Windfall tax for major companies to be introduced in Russia
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03.05.2024
TIME LIMITS HAVE BEEN ESTABLISHED FOR THE FORCED CONVERSION OF SECURITIES OF FOREIGN ISSUERS INTO SHARES OF AN INTERNATIONAL COMPANY
Previously, it was decided to create international companies in special administrative regions by way of incorporation. This will help speed up the transfer to Russia of foreign assets of companies that are currently hampered by sanctions.
In this regard, the Board of Directors of the Bank of Russia established the procedure and terms for the forced conversion of securities of foreign issuers certifying rights in relation to shares of joint stock companies with the status of an international company into shares of such joint stock companies.
02.05.2024
PBU 4/99 ‘ACCOUNTING STATEMENTS OF A COMPANY’ TO BECOME INVALID FROM JANUARY 1, 2025
From January 1, 2025, the Order of the RF Ministry of Finance approving PBU 4/99 becomes invalid.
This is due to the approval of a new accounting standard “Accounting (financial) reporting” (FAS 4/2023).
As the Russian Ministry of Finance has already explained, companies must apply FAS 4/2023 starting with the financial statements for 2025. No pre-schedule application provided for this standard. Starting from reporting for 2025, PBU 4/99 and Order No. 66n are not subject to application, and the provisions of other regulations on accounting reporting should apply to the extent that does not contradict the new FAS 4/2023.
01.05.2024
WORLD FRIENDSHIP GAMES IN RUSSIA - THE PROCEDURE FOR HOLDING THE GAMES NOW AT THE LEGISLATIVE LEVEL
The World Friendship Games are a new format of international sports competition that supports the principle of universal accessibility of sports and the absence of discrimination against any group of athletes.
The following is now provided in legislation:
- the powers of the IFA - International Friendship Association, organiser, and organizing committee;
- the specifics of advertising and trading during the World Friendship Games;
- the rules for the use of the radio frequency spectrum;
- transport issues have been settled;
- the procedure for selling entrance tickets;
The Unified Gambling Regulator will transfer targeted deductions from bets and wagers to the organiser of the World Friendship Games in the amount of 25%.
30.04.2024
PROCEDURE FOR OBTAINING A TEMPORARY DOCUMENT FOR RETURNING TO RUSSIA HAS BEEN ESTABLISHED
A procedure has been established for the issuance of a temporary personal identification document giving the right to entry (return) to Russia by diplomatic missions or consulates of Russia or representative offices of the Ministry of Foreign Affairs in the border area. The form of this document is indicated. It is issued in the form of a certificate. To receive it, the application and documents must be submitted in person.
29.04.2024
MINISTRY OF DIGITAL DEVELOPMENT INFORMS ABOUT THE POSSIBILITY OF OBTAINING A CERTIFICATE OF AN ENCRYPTED AND CERTIFIED DIGITAL SIGNATURE USING THE GOSKLYUCH MOBILE APPLICATION THROUGH FACE-TO-FACE IDENTIFICATION
Previously, it was possible to confirm your identity in order to receive a certificate of an encrypted and certified digital signature using Gosklyuch only remotely - using a new international passport or confirmed biometrics. Now you can do it in person, at the Multifunctional Public Services Centre or branches of partner banks. The Ministry of Digital Development informed about this last week.
Also the department reminded what services can be obtained using an encrypted and certified digital signature or an encrypted and non-certified digital signature using the Gosklyuch mobile application.
26.04.2024
THE PROHIBITION ON FORECLOSURE, SEIZURE AND APPLICATION OF OTHER INTERIM MEASURES IN RELATION TO ASSETS IN S-TYPE AND I-TYPE ACCOUNTS HAS BEEN CLARIFIED
From January 3, Decrees of the President of the Russian Federation No. 95 of March 5, 2022 and No. 665 of September 9, 2023 were supplemented with provisions establishing that
collection under executive documents cannot be applied to funds and securities accounted for in S-type accounts, as well as for funds held in I-type accounts, or arrest has not been imposed or other interim measures cannot be taken in relation to them.
25.04.2024
THE GOVERNMENT COMMISSION ON FOREIGN INVESTMENTS WILL MAKE RECOMMENDATIONS ON TRANSACTIONS WITH FOREIGN SHARES IN RUSSIAN COMPANIES
The rules for issuing permits have been adjusted in order to implement additional temporary economic measures to ensure financial stability. They are issued by the Government Commission for the Control over Foreign Investments.
It has been established that the commission will consider the feasibility of transactions with foreign shares in Russian companies. This means that transactions in the financial and fuel and energy sectors, which are prohibited and which can be carried out on the basis of a special decision of the President (in particular, the withdrawal of large foreign investors from mining and energy projects).
24.04.2024
SUBMITTING INFORMATION ON BANS ON FINANCIAL TRANSACTIONS AND BLOCKED PERSONS: BANK OF RUSSIA HAS DETERMINED THE RULES
The Bank of Russia has prepared the rules for for supervised organisations for electronic generation of information provided for by the Law on Special Economic Measures. This concerns information on blocked persons, information on the measures taken to freeze (block) funds or other property, and on prohibitions (restrictions) with respect to financial transactions.
23.04.2024
FOR SAR RESIDENTS, A PROCEDURE IS ESTABLISHED FOR EXTENDING THE DEADLINE FOR LEAVING A FOREIGN REGISTER
Government has approved the procedure for making a decision on extending the deadline for leaving the register of foreign legal entities for companies that are residents of Russian special administrative regions (SAR). Such decisions to be made by the Governmental commission for supervision over foreign investment.
In particular, SAR residents with a status of international companies will be able to send an application to the Ministry of Economic Development no earlier than two months before the expiration of the established period. A list of documents to be attached to such application is also determined.
