The lawyer stated about the reduction of risks for owners in disputes about privatization

Amendments to legislation are being prepared in Russia, which should limit the time frame for challenging privatization transactions. The new rules can reduce legal uncertainty for businesses and owners of property acquired years after privatization. Gennady Karpov, Director General of the Strategy Law Bureau, told Izvestia on May 28.

He recalled that earlier, Russian President Vladimir Putin had stated that it was impossible to endlessly review the results of privatization and the need to establish a clear legislative framework. The head of state also instructed the government to prepare amendments regarding the statute of limitations for such disputes.

According to the lawyer, the proposed changes actually introduce a limitation period of no more than 10 years from the date of violation of the right. In this case, the key issue will remain the definition of the reference point itself. As the expert noted, most likely, it will be a question of the date of disposal of property from state ownership, however, judicial practice will form the final approach.

"The main objective of the new law is to increase predictability for bona fide owners, especially for those who acquired property many years after privatization and were not involved in the original transactions," Karpov said.

He gave an example from his own practice, where we are already talking about third owners of property: the object was first privatized, then resold, and later inherited. According to the lawyer, attempts to challenge such transactions after 30 years create serious legal uncertainty and risks for civil turnover.

Objective limitation period: the time limit for challenging privatization will be limited to 10 years

How will this protect business interests, and why won't it affect anti-corruption and anti-extremist lawsuits

The expert also drew attention to the fact that the new rules will not apply to cases in which court decisions have already entered into force. The objects previously returned to the state as part of the deprivation will remain in the ownership of the state. At the same time, with regard to current legal disputes, the law may begin to influence practice now. Karpov said that the courts are already taking into account the upcoming changes, despite the fact that the document has not yet officially entered into force.

According to the lawyer, businesses should take into account new approaches in advance when forming a legal position. He noted that the story of deprivation cannot continue indefinitely, and the economy needs stable and understandable rules for the protection of property.

On May 26, the State Duma adopted in the second and third readings a law setting limitation periods in cases challenging the privatization of state or municipal property. According to the new rules, if violations were committed during the transfer of property to private ownership, the limitation period will be three years from the moment they became known.