Coronavirus in Russia – March 31 updates

Mrz, 31 2020

Due to COVID-19 dissemination in Russia, we present you the most recent updates on business and law:

General

  • Starting March 30, all residents must stay in home self-isolation. Exceptions: going to the grocery, pharmacy, work, etc;
  • Food delivery services will continue to work, couriers will be granted special permissions;
  • Starting March 30, Russia has completely sealed its borders.

Increased responsibility

  • Fine for individuals for violation of self-isolation regime will be from 15,000 to 300,000 rubles, depending on occurrence of negative consequences for third parties;
  • Fine for legal entities will be from 200,000 to 1 million rubles, or suspension of activity for up to 3 months, depending on occurrence of negative consequences for third parties.

Tax benefits

  • Tax service will not collect taxes from small and medium-sized businesses until May 1;
  • Companies affected by the virus will receive a tax deferral (excluding VAT) for 6 months.

Labor relations

  • Period from March 28 till April 3 is declared non-working with preservation of salary;
  • Citizens who have lost their job due to coronavirus will receive compensation of 19500 rubles.

Business support

  • Reduction of the insurance premium rate from 30% to 15% for affected companies if the employee’s salary exceeds the minimum wage;
  • The government has formed a fund in the amount of 1.5 billion rubles to pay compensation to airlines that took people out of countries with unfavorable coronavirus situation;
  • The Bank of Russia will issue loans to small businesses to pay employees‘ salaries and will grant a 6-month deferral on existing loans.

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