14 October 2020
Protection and promotion of investments. Restarting the law.
In order to implement provisions of the Law on the Protection and Promotion of Investments1 Government issued two decrees to ensure investment protection for companies implementing investment projects. To exercise this right it will be necessary to conclude an agreement (Capital Investment Protection and Promotion Agreements - CIPPA).
The first decree2 sets out rules for conclusion of such agreement. List of documents required for drawing such agreement, its standard form, peculiarities of changes and termination of CIPPA have been determined. Agreement will be signed by the Ministry of Economic Development from the state hand.
Agreements will initially be in paper form. In the future they will be transferred to the Unified Information System "Investments". This system should become investment navigator for businesses. Resolution will enter into force from the date of publication and will be valid until April 1, 2021 inclusive.
The second decree3 approves procedure for providing compensation to companies that operate under CIPPA. We are talking about covering costs of construction and modernization of transport, energy, utilities and information systems for successful launch of investment projects.
Also, expenses for the payments of interest on loans and large income on bonded loans raised for investment purposes will be reimbursed from federal budget. Donations will be provided by the Ministry of Economic Development.
Please pay attention to the fact that the Law on the Protection and Promotion of Investments in the Russian Federation was adopted in April, but by-laws were required to implement it.
1 Federal Law 04/01/2020 No. 69-FZ "On the Protection and Encouragement of Investments"
2 Resolution of the Government of the Russian Federation dated 01.10.2020 No. 1577
3 Resolution of the Government of the Russian Federation of 03.10. 2020 No. 1599
COVID 19 New restrictions in Moscow. Important!
On October 1, 2020, Decree of the Mayor of Moscow № 96-YM was published, according to which employers in Moscow were obliged to transfer part of their employees to work remotely.
According to the abovementioned Decree employers have to transfer at least 30% of employees to remote work mode, as well as all employees over the age of 65 or employees suffering from chronic diseases over the period from October 5, 2020 until October 28, 2020.
However, this requirement does not apply to employees whose presence at the workplace is crucial for organizations.
In addition to simple transfer employers are required to provide information on number of employees transferred to remote work mode in electronic form, as well as on those employees who cannot be transferred for the abovestated reasons.
Information has to be sent to firstname.lastname@example.org in the form according to Appendix 4 to the Decree of the Mayor of Moscow.
On October 6, 2020, a new Decree of the Mayor of Moscow № 96-YM was published, which changed rules for provision of this information.
Actions to take as of now!
1. Register legal entity at official website of the Mayor and the Moscow № 96-YM Government (if it has not been registered earlier).
2. Weekly, on Mondays, starting from October 12, inform the state authorities of Moscow about employees who should and should not be transferred to a remote work mode.
3. Using Appendix № 4 is required. It should be sent to the state authorities of Moscow. Current application form can be opened using link.
According to Article 20.6.1 of the Administrative Code of the Russian Federation failure to provide required information is subject to fine in the amount of up to 300 thousand rubles.
Cancellation of mandatory audit of non-public joint stock companies.
The Ministry of Economic Development of Russian Federation has come up with an initiative to abolish mandatory audit of accounting (financial) statements for non-public joint stock companies. Relevant bills were sent for approval to the Ministry of Finance and the Central Bank.
The Ministry proposes to a general meeting of shareholders of a non-public joint stock company to decide on refusal to conduct mandatory annual audit of accounting (financial) statements. Such decision in accordance with the proposed amendments has to be taken unanimously. At the same time, representatives of the ministry clarified that initiative concerns non-public joint-stock companies that the state is not a co-owner to.
Discussed amendments are being made in order to optimize activities of small joint stock companies and reduce costs of conducting annual audit of financial statements, according to the officials.
Please pay attention to the fact that corresponding obligation of non-public joint stock companies arose as a result of changes in legislation in 2014. Prior to that, such requirement applied to open joint stock companies only.
Source Journal Ведомости.
Review of topical issues of labor relations. August-September 2020. Recommendations of Rostrud.
Август - Сентябрь 2020. Рекомендации Роструда.
It is known that Rostrud periodically conducts analytics on questions asked by both employees and employers using the "Duty Inspector" service. As a result, we can see the most important questions that concern both employees and employers, and immediately familiarize ourselves with answers to these questions that are provided directly by law enforcement officers. This way we understand exactly how certain labor law norms are applied by state bodies in specific situations. These are the reviews that Rostrud published with a summary of practices in August and September.
We recommend that you familiarize yourself with these questions in order to avoid liability for results of inspections in the future.
Review August 2020
Review September 2020
We monitor changes in legislation on a daily basis and provide our clients with proven ways to resolve issues within legal framework of the Russian Federation.
If you should have any questions, please contact our specialists.
© BBNP Law Firm