The Russian Ministry of Justice intends to provide the Supreme Court of the Russian Federation with the opportunity to toughen punishments for administrative matters regarding business entities

In the summer of 2014, in connection with the discontinuation of the Supreme Arbitration Court of the Russian Federation, the legislature introduced amendments to the Administrative Offences Code (AOC) and the Arbitration Procedure Code (APC) of the Russian Federation creating an appeals process against decisions in business or economics-related administrative cases to be carried out in accordance with the provisions of the APC. However, according to the Supreme Court of the Russian Federation (SC RF), other types of appeals fall under Chapter 30 of the AOC if all other forms of protection through arbitration procedure legislation are exhausted. Chapter 30 establishes a single procedure for appealing acts and does not provide for a “second appeal” and supervision.

So, at the moment, different legal acts regulate the procedure for appeals against decisions in administrative cases against business entities: the APC (the appeal and cassation arbitration courts) and the AOC (the appeal procedure of SC RF acts, which is, in fact, similar to supervision). Both contain a variety of approaches, in particular, to the possibility of introducing a court penalty in a case challenging a decision linked to an administrative offense. As a result, the SC RF, considering a complaint in accordance with chapter 30 of the Administrative Code, is changing the resolution of the case for an administrative offense, and a decision, based on a review of the complaint, will not empower the courts to impose a harsher penalty on a liable party.

However, when the court hears an appeal or cassation procedure of an administrative act, as described above, in accordance with of the APC, then the arbitration courts have the authority to change such an order and the court’s decision. They can make the administrative punishment harsher or affirm the original ruling.

In April 2015, because of the differences in the appeals procedures, the Russian Ministry of Justice developed a draft amendments to the APC and Article 30.13 of the AOC that are designed to institute a common procedure for challenging decisions in administrative cases and decisions on complaints against them, in accordance with the APC.

The bill currently contains only two articles. The appeal procedure in the SC RF and through arbitration will fall under the APC, thus eliminating the procedural rules of the Administrative Code. However, it is unclear why the bill does not introduce amendments to Article 207 of the APC, which states that the AOC regulates procedures for administrative appeals.

The new procedure of appealing to the SC RF allows not only tougher punishments but also provides for hearings, unlike the APC, in which the court can summon and require the participation of the parties, send it even can send the case for a new trial because of incorrect legal procedures. This last point now allows the SC RF to send the case for retrial only if there is a breach of procedural requirements, according to Article 30.17 of the AOC.
If the bill becomes law, it will be possible to appeal a decision in the case of an administrative offense in the “second appeal” and supervision. The latter procedure is similar to the appeal procedure for acts, according to Chapter 30 of the APC, but with the possibility of an increased penalty.

The text of the bill can be found here