Anaya Nolan
The President of the Russian Federation can issue decrees, or executive orders, that have the status of by-laws in the hierarchy of legal acts. Presidential decrees cannot alter existing laws of higher precedence, such as the Constitution of Russia, Federal Constitutional Laws, and Federal Laws. In the early 1990s, President Yeltsin used decree power extensively, leading to a war of laws with the Russian parliament, where his decrees were overturned by separate legislation. More recently, President Putin has signed decrees threatening foreign-owned property in Russia and allowing the seizure of assets. These decrees are often in response to actions taken by other countries, such as the US and EU, and can have significant implications for foreign companies operating in Russia.
| Characteristics | Values |
|---|---|
| Can the Russian president issue a decree? | Yes, the President of the Russian Federation can issue a decree or executive order with the status of a by-law. |
| Can a presidential decree alter existing laws? | No, presidential decrees may not alter existing laws of higher precedence, including the Constitution of Russia, Federal Constitutional Laws, Federal Laws, and laws of Russian regions. |
| Can a presidential decree be superseded? | Yes, a presidential decree can be superseded by laws of higher precedence, including the Constitution of Russia, Federal Constitutional Laws, Federal Laws, and laws of Russian regions. |
| Can a presidential decree be overturned? | Yes, a presidential decree can be overturned by separate legislation adopted by the parliament, as seen in the "war of laws" between President Yeltsin and the Russian parliament in 1992-1993. |
| Can a presidential decree be used to seize assets? | Yes, President Putin has signed decrees allowing Russia to seize assets of foreign-owned properties and companies from "unfriendly countries." |
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What You'll Learn
- Presidential decrees cannot alter existing laws of higher precedence
- The Russian president can issue decrees to seize assets
- Russia's retaliatory measures threaten foreign-owned property
- Presidential decrees can be overturned by separate legislation
- Presidential decrees may be the result of impending elections
Presidential decrees cannot alter existing laws of higher precedence
Presidential decrees in Russia are legal acts with the status of a by-law. They are made by the President of Russia and are considered normative legal acts. While these decrees hold significant weight, they cannot alter existing laws of higher precedence. This means that a presidential decree cannot override or amend the Constitution of Russia, Federal Constitutional Laws, Federal Laws, and the laws of Russian regions. Any decree that conflicts with these higher laws can be superseded by them and may be subject to legal challenges or limitations.
The Russian president has, on occasion, used decree power to initiate significant reforms and advance their legislative agenda. For example, in the early 1990s, President Yeltsin employed decree power extensively to set Russia on a course of radical market-oriented reform. This period, known as the "war of laws," saw a power struggle between President Yeltsin and the Russian parliament, with Yeltsin's decrees often being overturned by separate legislation passed by parliament.
In recent times, President Putin has also demonstrated the use of presidential decrees to further his policy objectives. Notably, in May 2024, he signed a decree allowing Russia to seize the assets of foreign-owned properties in the country. This decree was in response to U.S. and EU measures that threatened to transfer frozen Russian assets to Ukraine. However, it's important to remember that such decrees still need to be implemented through legislation adopted by the Russian government.
While presidential decrees can have a substantial impact on policy-making and legislative processes, they operate within the framework set by higher laws. The Russian Constitution and other higher laws take precedence, and any decree that attempts to modify or contradict them would be deemed invalid. This hierarchical structure ensures a system of checks and balances, preventing the unchecked exercise of power through presidential decrees.
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The Russian president can issue decrees to seize assets
On May 23, 2024, Russian President Vladimir Putin signed a decree allowing Russia to seize assets, securities, and property belonging to the United States or U.S. citizens in Russia. This decree was in response to U.S. measures that threatened to transfer previously frozen Russian assets and profits to Ukraine. It also aimed to compensate for damages caused by the confiscation of assets belonging to Russian entities in the United States.
The decree permits Russian entities and the Russian Central Bank to apply to Russian courts to determine if Russian assets have been "unjustly deprived" by the United States. If the court agrees, it can award compensation in the form of U.S. assets or property held in Russia. This decree poses significant risks for foreign companies with investments in Russia, as their property could be transferred to regime-friendly owners without compensation.
Russia's retaliatory measures, as threatened in President Putin's decree, may constitute breaches of core protections accorded to foreign investors under Russia's bilateral investment treaties (BITs). These measures may include the seizure and/or transfer of assets belonging to foreign firms, which could be in breach of Russia's non-discrimination obligations and its commitment to treat investors fairly and equitably.
