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Russia’s Investigative Committee arrested over 80 individuals and initiated an investigation into the riot, which will be coordinated from Moscow. This indicates that central authorities intend to exert stronger control over the situation rather than relying on Dagestani authorities to handle the matter, likely due to the influence of local actors within these institutions.
However, the initial paralysis and slow response of local, regional, and federal institutions is similar to the way authorities reacted, or rather failed to react, to Yevgeny Prigozhin's mutiny in June. Both incidents underscore the challenges posed by the rigid, highly centralised command structure of Russian politics, which is effective at addressing domestic "enemies" designated by the federal government but often struggles to respond to unforeseen challenges.
2.2 Putin decree allows assets frozen in west swap for Russian based assets
President Putin signed a new decree designed to allow the sale of frozen foreign shares owned by Russian retail investors on November 8, BMB Russia reports.
The decree permits Russians to exchange their frozen foreign assets, which have been impacted by sanctions, for assets held by foreign companies operating within Russia.
The sanctions imposed by Western countries in response to Russia's invasion of Ukraine last year had severed Russia's ties with the international banking system and led to the freezing of Russian assets abroad.
According to the Russian government, approximately 3.5mn Russian citizens collectively hold $16bn in frozen foreign investments. In retaliation, Russia had previously frozen the assets of foreign investors and companies operating within its borders.
Under the new decree, the government will facilitate the exchange of frozen assets owned by foreign companies in Russia with those owned by Russian individuals abroad. Russian residents are allowed to trade assets valued up to 100,000 rubles ($1,085), and the foreign companies will regain ownership of shares previously held by Russian investors. However, to execute such exchanges, foreign clearing houses like Euroclear and Clearstream would need to assist in facilitating the transfer of shares.
Apart from asset freezes, the Russian government has implemented measures to make it increasingly challenging for foreign companies to exit the Russian market. In some instances, Russia has seized control of local subsidiaries of foreign firms, including those of Danone from France, Carlsberg from Denmark, Uniper from Germany, and Fortum from Finland. Utilizing a law that permits the government to take "temporary management" of the assets of "unfriendly countries," Carlsberg-owned Baltika Breweries came under the control of the Russian Federal Agency for State Property Management in July.
10 RUSSIA Country Report December 2023 www.intellinews.com