KEY RATE IS REDUCED TO THE PRE-CRISIS LEVEL OF 9.5% PER ANNUM
On June 10, 2022, the Bank of Russia decided to lower the key rate by 150 basic points. up to 9.5% per annum.
According to the projections of the Central Bank of the Russian Federation, annual inflation will be 14-17% in 2022, will decrease to 5-7% in 2023 and return to 4% in 2024.
MANDATORY SALE OF FOREIGN EXCHANGE EARNINGS BY EXPORTERS HAS BEEN CANCELLED
In connection with amendments to Decree of the President of the Russian Federation No. 79 of June 9, 2022 the subcommittee of the Government Commission for Control of Foreign Investments in Russia decided to cancel the requirement for exporters to sell 50% of foreign exchange earnings. The decision concerns both raw and non-commodity exports and applies to export contracts in any foreign currency. This Decision entered into force on June 10, 2022.
HOW TO ORGANISE PRODUCTION OF MEDICINES IN RUSSIA WITHOUT THE CONSENT OF THE PATENT HOLDER FOR DELIVERY TO OTHER COUNTRIES IN ORDER TO COMBAT EPIDEMICS?
In accordance with an international agreement, WTO member states with insufficient drug production capacity may apply in emergency situations for assistance in providing necessary drugs to other WTO members.
The latter are entitled to issue compulsory licenses for production of medicines for the subsequent export.
Being guided by this, the RF Government has established the following:
- grounds or making a decision to use an invention for production of a drug for export in Russia without the consent of the patent holder;
- how the term of validity for such decisions is determined and how patent holders are notified thereof.
THE RF CENTRAL BANK CONSIDERS THE UNILATERAL INTRODUCTION OF FEES FOR SERVICING DEPOSITS OR ACCOUNTS OF CITIZENS UNACCEPTABLE
In connection with the identification of practices of unilateral increase and establishment by credit institutions of commission fees for transactions under bank account or bank deposit agreements, including in foreign currency, the Bank of Russia draws the attention of credit institutions to the inadmissibility of:
- inclusion of provisions in the relevant agreements on the right of a credit institution to unilaterally increase or establish commission fees for transactions;
- charging these commission fees to apply new tariffs without the consent of the client.
PERSONS WITH CONVICTIONS FOR SERIOUS CRIMES WILL NOT BE ABLE TO REGISTER AS AN INDIVIDUAL ENTREPRENEUR FOR TRANSPORTATION OF PASSENGERS
Starting from March 1, 2023, persons that have an unexpunged or outstanding conviction for certain crimes, as well as those that are defendants in relevant criminal cases, will not be able to obtain the status of an individual entrepreneur to carry out activities in the field of transporting passengers and luggage by passenger taxis, buses, trams, trolleybuses and rolling stock of off-street transport.
RESIDENTS WERE ALLOWED TO CREDIT FOREIGN EXCHANGE EARNINGS TO FOREIGN ACCOUNTS
From June 6, 2022, residents have the right to credit their accounts opened with foreign banks with foreign exchange earnings received from non-residents under foreign trade agreements (contracts) providing for the transfer of goods to non-residents, the provision of services, the performance of work, the results of intellectual activity, including exclusive rights to them. This is possible subject to the repatriation of funds to the Russian Federation within 120 days and the further sale of export earnings in the amount determined by Decree No. 79.
AN ‘UNFRIENDLY’ CITIZEN HAS THE RIGHT TO DONATE SECURITIES TO A RELATIVE FROM RUSSIA
Foreigners from unfriendly countries are allowed to alienate securities through gratuitous transactions (operations) with residents who are their spouses or close relatives. Such transactions (operations) are allowed even if their amounts do not exceed one rouble.
THRESHOLDS FOR TRANSFERRING FUNDS ABROAD FOR INDIVIDUALS HAVE BEEN RAISED
From June 8, Russian residents (natural persons) have the right to transfer no more than 150 thousand US dollars or the equivalent in another foreign currency from their accounts in Russian banks to their accounts abroad or to another person within a calendar month. The same amount can be transferred to foreign accounts by non-residents (natural persons) from friendly countries. Previously, the limit was 50 thousand US dollars.
LAWYERS FROM UNFRIENDLY COUNTRIES WILL NOT BE ABLE TO OPERATE IN RUSSIA
Amendments have been made to the Administrative Regulations for provision by the Ministry of Justice of Russia of a state service for maintaining a register of lawyers from foreign countries practicing law in the Russian Federation.
From June 14, 2022, lawyers from a foreign state may provide legal assistance on the territory of the Russian Federation only on issues of the law of this foreign state.
FROM SEPTEMBER 1, 2022, TOUR OPERATORS WILL BE REQUIRED TO TRANSFER TO THE UNIFIED INFORMATION SYSTEM (EIS) OF ELECTRONIC VOUCHERS INFORMATION ON ALL CONCLUDED AGREEMENTS
The law on tourism activities is supplemented with a provision that prohibits the sale of a tourist product without the transfer by the tour operator of the information contained in the contract with a tourist to the unified information system of electronic vouchers. This ban will not apply to organisations that provide excursion services in Russia for no more than 24 hours in a row, as well as to state (municipal) unitary enterprises and institutions that organise travelling in Russia for social purposes.
