Russian President Vladimir Putin has signed a new law imposing sweeping financial, property and consular restrictions on Russians living abroad who have been convicted in absentia.
Under the legislation, Russia’s Justice Ministry will maintain a register of people considered to be avoiding punishment while abroad. The rules cover criminal convictions as well as certain administrative offenses, including violations of “foreign agent” rules, participation in “undesirable organizations,” discrediting the military, calling for sanctions and challenging Russia’s territorial integrity.
People placed on the register could face significant restrictions, including:
- Their money and other assets can be frozen.
- Property transactions can be blocked.
- Access to remote banking and online government services will be restricted.
- They will not be able to take out loans or receive state payments.
- Russian consulates will be prevented from issuing them new passports and most official documents.
- They will be unable to register as entrepreneurs or self-employed workers.
The measures could particularly affect Russians who left the country after the invasion of Ukraine, including anti-war activists, independent journalists and political opponents prosecuted under laws introduced or increasingly used in recent years.
Rights group Perviy Otdel has argued that the restrictions resemble an “effective deprivation of citizenship,” as affected Russians would retain their citizenship while losing access to many services and rights associated with it.
Investor takeaway: The law has limited direct market impact, but it further tightens Russia’s control over financial assets and property belonging to citizens living abroad and adds another layer of political and legal risk surrounding the country.
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