Putin signs decree for fulfilling obligations to foreign copyright holders in Rubles

Russian President Vladimir Putin signed an executive order establishing a temporary process for fulfilling obligations to certain copyright holders in rubles. The document states that the country's authorities and residents will be able to pay remuneration and other payments related to exclusive rights to "unfriendly" companies by transferring funds to a special ruble account of type "O." On May 27, the head of the Russian federation issued the relevant decree, which was published on the official legal information web.

The debtor must create an account in the name of the right holder in an approved bank for the purpose of settling debts, according to the decree. If the right holder has not granted written consent to a payment to a special account, the debtor has the right to withhold payment until such consent is acquired, and this is not deemed a breach of obligations.

"If the debtor properly fulfills the requirements of this decree, his right to use the result of intellectual activity and (or) means of individualization on previously applicable conditions is retained," the document added.

The decision will affect foreign copyright holders associated with Russia's 'unfriendly' nations, as well as copyright holders who publicly supported the imposition of sanctions against Moscow, participated in public actions to discredit the Russian Federation's Armed Forces, and were barred or restricted from using the results of their intellectual activity in the Russian Federation after February 23, 2022. It will also apply to copyright holders who have suspended or significantly reduced their production or supply of goods and services in the Russian Federation after February 23, 2022.

Putin's Ruble Gambit

After months of punishing sanctions, Vladimir Putin used a powerful tool to inflict economic pain on Europe – and to splinter his opponents' unity – by shutting off natural gas to several NATO members. The Russian president's decision to cut off gas supplies to NATO members, as well as the risk of further disruptions, hits Europe where it hurts the most, and where the bloc is least prepared to adjust. The continent will need several years to arrange alternative supplies to power its industry and heat its homes, but Putin forced the issue last month with his abrupt announcement that he would only accept rubles for shipments after April 1.

More cuts are already on the way if Russia does not get its own currency. The European Union warned that accepting Moscow's terms would violate sanctions, but some countries that couldn't live without Russian gas looked for workarounds or leaned toward accepting Putin's terms. Several European businesses are attempting to carry on as usual. According to OMV AG, Austria's largest fossil-fuel company, Russian natural gas flows into Europe will continue. Eni SpA, the Italian energy giant, has also made preparations to meet Putin's demands.

Image: AP