THE BANK OF RUSSIA EXTENDED THE TERM FOR THE SALE OF FOREIGN EXCHANGE EARNINGS BY EXPORTERS TO 120 BUSINESS DAYS
Exporters shall be entitled to carry out the mandatory sale of foreign currency credited to their accounts with authorised banks in the amount established by Decree of the President of the Russian Federation No. 79, no later than 120 business days from the date of its crediting to transit currency accounts in authorised banks.
The decision shall be valid in relation to the received foreign currency, for which the mandatory sale was not carried out, regardless of the date of its crediting to the resident's account in the authorised bank.
Previously, the term for the sale of currency was increased from 3 to 60 business days.
FROM SEPTEMBER 1, 2022 - A NEW PROCEDURE FOR ADMISSION TO WORK WITH DRUGS, PSYCHOTROPIC SUBSTANCES AND THEIR PRECURSORS
The Government has determined a new procedure for admission to work with narcotic drugs and psychotropic substances, as well as to activities related to circulation of their precursors.
In general, the procedure for admission to work has not undergone significant changes. To obtain the necessary certificates, a person hired shall be sent to a medical institution for a "medical examination".
As opposed to the current procedure, referral to a mandatory psychiatric examination is not envisaged in the new admission procedure.
FINES WILL BE INTRODUCED FOR REFUSAL TO CONCLUDE AN AGREEMENT IF A CONSUMER DOES NOT PROVIDE PERSONAL DATA
The Code of Administrative Offences of the Russian Federation has been supplemented with new provisions establishing responsibility for refusing to conclude, execute, amend or terminate an agreement with a consumer due to his refusal to provide personal data (except for cases when provision of personal data is mandatory in accordance with the law).
The amendments will come into force on September 1, 2022.
FINES FOR VIOLATION OF FIRE SAFETY REQUIREMENTS ARE INCREASED
Amendments are made to the Code of Administrative Offences of the Russian Federation to increase administrative liability for violation of fire safety requirements.
THE INTRODUCTION OF LIABILITY FOR VIOLATIONS OF THE TRACEABILITY OF GOODS WILL BE POSTPONED UNTIL 2024
To support business, as well as increase the stability of the Russian economy, the Federal Tax Service, together with the Ministry of Finance, proposed to postpone the entry into force of the draft federal law on establishing the responsibility of participants in the circulation of traceable goods for violation of the law to January 1, 2024.
KEY RATE REDUCED TO 11% PER ANNUM
The Bank of Russia decided to reduce the key rate by 300 bp. up to 11% per annum from May 27, 2022.
According to the forecast of the Central Bank of the Russian Federation, annual inflation will decrease to 5-7% in 2023.
RUSSIAN EXPORTERS WERE ALLOWED TO SELL ONLY 50% OF FOREIGN EXCHANGE EARNINGS
The required mandatory sale of foreign exchange earnings made by Russian exporters under foreign trade contracts has been reduced from 80% to 50%.
RULES FOR MAINTAINING A REGISTER OF CARBON UNITS APPEARED
At the end of 2021, the Law on Limiting Greenhouse Gas Emissions came into force, which provides for a new category of property rights - a carbon unit. This means the verified result of implementation of the climate project, expressed in the mass of greenhouse gases equivalent to 1 ton of carbon dioxide. Maintenance of the register of carbon units is provided.
The content of the registry is defined. Issues concerning certain transactions have been settled, among which are issuance of carbon units, the opening of an account for them, and registration of a climate project. Functions of the registry operator are established.
UNTIL CHANGING THE CODE OF ADMINISTRATIVE OFFENCES OF THE RUSSIAN FEDERATION, THE STATUTE OF LIMITATIONS FOR HOLDING LIABLE MUST BE COUNTED ONLY FROM THE DATE OF COMMITTING AN OFFENCE
The Constitutional Court of the Russian Federation adopted a resolution on calculation of the period during which an administrative penalty may be imposed on an offending person.
Until the relevant amendments made into the Code of Administrative Offences of the Russian Federation, the statute of limitations for holding liable in accordance with Part 1 of Art. 4.5 must be calculated starting from the date when the administrative offence is committed.
THE MINISTRY OF LABOUR HAS REDEFINED WHICH FOREIGN QUALIFIED SPECIALISTS CAN OBTAIN RUSSIAN CITIZENSHIP UNDER A SIMPLIFIED PROCEDURE
The Ministry of Labour has updated the list of professions of foreigners who are qualified specialists eligible for admission to Russian citizenship in a simplified procedure.
The new list includes more than 170 specialties and is formed in the following areas of activity: medicine, pharmaceuticals, education, geology and exploration of mineral resources, nuclear energy, journalism, construction, agriculture, etc.
