Review of anti-crisis initiatives

Last month, the previously established anti-crisis measures were extended and supplemented, in particular:

• the temporary procedure for the fulfillment of obligations under Russian Eurobonds to foreign creditors has been supplemented (paragraph 1 of the Review);
• the effect of special economic measures in the field of certain foreign economic transactions has been extended (paragraph 2 of the Review);
• The special procedure has been extended   introduction   changes to the documents contained in the registration dossier for a registered medicinal product, in case of its defect due to the imposition of sanctions (paragraph 4 of the Review);
• It is proposed to extend the anti-crisis measures in a number of areas: corporate, financial legal relations, investment policy, etc. (Item 7 of the Review).

In addition, new anti-crisis management measures were introduced in September, including:

• determination of the specifics of the disclosure of consolidated financial statements (paragraph 3 of the Review);
• establishment of export duties on certain types of goods exported from the Russian Federation outside the customs territory of the EAEU, linked to the ruble exchange rate (paragraph 5 of the Review);
• Approval of the list of States, banks and brokers from which are allowed to participate in organized trading in currencies and derivative financial instruments (paragraph 6 of the Review).

This review is devoted both to those acts that were adopted in September by the authorized state authorities, and to those initiatives that are still under consideration.

Acts adopted

1. Decree of the President of the Russian Federation dated 09.09.2023 No. 665 “On the temporary procedure for the Execution of Government Debt Obligations of the Russian Federation to Residents and Foreign Creditors expressed in Government Securities, the nominal value of which is indicated in foreign currency, and other obligations under foreign securities”¹

The decree supplements the measures established by Decree of the President of the Russian Federation dated 03/05/2022 No. 95

“On the temporary procedure for fulfilling obligations to certain foreign creditors.”

In particular, he introduces the rule that in order to fulfill the Russian Federation’s government debt obligations in foreign currency to residents and foreign creditors, the Russian Federation has the right to send to a non-bank credit institution, which is the central depository, an application for opening an account of type “I” in the name of a foreign depository, which is maintained in rubles.

In this regard, the Decree establishes:

• the procedure for opening an account;
• scope of powers of the central securities depository;
• the procedure for indexing funds credited to accounts of type “And”;
• the procedure for transferring payments to holders of Eurobonds of the Russian Federation and the use of funds;
• terms of transfer of payments to holders of Eurobonds of the Russian Federation, etc.

Decree of the President of the Russian Federation No. 394 dated 06/22/2022, regulating similar legal relations, has been declared invalid.

2. Decree of the President of the Russian Federation dated 09/18/2023 No. 693 “On the extension of certain special economic measures in order to ensure the security of the Russian Federation”²

The decree extends until December 31, 2024 the validity of certain special economic measures provided for by Decree of the President of the Russian Federation dated August 6, 2014 No. 560

¹ see the correct text: http://publication.pravo.gov.ru/document/0001202309090001

² see the correct text: http://publication.pravo.gov.ru/document/0001202309180015

“On the application of certain special economic measures in order to ensure the security of the Russian Federation”³.

These special economic measures establish a ban or restriction on the implementation of foreign economic operations involving importation into the territory   Russia of certain types of agricultural products, raw materials and foodstuffs, the country of origin of which is the state that has decided to impose economic sanctions against Russian legal entities and (or) individuals or has joined such a decision.

3. Resolution of the Government of the Russian Federation dated 09/13/2023 No. 1490 “On the specifics of disclosure of consolidated financial statements”⁴

The resolution establishes that organizations that are required to disclose consolidated financial statements have the right not to disclose a number of information in these statements:

• about the persons who are (who were during the previous three years) members of the management bodies of the issuer of securities;
• about the issuer’s transactions;
• about the issuer’s affiliates;
• about organizations controlled by the issuer, etc.

The full list of information not subject to disclosure is specified in the Decree of the Government of the Russian Federation dated 07/04/2023 No. 1102 “On the specifics of Disclosure and (or) Provision of information subject to disclosure and (or) provision in accordance with the requirements of the Federal Law “On Joint Stock Companies” and the Federal Law “On the Securities Market”5.

Credit organizations also have the right not to disclose the information specified in the Decree of the Government of the Russian Federation dated 07.09.2019 No. 1173 “On the specifics of disclosure by credit organizations of information subject to disclosure in accordance with the requirements of the Federal Law “On Banks and Banking Activities”6.

