Tougher Sanctions for Non-compliance with Hazardous Production Facilities Industrial Safety Requirements Effective from 1 January 2011.

25.08.2010

Legal Update No. 169.

Goltsblat BLP advises that pursuant to Federal Law No. 171-ФЗ dated 23 July 2010 "On amendment of the Сode of Administrative Offences of the Russian Federation" and Federal Law "On Industrial Safety of Hazardous Production Facilities" administrative law fines imposed on officials [1] and legal entities for non-compliance with industrial safety requirements or licence conditions for respective types of activities in this field will be subject to a tenfold increase. For gross violation of industrial safety requirements by legal entities, which shall be construed as a violation resulting in direct threat to the life and health or gross breach of licence conditions, the new legislation provides for a 25-fold increase of the maximum fine - up to 1 m roubles. 

Moreover, officials may be subject to disqualification for various terms. 

The new legislation has considerably extended the powers of the federal executive body exercising control and supervision in the sphere of safety of operations connected with use of subsoil, industrial safety and safety of hydraulic structures (Rostekhnadzor, Federal Service for Ecological, Technological and Atomic Supervision).  It will be granted the following rights:

  • the right to consider cases involving gross breach of industrial safety requirements;
  • the right to impose a temporary ban on activities as a provisional remedy.  The norm regarding a five-day period of such ban is excluded.
  • the right to award punishment in the form of administrative suspension of activities of up to 90 days for respective administrative offences.

A person or entity failing to comply within the established timeframe or in a due manner with a lawful order of Rostekhnadzor will also be subject to administrative liability.

The statute of limitations for administrative liability for violation of statutory industrial safety requirements will be extended to one year from the date of an administrative offence.

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[1] For this purpose the official shall be construed as a person exercising powers of a single-member executive body as well as a person carrying out organisational and management or administrative functions in the company. If powers of a single-member executive body are exercised by a managing organisation, the official shall be construed as a person who is in charge of engineering policy and industrial safety issues, and in his absence - a person exercising powers of a single-member executive body of the managing organisation.

For additional information, please contact:

Vitaly Mozharowski, Partner,
Real Estate and Construction
Goltsblat BLP;
T: +7 (495) 287 44 44,
E: info@gblplaw.com

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