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Fines for withdrawal of assets

Fines for withdrawal of assets Alexander Bolomatov, Partner of the Law Firm “YUST”, told the Kommersant newspaper about the consequences of adoption of the governmental draft law, which introduces fines and disqualification for the heads of state and municipal unitary ventures for failures to get approvals for privatization deals: "The sanctions will increase the level of liability of the directors of unitary ventures, but they may also turn into yet another instrument of influence on them. The directors, fearful of fines, will redirect all queries to the Rosimuschestvo, whose actions sometimes lack promptness – which in turn may lead to a decrease ion the efficiency of the unitary ventures’ operations ".
The draft law suggests punishing the heads of unitary ventures for breaches of the approval procedure for transactions, with fines of up to 10% of the amount of the transaction or with disqualification for up to three years. The venture itself as a legal entity may be fined for up to 20% of the transaction amount. The maximum fine for a failure to provide information imposed on the officials will be 20 thousand roubles, and 70 thousand roubles – for legal entities. There were no sanctions for such breaches until now.

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