Key Changes
The Draft Law No. 736449-8, which recently passed its first reading in the State Duma, introduces the following changes:
- Harmonized Terminology
The draft law aligns language used in the Law on State Control with the Code of Administrative Offenses (CAO), ensuring consistent standards for enforcement.
- Increased Fines
Proposed amendments to Article 19.4.1 Part 2 of the CAO raise fines for obstructing inspections to:
- RUB 10,000 to RUB 20,000 for officials,
- RUB 250,000 to RUB 500,000 for companies.
- RUB 250,000 to RUB 500,000 for companies.
- Penalties for Repeat Offenses
For repeated violations, penalties increase further to:
- RUB 20,000 to RUB 50,000 for officials,
- RUB 500,000 to RUB 1,000,000 for companies.
- RUB 500,000 to RUB 1,000,000 for companies.
Rationale
Lawmakers note that current fines for obstruction can be cheaper than the potential penalties businesses might face if an inspection reveals violations — creating an incentive to hinder oversight. By elevating these fines, the draft law aims to encourage compliance and ensure that inspections proceed without unlawful interference.
Next Steps
If the draft becomes law, businesses will need to review their internal compliance practices to avoid increased fines. To learn more about the implications of these proposed changes or ensure your procedures align with current and upcoming regulations, Solstico Legal is ready to assist.