Duma approves support of people, businesses in 3 readings

MOSCOW, Mar 4 (PRIME) -- The State Duma, the Russian parliament’s lower house, on Friday approved in all readings a list of social and economic measures for support of households and businesses introduced by the government.

The bill introduces a moratorium on scheduled inspections of small and medium-sized businesses in 2022 as well as on inspections of IT companies until the end of 2024. It also expands the government’s authority by allowing it to issue permits for prolongation of activities without licenses and to provide licenses without inspecting compliances or payment of state fees.

The government agencies will be allowed to change state procurement contract terms, establish new possibilities for procurement from sole suppliers and cancel fines for non-compliance with the contracts. The bill also softens regulations for state procurements of medical goods and services.

It approved a bill to launch the fourth stage of capital amnesty in Russia, which allows people to declare cash and derivative financial instruments in addition to all other types of assets.

The first capital amnesty, launched in 2015, allowed people to declare their foreign assets and banking deposits and avoid responsibility and punishment for non-payment of taxes and fees. Two further stages of 2018 and 2019 allowed them to declare not only the existing, but also closed banking accounts.

The new stage permits declaration of not only securities and accounts, but cash and derivatives like futures contracts, and options.

The lower chamber also allowed the government to invest money of the National Wealth Fund in the shares of state companies and in Russia’s state securities like OFZ federal bonds before the fund exceeds 7% of gross domestic product (GDP). The government will also be able to redistribute budget money faster at all levels using additional non-energy revenue.

The State Duma also approved a bill that allows individuals and small and medium-sized companies to use new “credit holidays” even if they used the mechanism to delay repayments during the 2020 pandemic. The mechanism covers mortgages.

In another bill, the parliament’s lower house allowed the central bank to suspend operations and deals of banks and non-credit financial institutions for up to six months. Under the bill, the regulator will be allowed to set arbitrary ratios, restricting risks, or other regulatory factors for banks on an individual basis using decisions of the banking oversight committee of the financial oversight committee.

Until the end of 2022, the central bank will be allowed to extend the deadlines for provision of financial reports, lists of affiliates, and other information for the companies and banks by a decision of the central bank’s board of directors and if the decision is published no later than 10 days after the approval.

Another measure includes an increase of the share of risks that insurance companies transfer to the Russian National Reinsurance Company to 50% from 10%.

The Duma approved in the first reading a bill that makes share buybacks for joint stock companies easier until the end of 2022 if the firm does not plan to cancel the shares or reduce their number.

There are four conditions for easing of the buyback regulation. First, the shares that a company wants to buy back should be approved for exchange trade. Second, their weighted average price for each of the three months starting from February 1 should fall by 20% and more as compared with the weighted average price for each of the three months starting from January 1, 2021.

Third, the key index calculated by the organizer of trade should contract by 20% or more in the same period. Fourth, the shares should be bought back through a broker at organized trade via sell orders addressed to all market players. The supervisory boards or the boards of directors of the companies should issue the decisions and notify the central bank.

The State Duma allowed the central and regional authorities to extend the tax deadlines for 2022.

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