On January 6, 2023, Laws introducing restrictive measures in Belarus have been published:
- Law of January 3, 2023 No. 239-Z “On Issues of Transfer under Temporary External Management”;
- Law of January 3, 2023 No. 240-Z “On Seizure of Property”;
- Law of January 3, 2023 No. 241-Z “On Limitation of Exclusive Rights to Intellectual Property”.
The Laws come into force 10 days after their official publishing, i.e. January 16, 2023.
1. Law of January 3, 2023 No. 239-Z “On Issues of Transfer under Temporary External Management”
Commercial companies, the owners (shareholders) of which are persons from foreign states, can be transferred under temporary external management by decision of the regional executive committees, the Minsk City Executive Committee for a period of up to 18 months.
Transfer under temporary external management is possible if:
(i) company’s management by the executive and (or) other management bodies has actually been terminated;
(ii) executive and (or) other management bodies of the company carry out economically unjustified actions that may lead to the actual termination of activities, liquidation and (or) bankruptcy of such a commercial company causing damage to the organization;
(iii) in other cases determined by the Council of Ministers of Belarus.
From the day of temporary external management implementation, powers of the management bodies (shareholders meeting, CEO) of the company are suspended. At the request of the regional, Minsk City executive committees, management bodies employees are suspended from work.
The procedure for transfer under external management will be additionally established by the Government.
2. Law of January 3, 2023 No. 240-Z “On Seizure of Property”
The basis for the seizure of property objects is commitment of unfriendly actions against the Republic of Belarus, its legal entities and (or) individuals.
The decision on need to take a countermeasure by seizure of property objects is taken by the Council of Ministers. After a decision has been made by the Council of Ministers, the State Committee for Property applies to the court with an application for the seizure of property objects.
Under the property objects, the Law means property, money, securities, other property, including property rights located on the territory of Belarus and owned by the subjects of seizure.
The subjects of seizure are foreign states that commit unfriendly actions, persons from foreign states committing unfriendly actions, as well as affiliated persons.
The definition of “persons from foreign states committing unfriendly acts” includes a wide range of subjects, namely: foreign persons associated with foreign states included in the list of foreign states committing unfriendly actions against Belarusian legal entities and (or) individuals (including if such foreign persons have the citizenship of these states, the place of their registration, the place of their primary business activities or the place of primary profit from their activities are these states), and persons who are under the control of these foreign persons, regardless of the place of their registration or place their predominant business activities.
3. Law of January 3, 2023 No. 241-Z “On Limitation of Exclusive Rights to Intellectual Property”
1) The Law legalizes the use of objects of intellectual property (IP) without the consent (permission) of IPR holder or organization for the collective management of property rights from foreign states that commit unfriendly actions that have prohibited or did not give consent (permission) to use these lawfully published objects on the territory of Belarus.
The aim of mentioned measure is to ensure the functioning of the information and communication infrastructure, to provide access to the achievements of world culture and the events of modern life, etc.
The following IP objects fall under the scope of the Law regulation: computer program, audiovisual work, musical composition, broadcasting program.
As a general rule, a fee determined by the Council of Ministers will be charged for the use of IP objects (except if the IPR holder has allowed use of IP objects free of charge, and cases of free use provided for by law). The remuneration will be credited to the patent authority account and kept for three years until demand by the IPR holder.
2) The Law legalizes the import into Belarus and implementation into civil circulation of goods in which IP objects are applied (contained, included) without the consent (permission) of IPR holders from foreign states, including those committing unfriendly actions.
Goods must be included in the lists of goods (groups of goods) that are essential for the domestic market.
The Council of Ministers of Belarus will determine the state bodies authorized to determine and maintain such lists of goods (groups of goods).
The aim of mentioned measure is to create conditions for increasing the internal stability of the economy, preventing or reducing a critical shortage in the domestic market for food and other products.
It should be noted that an IP object is subject to temporary exclusion from the national customs register of IP objects if the product (group of goods) in which it is used (contained, included) is included in the corresponding list of goods (groups of goods).
Thus, Belarus legalizes the “parallel import” of goods.
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