The legislation in the field of bankruptcy is planned to be tightened

The Government of the Russian Federation has taken the initiative to tighten the legislation in the field of liability for criminal bankruptcy, which includes the following actions:

• illegal actions in bankruptcy;
• deliberate bankruptcy.

Provisions of draft law provide for tougher measures of liability in relation to the beneficiaries and managers of the company. In particular, for deliberate bankruptcy, such persons will face a fine of 3 to 5 million rubles or imprisonment for up to 7 years with a fine of up to 5 million rubles.

Illegal actions in bankruptcy, which may be expressed in concealment, alienation of property and which have caused major losses, will be punished with a fine of 500,000 to 2 million rubles or imprisonment for up to 4 years with a fine of up to 500,000 rubles.

A mitigating circumstance will be commission of these crimes for the first time, provided that active assistance is taken by a wrongdoer in detection or investigation of the crime.