Property Management (Rosimushchestvo) will step in as the temporary manager by default, unless replaced by a different organization. The manager will receive all relevant ownership powers other than the right to dispose of the transferred property. The decree does not limit the duration of temporary control, which can likewise be terminated by the government on the president’s instructions.
