According to the draft law, jurisdictional immunities of another country and its possessions on the territory of Russia may be limited on the basis of the principle of reciprocity, if in that country the Russian Federation is granted jurisdictional immunity in a more limited manner.
MOSCOW, 28 Oct. The Federation Council approved on Wednesday at the meeting of the law regarding the response to illegal arrests of the Russian property abroad, allowing to restrict the jurisdictional immunity of a foreign state on the territory of the Russian Federation on the basis of the principle of reciprocity.
Jurisdictional immunities of foreign States and their property on the territory of Russia may be limited on the basis of the principle of reciprocity, if in that country the Russian Federation is granted jurisdictional immunity in a more limited manner. It is expected that the adoption of the law will create a good basis for consideration by the Russian courts claims against foreign States in the Russian jurisdiction.
The provisions of the law will be applied, if Russia and the foreign state have agreed otherwise, the document notes.
Foreign state which brought suit in the court of the Russian Federation, entered into the proceedings in a Russian court or taken other action on the merits, will be found to have waived judicial immunity. The refusal of a foreign state from judicial immunity in respect of a particular dispute may not be revoked and will cover all stages of the proceedings.
The law goes to the President of the Russian Federation.
Deputy justice Minister Dmitry Aristov explained that the Russian legislation is currently based on the concept of absolute immunity, according to which the presentation of Russian courts in suits against a foreign state, the seizure of its assets or compulsory execution issued against him the court decision allowed only with the consent of the state concerned.
However, in the legislation of foreign countries the wide spread concept of restrictive immunity or functional immunity. Applying at the present time in Russia the concept of absolute immunity of a foreign state and its property, Russia is at a disadvantage in protecting their interests and property, Aristov has noted.
The magazine Spiegel in mid-September reported that the former shareholders of oil company YUKOS was sent to the Berlin court a request for seizure of property of Russia in Germany in the amount of 42 billion dollars. The arrest may be imposed on real estate of Russia and the revenues of the state energy companies from trading operations in Germany.
Earlier, the European court of human rights ordered Russia to pay former shareholders of YUKOS almost 1.9 billion euros compensation for the violation of their rights to judicial protection and fair trial.
Former shareholders of YUKOS appealed to the court of the district of Columbia (USA) with the requirement to recognize the implementation of this decision in the United States. The Russian foreign Ministry in August informed the American side about the possibility of retaliation against U.S. companies and their citizens in the event of arrest of the Russian property at the suit of the former shareholders of YUKOS.
In June in the case of YUKOS as an interim measure, they seized property, which the governments in France and Belgium see the Russian. As reported by Spiegel, the German companies working in Russia also fear seizures.