22.04.2024
FROM JANUARY 1, 2025, PBU 4/99 ‘ACCOUNTING STATEMENTS OF AN ORGANISATION’ BECOMES INVALID
From January 1, 2025, PBU 4/99 ‘Accounting statements of an organisation’ will no longer be in force. It will be replaced with FSBU 4/2023 ‘Accounting (financial) reporting’.
19.04.2024
BAN ON FORECLOSURE, SEIZURE AND APPLICATION OF OTHER INTERIM MEASURES IN RELATION TO ASSETS IN S-TYPE OR I-TYPE ACCOUNTS HAS BEEN CLARIFIED
From January 3, funds and securities accounted for in S-type accounts, as well as for funds held in I-type accounts, cannot be levied under enforcement documents, and arrest cannot be imposed in relation to them. no other interim measures can be taken.
From April 8, 2024, these provisions are set out in a new wording. They specify that:
- a demand for the collection of mandatory payments in respect of assets in S-type or I-type accounts cannot also be made;
- a ban on foreclosure, seizure, filing a claim for the collection of obligatory payments, the use of other interim measures is applied if the relevant judicial acts and acts of other authorities are issued after January 3, 2024.
18.04.2024
AGROTERRA'S ASSETS ARE UNDER THE TEMPORARY MANAGEMENT OF THE FEDERAL PROPERTY MANAGEMENT AGENCY
The assets of the AgroTerra group, belonging to the Dutch holding, were transferred under the temporary management of the Federal Property Management Agency.
17.04.2024
DEADLINE FOR THE SALE OF SHARES OF FOREIGN SHAREHOLDERS OF THE SAKHALIN-1 PROJECT HAS BEEN EXTENDED
The President extended the deadline for the sale of shares of foreign shareholders of the Sakhalin-1 project until January 1, 2025.
16.04.2024
THRESHOLD VALUES OF LARGE AND ESPECIALLY LARGE AMOUNTS TO BE INCREASED FOR A NUMBER OF ECONOMIC OFFENCES PROVIDED FOR BY THE RF CRIMINAL CODE
This concerns, in particular, criminal liability for crimes related to non-payment of taxes, fees or insurance premiums, violation of legislation in the sphere of securities market, or violation of the antimonopoly legislation.
The general rule for determining large and special large amounts (damage/income/debt) has also been adjusted for certain Articles in the Chapter ‘Crimes in the Sphere of Economic Activity’.
In addition, large and especially large amounts of income are excluded from the list of constituent elements of illegal business activity.
15.04.2024
NEW SUB-COMMITTEE IS FORMED TO ENSURE DECISION-MAKING IN THE FIELD OF THE USE OF INTELLECTUAL PROPERTY WITHOUT COPYRIGHT HOLDERS’ CONSENT
Russia creates a new Sub-Committee for settling matters on the use of inventions, utility models and industrial designs in order to ensure the economic security of the state.
The Sub-Committee will consider applications from the Russian legal entities in which the state or Russian citizens own a stake of more than 75%. For this, certain conditions must also be met:
- a patent holder has refused to use the rights;
- a patent holder did not respond to an appeal within 30 days.
Patent holders to be notified of decisions made as soon as reasonably possible, and they will be entitled to a proportionate compensation.
12.04.2024
FROM APRIL 1, 2024 CURRENCY CONTROL RULES FOR FOREIGN TRADE CONTRACTS HAVE BEEN RELAXED
Russian companies participating in foreign trade activities may now not submit documents to the bank on transactions with foreign partners if the volume of such a transaction does not exceed one million roubles. Previously, this threshold was 600 thousand roubles.
The obligation of companies to send shipping and other documents that confirm the movement of goods within the EAEU to authorised banks is also cancelled. The Federal Customs Service will exchange such information with banks independently in electronic form.
In addition, the right of companies is secured to pay under a registered foreign trade contract through any authorised bank, and not just through the one in which they are registered.
11.04.2024
EXPLANATIONS FROM THE MINISTRY OF FINANCE ON INNOVATIONS IN FINANCIAL STATEMENTS
The Russian Ministry of Finance has prepared clarifications concerning application of FAS 4/2023 ‘Accounting Reports’. FAS 4/2023 will operate instead of PBU 4/99 ‘Accounting statements of an organisation’. After FAS 4/2023 comes into force, the provisions of other acts regarding accounting (for example, Regulations No. 34n, issued in 1998, on Accounting and Reporting) should to apply in as much as they are not contrary to FAS 4/2023.
The significant innovations in the rules of accounting, rules for drawing up a balance sheet, a statement of financial results, a statement of changes in capital, rules for drawing up explanations, and accounting for a non-profit organisation are provided.
Organisations must apply FAS 4/2023 from accounting records for 2025. The possibility of early application of the standard is not provided.
10.04.2024
RESIDENTS BELONGING TO THE SAME INTERNATIONAL GROUP OF COMPANIES WITH NON-RESIDENTS WILL BE REQUIRED TO REPORT ON THE MOVEMENT OF MONEY THROUGH ACCOUNTS IN FOREIGN BANKS
Residents must report on the movement of funds and other financial assets on accounts in foreign banks and on transfers without opening an account using electronic means of payment of foreign payment service providers. The Ministry of Finance will update reporting forms.
Rules are provided for the submission of reports by residents belonging to the same international group of companies with non-residents.
09.04.2024
BANK OF RUSSIA EXTENDED RESTRICTIONS ON TRANSFERS OF FUNDS ABROAD FOR ANOTHER SIX MONTHS
It is reported that the restrictions will remain in effect for another six months - from April 1 to September 30, 2024 inclusive.
