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Executive Order on temporary procedure for meeting obligations to certain right holders

May 27, 2022

The President signed Executive Order On the Temporary Procedure for Meeting Obligations to Certain Right Holders.

The Executive Order complements the measures provided for by Presidential executive orders No. 79, On Imposing Special Economic Measures in Connection with Hostile Actions by the United States in League with Other Foreign States and International Organisations of February 28, 2022, No. 81, On Additional Temporary Economic Measures to Ensure Russia’s Financial Stability of March 1, 2022, and No. 95, On a Temporary Procedure for Meeting Obligations to Certain Foreign Creditors of March 5, 2022.

The Executive Order establishes a temporary procedure for the fulfilment by the Russian Federation, its constituent entities, municipalities and residents of financial obligations with respect to their use of intellectual property and means of individualisation whose exclusive rights belong to the categories of foreign right holders which fall within the scope of the present executive order.

The temporary procedure will apply to foreign right holders associated with the countries unfriendly to Russia, as well as right holders who publicly supported the imposition of sanctions against Russia, banned or limited the use of intellectual property in Russia after February 23, 2022, or suspended or significantly limited the production or supply of goods and provision of services in Russia.

The special procedure will also apply to right holders who have publicly discredited the Armed Forces of the Russian Federation or the performance by state bodies of the Russian Federation of their powers outside Russia in order to protect the interests of the Russian Federation and its citizens and maintain international peace and security or those who publicly disseminated false information on this as facts.

The same applies to companies that have disseminated information online that expresses a clear disrespect for society, the state, official state symbols of the Russian Federation, the Constitution of the Russian Federation or the bodies that exercise state power, in an offensive manner that attacks human dignity and public morals.

Under the provision, authorities and residents will be able to pay remuneration and other payments related to exclusive rights to the above categories of companies by transferring funds to a special O-type ruble account. The Executive Order stipulates the account opening and transfer procedures.

The Executive Order lists a number of exceptions; in particular, it will not apply to companies from unfriendly countries if they duly perform their obligations under the contracts.

The provisions of the Executive Order do not apply to the contracts by which the right holders mentioned above grant to the debtors the right to use intellectual property and the means of individualisation necessary to import to Russia and manufacture in Russia medicines, medical products, industrial and agricultural products and food products; provide communication services (including data transmission and Internet access services) and traffic services; create and use programmes for computers, databases, information systems and data processing centres in Russia.

May 27, 2022