VALEN Legal Help during Coronavirus times

Mar, 20 2020

The impact of coronavirus on business in Russia: how you can avoid negative consequences as much as possible?

The restrictions and support measures of the Government are aimed at preventing the spread of infection, as well as reducing negative consequences for business. These measures include the following innovations:

  • In order to reduce travels, annual meetings of shareholders can be held in absentia till the end of 2020;
  • Travel agencies and airlines will get tax holidays until May, including from insurance payments – no interest will be accumulated;
  • Coronavirus is officially equated with force majeure circumstances, which will allow to postpone contractual obligations occurred earlier;
  • A three-month deferral will be provided for small and medium-sized businesses to settle insurance payments;
  • A temporary deferral of rental payments will be provided for those who rent municipal and state property;
  • Employers are advised to temporarily arrange remote work for their employees.

How can the VALEN team help your business?

Our lawyers actively monitor all changes in legislation and business conditions during the period of pandemic. We understand that it will not be easy for the business community to cope with the situation and therefore we are happy to provide support taking into account all the legal innovations.

VALEN specialists will be able to:

  • advise you on any questions regarding corporate, contract and labor law;
  • effectively carry out tax planning, taking into account temporarily granted benefits;
  • organize optimization of business activities or minimize losses, taking into account temporary down time;
  • correctly draw up a clause on delay of obligations fulfilment under the current agreements of your company;
  • organize the solution of corporate issues in accordance with the new opportunities presented by the Russian legislation.

Government’s order also affects the activities of state bodies in the following areas:

  • Russian courts will temporarily limit the case hearings and suspend the personal reception of citizens;
  • Migration agencies will stop accepting documents and issuing work permits and visa invitations;
  • Russian Consulates abroad will temporarily not issue visas to foreigners;
  • There will be a moratorium on tax, customs and other inspections of small and medium-sized businesses;
  • The tax authorities will not be able to file suits on declaring the debtor bankrupt;
  • It is planned to expand concessional lending to businesses, to increase volume of state guarantees and an to form an anti-crisis fund in the amount of up to 300 billion rubles.