Restrictions and measures of state support for business: the digest for 22 July – 4 August 2024

DRAFT LAWS

Administrative liability can be lifted if a person fulfils an agreement with a public authority

The draft federal law

Public discussions are now taking place.

It has been proposed that new articles be introduced in the Russian Code of Administrative Offences providing for a mechanism to release a person from administrative liability if the latter enters into and fulfils an agreement with a public authority. This will be possible in cases and according to a procedure stipulated by federal laws and regulatory instruments to be adopted in furtherance of such laws.

Under the agreement, the person undertakes to rectify the violations and take measures to prevent them from happening in future.

The agreement:

• should establish the deadlines for such obligations to be fulfilled;

• may be entered into before a resolution under the case has been issued;

• may not be concluded with a person who has not fulfilled an agreement which was concluded previously.

• If an agreement is concluded, the proceedings and the limitation periods will be terminated.
  
  

LEGISLATION

The police have lost the power to instigate cases based on certain offences

Federal Law No. 192-FZ dated 22 July 2024

Comes into effect on 21 October 2024.

Amendments have been made to the Russian Code of Administrative Offences. To eliminate the duplication of powers of the internal affairs offices and controlling (supervisory) authorities it is proposed that the authority of the police should not extend to a certain number of offences.

These include:

• a violation of copyright and related rights, rights to inventions and patent rights (article 7.12);

• an unlawful use of means of identification with respect to goods (work or services) (article 14.10);

• entrepreneurial activity being conducted without the state registration or a special permission (licence) (articles 14.1(3) and 14.1(4);

• violations in the sphere of transportation of cargoes: unlawful use of cars registered in other states (article 11.26) and international carriage being performed with a breach in the execution of a permit, without registration document of the international carrier or without a record of the state authority’s official that the breach has been eliminated (article 11.29 of the Russian Code of Administrative Offences);

• concealing or distorting environmental information (article 8.5 of the Russian Code of Administrative Offences).
  
  

A procedure has been introduced for issuing permissions regarding transactions that involve exclusive rights being acquired from persons from unfriendly states

The Russian Government’s Decree No. 993 dated 20 July 2024

Came into effect on 22 July 2024.

Amendments have been made to the rules whereby the Government Commission on Monitoring Foreign Investment in Russia issues permissions to perform transactions (operations) (the Russian Government’s Decree No. 295 dated 6 March 2022).

It has been established that the rules do not cover:

• transactions involving the acquisition of exclusive rights to intellectual property or means of identification from right holders from unfriendly states and to performing financial obligations under such transactions (clause 1 of the President’s Decree No. 430 dated 20 May 2024);

• transactions involving such funds being wired including to a special account of type ‘O’.

• An application for permission should be sent to the Ministry of Finance and to one of the federal executive authorities (the list of these is provided). The requirements have been determined for the content of the application.

The federal executive authority gives recommendations regarding whether such permissions should be issued.

If necessary, the permission to transfer funds may contain the conditions of the transfer.