Zelensky expands ex-convict soldiers’ rights as Putin tightens rules on exiled Russians and foreign investors

On 2026-08-04, Ukrainian President Volodymyr Zelensky signed a new law granting full service rights to former convict soldiers in the armed forces. The law reportedly guarantees benefits such as 15 days of annual leave, access to appropriate medical care after injury, and the ability to transfer between units after one year of service or earlier for health reasons. In parallel, Russian President Vladimir Putin signed legislation that allows authorities to strip foreign investors from “unfriendly” states of the right to repurchase shares and stakes in Russian companies. The measure applies to transactions with such investors made after 22 February 2022. Separately, Putin also approved deals involving wind-energy holdings linked to Rosnano and Fortum after investment cooperation between Rosnano and the Finnish Fortum ended, while another law targets Russians convicted in absentia with sweeping restrictions. Strategically, the cluster signals two diverging manpower and governance approaches under wartime pressure. Ukraine is formalizing reintegration and retention incentives for a sensitive personnel category, which can improve unit stability and reduce attrition risk while signaling a more institutionalized pathway back into the force. Russia, by contrast, is tightening legal leverage over capital and political mobility: restricting exiled Russians convicted in absentia and limiting foreign investors’ exit rights, while simultaneously carving out exceptions to keep certain energy-sector transactions moving. The net effect is that Moscow seeks to deter capital flight and constrain diaspora influence, while still maintaining selective continuity in strategic industrial areas like wind power. Who benefits is split: Ukraine’s armed forces and affected veterans gain clearer benefits, whereas foreign investors and exiled Russian defendants face higher legal and operational uncertainty. Market and economic implications are concentrated in Russia’s corporate governance, energy transition, and cross-border investment risk. The investor-rights law can raise the risk premium for foreign holdings in Russian equities and private stakes, potentially pressuring valuations of companies with exposure to “unfriendly” jurisdictions and complicating deal structures around buyback clauses. The wind-energy transaction approvals tied to Rosnano and Fortum suggest that certain renewable assets may see constrained but continued restructuring rather than a full freeze, which can affect regional power-project financing and supply-chain contracting. For investors tracking Russian ADRs or local listings, the direction is toward higher legal risk and lower recoverability assumptions for post-2022 transactions, while near-term activity in specific energy portfolios may remain supported by regulatory carve-outs. Currency and rates impacts are indirect in these articles, but the policy stance is consistent with a broader tightening of capital controls and sanctions-adjacent compliance. What to watch next is whether these laws translate into enforceable administrative actions and how quickly counterparties adjust contract terms. For Ukraine, key indicators include implementation guidance on transfers, medical-care access, and whether the law changes recruitment or retention metrics for ex-convict personnel categories. For Russia, watch for regulatory follow-through on stripping repurchase rights, the list or classification of “unfriendly” states used in practice, and any additional amendments that expand restrictions for those convicted in absentia. In energy, monitor whether the Rosnano–Fortum-related deal permissions extend to other renewable holdings or remain narrowly scoped. Trigger points for escalation or de-escalation include further legislative expansions targeting exiles, retaliatory investor litigation or arbitration activity, and any acceleration or slowdown in renewable-project approvals that could affect financing conditions in the medium term.

Geopolitical Implications

• 01

  Ukraine is institutionalizing reintegration pathways for sensitive manpower categories.

• 02

  Russia is using legal tools to deter foreign exit and constrain exiled political influence.

• 03

  Selective regulatory permissions suggest Russia will keep narrow economic channels open in strategic sectors.

• 04

  The divergence in legal approaches may affect alliance narratives and investor perceptions of risk.

Key Signals

• —Administrative enforcement of the repurchase-rights deprivation law.
• —Any expansion of restrictions for Russians convicted in absentia.
• —Ukrainian implementation metrics for transfers and medical-care access.
• —Whether Rosnano–Fortum permissions broaden to other wind portfolios.