Q: I have an American client who has stocks, bonds, and other liquid assets in Russia currently frozen.
I have an American client who has stocks, bonds, and other liquid assets in Russia currently frozen. The US and EU sanctions don’t apply to me, to the client, or to these assets. Can US lawyers help me sell, transfer, or otherwise get them out?
I’ve been asked a number of times about getting investment money out of Russia without violating US and EU sanctions and avoiding Russian monetary limitations enacted in response to the sanctions. Indeed, the topic appeared in a recent article in Bloomberg, but, handled correctly, this topic has little to do with the sanctions of the United States or the European Union, since the freezing of funds was carried out by the Russian authorities. The trick is to coordinate the legal work in the US or EU complying with sanctions with the work of Russian lawyers obtaining special licenses from the Russian authorities to unfreeze funds and to reinvest frozen funds in other assets located in Russia, since the Russian government does not allow money to be withdrawn from the country. After the money is invested in new types of businesses (securities, real estate, etc.), it is possible to transfer part of the funds to the United States. There will be transactional expenses from legal fees from researching and managing the transactions, and there will be more losses from the transactions, themselves. Only part of the funds will make it to the USA, since the remainder will be invested in non-sanctioned Russian assets. Without this, it won’t be possible to obtain a license from the Russian authorities to unfreeze funds. But as they say, it's better to get a part than to get nothing. At the same time, money to American accounts will come not from Russia, but from a third country. Therefore, there is no question of any sanctions.
We have found a qualified Russian legal team to work with. This procedure is time-consuming and multi-step, the financial losses at each step will be significant. The process has to be individually designed based on the assets involved. We should be able to estimate the financial costs by studying the specific circumstances of each individual client. It’s never been cheaper than 30% so far, though we’re always seeking efficiencies, and, with larger accounts, we may be able to cut at least the legal fees. It is possible to pay less if you pay as the work is performed or take the fees from the proceeds.
Stanislav Kshevitskii agrees with this answer
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.