An experimental procedure has been launched for the pre-trial challenging of audits of business entities

Pepeliaev Group advises that from 17 August an opportunity has become available for challenging the controlling and supervisory authorities’ decisions under a pre-trial procedure, including remotely via the Gosuslugi portal

During the period between 17 August 2020 and 30 June 2021 an experiment will be held in Russia relating to the pre-trial challenging of the controlling (supervisory) authorities’ decisions and of actions (omissions) of such authorities’ officials[1]. The Russian Ministry of Emergencies, the Russian Federal Service on Surveillance in Healthcare (“Roszdravnadzor”) and the Federal Service for the Supervision of Environment, Technology and Nuclear Management ("Rostechnadzor") are taking part in the experiment.

The experiment applies to the following types of federal supervision:

• fire supervision;
• quality and safety control over medical activities;
• supervision over the circulation of medicines;
• supervision over the circulation of medical products;
• supervision over industrial safety;
• energy supervision;
• supervision over the safety of hydrotechnical facilities.

Appeals concerning the actions of the regulatory bodies may be filed via a personal account on the Gosuslugi portal. The appeals must be certified by an ordinary signature or enhanced qualified electronic signature if filed by individuals, including individual entrepreneurs, and by an enhanced qualified electronic signature if filed by entities.

The subject matter of such appeals may include:

• decisions of a control (supervisory) authority to carry out a scheduled or an unscheduled inspection;
• instructions to remedy the identified violations that are served on the party subject to control;
• measures to prevent or cease the harm being inflicted taken under article 17(2) of the Federal Law “On protecting the rights of legal entities and individual entrepreneurs during state (supervisory) and municipal control”[2];
• actions (omissions) of officials of a controlling (supervisory) authority.

The Regulation on the holding of the experiment contains the requirements to the content of an appeal. An appeal may be accompanied by supporting documents or copies of them and a motion to suspend the enforcement of the control authority’s decision being challenged. The authority should examine the motion within two business days from when the appeal was registered.

The new development concerning the possibility to suspend the enforcement may help companies to decrease the costs resulting from unlawful actions of controlling authorities that the companies have to bear until they prove that such actions are unlawful.

What to think about and what to do

When developing a strategy to defend your interests in the event that control measures are taken, we recommend that you take into account that there is an option of a simplified procedure for the pre-trial challenging of decisions of a controlling (supervisory) authority and actions (omissions) of its officials, and use this procedure if necessary.

Help from your adviser

Pepeliaev Group’s experts provide legal assistance in preparing for any control measures, in supporting a company and its officials when such measures are carried out, as well as in accommodating the results of such measures and challenging them if possible.