The kremlin Seeks Money in Fines

The government of the rf is preparing a large-scale increase in fines for economic offenses –from illegal entrepreneurship to tax evasion. Formally, the initiative is designed “to increase the effectiveness of punishment”, but the real goal is obvious: to replenish the depleted budget.

The changes cover 36 types of economic crimes. The fines will increase several times. For illegal entrepreneurship, they propose to impose fines of up to $18,500 (previously it was $4,000), and in cases of “especially large” losses – up to $31,000 (compared to $6,000). The fine for intentional bankruptcy will reach $25,000 (instead of $6,000), for tax evasion – $6,000 to $18,500, and for significant losses – up to $61,500.

There are also plans to revise the criteria for “large” and “especially large” losses, which will allow for a broader interpretation of the crime and, accordingly, more frequent application of maximum fines.

The initiative is part of a broader trend – the kremlin is increasingly seeking non-fiscal sources of revenue. Tax increases (including VAT to 22 %) and the introduction of new fees are already putting pressure on businesses, and now the state is trying to monetize the punitive system as well.

As a result, the risks for investors and entrepreneurs in sectors with high administrative control – construction, transport, finance – are only increasing. moscow is trying to patch up the budget deficit where it is easiest to collect – from those who are still working.