Russia’s Ministry of Justice is preparing tougher restrictions for citizens designated as “foreign agents.” The Bell reported this, citing remarks by Deputy Justice Minister Oleg Sviridenko.
According to Sviridenko, the ministry wants to deprive “foreign agents” of the ability to carry out gratuitous transactions involving real estate and copyrights in cases where such deals currently do not require notarization.
“At present, it turns out that through a simple donation arrangement or a marriage contract they fictitiously transfer rights and avoid the special account mechanism,” Sviridenko said at the St. Petersburg International Legal Forum.
He said the ministry believes people with the “foreign agent” label are using such transactions to circumvent the requirement that income be transferred to special accounts. For that reason, the ministry wants these deals to be processed through a notary.
Special account rules
In late 2024, the State Duma passed a law requiring the income of “foreign agents” to be credited to special ruble accounts. Those accounts must receive, among other things, proceeds from creative work, income from the sale or rental of real estate and vehicles, interest on deposits, and profits from equity participation in organizations.
The funds on those accounts can only be used after a person’s “foreign agent” status is lifted. The designated person must open the account independently, and if that does not happen, the party paying that person remuneration must open it instead.