Russian nationals and non-resident individuals from friendly countries will still be able to transfer no more than one million US dollars or the equivalent in another foreign currency to any accounts in foreign banks within a month.
Limits on transfers through money transfer systems are also maintained - no more than 10 thousand US dollars or the equivalent in another foreign currency per month. Transfer amounts are calculated at the official exchange rate of foreign currencies to the rouble as of the date the bank receives a transaction order.
08.04.2024
FROM APRIL 1, 2024 A RESORT FEE TO BE CHARGED IN ST. PETERSBURG
In certain territories of Russia, an experiment is being conducted to collect fees from tourists for using resort infrastructure (a resort fee).
As part of an experiment to collect fees from tourists for the use of resort infrastructure, a resort fee was introduced in St. Petersburg from October 1, 2023. True, its size was 0 roubles per day until March 31, 2024. But from April 1, 2024, the fee will be charged in the amount of 100 roubles per day per person.
05.04.2024
BANK OF RUSSIA AGAIN KEPT THE KEY RATE AT 16% PER ANNUM
The Board of Directors of the Bank of Russia decided to keep the key rate at 16.00% per annum. Thus, the regulator did not change the rate for the second time.
The Central Bank of the Russian Federation explained that current inflation pressure is gradually weakening, but remains high. Domestic demands continue to significantly outstrip the possibilities for expanding the production of goods and services. Labour market tightness has increased again. It is too early to judge the further speed of disinflationary trends. Monetary policy pursued by the Bank of Russia will consolidate the process of disinflation in the economy.
04.04.2024
RESTRICTIONS ON TRANSACTIONS WITH SHARES OF RUSSIAN FUEL AND ENERGY COMPANIES HAVE BEEN CLARIFIED
Until the end of 2025, a number of transactions (operations) with shares (stakes) of Russian companies in the fuel and energy sector are prohibited.
It has been established that the ban does not apply to transactions (operations) with mutual fund shares or its assets. There is a talk about cases when the assets include shares (stakes) that constitute less than 1% of the authorised capital of the corresponding company.
03.04.2024
RULES FOR LABELLING TOBACCO PRODUCTS HAVE BEEN ADJUSTED
Registration of products, raw materials and participants in circulation in the information monitoring system has been regulated. It is agreed to provide information to the monitoring information system on the production, circulation and termination of circulation of products that are not subject to labelling, as well as on the production or import of raw materials into Russia, their circulation and use.
02.04.2024
DEPOSIT INSURANCE SYSTEM: FROM MARCH 25, 2024, IT COVERS ALSO ACCOUNTS OF MEDIUM-SIZED ENTERPRISES, SOME NON-PROFIT ORGANISATIONS, LAWYERS AND NOTARIES
Insured funds include funds placed in bank accounts of lawyers, notaries and other individuals that opened accounts to carry out professional activities. In addition, the deposit insurance system has been extended to medium-sized enterprises and some non-profit organisations (trade unions and socially oriented non-profit organizations).
01.04.2024
FEDERAL STATE ENVIRONMENTAL INFORMATION SYSTEM WILL APPEAR IN RUSSIA
The federal system, in particular, is supposed to contain information on the following:
- the state of atmospheric air, water bodies, subsoil and other components of the natural environment;
- stationary sources, emissions, discharges of pollutants;
- management of production and consumption waste;
- the state of the ecological system of Lake Baikal;
- the state of permafrost;
- results of the state environmental assessment.
The system to be managed by the Russian Ecological Operator.
29.03.2024
DEADLINE FOR ORGANISATIONS TO FILE NOTIFICATIONS ABOUT CONTROLLED FOREIGN COMPANIES FOR 2023 - MARCH 20, 2024
March 20th is the deadline for organisations to submit notifications of controlled foreign companies for 2023. Notification of controlled foreign companies must be sent regardless of the financial result of such foreign company.
28.03.2024
REQUIREMENTS FOR PAYMENT OF CONTRIBUTIONS TO THE AUTHORISED CAPITAL OF FOREIGN COMPANIES HAVE BEEN CLARIFIED
From April 1, 2024, residents may not receive individual permission from the Central Bank of the Russian Federation to pay shares, deposits, shares in the property of non-residents, contributions to non-residents under simple partnership agreements, if the amount of such transactions in favour of one legal entity does not exceed 15 million roubles (equivalent in any foreign currency).
27.03.2024
IT IS PROPOSED TO MAKE PAYMENTS FOR INTELLECTUAL PROPERTY FOR MEDICINES FROM UNFRIENDLY COUNTRIES THROUGH O-TYPE ACCOUNTS
It is proposed to extend the temporary procedure for settlements with foreign copyright holders through a special O-type rouble account for the acquisition of results of intellectual activity and (or) means of individualization related to the circulation of medicines.
26.03.2024
DIGITAL FINANCIAL ASSETS TO BE USED AS CONSIDERATION UNDER FOREIGN TRADE AGREEMENTS
From March 11, 2024, rules for the possibility of using digital financial assets as means of payment under foreign trade agreements are provided for in a number of federal laws.
25.03.2024
TRANSACTIONS BETWEEN RELATED PARTIES: PROCEDURE FOR SCHEDULING INSPECTIONS IN EFFECT FROM MARCH 26, 2024
The change is that now a decision on the audit should be made without taking into account the date of the receiving by the Federal Tax Service of a notification of controlled transactions or notification of the territorial tax authority (previously, the time limit was two years from the date of receiving a notification of such transactions).
22.03.2024
ADVERTISING AND FOREIGN AGENTS: A LAW HAS BEEN SIGNED BANNING ADVERTISING BY FOREIGN AGENTS
Law on Advertising has been supplemented with provisions according to which distribution of advertising on an information resource of a foreign agent, as well as advertising of information resources of foreign agents, is not allowed. Responsibility for violation of the first of these requirements to be borne by both the advertiser and the advertising distributor, and for the second - by the advertising distributor.
