Russia Proposes Steep Fines for Economic Crimes in Major Legal Overhaul
The Russian Justice Ministry has proposed significant changes to the Criminal Code, aiming to increase fines for economic offenses. The move comes in response to the current low penalties, which have failed to deter illegal activities, and aims to boost state budget revenue.
The draft bill, announced on January 14, targets dozens of articles, including those related to fraud, tax evasion, and illegal entrepreneurship. The ministry aims to adjust the fines for inflation since 2003, when the current penalties were set.
For instance, fines for large-scale illegal entrepreneurship would leap to 2.5 million rubles, up from the current 500 rubles. Similarly, large-scale tax evasion would carry penalties of up to 5 million rubles. Copyright infringement fines would also increase, reaching 1 million rubles for regular violations and 2.5 million rubles for large-scale ones. The upper limit for large-scale fraud would rise to 1.5 million rubles.
The ministry stressed that these amendments would strengthen the preventive impact of punishments without leading to an increase in custodial sentences. The Russian Chamber of Commerce and Industry has supported the initiative, particularly its focus on combating illegal entrepreneurship.
The proposed changes, if approved, would significantly raise fines for economic offenses in Russia. The Justice Ministry hopes these increased penalties will act as a deterrent, creating a healthier market environment and generating additional budget revenue.
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