08.07.2022 Александр Сологуб

News digest (July 8)

Dear colleagues and partners! News: we present the new overview of changes in the legislation of the Russian Federation…

Mitigation of administrative liability for business

The State Duma has adopted the Federal Law on mitigating liability for a number of administrative offenses for business. So, with voluntary compensation for damage or elimination of the damage caused, entrepreneurs can be brought to administrative responsibility under the minimum border of the article of the Administrative Code of the Russian Federation. In case of committing an offense for the first time, companies can be limited to the warning.

Draft Law № 127003-8 “On Amendments to the Code of Administrative Offences of the Russian Federation and Article 1 of the Federal Law “On Amendments to the Code of Administrative Offences of the Russian Federation”.

The measure is positive, aimed at supporting entrepreneurship under economic crisis.

Currency control

The President signed the Decree in the field of business support in conditions of the crisis in the economy, by which he abolished the requirement to repatriate proceeds under foreign economic contracts.

The Decree also imposes restrictions on residents transferring funds to their foreign accounts related to receiving dividends on shares of Russian joint-stock companies or when distributing profits of Russian limited liability companies.

The Decree “On Repatriation of Foreign Currency and Currency of the Russian Federation by Residents Participating in Foreign Economic Activities” № 430 dated 05.07.2022.

The measure restricting repatriation is positive. Today, the business is faced with non-fulfillment of their obligations by foreign counterparties, the inability to transfer funds to the Russian Federation due to banking restrictions. In this situation, it is extremely important to release companies from currency liability, which may occur due to temporary difficulties in returning money to the Russian Federation.

Opening of the land border of the Russian Federation

The Government has decided to abolish temporary restrictions on crossing the state border of the Russian Federation since July 15, 2022.

The Press Release of the Government of the Russian Federation dated 04.07.2022.

The measure is also positive, allowing citizens to be more “mobile” and cross the border of the Russian Federation on their own transport without restrictions.

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