The State Duma is going to consider a draft bill (No. 1001543-6) introducing changes to the Criminal and Administrative Codes, and providing for the decriminalisation of several economic offences. According to the bill, entrepreneurs who are first-time offenders will face a less serious sentence. However, the bill provides for higher administrative fines than the ones currently set forth in the Criminal Code. Entrepreneurs who are repeat offenders may face arrest and imprisonment.

The draft bill was proposed by Alexander Ageev, member of the Russian State Duma. It provides for the decriminalisation of more than 30 economic offences, such as tax avoidance by an individual, or a legal entity, failure to perform the obligations of a tax agent, concealment of funds, or property, of a legal entity, which are used for tax payment purposes. According to Mr Ageev, imposition of administrative rather than criminal liability pursuant to the said bill will incentivise individuals and legal entities to comply with the law, and avoid committing economic offences.