The committee recommends that the Australian Government identify as a matter of priority all Russian assets in Australia that are subject to sanctions, and assess what legislative changes are required to enable the transfer of these assets or associated income to Ukraine.

Government Response to Recommendation 7

The Government notes this recommendation.

Since 2022, Australia has implemented over 1,200 sanctions against Russian individuals or entities for its involvement in Russia’s invasion of Ukraine.

Australian sanctions law imposes strict prohibitions on dealing with designated persons or entities, including to require financial institutions and other entities to freeze assets owned or controlled by these persons or entities.

Asset holders are required by law to provide the Australian Federal Police (AFP) with specific information about controlled assets. See regulation 42 of the Charter of the United Nations (Dealing with Assets) Regulations 2008 and regulation 24 of the Autonomous Sanctions Regulations 2011. Australia utilises a range of tools and powers to ensure that regulations are being followed effectively, and to monitor and enforce compliance.

Under Australian sanctions law, Russian assets can be frozen, however asset seizure is not provided under legislation. Any proposal to seize assets through the sanctions framework would raise complex legal and policy issues.

In consultation with the Attorney-General’s Department and the AFP, DFAT continues to assess the legal and policy options and implications and legislative changes that would be required in order to seize assets of persons and entities designated under Australian sanctions laws or to seize the profits of these assets held by financial institutions in Australia. The Government continues to engage international partners on this issue, including to better understand how these matters are considered under other countries’ legal frameworks.