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. Last Updated: 07/27/2016

Court Clarifies Sell-Off Reversals

The Constitutional Court ruled Wednesday that government authorities cannot reverse privatizations of state property without court approval.

The court also said that if buyers of state property are found to have violated investment requirements, they must forfeit the property to the state without being compensated.

Government officials praised the decision, saying it clarified and tightened control over the privatization process.

In the 1990s, many valuable national assets were sold at bargain prices to moguls with Kremlin connections.

Alexander Braverman, first deputy property minister, said things have improved thanks to a 1997 law on privatization. Until Wednesday's ruling, such disputes could be settled out of court.