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Western governments and human-rights groups have reacted with fury after Vladimir Putin signed a new law allowing Russian prosecutors to declare foreign and international organizations “undesirable” and close them down.

The new law allows prosecutors to declare an organization “undesirable” if they deem it to threaten constitutional order, defence and security or public health.

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There is every reason to expect that this law will be adopted and applied to clamp down on international civil society and undermine the independence and freedom of action of national human-rights groups carrying out critical work in Russia

The designation would make it illegal to open offices, and would allow authorities to freeze financial transactions. Local staff could face fines or prison, and foreign staff may be denied entry to Russia.

Alexander Taransky, a Russian MP behind the law, said it was targeted at commercial organizations in retaliation for Western sanctions.

But critics say it fails to distinguish between businesses and non-governmental organizations, and is open to abuse.

“There is every reason to expect that this law will be adopted and applied to clamp down on international civil society and undermine the independence and freedom of action of national human-rights groups carrying out critical work in Russia,” said Sergei Nikitin, Amnesty International’s Moscow director.

David Lidington, a U.K. foreign minister, said the law was “yet another example of the Russian authorities’ harassment of NGOs.” The law would affect the ability of organizations to work, promote and protect human rights, he said.

The U.S. said it was an example of Russia’s “growing crackdown on independent voices and intentional steps to isolate the Russian people from the world.”