The Russian Government has introduced a new bill that is aimed at bringing insurance legislation in line with the new provisions of the Civil Legislation. The bill will amend a number of Federal Laws regulating insurance related issues. Among other things, it will specify requirements as to the name of insurance parties, entitle insurance parties to found noncommercial organizations with the aim of mutual interests’ protection and specify other issues.

The Russian Government has introduced a new bill that is aimed at bringing insurance legislation in line with the new provisions of the Russian Civil Code (as amended by the Federal Law of 05.05.2014 No.99-FZ).

The new bill is aimed at amending the Russian Civil Code, the Law On the Organization of Insurance in the Russian Federation, Federal Law On Compulsory Insurance of Civil Liability of Vehicle Owners, Federal Law On Mutual Insurance, Federal Law On Compulsory Third Party Liability Insurance of Hazardous Facility Owners.

Among other things, the bill:

• specifies requirements as to the name of insurance parties. Thus the name of public insuranceparties shall include references thereto, whereas a mutual insurance fund shall include such words as “noncommercial corporate organization” and “consumer society of mutual insurance”;
• formally amends certain provisions of the Russian Civil Code and a number of insurance related laws;
• specifies such terms as “professional association of insurers” and “association of insurers” in relevant insurance legislation;
• entitles insurance agents, policy holders, insured persons, as well as beneficiaries to found noncommercial organizations with the aim of mutual interests’ protection;clarifies requirements as to the work experience of an insurer’s internal audit service manager etc.

The new Code of Administrative Procedure entered into force on September 15, 2015. The Code regulates procedural issues in disputes with state authorities and is applicable in cases heard by general courts and the Supreme Court. Although the vast majority of its provisions are well-established in Russian law, it sets forth certain procedural and technical novelties, such as the requirement to hire a qualified lawyers to represent the case, possibility of collective redress, acceleration of court procedure etc. The Code does not affect procedural rules applicable in cases heard by Russian Arbitrazh courts.

The new Code of Administrative Procedure entered into force on September 15, 2015. The Code regulates procedural issues in disputes with state authorities and is applicable in cases heard by general courts and the Supreme Court.

Among other things, the Code provides that claimants will need to hire a qualified lawyer to represent their case (unless they have a degree in law themselves).

It also permits collective action in administrative proceedings. Similar claims (i.e. against the same stateauthority with respect to the same violation) can be filed by a group of persons. If the court has already started to hear the claim, claimants may wish to opt into collective proceedings or, alternatively, file a separate claim. As such, possibility of collective redress is deemed progressive, as it decreases the courts’ caseload and provides for collective protection mechanisms.

The new Code permits a claimant challenging by-laws issued by state authorities to refer not only to theby-laws’ wording, but also to the practice of their application. Thus, courts will not only review the text of the legal act, but also study its application in practice. If the court finds that enforcement authorities misinterpret the challenged by-law, it shall note this fact in its ruling. Notably, before the new Code entered into force, courts have often been reluctant to consider how the challenged legal rules work in practice, and primarily considered their plain meaning.

The new Code explicitly permits claimants to ask for a court order compelling the state authority to refrain from applying the disputed act or decision. Previously, the disputed act or decision continued to apply until the final ruling of the court.

The Code also aims at accelerating the proceedings by introducing electronic court filing and videoconferencing, as well as reduced limitation periods and time-limits for judicial review. Some categories of citizens and public associations are exempt from liability to pay court fees.

The State Duma has recently passed two bills that make significant amendments to antimonopoly regulations. Both bills are aimed at lowering administrative barriers, increasing transparency, ensuring consistency of decisions by state authorities in the sphere of antimonopoly law. As a result of their implementation, companies will have a wider range of guarantees against governmental discretion. Also, pressure inflicted upon companies (especially SMEs) in the field of antimonopoly control is to be decreased. These bills are likely to be passed into law.

The State Duma has recently passed two bills that make significant amendments to antimonopoly regulations. Both bills are aimed at lowering administrative barriers, increasing transparency, ensuring consistency of decisions by state authorities in the sphere of antimonopoly law.

