Amendments regarding liability for participating in activities of undesirable foreign organisations
Pepeliaev Group advises that the Federation Council has approved a law that broadens the criteria for organisations to be recognised as undesirable in Russia and about liability for participating in themhttp://council.gov.ru/events/news/159229/
. Provision is made for allowing not only non-governmental foreign organisations, but also organisations established by public authorities of foreign states to be recognised as undesirable in Russia. Liability is established for participating in their activitiesThe amendments concern articles 4.5 and 20.33 of the Russian Code of Administrative Offences (the “Code of Administrative Offences”) and article 284.1 of the Russian Criminal Code (the “Criminal Code”), as well as the following Federal Laws: No. 82-FZ “On non-governmental associations” dated 19 May 1995, No. 7-FZ “On non-profit organisations” dated 12 January 1996, No. 114-FZ “On the procedure for leaving the Russian Federation and entering the Russian Federation” dated 15 August 1996, No. 149-FZ “On information, information technologies and the protection of information” dated 27 July 2006, No. 272-FZ “On sanctions on persons involved in violating fundamental human rights and freedoms, and rights and freedoms of Russian citizens” dated 28 December 2012, and No. 261-FZ “On the Russian movement for children and young people” dated 14 July 2022.
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The amendments remove the word “non-governmental” from the law and add to the list of undesirable organisations.
In view of the amendments, the status of undesirable in Russia may also be given to the activity of a foreign or international organisation that is not in the structure of public authorities of a foreign state but whose founders (members) are public authorities of a foreign state.
The new developments will not affect international inter-governmental organisations to which Russia is a party.
The amendments specify the objective side of offences in connection with the list being expanded of organisations whose activity may be recognised as undesirable in Russia.
At present, the status of an undesirable organisation is given to a foreign or international non-governmental organisation whose activity
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threatens the fundamentals of the Russian constitutional system, the defence of the country and security of the state, including activity that helps or prevents the nomination of candidates or lists of candidates, the election of registered candidates, a proposal to conduct and the conduct of a referendum, the attainment of a specific result in an election campaign or referendum (including participation in other forms of election or referendum campaigns, save for participation in election or referendum campaigns as foreign (or international) observers),
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also, if it becomes known that a foreign organisation provides intermediary services in transactions with funds and/or other property owned by a foreign or international non-governmental organisation whose activity is recognised as undesirable in the Russian Federation.Federal Law No. 272-FZ dated 28 December 2012 (as amended on 13 June 2023) “On sanctions against persons involved in violating fundamental human rights and freedoms and the rights and freedoms of Russian citizens”(article 3.1).
Foreign organisations recognised as undesirable have been banned from:
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creating (opening) structural subdivisions in Russia and ceasing the operations of previously created (opened) subdivisions,
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conducting transactions with monetary funds and/or other property,
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distributing information materials that it publishes and/or distributes, including in the media and/or the Internet, or producing and storing such materials for distribution purposes,
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implementing programmes (projects) in Russia,
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creating or participating in legal entities in Russia,
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participating, outside of Russia, in the activities of Russian individuals, persons without citizenship permanently residing in Russia and Russian legal entities.
Participation in the activities of an undesirable organisation results in administrative liability under article 20.33 of the Code of Administrative Offences, while the participation and organisation of activities, the granting or raising of funds and the supply of financial services give rise to a criminal liability under article 284.1 of the Criminal Code.
As at 18 July 2024, there are 178 names in the list of organisations that the Russian Ministry of Justice has recognised as undesirablehttps://minjust.gov.ru/ru/documents/7756/
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Vasily Piskarev, Head of the Committee for Security and Corruption Control, a deputy of the Russian State Duma and the originator of the amendments, has commented that participating in activities of an undesirable organisation is understood as “distributing or publishing the organisation’s information materials, including the use of logos, and distributing announcements of such organisation’s activities, as well as storing such materials, and administering the undesirable organisation’s websites and communities in social media”.https://rg.ru/2024/06/11/gosduma-odobrila-normy-o-nakazanii-za-uchastie-v-liubyh-nezhelatelnyh-organizaciiah.html
According to Piskarev, since article 20.33 of the Code of Administrative Offences came into force, 624 such cases have been instigated. As far as article 284.1 of the Criminal Code is concerned, 25 crimes of this category have been identified, and 11 individuals have been convicted (both articles were introduced in 2015). For instance, Moscow City Preobrazhensky Court imposed a fine of RUB 10,000 on the Chief Editor of The InsiderRecognised as a foreign agent and undesirable organisation
Timur OlevskyRecognised as a foreign agent
for participating in the activity of an undesirable organisation.https://tass.ru/obschestvo/21365353?ysclid=lymy4u68px947092776
Vyacheslav Volodin, the Chairman of the State Duma, also remarked that it is essential to eliminate this gap “to rule out any interference in our country’s internal affairs”.http://duma.gov.ru/news/59465/
Pepeliaev Group’s comment
After the amendments come into force, individuals will be held liable for participating in the activities of an undesirable organisation (in the form of a fine, compulsory labour, forced labour with imprisonment or imprisonment with a disqualification from occupying certain positions or undertaking certain activity).
For instance, repeatedly participating in the activity of any undesirable organisation entails criminal liability (article 284.1 of the Criminal Code) in the form of a fine of RUB 300,000 to RUB 500,000 or imprisonment for up to 4 years. Arranging for the activities of an organisation that is recognised as undesirable in Russia results in liability in the form of up to 6 years of imprisonment.
What to think about and what to do
In our opinion these amendments increase the risks of business activity, because they broaden the range of undesirable organisations that may currently be a part of an enterprise’s business operations.
We recommend examining current and potential business partners in terms of whether they have signs of an undesirable organisation. If it turns out that your business partner is an undesirable organisation, any participation in its activities has to be ceased voluntarily, as does any other punishable interaction.