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Agreements on Violation Elimination to Shield Companies from Operational Halt

The Russian government has authorized agreements between companies, state institutions, and regulatory bodies to address violations without causing operational shutdowns. This decree, signed on June 6th, aims to ease the administrative burden on businesses.

A wide range of entities are eligible to request these agreements, including state bodies, local self-government bodies, state and municipal institutions, strategically important enterprises, organizations within the military-industrial complex, and businesses in sectors like housing and communal services, energy, communications, transport, agriculture, and pharmaceutical production. However, applications will be prioritized in sectors where oversight primarily affects organizations of strategic or high socio-economic importance.

The decree applies to eight types of federal state supervision, including industrial safety, energy, hydraulic structure safety, mining, environmental, geological, land supervision, and control over medicine production.

Deputy Prime Minister Dmitry Grigorenko emphasized that this mechanism aims to prevent situations where administrative penalties for violations lead to production halts, workforce reductions, or decreased output of essential goods. He urged control bodies to collaborate with organizations, especially when addressing violations requires substantial financial and time investments.

To secure an agreement, organizations must develop a program detailing the steps and timelines for eliminating identified violations, along with documentation demonstrating the significant time and expense involved. A petition must be submitted to the control body within 10 working days of receiving the order to correct the violations.

The agreement requires approval from the prosecutor’s office. Upon conclusion and implementation, the order addressing the identified violations will be suspended, and the organization will avoid administrative penalties upon successfully rectifying the issues.

Petitions can only be submitted for violations identified after June 1, 2025. Violations posing an immediate threat to life and health, such as corrosion or structural damage to power lines, are ineligible for such agreements.