State Duma Supports Reduction of Fines for Hotels

At a plenary session, State Duma deputies voted for a bill that provides for a reduction in administrative fines for hotel owners. The changes concern violations of migration and registration rules.

The document was submitted by the Russian government in November last year. It aims to amend the Code of Administrative Offenses (KoAP), establishing separate and more differentiated sanctions for legal entities and individual entrepreneurs in the hotel sector. Currently, for similar violations, companies can be fined up to 500,000 rubles (approximately $5,600 at current rates) under Article 18.9 of the KoAP and up to 750,000 rubles (approximately $8,300 at current rates) under Article 19.15.2 of the KoAP.

The explanatory note states that the current fine amounts create an excessive administrative burden on conscientious market participants. Disproportionate penalties, not corresponding to the scale of business and income, negatively affect the development of tourism infrastructure and the business climate.

The bill proposes a significant reduction in fines for specific violations. For example, for the delay in submitting a notification of the arrival or departure of a foreign citizen or stateless person by no more than one working day, legal entities and individual entrepreneurs will face a fine of 80,000 to 100,000 rubles (approximately $890 to $1,100 at current rates). A repeat violation will be punished with a fine of 160,000 to 200,000 rubles (approximately $1,800 to $2,200 at current rates).

If the notification is delayed by two days or more, the fine will be from 400,000 to 500,000 rubles (approximately $4,400 to $5,600 at current rates). Liability arises for each foreign citizen separately if the information was not provided for several individuals.

Separate sanctions are also introduced for violating the deadlines for submitting information on the registration and deregistration of Russian citizens at their place of stay.

• For a delay of up to one day, a warning or a fine of 20,000 to 30,000 rubles (approximately $220 to $330 at current rates) is provided.
• For a violation of two or more working days — a fine of 250,000 to 750,000 rubles (approximately $2,800 to $8,300 at current rates).
• A repeat violation will entail a fine of 40,000 to 60,000 rubles (approximately $440 to $670 at current rates).

For hotels in Moscow and St. Petersburg, increased fines are established:

• For violating the deadline for submitting a notification on the registration of Russian citizens by no more than one day — a warning or a fine of 25,000 to 40,000 rubles (approximately $280 to $440 at current rates).
• For a delay of two or more working days — a fine of 300,000 to 800,000 rubles (approximately $3,300 to $8,900 at current rates).
• A repeat violation will cost from 50,000 to 70,000 rubles (approximately $560 to $780 at current rates).

If the bill is finally adopted, the new norms will allow reducing administrative pressure on the hotel business while maintaining control over compliance with migration and registration legislation.