Member Article

On 25th March 2020,President Putin made an official COVID-19 address to the nation, in which he announced a series of measures aimed at reducing the spread of the COVID-19 and lower the negative impact on the Russian economy. Among others, President Putin stated that the period from March 30th till April 3th, 2020 would be a nationwide paid week-off, which is formalized by a special Presidential Decree, and which is obligatory for everyone in Russia.

The Decree does not apply to the employees of:

• continuously-operating organizations;
• medical and pharmaceutical organizations;
• organizations providing the people with food and essential goods;
• organizations performing emergency work in urgent situations, as well as in other cases, involving the endangering the life, or normal living conditions, thereof;
• organizations carrying out urgent repair and handling work.
  
  

Federal, regional and municipal authorities, as well as mass-media organizations shall define the minimum-necessary number of employees who will work during this nationwide, paid week-off.

The Russian President also announced the following measures to support business:

• 6-months’ deferral of tax payments (excluding VAT) for microenterprises, small and medium-sized businesses;
• 6-months’ deferral of payment of social contributions for microenterprises;
• 6-months’ moratorium on filing creditors' applications for bankruptcy of companies and debt collection;
• reduction (from 30% to 15%) of social contributions for small and medium-sized businesses;
• tax on all offshore income payments of 15%, instead of 2%.
  
  

Moreover,the following measures to support families and unprotected categories of citizens were declared:

• automatic renewal of social benefits for 6 months;
• bonus payments to veterans and war workers of the Great Patriotic War, in April;
• payment to families, eligible for maternity capital, an additional 5 000 RUB per month for each child under the age of three years inclusive, from April 1;
• financial assistance for families, with children aged 3 to 7, will be paid from June (instead of July);
• sick-leave pay rate and unemployment benefit will be set up in the amount of at least one minimum wage per month (12, 130 Rubles) until the end of 2020;
• no penalties for citizens and individual entrepreneurs on consumer and mortgage loans, if their monthly income declined by more than 30%, etc.