THE GOVERNMENT OF THE RUSSIAN FEDERATION APPROVED A PLAN OF THE ECONOMIC DEVELOPMENT

The Government of the Russian Federation has developed a plan of measures that contribute to the development of the Russian economy, the restoration of income and employment. The Prime Minister has already announced that the document contains 9 sections and about 500 various measures. The implementation of the plan will not only help to overcome the difficulties, encountered in connection with the pandemic, but also begin long-term structural changes in the economy.

Support for the small and medium-sized businesses, as well as for the individual entrepreneurs, will consist not only from the measures that have already been announced (write-off of the taxes, grants for the salaries payment, credit vacations and interest-free loan programs), but also new ones, in particular:

-          support for the SMEs and entrepreneurs from the most affected sectors that have to bear the expenses on the additional sanitary and epidemiological measures;

-          introduction of a transitional tax period for those who have lost the right to use STS;

-          refusal to index the insurance premiums throughout the next calendar year (the measure will be valid for individual entrepreneurs);

-          liberalization of the bankruptcy consequences for the conscientious IEs, entitled to a moratorium on bankruptcy (currently, IEs cannot be engaged in the business activities for the next 5 years after bankruptcy).

In order to maintain the incomes of the population, the plan provides previously announced measures (payments to families with children and an increase in the subsistence level), as well as the new ones, in particular:

-          since July 2020, it is proposed to provide the possibility of remote work without signing any additional agreements to the employment contract, while the work outside the office may not exclude office activity, it is proposed to be provided for fully remote and combined options;

-          since October of this year, it is proposed to introduce a minimum rate for the part-time employees for up to three months;

-          starting from the new year, it is proposed to implement a new procedure for the so-called “direct payments” on sick leave, as well as the social benefits for the citizens with children;

-          state and municipal employees can get the legal right to work remotely;

-          the creation of a “social treasury” is proposed, which should implement the programs to help the citizens.

In order to maintain the economy as a whole, the state plans to stimulate demand through public procurement, as well as to provide the subsidies and state guarantees. In addition, it is proposed to reduce mortgage rates to 8%, support the hotel and tourism business by deferring the payment of the main debt and paying half the amount of the interest on loans.