Russian officials banned from owning overseas property?

Russian officials may be banned from owning overseas property, if a new bill comes into effect.

The bill, a first draft of which was passed by Russia's lower house, would ban officials and families from owning real estate abroad.

The bill, submitted by a group of MPs, is part of an anti-corruption drive from the government, which will also ban the use of overseas bank accounts for state officials and civil servants.

Civil servants who already own property abroad will have to sell it by the beginning of June 2013, reports Global Edge, while officials who wish to buy property regardless will have to leave their posts and wait for three years until carrying out a transaction.

Those who violate the rules would then be fined up to 10 million roubles or face up to five years in prison.

"A recent poll suggests that 63% of the population support the measures," adds Global Edge.

The bill follows another bill submitted by President Putin requiring the declaration of overseas property ownership but forbidding the use of a foreign bank account.

The two bills may now be merged into one package, reports World Properties, which may adopt Putin's less strict regulations, requiring declaration of property ownership and the banning of foreign bank accounts. However, experts note than owning foreign real estate without an overseas bank account is "hardly possible".

The proposed changes in the law arrive as Russian investors continue to fuel world property markets, boosting sales of homes in Bulgaria, Spain and other European destinations, as well as London's prime property sector.

Indeed, the former head of Rightmove Overseas, Carlo Wather, recently launched a new Russian property portal, Indinaidi.ru, in an attempt to harness the potential of the world's largest internet market and most dominant real estate buyers.

Do you think the bill will pass? And what impact do you think it could have upon global real estate?

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