On April 4th, 2022, the draft law, specifics of which had already been known in advance was introduced into the Russian parliament (http://duma.gov.ru/news/53947/), which provides for criminal liability for compliance with Western sanctions against Russia.
This is intended to prevent managing directors and other executives of Russian companies from complying with sanctions aimed at Russia and, among other things, from refusing to cooperate with sanctioned Russian banks.
The draft provides for a prison sentence of up to 10 years, as well as fines of up to RUB 1 million (approx. EUR 10,000), and deprivation of the right to hold certain offices or perform certain activities for up to three years.
This may in particular put managers of Russian subsidiaries in a tight spot, them being required by the parent company to comply with Western sanctions, all while being prohibited from doing so by the Russian law.
The draft law provides for amendments to the second part of Article 201 of the Russian Criminal Code, which provides for criminal liability for “abuse of authority”. This article provides for liability for the use of authority by a person performing managerial functions in a company or other organization aimed at gaining advantage or harming others.
The draft law is to add a new element of crime to Article 201, namely “execution of a decision by a foreign state or international organization to impose restrictive measures against the Russian Federation”. The Russian Supreme Court has not expressed any comments or requests for amendments to the draft law. It is currently unknown when the first reading of the draft law will take place. However, it is expected that the draft will be adopted and enter into force in the coming weeks.