RS Law digest Main changes in the Law of the Russian Federation from March 1, 2011 to May 1, 2011

Main changes in the Law of the Russian Federation from March 1, 2011 to May 1, 2011

June 2011

  1. The Federal Law On Electronic Signatures came into effect. The law seeks to refine the existing legislation on electronic digital signatures, expanding their use and the range of acceptable electronic signatures. Thus, the new law regulates the use of various types of electronic signatures; issuance and use of signature key certificates; verification of electronic signatures; the provision of services by verification centres; accreditation of verification centres.
  2. A law on Clearing and Clearing activities was passed.
    The law defines the main requirements for the clearing procedure which clearing companies must meet, as well as the legal foundations for the state regulation of clearing in Russia.
  3. The Bank of Russia set its discount rate to 8% per year. In Russia the discount rate of the Central Bank is a fiscal measure (used in the calculation of tax and other kinds of penalties) in addition to its function as an economic regulator as in other economies.
  4. Amendments were passed to refine the process for keeping track of foreign nationals and people without citizenship. To read more on this issue, see ‘Brief news’, article ‘Hospitality of the immigration law’.
  5. A procedure for recognising the international financial reporting standards in Russia was defined. Recognition of international financial reporting standards in Russia means that a process has been defined for passing resolutions to put into effect each IFRS document in the territory of the Russian Federation. This process includes the official obtainment of a document from the Fund of International Financial Reporting Standard; expert examination of the applicability of the standard in Russia; the passing of a resolution to put the standard into effect; the publishing of the standard in Russia.
  6. Amendments were made to the Russian Code on Administrative Violations and the Federal Law on Health and Safety at Dangerous Industrial Facilities.
    The size of administrative fines was significantly increased:
    • For violation of health and safety requirements officials can now be fined between RUB 20,000 and RUB 30,000 (USD 715-1,073); legal entities may be fined between RUB 200,000 and RUB 300,000 (USD 7,155 – 10,733) or may have their operations suspended for a period of up to ninety days.
    • For violation of health and safety requirements while handling explosives, officials may be fined between RUB 30,000 and RUB 40,000 (USD 1,073 – 1,431) or may be disqualified for a period of up to a year and a half; legal entities may be fined between RUB 300,000 and 400,000 (USD 10,733 – 14,311) or have their operations suspended for a period of up to ninety days.
    • Gross violations of the terms and conditions outlined in their license for the health and safety requirements for dangerous industrial facilities officials may be fined between RUB 40,000 and RUB 50,000 (USD 1,431–1,789) or disqualified for a period of between one year and two years; legal entities may be fined between RUB 500,000 and RUB 1,000,000 (USD 17,889 - 35,778) or have their operations suspended for a period of up to ninety days.
    Violations of health and safety requirements have been included in the list of administrative violations with a longer statute of limitations (one year after the violation).
    Additions were made to the list of persons authorised to take disciplinary actions by suspending the operations of the facility that committed a violation. Now in addition to courts such a disciplinary action may be taken by:
    • The head of the federal executive agency supervising work-related health and safety or his/her deputies;
    • The heads of local federal executive agencies supervising work-related health and safety or their deputies.
  7. The procedure for the provision of notices about the start of entrepreneurial activity has been simplified. In accordance with the Federal Law on the Protection of the Rights of Legal Entities and Sole Traders in State and Municipal Supervision certain types of entrepreneurial activity (retail, consumer services, hotel services, clothing manufacture, bakery, pastry and confectionery production etc.) may be carried out without getting permission from appropriate executive authorities. Now legal entities or sole traders engaged in such activities merely have to notify the said authorities when they commence their operations.