November 23, 06

NEWS / Overview of changes to legislation on status of foreign nationals in Russia

MOSCOW, Nov 23 (Prime-Tass) -- July saw a number of amendments to legislative acts governing the status of foreign nationals and stateless persons in the Russian Federation. The most important changes included those made to Federal Law No. 115-FZ ???On the Legal Status of Foreign Nationals in the Russian Federation???, dated July 25, 2002 (the ???Expatriates Law???).

In addition, a new statute was enacted, namely, Federal Law No. 109-FZ ???On Recording the Migration of Foreign Nationals and Stateless Persons in the Russian Federation???, dated July 18, 2006 (the ???Migration Records Law???). Both the restated Expatriates Law and the Migration Records Law take effect from January 15, 2007. The changes to the legislation on foreign nationals are aimed primarily at reducing the burdensome administrative barriers standing in the way of individuals coming to Russia from countries that have signed reciprocal agreements with Russia on visa-free entry for their nationals. These countries include Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Moldova. The new legislative provisions are also expected to enable government authorities to obtain more accurate statistics on foreign nationals staying in Russia.

On top of this, President Vladimir Putin on November 5, 2006 signed Federal Law No. 189-FZ ???On Amendments to the Russian Federation Code of Administrative Offences (to the Extent Concerning Increased Liability for Breaches of Procedures for the Employment of Foreign Nationals and Stateless Persons in the Russian Federation)??? (the ???Amendments to the Code of Administrative Offences???), which provides for harsher penalties for failure to observe the rules governing the employment of foreign nationals in the Russian Federation. Some of the changes made have been in force since the official publication of the Amendments to the Code of Administrative Offences, i.e., from November 9, 2006, while the others are to become effective from January 15, 2007. The main changes in legislation are as follows:

Expatriates Law

- A new procedure will be established for issuing work permits to foreign nationals who lawfully arrive in Russia other than on a visa. Such permits are to be issued directly to such foreign nationals within 10 business days of their submission of the appropriate applications with the required documents (including passport, migration card, and a receipt confirming payment of the applicable state fee). For their part, employers may hire such persons without having to obtain a permit to employ foreign nationals, and are only expected to notify the appropriate migration, tax, and employment authorities accordingly.

- The Russian Government may extend by up to 180 days or shorten the (ordinarily 90-day) period permitted for the temporary stay of certain categories of foreign nationals who lawfully arrive in Russia taking advantage of the visa-free travel arrangement.

- The Russian Government may also impose quotas on the employment of foreign nationals in Russia on a visa-free basis, which will be applicable either throughout the entire territory of the country or in individual regions.

- Temporary residence permits (which authorize holders to stay in Russia while waiting for regular residence permits) are to be granted to legal aliens arriving in the country without a visa outside the quota approved by the Russian Government for the issue of temporary residence permits to foreign nationals.

- Foreign nationals, both those temporarily staying in Russia and those permanently resident here, will be obliged to annually contact their local office of the Russian Federal Migration Service to confirm that they are still in the country. The Russian Government has yet to approve the respective notification procedures and notice forms. Foreign nationals resident in Russia on a temporary basis will also have to attach to their notice an income statement or a copy of their tax return, or another document confirming the amount and source of their income.

Migration Records Law

- Two variants will exist for recording migration of foreign nationals, depending on their immigration status. Those who reside in the Russian Federation, whether permanently or temporarily, have to undergo (1) registration in the area of their residence; and (2) be recorded in the area they are staying in (in lieu of the registration procedure presently in effect).Those temporarily visiting the Russian Federation will only have to be recorded in the area of their stay (again, in lieu of the existing registration routine).

- The administrative procedures for listing and delisting people arriving and leaving their places of stay have been streamlined. It is the hosts rather than the foreign nationals (as is the case now) that will have to provide the migration oversight authority with notice of the latter??™s arrival. Foreign nationals permanently resident in Russia will be able to independently notify the appropriate authorities of their arrival, provided they have written consent from their hosts. In either case, such notification is to be given within three business days of arrival. It may also be given by mail.

- The registration procedure requiring preliminary approval by local authorities for persons at their place of residence as well as recording at place of stay is applicable only in restricted-access areas, ecological disasters areas or in some other specific cases provided in federal laws.

- The list of personal data regarding a foreign national or stateless person to be included in the migration database is definitive. The Russian Government is responsible for prescribing the procedures to be observed in order to replenish and use such databanks and keep them secure.

- The federal executive migration authority and its regional branches will have clearly delimited powers.

Amendments to the Code of Administrative Offences

- Foreign nationals and stateless persons in breach of rules governing the entry into and stay in the Russian Federation or immigration regulations, as well as foreign nationals and stateless persons having begun employment without first obtaining a work permit, are set to face much larger administrative fines ??“ up to the equivalent of 50 times the minimum monthly statutory wage.

- Hosts in breach of immigration rules and regulations governing the stay of foreign nationals will likewise face harsher financial penalties, with the maximum fine for individuals being 40 times the minimum monthly wage, for officials 500 times the minimum monthly wage, and for legal entities 5,000 times the minimum monthly wage.

- Employers hiring foreign nationals or stateless persons without a work permit or failing to notify the appropriate authorities of having such persons on their staff will be liable, in accordance with the new and enlarged Article 18.15 of the Code of Administrative Offences, to fines of between 20 and 50 times the minimum monthly wage if they are individuals, between 250 and 500 times the minimum monthly wage if they are officials, and between 2,500 and 8,000 times the minimum monthly wage if they are legal entities (instead of that fine the latter may face a 90-day suspension of their operations).

- The Amendments to the Code of Administrative Offences include a new Article 18.16, which defines the liability for providing an unlawfully hired foreign national or stateless person with a point of sale or with trading, storage, production, or other primary or ancillary business premises (including at shopping centers). Officials in such cases will face a fine of between 400 and 500 times the minimum monthly wage, individual entrepreneurs without a separate legal identity will face a fine between 3,500 and 8,000 times the minimum monthly wage or suspension of their operations for up to 90 days, and legal entities will face a fine of between 4,500 and 8,000 times the minimum monthly wage or suspension of their operations for up to 90 days.

- According to a new provision in Article 18.7 of the Code of Administrative Offences, which defines the liability for failure to comply with restrictions on particular activities open to foreign nationals, stateless persons, and foreign organizations, offenders will face liability in the amount of between 20 and 40 times the minimum monthly wage if Russian nationals, between 20 and 50 times the minimum monthly wage if foreign nationals (who may also be deported), between 450 and 500 times the minimum monthly wage if officials, between 8,000 and 10,000 times the minimum monthly wage if Russian legal entities (or, as an alternative, suspension of operations for up to 90 days), and between 8,000 and 10,000 times the minimum monthly wage if foreign legal entities or their branches or representative offices (or, alternatively, suspension of their operations for up to 90 days).

- Article 19.27 of the updated Code of Administrative Infractions prescribes the extent of administrative liability to be faced both by foreign nationals and stateless persons and by their hosts for submitting false data to the authorities.

Contributed by Baker & McKenzie

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