A bill has been submitted to the State Duma establishing limitation periods for claims regarding the “deprivatization” of state and municipal property.
The Russian Government has submitted to the State Duma a bill establishing limitation periods for challenging the privatization of state and municipal property.
The amendments to Article 217 of the Civil Code provide that such claims shall be subject to the general three-year limitation period (calculated from the date the violation is discovered). At the same time, the ultimate limitation period may not exceed 10 years from the date of the violation. A court will be obliged to deny the state’s claim for recovery of privatized property if this period has expired.
The explanatory note emphasizes that such changes will send “a signal of property guarantees for investors who have developed enterprises for years, even if procedural violations occurred during privatization more than 10 years ago.”
It is important to note that the proposed changes will not affect the seizure of property on “anti-corruption” or “anti-extremist” grounds.
