On June 10, 2026, the President of the Russian Federation signed the Federal Law "On Amending Articles 196 and 217 of Part One of the Civil Code of the Russian Federation." The new amendments aim to establish the statutes of limitations and the procedure for calculating them when challenging privatization transactions.
Context of the Amendments
In its Resolution No. 49-P dated October 31, 2024, the Constitutional Court of the RF concluded that the statutes of limitations provided for by civil legislation do not apply to claims for property forfeiture related to violations of anti-corruption prohibitions and restrictions. At the same time, the Constitutional Court explicitly specified that this conclusion does not extend to lawsuits for the recovery of property due to identified violations of privatization procedures.
In practice, however, uncertainty regarding the application of statutes of limitations when courts review such claims has persisted. Consequently, the drafting of the bill was driven by the need to definitively resolve this issue within civil legislation.
Key Developments
The Law amends Article 217 of Part One of the Civil Code of the RF by adding paragraph 2, establishing the following provisions:
- In the event of applying civil law consequences for violations of legislative requirements during the privatization of state and municipal property, the statutes of limitations and the rules for their calculation established by the Civil Code of the RF shall apply.
- The statute of limitations for lawsuits seeking the recovery of property that has left the possession of the Russian Federation, constituent entities of the RF, or municipal formations as a result of its privatization, as well as for lawsuits seeking other civil law consequences for violations of privatization legislation, cannot in any case exceed ten years from the date the right was violated.
- The court shall refuse to satisfy the claims of public law entities for the recovery of privatized property if ten years have elapsed from the date the right was violated since the property left their possession.
- The prescribed rules will apply both to claims whose filing deadlines arose from the date the law enters into force, and to claims that arose before its entry into force, provided that court decisions on them have not yet entered into legal force.
Commentary
These amendments are aimed at eliminating the existing practical legal uncertainty in the judicial consideration of privatization disputes. Undoubtedly, the enactment of the law will guarantee the preservation of property rights for those who have developed enterprises and invested in them over a long period, even in cases where not all procedures were carried out in strict compliance with the law during privatization more than ten years ago.
At the same time, it is important to emphasize that asset confiscation proceedings under 'anti-corruption', 'anti-terrorism', and 'anti-extremism' lawsuits will remain unaffected by these changes, and no statute of limitations is prescribed for such disputes.