Thematic Review of the Supreme Court of the RF on the Application of Counter-Sanctions
On 17 June 2026, the Presidium of the Supreme Court of the Russian Federation approved Review
No. 11A/2026 on the application by arbitrazh (commercial) courts of legislation on special
economic measures. The document systematizes key legal approaches to the application of
restrictions introduced by Presidential Decrees of the Russian Federation following February 2022.
Below are the principal conclusions of practical relevance:
1. Invalidity of real estate transactions without approval of the Government Commission
Transactions involving the transfer of title to real estate located in the Russian Federation between
a resident and an entity controlled by an “unfriendly” non-resident, carried out without the
required approval, are deemed null and void pursuant to Article 168(2) of the Civil Code of the
Russian Federation.
Where the consideration has not in fact been transferred for the benefit of the “unfriendly” person,
bilateral restitution applies: the seller must return the funds received, and the buyer must return
the property. No recovery in favor of the state is imposed.
2. Breach of strategic investment regulations
If a transaction is completed in violation of Federal Law No. 57-FZ “On the Procedure for Foreign
Investments in Companies of Strategic Importance for National Defense and State Security,” the
court may apply the consequences provided for by Article 15(1.1) of that law, including
recovery in favor of the state of the assets and income derived from such transaction.
3. Prevention of circumvention of currency restrictions
Artificial splitting of payments (including for debt repayment or dividend distributions) aimed at
complying with the RUB 10 million threshold established by Presidential Decree No. 95 is treated
as circumvention of the law. As a result, all such payments are deemed null and void.
4. Limitations on the approval of settlement agreements
Settlement agreements entered into for the purpose of circumventing the special procedure for
performance of obligations established by Presidential Decrees of the Russian Federation are not
subject to court approval.
The Review confirms a strict approach taken by the courts when assessing transactions and
corporate actions aimed at bypassing the existing restrictive measures.
We continue to monitor legal developments and will keep you informed of any significant updates
