Criminal liability for performing sanctions in Russia. Legal analysis of business solutions

A draft federal law has been submitted to the State Duma according to which compliance with anti-Russian sanctions will be treated as a severe form of an abuse of powers. (For more details please read the alert at the link...).

Irrespective of the outcome when the Draft is considered in the State Duma, the extremely broad interpretation of an abuse of powers that it proposes gives reason to law enforcement authorities to believe that where sanctions are complied with liability under article 201 of the Criminal Code can be imposed even now. This follows from the logic of the draft law itself. It proposes not that new liability be introduced but to enhance the allegedly existing liability. Meanwhile, the similar 2018 draft law proposed that a totally new article 284.2 be included in the Criminal Code: “Restricting or refusing ordinary business dealings or transactions in order to facilitate implementing restrictive measures introduced by a foreign state, an association of foreign states or an international organisation”.

In this regard, companies operating in the Russian market may need a professional qualified assessment of business solutions, planned corporate changes and other organisational and legal actions within the framework of economic activity from the standpoint of how these may be classified under criminal law.

Our Services

• Studying and analysing information and documents provided in terms of the risks that are present.
• Assessing planned or implemented management decisions, completed or planned transactions, corporate and organisational changes, business processes and other actions (omissions) of the management and owners of the company in terms of criminal law risks of liability for following sanctions, taking into account changes in legislation and its interpretation.
• Developing relevant recommendations to mitigate the risks of the company's management, owners and beneficial owners relating to the requirements of Russian criminal legislation regarding the prosecution of these persons from companies when they commit actions (omissions) in order to comply with restrictions of external sanctions.
• Working through the issue of possible ways to protect the company's rights in the current situation in order to mitigate possible adverse implications and legal risks.
• If necessary, the client and its officers (owners, beneficial owners) will be provided with legal support by attorneys of the criminal defence of business practice..

Contact persons

Sergey Taut, expert: S.Taut@pgplaw.ru
Vadim Zaripov, Head of Pepeliaev Group's Analytical Department: V.Zaripov@pgplaw.ru
Konstantin Sharlovskiy, Head of the Life Sciences Practice: K.Sharlovskiy@pgplaw.ru