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Source: Ministry of Economic Development (Russia) – An important disclaimer is located at the bottom of this article.

? On February 1, 2024, executive authorities – developers of regulatory legal acts (NLA) must necessarily calculate and justify the costs that business may incur after the entry into force of NLA. New rules for assessing the regulatory impact (RIA) of regulatory documents were developed by the Ministry of Economic Development of Russia on behalf of the Deputy Chairman of the Government – Head of the Government Office of the Russian Federation Dmitry Grigorenko and enshrined in Government Resolution No. 853. Innovations are necessary to eliminate unreasonable business costs, increase the transparency of the RIA procedure and the quality of regulatory policy in general. .

“Before the new ODS rules came into force, developers did not always predict the costs that entrepreneurs might encounter when complying with certain requirements of regulatory legal acts. This led to unnecessary expenses for businesses, which increased the already serious financial burden on domestic companies. Now developers will be required, first of all, to calculate all possible business costs, confirm their forecasts or justify the absence of costs and assign one of three degrees of regulatory impact to the regulatory document, so that our department can study the document and give it its assessment,” noted the acting director of the regulatory department policy and assessment of the regulatory impact of the Ministry of Economic Development of Russia Andrey Starikov.

All regulations submitted to the Ministry of Economic Development for RIA, from February 1, 2024, will be divided into three groups for the first time, depending on the potential costs that entrepreneurs may encounter when complying with the mandatory requirements of regulations. Thus, a low degree of regulatory impact is assigned to legal acts, to comply with the requirements of which a business can spend up to 300 million rubles in 6 years (6 years is the validity period of legal acts containing mandatory requirements; after this period, the application of legal acts and the achievement of the goals of legal acts are assessed), medium degree regulatory impact is business costs of up to 3 billion for the same period, everything higher is a legal regulation with a high degree of regulatory impact. Experts from the Ministry of Economic Development will pay more attention to such documents when conducting an examination. In case of incorrect financial calculations or their insufficient justification, the regulatory act is returned to the developer for revision.

Costs will be calculated using the updated Standard Cost Calculation Methodology. It includes both alternative methods for calculating costs using reference books of standard values in addition to formulas, as well as new costs. In particular, downtime costs and opportunity costs. The methodology was developed by the Russian Ministry of Economic Development and is being approved by the Russian Ministry of Justice.

In 2023, the volume of identified potential business costs within the framework of the RIA procedure exceeded 1.5 trillion rubles.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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