Remote examination of tax audit materials: PG’s comments on Order No. 32ED-7-2/181@ of the Russian Federal Tax Service dated 20 March 2020 On 20 March 2020 the Russian Federal Tax Service (the “Federal Tax Service”) issued its Order No. 32ED-7-2/181@ whereby as a measure to prevent the spread of the coronavirus infection, tax control activities involving direct contact with taxpayers are prohibited, and telecommunications channels (TCC) and video conferencing services should be used for decisions to be made following the examination of tax audit materials. 

The Russian Ministry of Finance has informed Luxembourg and Malta that the double taxation treaties should be amended with regard to dividend and interest income.

Pepeliaev Group advises that the Russian Ministry of Finance has sent, via diplomatic channels, notification letters to the competent authorities of Malta and Luxembourg requesting that the respective Double Taxation Treaties (“DTTs”) be amended.

The state has approved distance trading in medicines

Sanctions for legal entities, their officers and individual entrepreneurs in connection with a high-alert regime being introduced

Pepeliaev Group advises that since 4 April 2020 the procedure has been determined for imposing sanctions for violating Moscow city regulations aimed at introducing and maintaining a high-alert regime in Moscow.

COVID-19: a simplified procedure of buying out the shares of a public joint stock company

Pepeliaev Group advises of changes to a number of legislative provisions that we expect to be adopted to regulate a simplified procedure for acquiring the placed shares of a public limited liability company during the COVID-19 pandemic.

Amendments to the rules concerning administrative liability for violations of currency legislation

Pepeliaev Group advises of the signing of Federal Law No. 72-FZ dated 1 April 2020 “On amending articles 15.25 and 23.1 of the Russian Code of Administrative Offences”.  

The procedure has been regulated for operations to be carried out on residents’ accounts (deposits) in foreign financial market institutions

Pepeliaev Group advises of the publication of the Bank of Russia's Instruction No. 5371-U dated 24 December 2019 "On cases of funds being credited to accounts (deposits) of residents opened in financial market institutions located outside the Russian Federation, and funds being debited from such accounts (deposits)". 

COVID-19: criminal and administrative liability introduced for violations committed during special legal regimes

Pepeliaev Group advises that special types of liability have been incorporated into the Russian Criminal Code and the Russian Code of Administrative Offences for violations of legal regimes which have been or could be introduced against the backdrop of the coronavirus pandemic.

Moratorium on inspections of small and medium-sized enterprises Pepeliaev Group advises that the amendments made to article 26.2 of Federal Law No. 294-FZ dated 1 April 2020 introduce a moratorium on inspections of small and medium-sized enterprises .

A law has been adopted to protect and encourage capital investments in Russia Pepeliaev Group advises that, starting from 1 April, Federal Law No. 69-FZ dated 1 April 2020 “On protecting and encouraging capital investments in the Russian Federation” came into force. The Law regulates relationships in terms of investments that are made based on an agreement for the protection and encouragement of capital investments. At the same time, amendments have been made to the Russian Tax and Budgetary Codes (respectively, Federal Laws No. 70-FZ and No. 71-FZ, both dated 1 April 2020).

The Russian Government has limited the application of penalties with regard to shared construction agreements for the period between 3 April 2020 and 1 January 2021 Pepeliaev Group advises that, starting from 3 April 2020, a Resolution of the Russian Government has come into force. It sets out the specifics of applying financial sanctions to developers and construction stakeholders as well as other measures of liability for the non-performance or improper performance of obligations under shared construction agreements (“SCAs”).

Should we expect court proceedings to be conducted on Russia using Skype and similar applications?

The coronavirus epidemic is compelling people worldwide to be flexible and to adapt quickly to dramatic changes in circumstances.