Russian business law: the essentials. Отсутствует

of receiving such consent is defined by the law. Additionally, the administrative responsibility can be established by the laws of the subjects of the Russian Federation.

      4.2.3. The Federal Laws

      In addition to the codes which contain most general norms, the activities of the entrepreneurs in Russia are also regulated by the federal laws. Some of them are listed below:

      i) The Federal Law on Joint Stock Companies,

      ii) The FL on Limited Liability Companies,

      iii) The FL on Registration,

      iv) The FL on Advertising,

      v) The FL on Licensing,

      vi) Foreign Investment Law.

      Sometimes, the word «legislation» does not only refer to laws, but also to any other legal acts. For example, Clause 6 of Article 1 of the Tax Code of the RF directly states: “The laws and other normative legal acts which are referred to in this Article shall hereafter in the text of this code be referred to as ‘tax and levy legislation.’ ”

      Moreover, it is necessary to remember that legal acts such as the “On Railway Transport Charter of the Russian Federation,” (RTC) and the “The Charter of Motor and Urban Surface Electric Transport,” (MUSETC) are also federal laws, despite the existence of the word «charter» in their names. This type of a legal act as the charter, does not exist in Russia, whereas this word sometimes occurs in names of various acts (not only in federal laws). When determining the legal nature of a legal act, it is always necessary to refer to its type (federal law, decree, decision, etc.) and the adopting body thereof (The President of the RF, the Government of the RF, etc.). This determination is not made by the name of the legal act.

      5. The Subordinate Legislation

      5.1. Subordinate Legal Acts of Public Authorities

      5.1.1. Acts of the President of the Russian Federation

      The legal acts of the President of Russia follow federal laws in the hierarchy of legal acts. The acts of the President of Russia should not contradict to the Constitution of Russia and the federal laws (part 3 of Article 90 of the Constitution of Russia).

      The president of Russia issues acts of two types: decrees and orders.[21] As a rule, orders, unlike decrees, do not possess a normative character. Currently, the President of Russia has issued a few acts which regulate entrepreneurial activities.

      5.1.2. Acts of the Government of the Russian Federation

      The Government of Russia issues decisions and orders. They should not contradict the Constitution of Russia, federal laws, and decrees of the President of Russia (Article 115 of the Constitution of the Russian Federation).

      5.1.3. Acts of the Ministries

      The federal ministries adopt acts (generally those are commands and orders), on the basis and in accordance with the Constitution of Russia, the federal laws, the acts of the President and the Government of Russia.

      5.1.4. Acts of Federal Agencies and Services

      In the Russian Federation, all federal executive authorities, except for the Government of Russia and the Ministries, are two types: agencies and services. Agencies carry out the functions of providing state services, of management of the state property, and law-enforcement functions. The main function of the services is the exercising of control and supervision in the established field of activity. Both agencies and services issue law-enforcement acts, as well as normative legal acts in certain cases.

      Federal agencies and services issue a large number of legal acts, which regulate some issues of entrepreneurial activities in detail.

      5.2. Other Subordinate Legal Acts

      Apart from government bodies, the power of adoption of obligatory acts in Russia is possessed by such formations of sui generis, including:

      5.2.1. Central Bank of the Russian Federation (Hereafter CBR)

      The CBR carries out the regulation of banking activities, the financial markets, monetary, and currency regulation. Thus, the Bank of Russia in particular establishes the rules of the implementation of calculations within the Russian Federation, rules on carrying out banking operations, exercises regulation, control, and supervision in the sphere of the corporate relations in joint stock companies, defines the procedure of calculations with international organizations, foreign states, as well as with legal entities and individuals.

      On matters relevant to the CBR Law and other federal laws, the Bank of Russia issues normative acts in the form of orders, rules, and instructions that are obligatory for federal public authorities, public authorities of the subjects of the Russian Federation, local authorities, individuals, and all legal entities.

      5.2.2. State Corporations

      State corporations, being structures of sui generis, can be provided with various powers, including powers on the adoption of normative legal acts (see, for example, Article 8 of FL on Rosatom).

      Thus, Rosatom State Corporation on Atomic Energy adopted an order No. 1/19-NPA (as of December 6, 2013), which stipulates the obligatory forms of reports in the field of state registration and control over radioactive materials and radioactive waste, as well as the order and terms of providing reports.

      6. Acts of the Subjects of the Federation

      So far we have addressed only the federal legislation, that is the acts which are adopted by government authorities at the level of the federation. The subjects of the Russian Federation have the right to adopt legal acts on the matters listed in Article 72 of the Constitution, as well as on any other matters, except for those listed in Article 71 of the Constitution.

      Russia is an asymmetric federation; it is composed of different types of subjects. There are six such types in total: the republics (the republic is a name of the subject of a part of Russia), the territories, the regions, the cities of federal importance, the autonomous region, and the autonomous areas. The subjects of all types possess almost identical legal status.

      There are three cities of federal importance in Russia: Moscow, St. Petersburg, and Sevastopol. The aforementioned cities are separate subjects of the federation and, respectively, their bodies adopt legal acts of regional level.

      6.1. The Competence of the Subjects of the Federation

      According to Article 72 of the Constitution of the RF, the subjects of federation can adopt legal acts, particularly on the following matters:

      i) possession, use and disposal of land, subsoil, water and other natural resources;

      ii) demarcation of state property;

      iii) nature utilization, protection of the environment and ensuring ecological safety; specially protected natural territories;

      iv) establishment of common principles of taxation and levies in the Russian Federation;

      v) administrative, administrative procedure, labor, family, housing, land, water, and forest legislation; legislation on subsoil and environmental protection.

      Moreover, subjects of the federation can adopt legal acts on any other matter, except for those listed in Article 71 of the Constitution of the RF.

      6.2. The System of Acts of the Subjects of Federation

      6.2.1. Constitution (charter) of the Federation Subject

      The system of legal acts of each subject of the federation also represents a pyramid, at the top of which is the charter or the constitution of the subject.

      6.2.2. Laws of the Subject of the Federation

      Thereafter, the laws of the subject of federation are located. The laws of the subjects often play an important role in the legal regulation of entrepreneurial activities in the given region. Thus, in many subjects, separate laws

21

Additionally, this type of an act of the President of Russia as an assignment/order has recently been widely adopted. The orders of the President do not contain norms obligatory for legal entities and citizens. These documents contain provisions obligatory for subordinate governmental authorities reflecting, as a rule, the most accurate directions of the development of the legislation and the state policy in general. An understanding of some orders of the President of Russia can be useful for entrepreneurs.