Administrative law defence of business

There is a proposal to expand the list of companies whose production and sales volumes must be registered in the Unified State Automated Information System

The Russian Constitutional Court sets limitations for an administrative penalty lower than previously stipulated

The Russian constitutional court has confirmed that administrative fines may be reduced «below the minimum threshold» Pepeliaev Group advises that the Russian Constitutional Court in its Resolution No. 1-P dated 17 January 2013 laid down a versatile legal position, according to which it should be ensured that the amount of an administrative fine is appropriate by having regard to the nature and other features of a specific administrative offence as well as to the material and financial positions of the offender. 

On amendments to article 15.25 of the Russian Code of Administrative Offences Pepeliaev Group advises: on 28 November 2011 Federal Law No. 312-FZ “On amendments to articles 3.5 and 15.25 of the Russian Code of Administrative Offences” and Federal Law No. 311-FZ “On amendments to article 15.25 of the Russian Code of Administrative Offences”.

On easing punishment for residents who violate the term for repatriating foreign currency income On 9 November 2011, the Federation Council approved the law “On amendments to articles 3.5 and 15.25 of the Russian Code of Administrative Offences”.

The Russian financial watchdog has provided guidance on factors that present increased risk of transactions being treated as money laundering or terrorism financing Pepeliaev Group advises that the Russian Financial Monitoring Service has released its Information Letter No. 17 dated 2 August 2011 On factors in transactions, and in types of and terms for activity, that entail an increased risk of clients entering into transactions for the purposes of legalising (laundering) income received through criminal means, and the financing of terrorism.

NEW LEGISLATION ON INSPECTIONS AND PROVIDING A LEGAL BASIS FOR THE EXTENSION OF AN ADMINISTRATIVE SUSPENSION OF ACTIVITY  Pepeliaev Group advises that 1 August 2011 saw the entry into force (except in relation to specific provisions which are to come into force at other times) of Federal Law No. 242-FZ On amending particular items of the legislation of the Russian Federation concerning issues of carrying out state control (supervision) and municipal control.

Amendments expected to currency control regulations and liability for currency infringements Pepeliaev Group advises that, on 1 June 2011, the Russian Government introduced three draft laws in the Sate Duma which provide for amendments to the currency control procedure and also to liability for infringing legislation on currency regulation and currency control.

Confiscation of owners only

Pepeliaev Group advises that on 25 April 2011 the Russian Constitution Court issued Resolution No. 6-P in case regarding the analysis for compliance with the Constitution of part 1 article 3.7 (confiscation of the instrument and target of the administrative offence) and part 2 article 8.28 (illegal cutting, damage to forest and unauthorised digging out of trees, bushes and lianas in forests) of the Russian Code on Administrative Offences in connection with a claim from OOO StroyKomplekt.

New Licensing Law Adopted Pepeliaev Group advises that on 4 May 2011 the President of the Russian Federation signed Federal Law No. 99-FZ “On licensing specific operations” that will replace the current licensing law.

On amending the Russian Code of Administrative Offences and the Federal Law ‘On Enforcement Proceedings’

Pepeliaev Group advises that 27 April 2011 saw the entry into force of Federal Law No. 71-FZ dated 21 April 2011 “On amending articles 17.15 and 31.9 of the Russian Code of Administrative Offences and article 21 of the Federal Law ‘On Enforcement Proceedings’”.

Clarifications of issues concerning the application of administrative liability legislation

On 17 February 2011, the Plenum of the Russian Supreme Arbitration Court (the “SAC”) adopted its Resolution No. 11. This clarified issues concerning the application of a particular part of the Russian Code on Administrative Offences (the “CoAO”) which concern administrative breaches relating to the protection of property, environment and nature management, construction activities, unlawful use of a trade mark, and competition in bad faith, and also in connection with issues relating to hiring foreign workers and registering them for migration purposes.