The Constitutional Court (CC) of Russia supported the confiscation of property belonging to the relatives and associated third parties of corrupt officials, including the sole residence, even if it was partially acquired with legal funds. This decision remains in force even if the property was partially acquired with legal funds.
Involvement in Corruption: Children Are Also Accountable
In one of the two complaints that led to the decision, Elena Labuzova, the daughter of Vyacheslav Labuzov, the former Minister of Education of the Orenburg region, lost her home. Her father acquired a land plot with illegally obtained funds and registered it in his daughter's name. Even though the daughter built a house on that plot at her own expense, the court deemed it an inseparable part of the property created with criminal money and confiscated it. In the second case, Olga Korol lost two apartments received as a bribe and registered in her son-in-law's name.
The Firm Position of the Court
The CC emphasized that ownership of property associated with corruption is inadmissible, regardless of whose name it is registered under. The Court explained that allowing the guilty party to retain property obtained through corruption could lead to the encouragement of such socially dangerous and illegal actions. At the same time, the CC recalled that in October 2024, it reinforced the position that altering or increasing property obtained through corruption does not prevent its confiscation.
Warning for Relatives
According to lawyer Oleg Zakharov, this decision intensifies the fight against corruption, but creates a great risk for relatives. If they fail to verify the legality of the source of funds received from a corrupt official, they may lose their home. The CC decision strengthens the practice of seizing even the sole dwelling if it is linked to corrupt earnings.
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