The ‘coronavirus’ support measures have been adjusted

The Russian Government’s Resolution No. 1032 dated 11 July 2020 introduced amendments to the support measures for socially oriented non-for-profit organisations which were ‘adversely affected’ by the coronavirus restrictions.

Therefore, if previously the rent payment procedure for such non-for-profit organisations was common with ‘adversely affected’ small and medium-sized businesses, now new clauses specifically aimed at non-for-profit organisations have been introduced to the Russian Government’s Order No. 670-r dated 19 March 2020. As before, the Federal Agency for State Property Management (Rosimuschestvo) will grant to socially oriented and ‘adversely affected’ non-for-profit organisations a release from or a deferral of rent payments under agreements that were entered into before a high-alert regime or a state of emergency was introduced in the constituent entity and under conditions similar to small and medium-sized businesses. But, unlike small and medium-sized businesses, which are a granted deferral until 1 October 2020, non-for-profit organisations are granted a deferral for the time while the special regime is in effect in the region. Similar provisions for granting deferrals are established with respect to the property of federal executive bodies, state companies and institutions.

Of course, in anticipation of the ‘second wave’ of the spread of the coronavirus infection, the specified measure can be treated as a certain extension of the deferral for non-for-profit organisations, but in the conditions of the countrywide mitigation of the quarantine measures, the amendment of period term will highly likely result in it being decreased.

In addition, this Resolution supplements the Government’s Resolution No. 409 dated 2 April 2020 and now not only may socially oriented non-for-profit organisations may use the deferral to pay taxes and insurance contributions, but so may those ‘adversely affected’ by the restrictions.