This article provides a concise overview of the legal framework addressing the misuse of corporate assets in Russia, focusing on the applicable criminal liability provisions and key regulatory details as of 2025.
Legal Basis for Misuse of Corporate Assets in Russia
In Russia, the misuse of corporate assets is treated as a serious offense and is explicitly addressed under the country’s criminal legislation. The primary statutory reference for corporate asset misuse is Article 201 of the Criminal Code of the Russian Federation (23333e3b3e323d4b39 3a3e34353a41 2024, 414230424c4f 201), titled “Abuse of authority” (373b3e433f3e424035313b353d3835 3f3e3b3d3e3c3e47384f3c38).
Criminal Liability Provisions
Russian legislation imposes direct criminal liability for executives and other responsible individuals who abuse their powers and act against the interests of the corporation, particularly when such actions are motivated by personal gain or to benefit third parties. This encompasses any unauthorized use, disposal, or misappropriation of corporate assets that causes harm to shareholders, the company, or other stakeholders.
| Provision | Description | Reference |
|---|---|---|
| Criminal Liability | Yes | Article 201, Criminal Code of the Russian Federation |
| Type of Offense | Abuse of authority (including misuse of corporate assets) | Article 201 (23333e3b3e323d4b39 3a3e34353a41 2024, 414230424c4f 201) |
Scope of Application
The criminal liability detailed in Article 201 applies primarily to individuals in positions of authority within a company, including directors and managers. These individuals are held accountable if they:
- Act contrary to the legitimate interests of the company
- Use their authority or company assets for personal or third-party gain
- Cause significant harm to the rights and lawful interests of the company, shareholders, or other parties
This legal framework aims to protect corporate property, ensure the integrity of company operations, and maintain the trust of stakeholders. Importantly, enforcement actions in Russia over recent years have demonstrated that authorities view violations under Article 201 as a high priority, especially where large-scale damage or evident conflicts of interest are found.
Key Points for 2025: Russian Criminal Code and Misuse of Assets
- Direct liability: The Russian Criminal Code enshrines personal liability for misuse of power and asset misappropriation at the executive level.
- Motivational context: Criminal responsibility arises specifically when the misuse is linked to personal interest or third-party benefit.
- Material harm: Liability under Article 201 requires actual harm to the company’s property or its legitimate interests.
Quick Reference Table: Regulatory Framework (2025)
| Year | Applies to Executives? | Criminal Provision | Official Source |
|---|---|---|---|
| 2025 | Yes | Article 201: Abuse of authority / misuse of assets | garant.ru |
Pro Tips: Managing Corporate Assets to Mitigate Liability in Russia
- Establish robust internal controls: Regularly audit asset management processes to ensure compliance with the company’s internal regulations and Russian law.
- Clearly delegate authority: Clearly define limits of authority for all executives and managers to prevent any ambiguity regarding asset use.
- Document transactions: Maintain a comprehensive record of all decisions involving company property, particularly those benefiting related parties or third parties.
- Regular legal review: Consult with legal professionals familiar with Russian corporate law to stay updated on regulatory changes, especially as enforcement trends evolve.
Practical Considerations for International Professionals
The Russian legal system takes corporate asset integrity seriously, and Article 201 of the Criminal Code serves as the central pillar for prosecuting violations. Foreign executives or business owners operating in Russia should be mindful of strict liability standards, the focus on intent and personal interest, and the requirement to demonstrate ongoing corporate governance.
Summary points to keep in mind include Russia’s clear statutory basis for criminal liability, a focus on protecting legitimate business interests, and a demonstrated enforcement trend. Always ensure your company’s internal policies align with the national regulations and maintain thorough documentation to minimize exposure in the event of an audit or investigation.