International arbitration under investment treaties may be an effective remedy for foreign investors to recover losses caused by Russia's actions. Arbitral awards can be enforced against certain types of Russian government assets overseas, and investors should actively analyze available protections under Russia's BITs.
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Russia's retaliatory measures threaten foreign-owned property
On 23 May 2024, Russian President Vladimir Putin signed a decree that threatened foreign-owned property in Russia. The decree was a response to US and EU measures that aimed to transfer previously frozen Russian assets and profits to Ukraine. Putin's decree allows Russia to seize the assets of US companies and nationals as compensation for Russian assets confiscated due to US sanctions. This includes any property or assets held in Russia.
The decree is a legal act with the status of a by-law, and it cannot alter existing laws of higher precedence, such as the Constitution of Russia, Federal Constitutional Laws, and Federal Laws. However, since the 2020 Russian constitutional referendum, presidential decrees now take precedence over Russia's international agreements.
Russia's retaliatory measures pose significant risks for foreign companies operating or holding property in Russia. These measures may constitute uncompensated expropriations, which would breach core protections granted to foreign investors under Russia's Bilateral Investment Treaties (BITs). Russia's seizure and/or transfer of assets belonging to foreign firms could violate its treaty obligations, including non-discrimination and fair treatment.
To protect their investments, foreign investors can explore international arbitration under Russia's BITs. This may be the only effective remedy for investors to recover losses caused by Russia's actions. Arbitral awards can be enforced against certain Russian government assets overseas, and investors can also work with their home governments to enforce these awards.
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Presidential decrees can be overturned by separate legislation
Presidential decrees in Russia, or executive orders, are legal acts with the status of a by-law. They are issued by the President of Russia and have the force of law. Notably, presidential decrees in Russia cannot alter existing laws of higher precedence and are subject to the Constitution of Russia.
While executive orders do not require approval from Congress, they are subject to judicial review and may be overturned if they lack support by statute or the Constitution. In the United States, Congress may pass legislation that makes it difficult or impossible to carry out an executive order, such as by removing funding or passing conflicting legislation. This was demonstrated in the case of Executive Order 12954, issued by President Bill Clinton in 1995, which was overturned by a federal appeals court as it conflicted with the National Labor Relations Act.
In Russia, a similar dynamic played out between President Yeltsin and the Russian parliament in 1992 and 1993, known as the "war of laws." During this period, presidential decrees issued by Yeltsin were overturned by separate legislation adopted by the parliament. This dynamic shifted following the 1993 referendum, which resulted in the enactment of a new constitution and limited the range of presidential discretion.
It is worth noting that the process of overturning a presidential decree or executive order can be complex and may require specific conditions, such as a supermajority vote in Congress.
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Presidential decrees may be the result of impending elections
A Decree of the President of the Russian Federation or Executive Order (Decree) is a legal act with the status of a by-law made by the President of Russia. These decrees cannot alter existing laws of higher precedence, such as the Constitution of Russia, Federal Constitutional Laws, and Federal Laws. However, since the 2020 Russian constitutional referendum, Presidential Decrees now take precedence over Russia's international agreements.
More recently, President Putin has signed decrees in response to measures taken by the U.S. and EU, such as threatening to seize assets of American companies in Russia if the U.S. confiscates Russian holdings. Additionally, Putin signed a decree on the introduction of martial law in the Donetsk, Kherson, Luhansk, and Zaporizhzhia regions, which were annexed from Ukraine following controversial referendums. These actions demonstrate how presidential decrees can be utilized in the context of international relations and territorial disputes.
It is worth noting that while presidential decrees can have significant consequences, they may not always be the sole factor influencing elections. Other political and social factors come into play, and the impact of a decree may depend on the specific context and the public's perception of the decree's effectiveness and fairness.
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Frequently asked questions
The Russian president can issue decrees, which have the status of by-laws in the hierarchy of legal acts. Presidential decrees may not alter existing laws of higher precedence, such as the Constitution of Russia, Federal Constitutional Laws, and Federal Laws.
In 2024, Russian President Vladimir Putin signed a decree allowing Russia to seize the assets of foreign-owned properties in the country. This was in response to U.S. and EU measures that threatened to transfer previously frozen Russian assets to Ukraine.
Yes, in 1992 and 1993, there was a period known as the "war of laws" when presidential decrees issued by President Yeltsin were frequently overturned by separate legislation adopted by the parliament.
