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. Last Updated: 07/27/2016

Corporate Raiding Law Proposed

Investigative Committee chief Alexander Bastrykin on Tuesday proposed introducing a new clause in the Criminal Code that would cover corporate raiding, Interfax reported.

Bastrykin also said criminal punishment must also be stipulated for private and state registry offices that act as accomplices in corporate raiding.

Deputy Prime Minister Sergei Sobyanin proposed that the Justice Ministry draft legislature to add the clause.

The Investigative Committee investigated more than 70 cases of corporate raiding over the past two years, of which 12 cases were sent to court, Bastrykin said. It is doing so despite the fact that the crimes do not officially fall into the agency’s purview, he said.

Bastrykin cited the Kumarin group case as one of the larger-scale examples of corporate raiding. He said the group attempted to rip off businessmen of a number of enterprises and shopping malls in St. Petersburg using murder, blackmail and intimidation.