Alerts | Laws and regulations

Russian parliament restricts royalty payments for “foreign agents”

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On 20 November 2024, Russia’s State Duma (lower house of parliament) voted in first reading a law which restricted royalty and other “intellectual activity” payments to Russians designated as “foreign agents”, according to an article published on the Duma’s website and reports by Russian independent media.

If the law is adopted, “foreign agents” will have to open a special account in Russia, on which they would be obliged to receive all payments for a wide, vague range of activities, which the Duma defined as “remuneration and other payments […] for the use of the products of their intellectual activities and branding.”

“Foreign agents” would not be able to access the money wired on this account until their status is lifted. If a “foreign agent” refuses to open such an account, the legal entity in Russia making payments to them will be obliged to open an account for them.

Commenting on the bill, Duma speaker Vyacheslav Volodin claimed that many “foreign agents” had left Russia but continued to “enrich themselves at the expense of its citizens”. Volodin also accused “foreign agents” of having a “hostile attitude” towards Russia and of financing Ukraine.

The Duma speaker claimed that an earlier law which banned advertisements with “foreign agents” had “lowered by 75% the income of [Russia’s] 10 biggest ‘foreign agent’ bloggers”. Another law adopted in March 2023 allowed for the confiscation of property in Russia owned by those sentenced for what Russia considers to be “fake news” about the war in Ukraine.

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