Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Bill to Undo Privatization Sales Passed

The State Duma passed a bill on renationalizing private property in a first reading Wednesday, but President Vladimir Putin is unhappy with the legislation, Interfax reported.

Of the four renationalization projects proposed, only one, authored by Adrian Puzanovsky of the People's Deputy faction, won more than the 226 votes necessary to pass the first reading.

However, presidential representative Alexander Kotenkov told the assembly before the vote that none of the proposed drafts fulfills Putin's requirements.

A bill on renationalization must stipulate that "in peacetime, there can be only two reasons for renationalizing property: a court decision stating that property was illegally privatized and bankruptcy," Interfax reported Kotenkov as saying. In the case of bankruptcy, renationalization is only one of many options to decide the fate of a company, he added.

Kotenkov said the deputies should delay their decision until a new draft is drawn up. Presidential representative to the Duma Andrei Login earlier had told deputies that the government will prepare its own draft in the second quarter.

After the Duma session, Login said that Puzanovsky's draft would not pass in the second reading.

Puzanovsky's draft says that renationalization can be performed only if the owner of the property is compensated in a "fast, effective and adequate manner."

"The market value of a property is to be rated by an independent auditor," the draft says.

Property owned by foreign investors can be renationalized only in line with Russian legislation on foreign investment and according to international agreements, the draft says.