Foreigners living in our country who have worked in Russia in a profession included in the list for at least one year can obtain Russian citizenship in a simplified procedure without complying with the condition of a 5-year period of residence in the country.
PROCEDURE FOR SETTLEMENTS IN ROUBLES WITH FOREIGN TRADING PARTNERS WILL BE DETERMINED BY A SPECIAL INTERDEPARTMENTAL WORKING GROUP
An interdepartmental working group has been created to develop new mechanisms in the area of currency regulation and international settlements. It should develop a plan for the formation of an infrastructure for Russia's settlements with partners from friendly and unfriendly countries, in roubles or national currencies of these states.
GOVERNMENT CANCELLED IMPORT DUTIES ON EQUIPMENT AND COMPONENTS FOR THE CORE INVESTMENT PROJECTS
Technological equipment, components and spare parts thereof, as well as raw materials and materials for the implementation of investment projects in sectors important for the economy can be imported into the country without paying customs duties.
Counter-Sanction Measures 2022 (measures aimed at sustaining the Russian economy and supporting citizens)
New arraivals of April 25, 2022
Restrictions on the transportation of goods and transit through the territory of Ukraine to all consignees have been extended until May 21
The Central Bank changed the procedure for calculating the official rates of the dollar and other foreign currencies
The Federal Tax Service clarified which tax audits and audits of currency legislation have been suspended
Temporary restrictions of flights to Russian airports in the south and central part has been extended until May 1
The Federal Customs Service clarified the features of the import of goods into the Russian Federation, which are subject to technical regulation measures, in the context of sanctions
Delivery of goods from the EU is possible through certain checkpoints
New arrivals of April 22, 2022
The Central Bank has determined a list of information that non-credit financial institutions have the right not to disclose temporarily, and a list of information that the Central Bank does not disclose
The government will allocate four billion roubles for the creation of prefabricated hotels
Until September 1, the period for the mandatory sale of foreign currency has been increased from 3 to 60 business days for all exporters
Until June 1, the Ministry for Digital Development, Communications and Mass Media was instructed to ensure the completion of the creation of a domestic application store for mobile devices
The Central Bank extended zero tariffs for banks on transfers between citizens in the Faster Payment System
Until October 31, 2023, the minimum amount of financial security for the liability of tour operators in the area of outbound tourism will be 10 million roubles
New arrivals of April 21, 2022
Garant's experts have prepared clarifications on the purchases made by customers under Law No. 223-FZ, in respect of which sanctions have been imposed
The Federal Tax Service recommended using the “coronavirus” notification form to switch to the payment of the monthly advance payments on actual profit
An IT company will be able to get a preferential loan subject to a number of conditions
Limit of duty-free importation of goods by land or on foot increased to 1000 euros
To confirm the sources of funds, a special declaration submitted during the fourth stage of the capital amnesty is suitable
New arrivals of April 20, 2022
The RF Government improved the conditions of a special loan program for backbone organisations in industry and trade
The Central Bank softened foreign exchange controls for Russian exporting companies of the non-resource non-energy sector
The Central Bank has determined a list of information that banks are temporarily not supposed to disclose, and a list of information on the activities of banks that the Central Bank does not disclose
The Bank of Russia has established new rules for trust management of mutual funds for private investors
Applications for permission to maintain the depositary receipts program must be sent before May 5, 2022
The RF Government softened the conditions for granting loans for modernisation of utilities from the Housing and Utilities Services Fund
New arrivals of April 19, 2022
Public Services started accepting applications for a deferment from the army for IT specialists
The RF Government allowed further circulation outside Russia of depositary receipts issued earlier
The Government approved the procedure and cases of changing the essential terms of state and municipal contracts in the field of construction
Certain enterprises will be exempted from excise duty on liquid steel
Until September 30, 2022, import duties on certain types of goods have been cancelled
Until July 1, 2022, import of pesticides and agrochemicals through all checkpoints is allowed
The President signed a decree on additional social guarantees for military border guards
The Central Bank allowed to credit roubles to accounts in foreign banks and reduce the amount of foreign exchange earnings sold under foreign trade contracts
New arrivals of April 18, 2022
Restrictions on transportation of goods and transit through the territory of Ukraine to all consignees are extended until April 20, 2022
The Eurasian Economic Commission cancelled customs duty rates for certain types of goods
The regime of temporary restriction of flights to Russian airports in the south has been extended until April 25, 2022
A draft law has been submitted to the State Duma, excluding the risks of unreasonable criminal prosecution for violation of procurement laws
The special procedure for issuing permits for transactions and operations by the Government Commission has been supplemented with new permits
Airports in the southern and central regions of Russia will be partially compensated for operating expenses
A law on the prompt introduction of acts in the field of customs regulation is adopted
The RF Ministry of Labour gave clarifications on pension provision on the territory of the Russian Federation for persons that were forced to leave the territories of the DPR, LPR and the Ukraine