21.03.2024
THE RULES FOR THE BANK OF RUSSIA TO CONDUCT INSPECTIONS OF THE ACTIVITIES OF ISSUERS AND PARTICIPANTS IN CORPORATE RELATIONS HAVE BEEN UPDATED
A new instructions of the Bank of Russia defining the procedure for conducting such inspections came into force on March 11.
Inspections are carried out as part of control and supervision over compliance by issuers with the requirements of the legislation on joint stock companies and securities, control and supervision in the area of corporate relations in joint stock companies in order to protect the rights and legitimate interests of shareholders and investors, as well as within the framework of monitoring the execution of orders by supervised persons of the Bank of Russia.
20.03.2024
RESTRICTIONS ON FOREIGN CURRENCY CASH WITHDRAWALS TO STAY IN EFFECT UNTIL SEPTEMBER 9, 2024
For citizens whose foreign currency account or deposit was opened before March 9, 2022, the limit on currency withdrawal remains - no more than 10,000 US dollars or the equivalent amount in euros (regardless of the currency of the account/deposit), provided that the citizen has not previously taken advantage of this opportunity.
The rest of funds can still be obtained in roubles.
19.03.2024
NON-PROFIT ORGANISATIONS ARE REQUIRED TO POST THEIR CHARTERS ON THE INFORMATION RESOURCE OF THE MINISTRY OF JUSTICE
The Law on Non-Profit Organisations has a provision establishing the obligation of non-profit organisations to post their charter on the information resource of the Ministry of Justice of the Russian Federation in the procedure and within the terms determined by the Ministry of Justice.
The amendments also expand the list of types of activities, subject to the implementation of which socially oriented non-profit organisations can be supported by state authorities or local governments. These include activities in the area of family support and fostering. In addition, the list has been supplemented with activities related to keeping animals in animal shelters.
18.03.2024
RULES FOR LABELLING TOBACCO PRODUCTS: LATEST UPDATES
The rules for labelling tobacco and nicotine-containing products have been adjusted. Rules have been introduced for ensuring the traceability of products and raw materials for production of such products.
Registration of products, raw materials and participants in turnover in ‘GIS Monitoring’ has been regulated.
15.03.2024
ACTIVITIES OF ISSUERS AND PARTICIPANTS IN CORPORATE RELATIONS: CHECKS TO BE CARRIED OUT BASED ON NEW RULES
The Bank of Russia has revised the procedure for conducting inspections of the activities of issuers and participants in corporate relations.
Remote checks of individual information and on-site checks should be carried out. Exchange of documents and information through a personal account in electronic form to be provided, as well as exchange of documents and information on physical media.
The rights and duties of officials of the Bank of Russia and issuers are determined.
14.03.2024
THE BANK OF RUSSIA RECOMMENDED THAT FINANCIAL ORGANISATIONS MINIMIZE PARTICIPATION IN ACTIVITIES RELATED TO THE CIRCULATION OF DIGITAL CURRENCIES
The regulator has developed a number of recommendations for banks and other financial organisations that are aimed at reducing customer risks from transactions with digital currencies and related instruments.
In particular, exchanges are recommended to refuse admission to trading in securities whose profitability depends on the value of digital currencies and similar indicators, and other professional participants in the securities market are advised to refrain from offering individuals who are not qualified investors to purchase such financial instruments.
13.03.2024
AMENDMENTS HAVE BEEN MADE TO THE RULES FOR SUBMITTING NOTIFICATIONS ABOUT THE COMMENCEMENT OF CERTAIN TYPES OF BUSINESS ACTIVITIES
The Rules are supplemented with provisions on formation of a unified register of notifications.
The composition of the information in the unified register of notifications has been established.
Information on changing the location of a legal entity and (or) the place of actual implementation of activities, a change in the place of residence of an individual entrepreneur and (or) the place of actual implementation of activities, on the reorganisation of a legal entity will be entered into the unified register of notifications automatically from the Unified State Register of Legal Entities or the Unified State Register of Individual Entrepreneurs, respectively.
12.03.2024
FROM MARCH 2, 2024, OWNERS OF MOTOR VEHICLES WILL BE ABLE TO ENTER INTO SHORT-TERM MTPL CONTRACTS
According to the amendments, vehicle owners will be able to enter into an MTPL contract for a period from one day to three months. The cost of a policy in such cases should be calculated taking into account reducing ratios. The price of “short” policies will also depend on other ratios currently in force, including territorial, driver’s age and length of service, bonus-malus coefficient, etc.
11.03.2024
THE ISSUES OF CREATION AND OPERATION OF AUTOMATIC CONTROL SYSTEMS FOR EMISSIONS OF PRIORITY POLLUTANTS HAVE BEEN RESOLVED
From September 1, 2024, the specifics of the creation and operation of automatic control systems at quota-regulated facilities regarding emissions of priority pollutants will come into force. The following is established:
- rules for creating and operating systems;
- criteria for determining emission sources to be equipped with systems, including a list of priority pollutants;
- requirements for automatic means of measuring and recording emission indicators, for technical means of recording and transmitting information to the state register of objects of negative impact on the environment.
08.03.2024
ON CONTROL AND SUPERVISION OF FINANCIAL MARKET PARTICIPANTS BY THE CENTRAL BANK
The Central Bank has redistributed responsibilities for control and supervision of compliance with legislation by subjects of the collective investment market, securities market participants, central depository, clearing organisations, central counterparties, trade organisers, repositories, credit rating agencies, as well as self-regulating organisations in the financial market, uniting subjects of the collective investment market and professional participants in the securities market.
