Disposition of property in Russia
Litigation over Russian property
Amidst the complexities of the U.S.-Russia relationship, securing your property interests in Russia requires a counsel who understands the intricate legal landscape and can navigate the ever-shifting sands of sanctions and counter-sanctions. At Viacheslav Kutuzov LLC, we are your trusted bridge: a New York-based legal team specializing in Russian property law, guiding U.S. clients with meticulous expertise and unwavering support.
Our comprehensive knowledge of Russian property law – encompassing real estate, corporate stock, collectables, and luxury assets – empowers us to decipher the maze of legal and regulatory hurdles unique to the current diplomatic climate. We meticulously analyze the impact of sanctions and counter-sanctions on your specific situation, crafting bespoke strategies to facilitate the seamless and compliant disposition of your Russian assets.
We understand the potential pitfalls of navigating this environment. From navigating complex financing options and structuring advantageous transactions to anticipating and mitigating potential legal challenges, we act as your proactive shield, ensuring your every step is calculated and secure.
Whether facing contractual disputes, complex negotiations, or unforeseen legal obstacles, we stand firmly in your corner. Our deep litigation experience and proven track record in advocating for U.S. clients within the Russian legal system empower us to fiercely defend your interests, both in court and through alternative dispute resolution methods.
Inheritance in Russia
Claiming inheritance in Russia may be associated with plenty of legal, economical, political and other risks. Normally, as a first step heirs need to locate an executor of the inheritance. In Russia, the inheritance is executed by notaries, in whose district was the testator's last place of abode (usually a place or residence stated in testator's passport).
As a second step, heirs need to establish their eligibility to claim estate. Eligibility comes from:
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the last will (if any) or
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specific kinship relation with a testator.
Under both eligibility grounds, there is a deadline for claiming an inheritance, which is six months from the date of death of the testator (or the day when court ruling, declaring the testator dead will come into force). The law provides mechanisms to restore this deadline.
If the deceased person did not leave a will, the inheritance property is equally distributed between the heirs of the first tier of succession. If there are no heirs of the first tier of succession or they have not claimed their inheritance (or waived it), the second tier heirs may claim it. There are also some groups of ineligible heirs such as heirs.
Testator's freedom of will to list any person as an heir is limited by a mandatory share of specific groups of heirs, who may claim estate regardless of the content of the will. The following persons are entitled to a mandatory share of inheritance: minor or disabled children of the deceased, disabled spouse and parents of the deceased, disabled dependents of the deceased.
To claim the inheritance the heir has to contact the notary-executor and to file an application along with supporting documents and state fee. If the notary-executor grants the application, the heir shall be issued an inheritance certificate. Such certificate allows the heir to request funds from testator's bank account or to register his/her title to real estate.
They come from the concept of inheritance itself, which comprises not only assets, but also liabilities. The law does not limit assets/liabilities ratio. Therefore, there might be a situation then a heir gets an asset of one ruble worth accompanied by 100 rubles liability. In such situation the law does not allow an heir to separate the assets from liabilities or choose the specific assets/liabilities which an heir prefer to claim. An heir may accept all the assets and liabilities, or reject inheritance totally.
Russian sanctions against U.S. persons
The Russian government has implemented a series of counter-sanctions against U.S. persons in response to sanctions imposed by the United States. These counter-sanctions aim to restrict certain property rights and transactions involving U.S. individuals and entities. This post provides a summary of the key measures taken by Russia in retaliation.
Property Restrictions. Under the Russian counter-sanctions, U.S. individuals and entities face limitations on property rights and ownership in Russia. The measures include:
a) Prohibition on Real Estate Transactions: U.S. persons are restricted from buying or selling real estate, land plots, or other property in Russia. This restriction applies to both residential and commercial properties.
b) Seizure and Confiscation: Russian authorities have the power to seize and confiscate property owned by U.S. individuals and entities within Russian jurisdiction. This includes assets such as bank accounts, vehicles, and other tangible assets.
c) Restrictions on Intellectual Property: Russian counter-sanctions may also impact intellectual property rights held by U.S. entities in Russia. This could involve limitations on copyright, patents, trademarks, and licensing agreements.
Transaction Restrictions. In addition to property restrictions, Russia has imposed various transaction limitations on U.S. persons. These measures aim to impede financial and commercial activities involving U.S. individuals and entities. The key transaction-related restrictions include:
a) Prohibition on Certain Investments: U.S. persons are restricted from making investments in certain sectors of the Russian economy. These sectors may include strategic industries such as defense, energy, and telecommunications.
b) Restrictions on Financial Services: Russian banks and financial institutions are prohibited from providing certain financial services to U.S. individuals and entities. This includes restrictions on loans, credit lines, and other financial transactions.
c) Limitations on Trade Activities: Russian counter-sanctions may include restrictions on imports and exports involving U.S. individuals and entities. This could involve the imposition of tariffs, quotas, or other trade barriers.
d) Visa and Travel Restrictions: U.S. individuals may face limitations on travel to Russia, including visa restrictions and potential denial of entry.
Enforcement and Penalties. Russian authorities have established mechanisms to enforce these counter-sanctions and impose penalties for violations. Non-compliance with the restrictions and prohibitions may result in fines, criminal liability, or other legal consequences.
Viacheslav S. Kutuzov
VIACHESLAV S. KUTUZOV
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