³ see the correct text: https://www.consultant.ru/document/cons_doc_LAW_166922 / ⁴ see the correct text: http://publication.pravo.gov.ru/document/0001202309150030 ⁵ see the correct text: http://publication.pravo.gov.ru/document/0001202307050023

⁶ see the correct text: http://publication.pravo.gov.ru/Document/View/000120190910002

A similar Government Decree No. 232 dated 03/05/2020 was declared invalid.

4. Decree of the Government of the Russian Federation dated 09/18/2023 No. 1525 “On Amendments to Paragraph 2 of the Decree of the Government of the Russian Federation dated March 23, 2022 No. 440”⁷

The resolution extends until December 31, 2024 the special procedure for making changes to the documents contained in the registration dossier for a registered medicinal product for medical use, in case of a defect or risk of a defect in medicines due to the introduction of restrictive economic measures against the Russian Federation.

5. Decree of the Government of the Russian Federation dated 09/21/2023 No. 1538 “On the rates of export customs duties on goods exported from the Russian Federation outside the customs territory of the Eurasian Economic Union and on Amendments to the rates of export customs duties on goods exported from the Russian Federation outside the customs territory of the Eurasian Economic Union”⁸

The resolution establishes export duties on certain types of goods exported from the Russian Federation outside the customs territory of the EAEU, linked to the ruble exchange rate. The duties will be effective from October 1, 2023 to December 31, 2024 and will range from 4% to 7%, depending on the ruble exchange rate.

For example, if, with an average value for the monitoring period, the dollar-ruble exchange rate is less than 80 rubles, then the rate of export customs duties on goods will be zero; if the dollar exchange rate is from 80 to 85 rubles, then the rate will be four percent of the customs value of the goods, etc. For exported fertilizers, the export duty will be up to ten percent.

6. Decree of the Government of the Russian Federation dated 09/20/2023 No. 2530-r “On Approval of the List of Foreign States in which Foreign Banks (Foreign Credit Organizations) Acting on Their Own Behalf and at Their Own Expense, and foreign Legal entities Engaged in Activities Similar to those of a broker, which may be allowed to participate in organized Auctions of foreign Currency currency”⁹

⁷ see the correct text: http://publication.pravo.gov.ru/document/0001202309190022 ⁸ see the correct text: http://publication.pravo.gov.ru/document/0001202309210020 ⁹ see the correct text: http://publication.pravo.gov.ru/document/0001202309210002

The Order approves the list of foreign countries in which they are registered:

• foreign banks acting on their own behalf and at their own expense;
• foreign legal entities engaged in activities similar to those of a broker,

which may be allowed to participate in organized trading in foreign currency and in organized trading in which contracts are concluded that are derivative financial instruments, the underlying asset of which is currency and (or) interest rates.

The specified list includes the following States: Algeria, Armenia, Azerbaijan, Bangladesh, Bahrain, Belarus, Brazil, Venezuela, Vietnam, Egypt, India, Indonesia, Iran, Qatar, Kazakhstan, Kyrgyzstan, China (excluding Taiwan), Cuba, Malaysia, Morocco, Mongolia, UAE, Oman, Pakistan, Saudi Arabia, Serbia, Tajikistan, Thailand, Turkmenistan, Turkey, Uzbekistan, South Africa.

Draft documents

7. Draft Federal Law “On Amendments to Certain Legislative Acts of the Russian Federation”¹⁰

The draft was developed by the Government of the Russian Federation (not submitted to the State Duma of the Russian Federation) and proposes to extend the validity of a number of economic measures for 2024.

For example, we are talking about measures in the following areas:

• Labeling of goods (The Government of the Russian Federation has the right to establish the procedure for putting into circulation, turnover and withdrawal from circulation of goods subject to mandatory labeling by means of identification, without applying identification means to them in some cases).
• The contract system in the field of procurement of goods, works, and services for state and municipal needs (for example, by agreement of the parties, it is allowed to change the essential terms of the contract if circumstances beyond the control of the parties to the contract arose during the execution of such a contract, entailing the impossibility of its execution).

¹⁰ see the correct text: https://www.consultant.ru/law/hotdocs/81919.html

A number of other areas: regulation of the financial market, property relations, social protection, appointment to positions of the state civil service, etc.

The establishment by the Government of the Russian Federation of additional features for the modification and termination of special investment contracts.

The activities of joint-stock companies (for example, in some cases, the general meeting of participants of a limited liability company may be held in the form of absentee voting (by poll)).