New good pharmacy practice for medicines intended for human use Law firm Pepeliaev Group advises that, on 9 January 2017, the Russian Ministry of Justice registered Order No. 647n of the Russian Ministry of Healthcare “On approving Good Pharmacy Practice for medicines intended for human use” dated 31 August 2016 (“GPP”).

New state control (supervisory) measures Law firm Pepeliaev Group advises that on 1 January 2017 important amendments and additions took effect that have been made to Federal Law No. 294-FZ ‘On the protection of the rights of legal entities and individual entrepreneurs when state control (supervision) and municipal control are exercised’1. Such amendments and additions establish fundamentally different approaches to the way state control (supervisory) measures are organised and conducted.

An acquirer’s liability for violations committed when goods (items) are imported

Law firm Pepeliaev Group advises that, in connection with the emergence of the right to free-of-charge access to official information regarding the release of goods, good faith acquirers are increasingly at risk of being held liable for violations of customs legislation committed by other persons when goods are exported. 

15 January 2017 is the deadline for a private employment agency to file its annual activity report for 2016 Law firm Pepeliaev Group would like to remind you that private employment agencies (“PEAs”) should, before 15 January 2017, file a report with the Federal Labour and Employment Service (also known by the Russian abbreviation “Rostrud”) on their activity in relation to supplying employees (staff) on an agency basis in 2016. 

Regarding the new rules for ‘freezing’ the cadastral value of real estate items Pepeliaev Group advises that Federal Law No. 401-FZ dated 30 November 2016 repeals the rule that provides for the minimum cadastral value that was set in or after 2014 to be applied for taxation purposes between 1 January 2017 and 1 January 2020.

Restrictions on admitting new types of medical devices to state and municipal procurement Pepeliaev Group advises that on 30 November 2016 Resolution No. 1268 of the Russian Government was signed “On amending the list of individual types of medical devices originating in foreign countries the admission of which is restricted for the purposes of procurement for state and municipal needs” (the “Resolution”).

On maximum figures for the values of business entities’ interested party transactions Pepeliaev Group advises of the expected adoption, before the end of the final quarter of 2016, of the Bank of Russia’s Instruction "On maximum figures for the amount of business entities’ interested party transactions the price or balance-sheet value of property under which is no more than 0.1% of the balance sheet value of such business entities’ assets" . 

Explanations of the Supreme Court of the Russian Federation regarding specific features of liability for economic crimes Law firm Pepeliaev Group reports that the Plenum of the Russian Supreme Court has adopted a Resolution

The issuer’s obligation to disclose data relating to the replacement of the keeper of the register of securities holders Pepeliaev Group advises that 22 November 2016 saw the entry into force of the Bank of Russia's Instruction No. 4107-U dated 23 August 2016 ‘On the procedure for an issuer to disclose (provide) information in the event of the replacement of the keeper of the register of securities holders’.

Recognition of severange payments to employees when their employment agreement is determinated: the new position of the Russian Supreme Court Pepeliaev Group advises of changes in the court practice concerning the recognition of expenses from severance payments made to employees when their employment is terminated.

Additional restrictions in relation to the development of areas adjacent to cultural heritage sites Pepeliaev Group advises that, from 3 October 2016, amendments come into force to legislation dealing with cultural heritage sites. These introduce a prohibition on the construction and reconstruction of capital construction projects close to cultural heritage sites. 

The electronic services of foreign companies are subject to VAT in Russia Pepeliaev Group advises that, on 1 January 2017, a Federal Law comes into force, which establishes the procedure for applying VAT to services that foreign companies supply to Russian consumers in electronic form. The Law also establishes a specific procedure for such companies to register with the Russian tax authorities.