Migration law change may cause difficulties

Law № 163 introduces important changes to the registration process of foreign citizens in Russia effective from 08 July 2018. It will affect all foreign citizens working in Russia including highly qualified specialists and their family members.

In particular, it will no longer be permitted that foreign employees (and accompanying family members) or foreign employees invited for a business trip, are registered by their employer at the address of the company office. An exception exists for foreigners residing either in the company’s office or in its premises that are specially equipped for living (special temporary housing buildings). The new law obliges landlords to register foreign citizens at their actual place of residence (i.e. where they sleep).

We would like to remind you that due to the World Cup championship until 26 July 2018 all foreign citizens must register with the migration authorities within three days of arrival. No exception is made for highly qualified specialists, who are normally only required to be registered with the migration authorities within 90 days on arrival.

As a consequence of the new law, in case you arrive in Russia after 08 July 2018 and during the World Cup, we highly recommend you to stay/register with a hotel.

There are no clarifications yet from the state bodies and no information on how the new law will work in practice.

We are in contact with the state bodies on this issue. We will keep you updated!

*Penalty reminder:

According to the Russian Code of Administrative Offences, penalties for not completing the migration registration of foreign citizen in RF are as follows:

1. Art. 18.8 – for foreign citizen – fine from 2 000 rub. up to 7 000 rub. (appr. 27- 95 euro) as well as a risk of administrative deportation.
2. Art. 18.9 – for inviting party: for company’s official – fine from 40 000 up to 50 000 rub (appr. 544 – 680 euro) and for legal entities – fine starting from 400 000 up to 500 000 rub. (appr. 5,441 – 6,801 euro)
3. Art. 19.27 concerning provision of false information about migration registration of foreign citizen for both parties: for foreign citizen – fine from 2 000 rub. up to 7 000 rub. (appr. 27 – 95 euro) as well as a risk of administrative deportation; for company’s official – from 35 000 up to 50 000 rub (appr. 476 – 680 euro) and for legal entities – fine from 350 000 up to till 800 000 rub. (appr. 4,760 – 10,882 euro).

Anti-monopoly legislation Russia

Juralink provides its clients with top-quality advice on following antitrust issues:

  • General legal advice on application of Antitrust law and Advertisement law in Russia;
  • Filing FAS notifications or obtaining of FAS approvals for purchase of shares in or assets and rights with respect to legal entities, as well as obtaining FAS approval for the reorganization and setting up of companies or joint ventures;
  • Antitrust compliance analysis within the framework of M&A transactions and due diligence procedures;
  • Antitrust compliance analysis for commercial agreements and policies.

Our practical advice takes into account economic aspects and provides creative solutions without compromising on legal standards. If your business requires guidance on Russian antitrust issues, it is better to consult with an expert before the matter will become critical or you will face a FAS audit and significant fines.

Insolvency procedure in Russia

If your company or counterparty faces financial distress resulting in an insolvency procedure in Russia – the main thing that really matters is quick action. On the one hand you will need to protect your interest as a creditor throughout a bankruptcy procedure to minimize the economic loss or to obtain insurance coverage. On the other hand, you will need to reorganize your market approach and local office, to avoid that it becomes a burden for your foreign headquarters. Our experts are able to assist you on both. We may also guide you on through the myriad of opportunities and pitfalls that you face during a liquidation process. By virtue of our interdisciplinary approach we can counsel you on the best solution from a tax, employment and top-management liability perspective. We can guide you through an involvency procedure in Russia.

Real estate in Russia

Commercial real estate issues in Russia may range from real estate transactions such as sale to property use such as lease.

Purchase and selling of real estate- industrial and agricultural complexes

We provide comprehensive advice on purchasing and selling of property by way of asset or share deals, as well as perform the requisite due diligence. Due to the lastest localization trend in Russia we are active in advising on complex issues related to acquisition/divestiture of agricultural and industrial real estate assets, as well as establishment of real estate joint ventures. Our specialists will help you maximize your returns and minimize your risks by identifying and creating the most appropriate deal structure and guide you on the tax efficient solutions and innovative financing methods.

Property lease of real estate

When it comes to the commercial use of real estate in Russia carefully drafted lease agreements can be crucial. Juralink has broad experience in drawing up such agreements for ground and office leases, sale-leaseback arrangements, subleases and more. We provide expert advice on all the relevant stages of the landlord and tenant relationship from the pre-agreement negotiation phase until the end of relationship and possible dispute resolution.