Powers regarding financial market operators and price centres are excluded. At the same time, control and supervision of platform service operators are stipulated.
07.03.2024
RULES ON MANDATORY PRE-TRIAL PROCEDURES FOR APPEALING DECISIONS OF LICENSING AUTHORITIES HAVE COME INTO FORCE
Hereinafter, before going to court, applicants (except for citizens that are not involved in entrepreneurial activities) should file a complaint with the relevant licensing authority.
As a general rule, a complaint shall be filed in electronic form through the State Services webportal within 30 calendar days from the date the applicant learned or should have learned of a violation of his rights.
06.03.2024
FROM MARCH 2, 2024, OWNERS OF MOTOR VEHICLES WILL BE ABLE TO ENTER INTO SHORT-TERM MTPL CONTRACTS
According to the amendments to the Law on Motor Third Party Liability Insurance, vehicle owners will be able to enter into a MTPL agreement for a period from one day to three months.
The cost of the policy in this case shall be calculated taking into account reducing ratios. The price of “short” policies will also depend on other ratios currently in force, including territorial ratio, driver’s age and driving experience, bonus-malus coefficient, etc.
05.03.2024
A SELF-PROHIBITION MECHANISM FOR LOANS IS BEING INTRODUCED
Anyone can protect themselves from a situation where fraudsters apply for a loan in their name and voluntarily refuse the opportunity to enter into credit or loan agreements.
To “turn on” the mechanism, you will need to record a special ban in your credit history through the unified Portal of Government Services or at the Multifunctional Public Services Centre. To lift the ban, you will also need to submit an application. This service will be free and unlimited in the number of calls..
From March 1, 2025, an application for self-prohibition can be submitted through the unified Portal of Government Services. Multifunctional public services centres will have to implement the possibility of self-ban until September 1, 2025.
04.03.2024
REQUIREMENTS ARE BEING DEVELOPED TO PROVIDE FIRST AID TO EMPLOYEES: PLACEMENT, STORAGE AND USE OF A FIRST AID KIT
For the period from March 1, 2025 to March 1, 2031, it is planned to establish requirements for the placement, storage and use of a first aid kit for employees. The need to arrange in companies first aid areas equipped with first aid kits is fixed.
01.03.2024
THE KEY RATE IS KEPT AT 16% PER ANNUM
On February 16, 2024, the Bank of Russia decided to keep the key rate at 16% per annum.
The return of inflation to target in 2024 and its further stabilisation around 4% envisage a long period of tough monetary conditions in the economy. As forecasted by the Bank of Russia, annual inflation will reduce to 4-4.5% in 2024 and will be close to 4% later on.
29.02.2024
THE RULES FOR INCLUDING ECONOMIC ENTITIES IN THE LIST OF ECONOMICALLY SIGNIFICANT ORGANISATIONS HAVE BEEN CLARIFIED
The rules for taking a decision on including a Russian business company in the list of economically significant organisations have been adjusted. This is due to amendments to the Law on the specifics of regulating corporate relations in such companies. The criteria for classifying companies as economically significant organisations have been expanded.
28.02.2024
A SPECIAL SUBCOMMITTEE WILL DEAL WITH THE USE OF INVENTIONS, UTILITY MODELS AND INDUSTRIAL DESIGNS IN ORDER TO ENSURE THE ECONOMIC SECURITY OF THE RUSSIAN FEDERATION
A subcommittee on the use of inventions, utility models and industrial designs will be formed under the Government Commission for Economic Development and Integration to ensure the economic security of the Russian Federation.
27.02.2024
EXPERIMENT IN ONLINE BUSINESS REGISTRATION USING A NEW COMPREHENSIVE SERVICE WILL START ON MARCH 1, 2024
From March 1, 2024 to March 1, 2025, an experiment will be held to provide a complex service for state registration of legal entities and individual businessmen, issuing a certified key certificate for verifying the digital signature of a legal entity and individual businessmen, opening a current account and concluding a remote banking service agreement (complex service "Start business online").
26.02.2024
SELF-BAN TO OBTAIN LOANS TO CITIZENS: A DRAFT LAW PASSED THE DUMA
Citizens will be able to self-prohibit the issuance of consumer loans. This can be done through the public services portal or multi-function centres, except for loans secured by a vehicle or mortgage, as well as educational loans with governmental support.
According to the bill, banks and microfinance organisations should request information on the ban from credit bureaus. If there is a ban, the contract to be refused. If the contract is nevertheless made, it can be cancelled upon the request of a citizen.
23.02.2024
POWERS OF THE GOVERNMENTAL COMMISSION FOR CONTROL OF FOREIGN INVESTMENTS WILL BE EXPANDED
The Government Commission for Control of Foreign Investments will issue permits for transactions with foreign persons from unfriendly countries that provide for the alienation or pledge of the exclusive right to the result of intellectual activity or to a means of identification.
22.02.2024
SPECIAL PROCEDURE FOR EXECUTING TRANSACTIONS WITH PERSONS FROM UNFRIENDLY COUNTRIES: THE BANK OF RUSSIA CLARIFIED THE CRITERIA FOR DETERMINING A CONTROLLED ENTITY
The President has established a special procedure for transactions (operations) carried out by residents with persons of foreign states committing unfriendly actions, and with persons who are under their control.
The Bank of Russia clarified the criteria by which a person under control is determined. At the same time, approaches to determining control are applied to all legal entities, including those of strategic importance and those engaged in the use of a subsoil plot of federal significance and (or) fishing.
