Article 8 of Ordinance No. 2020-306 (“Time Limits” Ordinance) thus establishes an automatic and generalised suspension of the time limits imposed by the administration, in accordance with the law and regulations, granted to any person to carry out inspections and work or to comply with requirements of any kind.
In short, administrative procedures (whatever their form, in particular acts, formalities, registration, etc.) whose failure to complete within the period initially prescribed could produce particular legal effects (such as a penalty, a prescription, etc.), but which could not be completed during the period of a state of emergency plus one month, may be completed at the end of that period within the period normally provided for, and at the latest within two months following the end of that period.
On 1 April 2020 Federal Law No. 102-FZ “On amendments to the Russian Tax Code” entered into force. It provides for a number of anti-crisis measures and gives the Russian government additional powers.
Federal Law No. 98-FZ “On amending certain legislative acts of the Russian Federation concerning the prevention and liquidation of emergency situations” became effective on 1 April 2020. The Federal Law provides, inter alia, for the following support measures:
 Pursuant to Federal Law No. 209, small and medium-sized enterprises (SMEs) include medium-sized and small enterprises, as well as microenterprises, in which at least 51% of the charter capital shall be held by individuals or other SMEs. The share of other companies, not being SMEs, shall not exceed 49%, and the share held by the state, region or non-profit organizations shall not exceed 25%. Besides, the requirements on the number of employees and amount of revenue are to be complied with. Microenterprises shall not employ more than 15 persons, while their revenue shall not exceed RUB 120 mln. Small enterprises shall not employ more than 100 persons, and their revenue shall not exceed RUB 800 mln. Medium-sized enterprises shall not employ more than 250 persons, while their revenue shall not exceed RUB 2 bln. Please note that all SMEs shall be included in a relevant register.
After addressing the nation for the second time, President Putin signed on 2 April 2020 a decree on the extension of “paid non-working days” during the period from 4 April until 30 April 2020. The list of employers and employees to whom the “non-working period” does not apply was extended as compared to that prescribed by the President’s Decree dated 25 March 2020 and now includes: (i) organizations working without interruption; (ii) medical organizations and pharmacies, (iii) organizations providing the population with food products and essential goods, (iv) organizations performing urgent works in emergency situations and in cases threatening life, health and normal living conditions of the population, (v) organizations performing urgent repairs and loading operations, (vi) financial institutions fulfilling urgent functions (mainly, rendering payment services), (vii) other organizations as determined by the head of the region depending on the epidemiological situation in a particular Russian region. If the situation with the spread of coronavirus improves, the period of “non-working days” will be shortened. The Ministry of labor issued clarifications for the employers providing that:
In case the employer is entitled to continue its operations in accordance with the President’s Decree dated 2 April 2020 or if the employer has issued an internal order on remote work for its employees, the employer might consider the following options in order to deal with the COVID-19 pandemic challenges:
According to the Order of the Moscow Mayor dated 4 April 2020, the suspension of operation of the businesses mentioned by previous Mayor’s orders is prolonged till 1 May 2020. Besides, this order provides that the organizations and individual entrepreneurs are not obliged to suspend their activities in Moscow unless it is required under the President’s decisions, the Mayor’s orders and other regulations. The organizations and individual entrepreneurs in whose respect there is no prohibition from being visited by citizens under the law, shall provide the Moscow authorities with the information on the number of employees who continue working at their usual workplaces, who are switched to distance work, and who are not working under the President’s Decree.
The President’s Decree dated 2 April 2020 also provides that regions may expand the list of companies that are not required to suspend their activities from 4 April until 30 April 2020.
On 20 March 2020, the Government Commission for improving the stability of the Russian economy reviewed and approved a new list of systemically important organizations whose financial condition will be monitored by the authorities in the context of the collapse of oil prices and the COVID-19 pandemic and, if necessary, provided support. Now, the list includes 646 companies, however, the final list is expected to be prepared by 10 April 2020 taking into account the suggestions made by regional authorities. Please note that the President’s Decree dated 2 April 2020 on the “non-working period” from 4 April until 30 April 2020 may still apply to systemically important organizations subject to approval by the Russian Government.
We expect further clarifications on the aforementioned measures from Russian authorities
We are actively following the developments related to those issues and are fully prepared to advise our clients.