Russian officials will be fined for violating payment term during public procurement

documents signed

Russian President Vladimir Putin signed the Federal Law “On Amendments to the Code of Administrative Offenses of the Russian Federation Regarding the Establishment of Administrative Liability of the Customer’s Officials for Violating the Term and Procedure of Payments for Goods (Work, Services) for provisioning governmental and municipal needs”.

The Federal Law establishes that, for violations of the term and procedure of payments in the public procurement, including the failure to fulfill the obligation to ensure the advance payment, the officials may be imposed with an administrative fine in the amount ranging from 30,000 to 50,000 rubles.

The officials, who have been previously punished for a similar violation, may be disqualified for a period from one to two years.

The Russian Ministry of Economic Development has repeatedly reported that the infringements of the rights of entrepreneurs following the failure to perform obligations on payment for goods (works, services) under state and municipal contracts are quite widespread