Administrative Offences and Business

Companies operating in Russia face administrative fines under the Code of Administrative Offences for breaches in areas from labour safety to currency control. A fine is not final the moment an inspector writes a report. The company can file explanations, contest the evidence and appeal the ruling, usually within ten days of receiving it. Attorney Elena Petrova defends businesses and their managers in such cases, including foreign-owned companies managed from California.

Our first step is to look at the protocol on the offence and the inspection file. Procedural errors made at this stage often decide the case.

Offences That Most Often Affect Companies

Fines can be imposed on the company, on its director and on responsible officers at the same time. Amounts for legal entities are much higher than for individuals, and some offences allow suspension of activity.

For some offences, the fine for a legal entity is calculated as a share of the transaction amount, which makes currency cases especially costly.

When Inspectors Arrive

Most administrative cases start with an inspection. Russian law on state control sets rules for planned and unplanned visits, the documents inspectors must show and the scope of what they may check. An unplanned inspection often requires approval from the prosecutor.

We help companies prepare before the visit, check the legal basis of the inspection and attend it where possible. Everything the company says and signs during the visit may be used later.

Defending the Company

The defence begins with the protocol. The company has the right to see the file, give explanations, present evidence and have a representative present. Common grounds for defence include a missed limitation period, errors in identifying the offender, evidence gathered with violations and lack of the company's fault.

Where the breach did happen, the law still allows mitigation. Small and medium businesses can sometimes have a fine replaced with a warning for a first offence. The court or body may also reduce a fine below the minimum in exceptional circumstances.

Appealing a Ruling

A ruling can be appealed to a higher official or to court. Cases against businesses are often heard in arbitrazh courts, others in courts of general jurisdiction, depending on the offence. The appeal period is short, and filing on time usually delays enforcement of the fine. A court decision may then be challenged further in appeal and cassation.

Protecting Managers Personally

Directors and chief accountants are often fined along with the company. Repeated offences can lead to disqualification, which bars a person from managing companies for a set period. We assess personal risks separately and coordinate the defence so that statements by the company do not harm its officers.

Time Limits for Bringing a Case

An authority cannot fine a company at any time it likes. The Code sets limitation periods after which no penalty may be imposed, and they differ by area, with longer periods for tax, customs and currency breaches. For continuing offences, the period runs from the day the breach was discovered. We check this date in every case, because a missed limitation period ends the proceedings.

Working With the Attorney

Send the protocol, the inspection documents and any correspondence with the authority. Note the date you received each paper, since the deadlines run from it.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.