The risks of missing the deadline for submitting ‘environmental’ reports in the context of the restrictions aimed at preventing the spread of Covid-19

Pepeliaev Group’s lawyers have analysed the difficulties that users of natural resources face when submitting environmental reports, as well as the risks in connection with the measures taken by the state which are aimed at preventing the spread of the coronavirus.

Within the coming two weeks, companies must provide the Federal Supervisory Natural Resources Management Service (known as ‘Rosprirodnadzor’) with the following environmental reports:

1) no later than 1 April the following documents must have been submitted:

• a declaration of the quantity of goods released into circulation in Russia for the previous calendar year, including packaging to be disposed of[1];
• reports specifying compliance with the disposal standards[2];
• information as to whether there are on-site equipment capacities allowing the disposal of waste[3];
• information concerning the locations (sites) for collecting waste from the use of goods organised by legal entities or individual entrepreneurs pursuing activities in the sphere of processing waste from the use of goods[4];
• no later than 15 April, the calculation of the environmental fee[5].

There has been no decision adopted concerning the putting off of the deadline for submitting environmental reports, and no clarifications of the authorised body are yet available; meanwhile, the users of natural resources are facing problems with the functioning of the remote reporting system.

This means that, at the present time, environmental reports may be submitted in the following ways:

1. with a messenger (courier) to the regional branch of Rosprirodnadzor[7];
2. via mail[8].

Both options imply the need to go outside and visit public places.

Meanwhile, a ‘self-isolation’ (quarantine) regime is being introduced nationwide (in the regions) which imposes harsh restrictions on movement.

In addition, the State Duma has adopted laws imposing administrative and criminal liability[9] for violating the restrictions introduced in connection with the spread of the coronavirus. Violations of the restrictive measures (the quarantine) entail stern measures of liability envisaging, for instance, significant administrative fines[10] as well as a suspension of activities for up to 90 days.

In this context, however, liability for violating the deadlines for submitting environmental reports established by the Code of Administrative Offences remains in effect:

• for the untimely submission of reports of compliance with the disposal standards, a fine is imposed on legal entities ranging from RUB 70,000 to 150,000 (article 8.5.1.(1) of the Code of Administrative Offences);
• for a failure to submit other reports and environmental information, a fine will be imposed on legal entities ranging from RUB 20,000 to RUB 80,000 (article 8.5.(1) of the Code of Administrative Offences).

What to think about and what to do

• If the relevant company is located in a region where restrictions in connection with the quarantine have been imposed officially[11], the reports may be submitted after the quarantine ends without fear of being held liable. This is because the failure to comply the requirements of the law was due to restrictions imposed by executive bodies[12].
• If no quarantine has been imposed in the region, the risk of administrative liability being imposed on the user of natural resources remains. In such cases, the available grounds for reducing administrative liability or obtaining an exemption from it should not be ignored[13].

Help from your adviser

Pepeliaev Group’s lawyers are closely following the changes and restrictions connected with the spread of the coronavirus and are proactively posting the relevant information on the company’s website.

The Company’s lawyers are ready to provide proactive advice and legal assistance should disputes with the authorised bodies arise.