Increase of Sanctions for Violation of Russian Immigration Law

Increase of Sanctions for Violation of Russian Im...

On August 9, 2013, the Code of Administrative Violations (hereinafter - CAV) was changed by Federal Law #207-FZ of July 23, 2013, “On introducing changes to the acts of law of the Russian Federation with the purpose of improvement of immigration legislation and strengthening liability of its violation” (hereinafter – 207-FZ). In particular, more severe sanctions have been established for violation of the immigration law in Moscow, St. Petersburg, the Moscow Region and the Leningrad Region. Below, we describe the major newly adopted changes.

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In particular, more severe sanctions have been established for violation of the immigration law in Moscow, St. Petersburg, the Moscow Region and the Leningrad Region.

 

Below, we describe the major newly adopted changes. 

1. Sanctions imposed on foreign citizens and individuals without a citizenship (hereinafter – foreign employees)

  • 1.1. More severe sanctions have been imposed on foreign employees working in Russia without an individual work permit or a proper patent in Moscow, St. Petersburg, the Moscow Region and the Leningrad Region and constitute RUB 5000 to RUB 7000 with an administrative expulsion from Russia.
  • 1.2 Sanctions have been introduced for foreign employees, who, during 1 year repeat a violation, i.e. work in Russia without an individual work permit or a proper patent, will face a fine from RUB 5000 to RUB 7000 with an administrative expulsion from Russia. 

2. Sanctions have been imposed for companies and individuals who engage foreign employees to conduct employment activities or provide services in Russia (hereafter – individuals)

  • 2.1 The list of violations has been broaden with the following: a) Failure to follow the procedure or format of notifying the relevant authority on engaging foreign employees to work in Russia; b) Failure to notify a relevant state authority regarding termination of an employment contract (or a civil law contract); Failure to notify a relevant state authority regarding placement of a foreign employee on unpaid leave for a period over 1 calendar month within a year.
  • 2.2 The minimal period for suspension of a company’s operation was established as an alternative to sanctions for failure to notify state authorities mentioned in Clause 2.1 or engagement of foreign employees without proper work authorization documents. The minimum period now is 14 consecutive days. The maximum period remains the same as before - 90 consecutive days.
  • 2.3 More severe sanctions have been established for violations mentioned in Clauses 2.1 and 2.2 committed in Moscow, St. Petersburg, the Moscow Region and the Leningrad Region, in particular:

Liable Party

Sanctions (RUB)

Individuals

From 5,000 to 7,000

Company executives

From 35,000 to 70,000

Companies

From 400,000 to 1,000,000 or suspension of the company’s operation for a period from 14 to 90 consecutive days

 

  • 2.4 New sanctions for failure to notify a relevant state authority (or violation of rules of the notification process) with respect to the highly qualified specialist category of foreign employees, in particular:

Liable Party

Sanctions (RUB)

Company executives

From 35,000 to 70,000

Companies

From 400,000 to 1,000,000

 

  • 2.5 More severe financial sanctions shall be imposed for violations of rules of engagement of foreign employees to work for retail facilities (including shopping centers) in Moscow, St. Petersburg, the Moscow Region and the Leningrad Region, in particular:

Liable Party

Sanctions (RUB)

Company executives

From 45,000 to 70,000

Companies

From 450,000 to 1,000,000 or suspension of the company’s operation for a period from 14 to 90 consecutive days

 

3. Other changes in the CAV effective as of August 9, 2013

  • 3.1 The list of violations of rules of arrival and residence in Russia has been broadened and can include: a lack of proper documentation that serves as proof for lawful presence (residence) in Russia; failure to submit a proper notification regarding the loss of such documents; refusal to leave Russia upon the expiration of the period of validity of such documents.
  • 3.2 Sanctions have been established for recurring violations set in Clause 3.1, and for the same violations committed in Moscow, St. Petersburg, the Moscow Region and the Leningrad Region, in particular: from RUB 5000 to RUB 7000 with an administrative expulsion from Russia.

4. Other changes adopted through Federal Law 207-FZ that came into effect on July 23, 2013

Along with the abovementioned CAV changes, other procedures have become more rigorous regarding the denial of granting entry into Russia and refusal of granting work permits or cancelling existing work permits. In particular:

  • Entry into Russia can be denied if a foreign national has a record of 2 or more administrative violations committed in the last 3 years from the day the last resolution on administrative violation came into force.
  • A work permit shall not be issued or an exciting work permit shall be cancelled if a foreign employee, in the last 10 years prior to applying for the work permit, has been subject to 2 or more administrative expulsions or deportations from Russia, or has been repatriated to the state of his/her citizenship under a relevant readmission agreement.

© 2022 KPMG Audit LLC, a Mongolian Limited Liability Company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

 

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