2017_12_29

Legal Update: Get Prepared for 2018

2017 is coming to an end so we would like to share with you the upcoming civil, labor and business law changes relevant to international companies operating in Russia.

Below you will find a list of these upcoming changed as prepared by Pavel Antonov, Head of Law at Accountor Russia.

New Laws to Enter Into Force in 2018

Amendments to the Russian Civil Code

1. Escrow arrangements have been introduced to the Code so now any party with movable property, uncertified securities and/or cash in deposits may be an escrow agent. 

Signed into law on July 26, 2017 as Federal Law No. 212-FZ effective from June 01, 2018

2. Loan contracts will be consensual not real. Their binding effect will arise from mere consent instead of current rule upon actual transfer of funds or other assets. 

Signed into law on July 26, 2017 as Federal Law No. 212-FZ effective from June 01, 2018 

3. New types of bank accounts have been introduced:

  • precious metal accounts; 
  • joint individual accounts; 
  • public deposit accounts.

Signed into law on July 26, 2017 as Federal Law No. 212-FZ effective from June 01, 2018

4. Significant changes have been introduced to settlement instruments. Letters of credit have been brought in line with the Uniform Customs and Practice for Documentary Credits (UCP600, 2017).

Signed into law on July 26, 2017 as Federal Law No. 212-FZ effective from June 01, 2018

5. Interest rate under loan agreements is the key rate of the Central Bank unless otherwise provided by a contract or rule of law.

Signed into law on July 26, 2017 as Federal Law No. 212-FZ effective from June 01, 2018

FIFA Football Cup 2018 in Russia

ALL foreigners will be required to register with state authorities within one (1) day of arrival in the place of their stay (Presidential Decree No. 202 dated May 09, 2017). To find out more, read our article

Tax Free System in Russia

A government bill introducing tax-free system in Russia was signed by the President. The new law takes effect starting from January 1, 2018. Federal Law No. 341-FZ dated November 27, 2017.

Amendment to Law On State Registration of Legal Entities and Individual Entrepreneurs

Significant changes have been introduced to registration procedures. If applicants submit incorrect and/or incomplete documents, they will have 3 months to correct such mistakes. 

Federal Law No. 312-FZ dated October 30, 2017

Prior to October 01, 2018 

If an applicant submits for state registration in the register of legal entities documents with mistakes/typos or incomplete documents, the applicant will be required to:

  1. pay the stamp duty again up resubmission of documents;
  2. collect, prepare and notarize the new set of documents for registration;
  3. wait for the registration results again, sometimes incurring losses. 


From October 01, 2018 onwards

If an applicant submits for state registration in the register of legal entities documents with mistakes/typos or incomplete documents, the applicant will be required to:

  1. not to pay the stamp duty again;
  2. correct mistakes/typos and/or submit additional documents for registration within 3 months;
  3. spend less time and money to obtain the registration results. 


Amendments to Currency Control Regulations

Residents and non-residents are now required to provide supporting documents to banks in a new format (export contract to replace transaction certificate).

New directive of the Central Bank effective from January 01, 2018

Amendments to the Russian Labor Code

Now, both part-time working day and week are allowed. Before, it was possible to provide for either part-time week or part-time day. Part-time work is now allowed for an indefinite and a fixed term.

Federal Law No. 125-FZ dated June 18, 2017

Amendments to laws in IT industry

The law prohibiting the use of technologies enabling access to blocked websites took effect on November 1, 2017.

Federal Law No. 276-FZ dated July 29, 2017

Bills currently discussed and expected to be passed into law soon

Planned Amendments to litigation laws 

A bill that envisages a wider use of jury trial institutions has been adopted by the State Duma in the first reading.

Planned Amendments to civil laws

It will be possible to transfer the administration of voluntary liquidation procedures fully to certified arbitration trustees.

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