5 Mar 2022 16:19

Ukraine declares moratorium on fulfilment of monetary, property obligations to Russia, persons associated with it

KYIV. March 5 (Interfax-Ukraine) - The Ukrainian government has declared a moratorium (ban) on the fulfilment of "monetary and other" obligations to Russia and persons associated with the Russian Federation.

In particular, under Decree No. 187 of March 3, the government, for the purpose of protecting national interests on future lawsuits of the state of Ukraine, has declared a moratorium (ban) on the fulfilment, including by force, of monetary, and other, obligations in which creditors (claimants) are from Russia or persons associated with Russia: Russian citizens; legal entities created and registered in accordance with Russian legislation; legal entities created and registered in accordance with the legislation of Ukraine whose end beneficiary owners, members or shareholders with shares in the charter capital of ten or more percent are Russian, citizens of Russia, or legal entities created and registered in accordance with Russian legislation.

"This restriction does not apply to citizens of the Russian Federation who live on the territory of Ukraine legally or legal entities created and registered in accordance with Ukrainian legislation whose end beneficiary owners, members or shareholders are solely citizens of the Russian Federation who live on the territory of Ukraine legally, or citizens of Ukraine and citizens of the Russian Federation who live on the territory of Ukraine legally," the document said.

The moratorium also applies to expropriation, pledging, and any other actions that should or can lead to expropriation of real estate, securities, corporate rights, means of transport, aircraft and sea vessels, and inland navigation vessels by persons associated with Russia except for free expropriation in favor of the state of Ukraine.

The ban also applies to expropriation, pledging, any other actions that should or can lead to the expropriation of real estate, securities, corporate rights, means of transport, aircraft and sea vessels, and inland navigation vessels in favor of persons associated with Russia or in favor of Russia.

The government has also decreed that transactions (including proxies) concluded in breach of the moratorium outlined by Paragraph 1 of this decree, including if they envisage relevant expropriation in the future, are void. Notarization of transactions violating the moratorium is prohibited.

According to the decision, the decree takes effect on the day of its publication and remains in effect until the entry into force of the law on the settlement of relations involving persons associated with Russia, but no more than one month from the day of cessation or lifting of martial law.