12.02.06

Moscow, January 28, 2006
Translation to English: February 12, 2006

Legal Review:

On Introducing Amendments to Certain Legislative Acts of the Russian Federation in Connection with Nongovernmental Organizations (NGOs) Published on 17.01.2006

This Federal Law modifies the following Federal Laws: # 3297-1 On Closed Administrative Territorial Formations dated July 14, 1992; # 82-FZ On Public Associations dated May 19, 1995; and # 7-FZ On Non-governmental Organizations dated January 12, 1996. It comes into force 90 days after the moment of publication (i.e. on April, 17th, 2006). All structural subdivisions of foreign nonprofit, nongovernmental organizations (NGOs) must submit notice of the creation of a branch or representative office within the territory of the Russian Federation as stipulated in the law On Non-Profit Organizations, and must bring their charters into compliance with that law. Both must be done within 6 months after this law comes into force.

1. Federal Law # 82-FZ “On Public Associations”
This law does not affect the activities of structural subdivisions (the organizations, branches, or representative offices) of foreign NGOs created within in the territory of the Russian Federation.

Article 19 establishes that foreign citizens can be members of public associations (PAs) without obtaining rights and duties in those associations. Categories of persons which cannot become participants, founders, or members of PAs are also stipulated.  They include foreign citizens who have lost the right to be within the territory of the Russian Federation under established legislation. 

Article 44 creates a new basis for the liquidation of a PA: “failure to remedy violations, which served as grounds for suspension of a public association’s activities, within the time frame established by the federal body of state registration or its regional office.”

Part 4 of Article 47 establishes that the restrictions for foreigners, as established in Part 2 of Article 19, “shall not be applicable to structural units of international public associations set up and carrying out their activities abroad.”

2. Federal Law  # 7-FZ “On Non-governmental Organizations”
This law establishes the procedure for setting up and operating structural subdivisions of foreign NGOs on the territory of the Russian Federation.  It defines a foreign NGO as the structural subdivisions of international NGOs which carry out the activities of those organizations on the territory of the Russian Federation.  Furthermore, as a recognized form of NGO, they are subject to registration as stipulated by a new article of the law, article 131. They receive legal recognition within the territory of the Russian Federation starting on the date they are entered into the Register of Branches and Representative Offices of Foreign Organizations and Foreign Non-profit Non-government Organizations.

Article 131 is referred to as “State registration of non-profit organizations.” Besides those documents currently required for registration, the new article requires that two copies of the resolution setting up an NGO and the approval of the foundation documents by its elected or nominated governing bodies be submitted. Also, an excerpt from the register of foreign legal entities from the group’s respective country of origin or an equivalent legal document certifying the legal status of the founding foreign organization must be submitted. The article contains the full list of documents.

The federal registration service must make a decision regarding the application to register within 14 working days. The body that rendered the decision concerning state registration for the NGO shall issue the NGO a certificate of state registration not later than 3 working days from the day that information confirming that the NGO has been entered into the Unified Register of Legal Entities is received from Federal Tax Inspection Service #46. 

Article 132 states that a foreign NGO must notify the appropriate government body of its resolution to set up a branch or a representative office on the territory of the Russian Federation within three months after passing the resolution to do so.  Within this notification must be included: the foundation documents, the resolution creating the substructure, the regulations of the branch or representative office, the resolution appointing the head of the branch or representative office, and a specification of the goals and objectives for creating the branch or representative office.  Not later than thirty days upon the receipt of the notification, the authorized body shall provide the director of the respective foreign NGO’s branch or representative office with an excerpt from the register executed in the format established by the federal government body of justice in charge of normative and legal regulation.

A refusal to enter the organization into the register may be made if:

1) documents are presented incompletely or inadequately; 2) the documents contain inauthentic information; 3) if the goals and objectives of the NGO contradict the Constitution and legislation of the Russian Federation; 4) if the goals and objectives of the NGO create a threat to the sovereignty, political independence, territorial integrity, national unity, unique character, cultural heritage, and national interests of the Russian Federation; and/or 5) if the NGO has been previously removed from the register for gross violation of the Constitution and the legislation of the Russian Federation..

No later than twenty days after the entry is made regarding the respective structural subdivision of a foreign NGO, the director of that subdivision shall provide the authorized body with the address (physical) and contact telephone numbers for the branch or representative office.

Article 15 is added by paragraph 12 and gives restrictions on who may participate in or found an NGO.  They correspond identically to changes made in the Federal Law “On Public Associations.”

Article 18 concerning liquidation is added by paragraph 11: the petition to liquidate is filed by the public prosecutor, his/her authorized representative or regional office. The structural subdivision of the foreign NGO operating on the territory of the Russian Federation may be liquidated if: 1) the foreign NGO is liquidated; 2) the information specified in paragraph 4 of article 32 of the law is not submitted; and/or 3) its activities are found inconsistent with the NGO’s stated goals and information submitted in accordance with the law.

According to Article 231, an NGO may be denied registration if: 1) the foundation documents contradict the Constitution and legislation of the Russian Federation; 2) a company with the same name has already been registered; 3) the name offends the morals and ethnic and religious feelings of the citizens of the Russian Federation; 4) documentation has not been submitted in full, or have been executed in a procedurally invalid manner, or have been submitted to the wrong government body; and/or 5) the person acting as founder cannot legally do so. 

According to that same article, a substructure of a foreign NGO may be denied registration if: 1) the goals for the substructure contradict the Constitution and the legislation of the Russian Federation; 2) the goals create a threat to the sovereignty, political independence, territorial integrity, national unity, unique character, cultural heritage, and national interests of the Russian Federation; 3) a substructure of the foreign NGO has been previously removed from the register for gross violation of the Constitution and the legislation of the Russian Federation.

Article 32 is supplemented with sections 3-15 which state that an NGO must supply reports of its activities, the composition of its governing bodies, financial and resource expenditures including those received from international and foreign organizations, foreign nationals, and stateless persons. The formats and time frames for reporting are to be established by the government of the Russian Federation.  The substructures of foreign NGOs must inform the authorized body about the volume of financial and other resources obtained by the foreign source, the intended allocation of the resources, the purposes for spending or utilizing them, their actual expenditures and usages, resources allocated to persons and legal entities, and the programs the substructure plans to implement on the territory of the Russian Federation.  All of this must be done within the time frame to be established by the government of the Russian federation.  Also, NGOs must inform the authorized body about any changes to this information, with the exception of the receipt of licenses, within 3 days of finalizing such changes. Not reporting this information can lead to exclusion from the register.  Repeated failure to comply is considered grounds for a petition to liquidate the organization. 

The authorized body has the right to issue a substantiated written decision banning a transfer of money or other resources by a foreign NGO if doing so protects the constitutional system, the morality, health, rights and lawful interests of other persons or entities, and is done with the aim of defending the country and its state security.

The jurisdiction of the authorized body in supervising NGOs is expanded by Article 32, Section 5). It can request documents concerning financial and economic activity from state bodies and from financial and credit institutions, send representatives to attend activities held by NGOs, conduct inspections not more than once a year to assure compliance on the part of the NGO in its activities and purposes, and may issue warnings if violations are found.  

3. Federal Law “On Closed Administrative-Territorial Formations.”
Article 3, Section 22 has been added to the law, introducing an interdiction on creating a substructure of a foreign NGO or an NGO founded by a foreign persons or entities within the boundaries of a closed administrative formation and banning activities by such organizations within such boundaries. Creation of such organizations is allowed only as allowed under the laws of the Russian Federation.