21.02.2024
FROM SEPTEMBER 1, 2024, THE RULES FOR LICENSING THE PRODUCTION OF MEDICINES WILL BE ADJUSTED
The Government has changed the licensing rules for pharmaceutical production:
- licensing requirements will also include a ban on the unlicensed production of medicines and the production of medicines not included in the state register of medicines for veterinary use, the unified register of registered medicines of the EAEU and the unified register of registered veterinary drugs of the EAEU;
- in the application for a licence (or for making changes to the register, including adding a new production address), a number of information is indicated in an interactive form posted on the State Services Portal (the application is formed by filling out this interactive form);
- when considering the application, the licensing authority itself requests information confirming the certification of the authorised person of the manufacturer of medicines for veterinary use through a system of interdepartmental interaction.
20.02.2024
CONDITIONS FOR PROCESSING PERSONAL HEALTH DATA ARE CLARIFIED
Processing of special categories of personal data, including those related to health status, is not permitted, except in certain cases. Processing is provided for medical and preventive purposes, in order to establish a medical diagnosis, provide medical or medical and social services. Condition is that the processing is carried out by a person who is professionally engaged in medical activities and is obliged to maintain medical confidentiality. This can be either an individual or a legal entity.
19.02.2024
LIST OF GOODS FOR PARALLEL IMPORT HAS BEEN EXPANDED
The Ministry of Industry and Trade has adjusted the list of foreign-made goods allowed for import into the country without the consent of copyright holders.
In particular, the list includes a number of brands of mining equipment (Dewalt, Epiroc, Husqvarna), pumps, fans and compressors (Soler & Palau, Vortice, Air System), cosmetics, perfumes and clothing.
16.02.2024
BANKS TO BE OBLIGED TO INFORM CUSTOMERS OF THE DEPOSITS THAT ARE ABOUT TO EXPIRE
Bank of Russia previously recommended that credit institutions remind depositors about the approaching expiration date of their deposits. This requirement is now mandatory and is provided in the Law on Banks and Banking Activities.
15.02.2024
DOMESTIC FINANCIAL MARKET: DEVELOPMENT TRENDS FOR 2024 - 2026 ARE OUTLINED
Among the intended goals are strengthening the confidence of retail consumers and investors in the financial market through strengthening the security, increasing financial literacy and expanding the accessibility of financial services; ensuring the smooth functioning of the financial market, including under stress conditions.
Among other things, it is planned to develop the insurance market, long-term savings and investment instruments for citizens, increase financial cyber literacy, ensure the inclusivity of the financial market, develop payment infrastructure, SupTech and RegTech technologies.
14.02.2024
APPLYING THE BAN ON USING FOREIGN SOFTWARE FOR TRANSFER OF PERSONAL DATA AND INFORMATION ON MONEY TRANSFERS - MINISTRY OF DIGITAL DEVELOPMENT PROVIDED EXPLANATIONS
Governmental agencies, state and municipal institutions, as well as financial companies, are prohibited from using foreign information systems or software to transmit payment documents and (or) provide information containing personal data, transfer data, information necessary for making payments and (or) information on accounts (deposits) citizens.
The list of information systems and software is determined by Roskomnadzor.
The hyperlink should not refer to information that contains the client’s personal data, unless it is located in the specified information systems.
13.02.2024
START BUSINESS IN RUSSIA ONLINE? IT’S POSSIBLE!
An experiment is proposed to develop a comprehensive service “Start business online”.
It will be possible to register a business remotely and start using a current account just from the date the business is registered. Individuals that are registered as individual entrepreneurs will be entitled to use the complex service, as well as those who decide to create an LLC with a sole founder simultaneously exercising the powers of the sole executive body.
The experiment is expected to be in force until March 1, 2025.
12.02.2024
PROVIDERS NOT INCLUDED INTO A SPECIAL ROSKOMNADZOR REGISTER ARE PROHIBITED FROM PROVIDING HOSTING SERVICES IN RUSSIA
All organisations that provide hosting services in Russia must be registered in the Roskomnadzor register. For companies that are not included in it, the legislation does not yet provide for administrative liability. However, they are prohibited from providing hosting services in the country.
From February 1, 2024, before the start of hosting services, one must submit a notification.
From December 2023, there are new requirements for hosting providers. The new standards will increase the reliability of Russian Internet resources and services and protect RuNet from possible external threats.
09.02.2024
ECONOMICALLY SIGNIFICANT ORGANISATIONS WILL BE ALLOWED NOT TO DISCLOSE SENSITIVE INFORMATION
Economically significant organisations, as well as persons associated with them, to be entitled not to disclose and (or) not provide information that is subject to disclosure and (or) provision based on legal requirements. A list of the relevant laws is provided.
For this, they must notify parties concerned. Such persons will be able to be provided with the information upon request.
08.02.2024
RECOMMENDED REGISTER FORMATS ARE AVAILABLE FOR CONFIRMING THE 0% VAT RATE FOR EXPORTS
Starting from the first quarter of 2024, the zero VAT rate for the export of goods must be confirmed by electronic registers.
The Order approving the forms and formats of such registers, as well as the procedure for filling them in and submitting them, is currently being registered with the Russian Ministry of Justice.
07.02.2024
MAJOR AMENDMENTS HAVE BEEN MADE TO THE LAW ON THE CIRCULATION OF MEDICINES
Amendments have been made to the Law on the Circulation of Medicines aimed at bringing its provisions into compliance with international treaties and acts that constitute the law of the EAEU.
From 2025, government services in the area of circulation of medicines will be provided in the form of electronic document management using the Uniform State Health Information System and the Unified Portal of State and Municipal Services.
The circulation of medicines is being transferred to a registry model - thus, the registration certificate of a drug will be not only a document, but also an entry in the State Register of Medicines and Medical Products confirming the fact of registration (from January 1, 2025 registration certificates on paper will no longer be issued).
The specifics of introducing certain groups of medicinal products into civil circulation will be established.
