The wagon will not move, the truck will stay. Who will help?

Russian international transportation companies, after the start of the special military campaign, lost the ability to control their transport and cargo. All Russian (including private) assets on the territory of Ukraine came under the jurisdiction of the Ukrainian National Investment Fund from 10th May 2022 or some individual sources say that from 11th May. 

Russian businessmen, who fruitlessly attempted to find cars, railway trains, individual wagons and tractors, completely lost hope of returning their property. Foremost, car owners and owners of railway trains were affected. The international carrier and owner of transport and railway wagons who recently contacted us said that his transport and cargo remained on the territory of Ukraine after February 24, 2022.

A solution was found during our work. It is the Government Resolution of the Russian Federation from October 25, 2022, according to which international transportation companies without foreign involvement can receive grants. 

The Government of the Russian Federation has developed the “Rules for granting subsidies from the federal budget in 2022 to sue for damages caused to Russian international transportation companies as a result of the illegal expropriation of vehicles and goods in the territories of antagonistic foreign governments when transporting” (established by Government Resolution of the Russian Federation from October 25, 2022, No. 1897). 

Grantees have to pass the selection process, which is carried out by FBU Rosavtotrans. Lawyers of the Tsentralny Okrug Law Firm helped to collect a set of documents so that the carrier could receive such subsidies for the loss of vehicles.

Documents that are provided by companies for receiving grants and participation in the program must confirm:

• the fact of expropriation or damage to transport and / or cargo in the territory of antagonistic foreign governments,
• the fact that the owner applied to the Russian law enforcement with an application about initiation of criminal proceedings on the fact of illegal expropriation,
• the ownership right of transport and cargo, as well as the refusal of the insurance company to pay for insurance to avoid double refund.

The Resolution applies so far only to auto transport, but the Resolution will soon be issued in the near future for railway trains. Most likely, the general principles for receiving grants and the set of confirmation documents will be preserved in the new statutory act.