The bills set forward the following changes:

• Small enterprises (i.e. with annual revenue not exceeding 400 mln RUB and established byindividuals) can no longer be deemed to have a dominant market position for the purposes of antimonopoly law. Such companies are allowed to enter into agreements with each other without such activity being considered abuse of dominant position;
• The procedure of antimonopoly law enforcement is made more detailed so as to increase transparency of the process. The bill provides for the creation of a collegial antimonopoly body at the federal level authorized to overturn decisions of local antimonopoly state authorities and instruct them on law enforcement;
• Unannounced inspections of small enterprises (companies with less than 100 employees and annual revenue not exceeding 800 mln RUB) can only be carried out with prior consent of the prosecutor’s office, with the exception of inspections aimed at identifying cartels;
• Large companies (whose joint asset value exceeds 7 bln RUB) that enter into cooperation agreements must receive consent of the Federal antimonopoly service. However, after the consent is received, the companies may not violate antimonopoly law when acting in accordance with the cooperation agreements.

One of the bills provides that the Russian Government is entitled to pass rules regarding non-discriminatory access to goods produced by companies with a dominant market position, which are aimed at making customers’ access to certain markets more open.

According to commercial real estate services firm Cushman & Wakefield, in the first half year of 2015 Western companies invested 505 mln USD into Russian commercial real estate (including the sphere of construction), whereas in the same period of 2014 investments of Western companies amounted  only to 236 mln USD. As for investments made by Asian companies, they decreased from 50 mln USD to 24 mln USD.

In the first half year of 2015, American and European investments amounted to 40% out of all investments made into Russian real estate (1.3 bln RUB), European investment amounting to 335 mln USD and American investment - 170 mln USD. Russian investment into commercial real estate reached 807 mln USD, which is three times less than in 2014 (2.4 bln USD).

Experts claim that investors are mostly interested in office buildings, as investments in this sphere amounting to approximately 50% out of all investments made. According to Cushman & Wakefield, more similar deals are to be expected by the end of 2015. Investments have also been made in warehouse and retail real estate.  

Most investments have been made in Moscow (1.2 bln USD, or 90% of all investments). Only 8% out of all investments (110 mln USD) have been made in Saint Petersburg. Thus, investors have not shown particular interest in other regions of Russia, having invested only 25 mln USD, which amounts to 2% out of all the deals made.

The Russian Government has issued a bill on the quota of foreign employees in companies doing business in certain industries for the year 2016. In accordance with the bill, the relevant quota in companies doing business in the sphere of construction shall amount to 65%.

The Russian Government has issued a bill on the quota of foreign employees in companies doing business in certain industries for the year 2016. In accordance with the bill, the relevant quota in companies doing business in the sphere of construction shall amount to 65%.

As for the land passenger traffic and the road freight transport industries, the bill provides that the quota of foreign employees shall amount to 35%.

The quota of foreign employees in the vegetable production industry shall amount to 50%, however this quota shall not be effective in the following federal subjects: the Crimea, the Kabardino-Balkar Republic, the Krasnodar Krai, the Stavropol Krai, as well as the Astrakhan, Volgograd, Voronezh, Lipetsk, Moscow, Rostov and Saratov Regions. We will keep our readers informed of the progress of the new bill.

The Code governs the administrative court procedure conducted by the Supreme Court of the Russian Federation and courts of general jurisdiction in particular regarding cases that challenge regulations, activities or inactivities of the state and municipal authorities and officials etc.

The Code emphasizes the active role of courts in resolution of administrative cases. In particular, if necessary the court per se can call evidence; checking legality of norms and regulations, decisions, activities or inactivities - go beyond the grounds and arguments of the stated claims.

Objectivity of proceedings and principal of equality of arms for citizens and the state are secured in the code. It also accurately defines jurisdiction over cases. They are considered by the Constitutional Court of the Russian Federation, courts of general jurisdiction, Judicial Disciplinary Tribunal, Charter courts of constituent entities of the Russian Federation, and also Arbitrazh courts (if required by federal laws). Participation of the lay magistrates in such case-handlings is not covered.

A few novelties are directed towards acceleration of the procedure including opportunity to use electronic service documents and video conferencing. Some administrative cases are now subject to the simplified (written) proceeding. Largely time limits for having recourse to the courts, review duration and adjudgements are reduced. Some categories of citizens and public associations are exempted from legal cost.