A ban is introduced on the use of information on the results of preclinical and clinical trials of drugs for commercial purposes and submitted by the applicant for registration of the drug, without the applicant’s consent for six years from the date of registration of the generic in the Russian Federation.
06.02.2024
IN 2024, THE MAXIMUM ADVANCE AMOUNT FOR GOVERNMENT CONTRACTS HAS BEEN INCREASED
The Government of the Russian Federation, from January 25 of this year, re-introduced a measure similar to those in force in 2022-2023, which allows the establishment of an advance condition in an increased amount in government contracts concluded by recipients of federal budget funds.
05.02.2024
FOR LARGE OIL PRODUCERS, SIMPLIFIED PROCEDURE TO BE EXTENDED FOR OBTAINING THE RIGHT TO USE SUBSOIL FOR THE PURPOSE OF EXPLORATION AND EXTRACTION OF GROUNDWATER
Until the end of 2024, large oil producers shall be allowed not to submit a copy of the annual accounting report in order to obtain the right to use subsoil for exploration and extraction of groundwater in areas not classified as subsoil plots of local significance, for the geological survey of such areas for the purpose of prospecting, evaluation, survey and extraction of groundwater.
02.02.2024
THE POWERS OF THE GOVERNMENT COMMISSION TO CONTROL FOREIGN INVESTMENT HAVE BEEN EXPANDED
The rules for issuing permits have been adjusted in order to implement additional temporary economic measures to ensure financial stability. They are issued by the Government Commission for Control of Foreign Investments.
It has been established that the commission also determines the conditions for trading and making transactions (operations) using S-type accounts. There is a talk about settlements with foreign creditors and the acquisition of blocked foreign securities by foreign investors.
01.02.2024
ONE MORE IFRS DOCUMENT CAME INTO FORCE
In Russia, the IFRS document “Non-current liabilities with covenants (Amendments to IAS 1) Presentation of Financial Statements” has been put into effect.
31.01.2024
PLANNED INNOVATIONS IN CONSULAR REGISTRATION OF CITIZENS OF THE RUSSIAN FEDERATION AND OTHER MEASURES TO IMPLEMENT THE CONCEPT OF STATE MIGRATION POLICY
The action plan provides, in particular, for the introduction of mandatory consular registration of Russian citizens living abroad. As follows from the document, as a result of the implementation of this point of the plan, the concept of “citizen permanently residing outside the Russian Federation” will be defined, and the legal status of this category of citizens will also be specified. Implementation deadline is June 20, 2025.
30.01.2024
FROM MARCH 25, 2024, THE DEPOSIT INSURANCE SYSTEM TO EXTEND TO THE FUNDS OF LAWYERS, NOTARIES AND CERTAIN OTHER CATEGORIES OF PERSONS
Amendments to the Law on Deposit Insurance provide for classifying funds of lawyers, notaries and other individuals that have opened accounts for implementation of their professional activities as funds subject to insurance.
Moreover, the group of legal entities that are subject to the deposit insurance system has been expanded to include medium-sized enterprises, recognised as such in accordance with the Law on the Development of Small and Medium Enterprises, and also certain non-profit organizations (trade unions and socially oriented NPOs).
29.01.2024
MINISTRY OF TRANSPORT PROPOSES TO IMPROVE THE STANDARDS GOVERNING THE PLACEMENT OF ROAD SERVICE FACILITIES ALONG HIGHWAYS
According to the draft regulatory act, it is proposed to place, along highways of the first category (those with high traffic intensity and speed limits) road service facilities (gas stations, bus stations, hotels, cafes, service stations, vehicle parking and other similar facilities) exclusively as part of multifunctional zones.
In this case, a multifunctional road service zone should be understood as an area intended to accommodate at least two road service facilities of a different type.
26.01.2024
LISTS OF COUNTRIES NOT PARTICIPATING IN THE EXCHANGE OF TAX INFORMATION WITH THE RUSSIAN FEDERATION, AS WELL AS THOSE NOT FULFILLING THEIR OBLIGATIONS TO EXCHANGE COUNTRY REPORTS, HAVE BEEN APPROVED
A new list of states (territories) that do not ensure the exchange of information for tax purposes with the Russian Federation has been approved. It includes 88 countries and 14 territories.
The profit of a controlled foreign company is exempt from taxation if the permanent location of such a controlled foreign company is a state (territory) with which there is an international treaty of the Russian Federation on tax matters, with the exception of states (territories) that do not ensure the exchange of information for tax purposes with Russia.
25.01.2024
LIMITED DISCLOSURE OF INFORMATION WITHIN THE FRAMEWORK OF LAWS ON JOINT-STOCK COMPANIES AND ON SECURITIES MARKET
If, within the framework of the laws on joint-stock companies and on the securities market, an issuer restricts the disclosure of information, then it must inform the Central Bank of this. New rules for sending relevant notifications are established to replace the current rules, issued in 2019.
24.01.2024
THE BANK OF RUSSIA RECOMMENDS A METHODOLOGY FOR DEVELOPING STRATEGIES FOR SUSTAINABLE DEVELOPMENT AND CLIMATE TRANSITION
The Bank of Russia offered public joint stock companies and issuers a methodology for developing a sustainable development strategy and a climate transition strategy.
The presence of strategies will enable public joint stock companies and issuers to more effectively take into account ESG factors and sustainable development issues when organising corporate governance.
23.01.2024
BANK OF RUSSIA NOT TO PUNISH, IN 2024, FINANCIAL ORGANISATIONS FOR TRANSACTIONS ON BEHALF OF PERSONS USING PROHIBITED SITES
In 2024, the Bank of Russia will not punish financial organisations for carrying out transactions with money and another property on behalf of persons providing services using sites included into the unified register of prohibited Internet resources.