Customs in Russia

We provide support with customs issues in Russia for imports by foreign companies and their Russian subsidiaries. Juralink can service your needs in the following matters:

  • Dispute resolution with customs authorities in Russia on adjustment of customs duties, classification of goods for tariff purposes and applicable VAT;
  • Representation in litigation procedures in Russia arising from administrative liability for violation of customs regulations;
  • Establishing a cooperation with the customs authorities in Russia to monitor the IPR infringements and import of counterfeit goods – record of IPR within the customs IP register;
  • Support of import operations, logistic management, obtainment of applicable conformity certificates and quality declarations.

Strict visa registration during World Cup in Russia

Are you coming to Russia between 25 May – 26 July 2018, and in particular the following cities:
Volgograd, Yekaterinburg, Kazan, Kaliningrad, Moscow, Nizhny Novgorod, Rostov-on-Don, Samara, St. Petersburg, Saransk and Sochi.  Then you must register with the migration authorities within THREE DAYS of arrival.

Did you come to Russia earlier or are you living there, then you must register immediately but NO LATER THAN MAY 25, 2018. Even if you have a HQS permit.

Juralink will be happy to assist in Moscow and St. Petersburg

Netherlands desk

If you have questions about the legislation of the Netherlands or about applicability of Netherlands or foreign law, please contact our office in the Netherlands.

Marriages and divorces

Marriages and divorces between partners of Russian and Dutch nationality bring specific questions. A first issue often is to find out what law is applicable. Good cooperation between specialists in the Netherlands and Russia is crucial. Our lawyers in Russia are available for divorce proceedings, but in the Netherlands we do not represent parties in court.

Nationality and immigration to the Netherlands

There are specific rules and procedures for immigration to the Netherlands. You will find a lot of information on the website of the Netherlands immigration service. Nevertheless it is hard to find your way in the forest of forms and rules. We have experience with immigration law and are happy to help you. In complex cases we work together with specialized lawyers.

Labour disputes

For expats working in the Netherlands, a potential employment termination will have great impact. If such situation occurs you may find yourself at loss about all the regulations. We can clarify the rules and help you choose your best option, by means of advising you, negotiation on your behalf with employer or representing you (in court). It is particularly gratifying to help such unpleasant situations be resolved in (comparatively) positive manner.

We are available for short consultations, without further costs or obligations.

GDPR and privacy in Russia

On 25 May 2018 the General Data Protection Regulation has taken effect in the Netherlands, It is an important step towards the unity of privacy legislation within all European member states. But the GDPR can reach even beyond the borders of the EU (plus some countries of the EEA). The GDPR applies to personal data of all citizens in the EU, even if these data are processed outside the EU.
For example, processing outside the EU takes place when you use Russian software developers who have access to data from EU citizens. Or when the payroll administration of your Dutch/European employees in Russia is done by a local Russian party. In that case, ambiguities and conflicts may arise between the Russian legislation and the requirements of the GDPR. In addition, the GDPR requires safeguards for transfer of data to foreign countries. Only in  countries designated by the European Commission protection of personal data is considered to be adequate. In other cases, the exporter of data and the importer/recipient abroad have to provide additional safeguards, according to model contracts or binding corporate rules established by the Commission or agreements approved by the supervisory authorities.

In short, a whole new area of ​​legislation, where practice that still has to take shape. We have specialists in our team, who can explain the similarities and differences between GDPR and Russian privacy legislation and help you provide adequate safeguards as required by GDPR.

Our locations

  • Moscow
  • Cologne
  • St. Petersburg
  • Amsterdam
  • Ukraine / Belarus
  • Juralink Amsterdam

    Nieuwezijds Voorburgwal 331B
    1012 RM Amsterdam

    Please check for urgent correspondence.
  • Juralink Cologne

    + 49 152 071 696 44

    Kölner Betriebsstätte der Juralink Consultancy B.V.
  • Juralink Moscow

    +7 495 966 0456
    + 7 495 625 34 76 (fax)

    + 7 903 749 87 59 (Lodewijk)

    OOO Juralink
    Krasnoproletarskaya ul. 16, building. 1, 4th floor
    127473 Moscow
    Russian Federation

    Please take entrance 3 (near the sign of delicatessen Brothers Karavaev

    "Братья Караваевы").
  • Juralink St. Petersburg

    +7 812 374 65 75

    OOO Juralink-Gnius
    Nevsky Prospect 30, office 3.12
    191011 St. Petersburg
    Russian Federation
  • Juralink Ukraine
    Juralink Belarus

    +375 29 684 8085

Our partners