March 2010: significant increase in administrative fines for land and subsoil use violations

01.02.2010

Legal Update No. 119

Goltsblat BLP advises that, by the Federal Law No. 380-FZ of 28 December 2009 “On introduction of changes in the RF Administrative Code”, effective as of 31 March 2010, the RF Government toughens administrative responsibility for subsoil, land plot, water body use and environmental offenses, introduces new administrative corpus delicti elements and clarifies the existing ones.  In particular (the list below is not exhaustive):

  • this FL confirms that any non-purposeful land plot use (clause 8.8 of the RF AC) means that such land plot is used in a way other than the permitted use set by law, along with not being used in conformity with the relevant land category. Also, the above Law provides for a more than twofold increase in the fine to be imposed for this offense, which now amounts to RUB40,000 to RUB50,000;
  • this FL provides for a 10% to 25% increase in the fine payable by legal entities for any use of subsoil resources without a proper license, which will now amount to RUB800,000 to RUB1,000,000; and RUB300,000 to RUB500,000 - for any subsoil use in violation of the requirements set in the relevant license and/or terms of reference; 
  • liability that may be imposed on legal entities for any selective (non-project) mineral deposit development that may cause unjustified mineral reserves loss or any other unreasonable subsoil use will go up tenfold and amount to RUB800,000 to RUB1,000,000; and
  • the RF Administrative Code has been amended by adding a new clause 8.42, which envisages administrative law responsibility:
    • for any use of a water body coastal protective strip and water protection area in violation of any restrictions imposed upon economic or any other activity (subject to a fine from RUB200,000 to RUB400,000); and
    • for any use of a sanitary protection zone of a potable and domestic water supply source in violation of the restrictions set out in the Sanitary Regulations and Standards (subject to a fine from RUB300,000 to RUB500,000).

For additional information, please contact:

Vitaly Mozharowski,
Partner, Real Estate and Construction,
Goltsblat BLP,
E: info@gblplaw.com

Elena Barinova,   
Partner, Real Estate Investment and Finance,
Goltsblat BLP, 
E: info@gblplaw.com

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