22.01.2024
STATE CONTROL IN THE FIELD OF DRUG CIRCULATION: NEW RISK INDICES FOR VIOLATION OF MANDATORY REQUIREMENTS TO BE PUT INTO OPERATION
The Ministry of Public Health proposes to expand the list of risk indices for violation of mandatory requirements in implementation of federal state control (supervision) in the field of circulation of drugs for medical use. Extra eight items to be introduced as grounds for unscheduled inspections.
19.01.2024
DETERMINATION OF QUOTES, PRICES OF FINANCIAL INSTRUMENTS, PRECIOUS METALS AND CURRENCIES IN 2024: A LIST OF INFORMATION SOURCES HAS BEEN ESTABLISHED
In 2024, the Central Bank of the Russian Federation allows the use of information from the National Settlement Depository, Interfax, Sbonds.ru and Russian trade organisers to determine quotes, prices (costs) of financial instruments, precious metals and currencies, along with data from Bloomberg and Refinitive agencies, and, if they do not have data, information other organisations (based on a reasoned decision of a financial organisation).
At the same time, only Bloomberg and Refinitive can still determine the exchange rate, the change in which determines the amount of income on securities available for purchase to unqualified investors.
18.01.2024
AUDIT ACTIVITIES: INNOVATIONS
The Ministry of Finance announced innovations in auditing activities in 2024:
- cases of unscheduled audits of auditors in 2024 have been identified;
- the procedure for assessing the risks of performing operations (transactions) for the purpose of laundering proceeds from crime and financing of terrorism in auditing activities has been approved;
- The Agreement on the implementation of audit activities within the EAEU came into force.
17.01.2024
A LIST OF OFFSHORE ZONES HAS BEEN ESTABLISHED FOR 2024 TO ASSESS THE COMPLIANCE OF PARTICIPANTS OF FINANCIAL COMPANIES WITH CERTAIN REQUIREMENTS
Organisations registered in offshore zones cannot dispose of shares or stocks of financial companies. A list of such zones has been established that will be applied in 2024. It includes 39 zones. This list is also needed to assess the influence of residents of offshore zones on the management of the bank.
16.01.2024
IT HAS BEEN ESTABLISHED WHAT INFORMATION FINANCIAL COMPANIES MAY NOT DISCLOSE IN 2024
The Bank of Russia has determined what information organisations providing professional services in the financial market have the right not to disclose in 2024. The types of information that the regulator does not disclose on its website are also indicated.
A credit institution that has decided not to disclose information about the qualifications and work experience of members of the board of directors (supervisory board) to an unlimited number of persons on its website is obliged to send this information to the Bank of Russia within the period established for its disclosure, or information about the failure to provide such information by a member of the board of directors (supervisory board).
15.01.2024
VALIDITY OF EXPIRED DRIVER'S LICENSES HAS BEEN EXTENDED FOR THREE YEARS
The norm introduced in the spring of 2022 has been adjusted, which provided for a three-year extension of the validity of Russian national driver's licences, the validity of which expired in the period from January 1, 2022 to December 31, 2023.
It now applies to Russian national driver's licences that expire (expired) between January 1, 2022 and December 31, 2025.
Extension of validity does not require additional changes to the driver's licence.
12.01.2024
BAN ON FORECLOSURE, SEIZURE AND APPLICATION OF OTHER INTERIM MEASURES IN RELATION TO ASSETS IN ACCOUNTS OF TYPE ‘C’ AND ‘I’
It has been established that funds and securities accounted for in a type “C” account, as well as for funds held in a type “I” account, cannot be seized under executive documents, seized, and cannot be subject to other interim measures.
11.01.2024
ANTI-SANCTION MEASURES TO BE EXTENDED FOR 2024
A law was signed to extend the current measures aimed at reducing the negative consequences of anti-Russian sanctions.
Special regulation in the field of licensing and control and supervisory activities has been extended in terms of powers of the Government to establish the specifics of state control (supervision) and municipal control, including in terms of introducing a moratorium on inspections.
Special regulation has been extended in the field of corporate relations, government procurement, construction and town-planning activities, social and labour relations, as well as in terms of admission of persons living abroad to Russian educational organisations, opening of checkpoints across the state border, providing state or municipal preferences and other measures.
10.01.2024
PAYMENTS ON RUSSIAN EUROBONDS: THE BANK OF RUSSIA CLARIFIED SOME PROVISIONS OF THE NEW MECHANISM
The President established a new temporary procedure for fulfillment of the Russian Federation's debt obligations under Eurobonds to residents and foreign creditors. The Bank of Russia has clarified its provisions regarding the priority of fulfilling the obligations of the central depository, including to individuals.
09.01.2024
VISA FEES INCREASED FOR EU CITIZENS
A law is signed on synchronizing the regime for collecting fees for issuing Russian visas with the standards established by the EU, Denmark, Iceland, Liechtenstein, Norway and Switzerland, authorities of which have unilaterally and completely suspended the operation of international agreements with Russia on the mutual simplification of issuing visas, including switching to use of higher rates of visa fees.
Restrictions have been introduced on the visa-free entry of diplomats. Visa preferences have been cancelled for members of official delegations, national and regional governments and parliaments, constitutional and supreme courts, as well as journalists from the EU, Iceland, Liechtenstein, Norway and Switzerland.
Entrepreneurs, persons involved in scientific, cultural or creative activities, participants in international sporting events and official exchange programs between sister cities, schoolchildren, undergraduate and graduate students heading for study and internship, close relatives of EU citizens living in Russia, as well as heavy trucks drivers are still entitled to obtain a Russian visa at the territorial offices of the Ministry of Internal Affairs without formalising invitations.
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