Why is the Draft Law is necessary?
The Draft Law is necessitated because, for many economic crimes, indexation last took place in 2011 and 2016. Meanwhile, as noted in the explanatory note to the Draft Law, we have seen double-digit inflation over the recent years.The authors of the Draft Law believe that, in view of the increased rate of economic crimes, “there is an unjustified situation when misdemeanants are brought under criminal prosecution for committing misdemeanours that do not pose a sufficient degree of danger to the public which was originally implied by the elements of the criminal offence.”
Furthermore, they emphasise that it is necessary to ensure as much freedom for business as possible in face of the accumulated problems caused by Covid-19 and foreign economic restrictions.
Contents of the Draft Law
The Draft Law raises the damage limits for property crimes and economic crimes. The table below shows the changes proposed by the Draft Law.|
Crime under the Criminal Code of the Russian Federation |
Significant damage |
Large damage /amount / income |
Especially large damage / amount / income |
|
Fraud (article 159) |
10,000 to 250,000 |
3,000,000 to 4,500,000 |
12,000,000 to 18,000,000 |
|
Entry of deliberately false information in the land survey plan, technical plan, examination report and land plot demarcation plan (article 170.2Amount of large and especially large damage established under this article applies to all articles in Chapter 22 of the Criminal Code of the Russian Federation, except for article 169, parts three to six of article 171.1, articles 171.2, 171.3, 171.5, 172.3, 174, 174.1, 178, 180, 185 - 185.4, 185.6, 191.1, 193, 193.1, 194, 198 - 199.1, 199.3, 199.4, 200.1, 200.2, 200.3, 200.5 and 200.7 of the Criminal Code of the Russian Federation) |
Not applicable |
2,250,000 to 3,500,000 |
9,000,000 to 13,500,000 |
|
Illegal provision of consumer loans (article 171.5) |
Not applicable |
2,250,000 to 3,500,000 |
Not applicable |
|
Failure to enter information in financial accounting documents and financial statements of a credit institution in relation to funds deposited by individuals and individual entrepreneurs (article 172.3) |
Not applicable |
3,000,000 to 4,500,000 |
Not applicable |
|
Restriction of competition (Article 178) |
Not applicable |
Damage: 10,000,000 to 16,000,000 Income: с 50,000,000 to 80,000,000 |
Damage: с 30,000,000 to 47,500,000 Income: с 250,000,000 to 395,000,000 |
|
Unlawful use of means of identification of goods (article 180) |
Not applicable |
250,000 to 400,000 |
Not applicable |
|
Abuse in the issue of securities (article 185The amount of large and especially large damage and the amount of large and especially large income provided under this article applies to articles 185.2 and 185.4 of the Criminal Code of the Russian Federation) |
Not applicable |
1,000,000 to 2,250,000 |
3,750,000 to 5,500,000 |
|
Persistent refusal to disclose or provide the information required under the Russian securities laws (article 185.1) |
Not applicable |
1,500,000 to 3,000,000 |
Not applicable |
|
Illegal use of inside information (article 185.6) |
Not applicable |
3,750,000 to 5,500,000 |
Not applicable |
|
Foreign exchange transactions involving the transfer of funds in a foreign currency or the currency of the Russian Federation to accounts of non-residents using false documents (article 193.1) |
Not applicable |
9,000,000 to 13,500,000 |
45,000,000 to 65,000,000 |
|
Evasion from paying customs payments, special, anti-dumping and/or countervailing duties levied on an entity or an individual (article 194For certain goods as determined by the Government of the Russian Federation which are moved across the customs border of the Eurasian Economic Union, evasion is deemed to be on a large scale if the amount of unpaid charges and special, anti-dumping and/or countervailing duties is in excess of RUB 2 000 000, and on an especially large scale if the amount is in excess of RUB 6 000 000) |
Not applicable |
2,000,000 to 3,000,000 |
6,000,000 to 9,000,000 |
|
Evasion of taxes and levies payable by an organisation (article 199) |
Not applicable |
15,000,000 to 18,750,000 |
45,000,000 to 56,250,000 |
|
Failure to fulfil the duties of a tax agent (article 199.1) |
Not applicable |
15,000,000 to 18,750,000 |
45,000,000 to 56,250,000 |
|
Non-payment of insurance contributions payable by an individual insurant (article 199.3) |
Not applicable |
1,800,000 to 2,250,000 |
9,000,000 to 11,250,000 |
|
Non-payment of insurance contributions payable by an insurant that is an organisation (article 199.4) |
Not applicable |
6,000,000 to 7,500,000 |
30,000,000 to 37,500,000 |
|
Raising funds from citizens in violation of the requirements of the laws of the Russian Federation on the co-funding of the construction of apartment buildings and/or other immovable properties (article 200.3) |
Not applicable |
3,000,000 to 4,500,000 |
5,000,000 to 7,500,000 |
Once the Draft Law is passed by the State Duma, it must be approved by the Federation Council and signed by the President. The Draft Law enters into force 10 days after its official publication, except for article 194 of the Criminal Code of the Russian Federation, which will enter into force 90 days after the publication.
