Analytics 27.03.2020
Putin addressed to the Russians to list the measures of government against Covid-19
In March 25 Vladimir Putin addressed to the Russians. The speech was broadcasted on state television channels. Here is the list of steps the federal government will take for the public health and economy protection against COVID-19.
Isolation measures
In the week of March 28 – April 5, all non-essential work will be suspended, and workers will receive paid leave. Emergency services, medical services, pharmacies, stores, and banks will remain open.
Economic support for individuals
All social welfare payments and benefits will be automatically extended for six months. No proofing documents should be introduced to the authorities
All families eligible for parental benefits will receive 5,000 rubles (€68) per month, multiplied by the number of children under three years old, in the course of the next three months.
Payments for families with children between the ages of three and seven will begin a month earlier, in June instead of July.
By the end of the year, minimum sick leave payments will be established on a federal level to match Russia’s minimum wage regardless of a worker’s rank. The minimum wage is currently 12,130 rubles (€166) per month.
Unemployment payments will be set to equal the minimum wage.
A credit holiday will be instituted to suspend fines on unpaid purchases and mortgages. The suspension will apply to individuals whose income decreases by more than 30 percent as a result of the pandemic.
Economic support for businesses
Credits for entrepreneurs in coronavirus-affected industries will be extended.
Russia’s bankruptcy procedures will be made “stronger and less burdensome.”
Small and mid-sized businesses will be given more time to pay all taxes except for value-added taxes in the course of the next six months.
Microbusinesses [i.e. companies with 15 employees or fewer that make no more than 120 million rubles (€1.53 million) in income] will be given more time to make federal welfare payments.
Small and mid-sized businesses that experience financial difficulties amid the crisis will have their credit payments delayed for six months.
A six-month moratorium on bankruptcy applications will be put in place for companies hit by the coronavirus pandemic. Tax and fee collection from those companies will also be suspended.
New taxes
Dividends that are transferred from Russia into offshore accounts will face a 15-percent income tax.
A 13-percent tax will be applied to individual income gained from bank deposits and long-term bonds if those investments exceed one million rubles ($12,670).
Voting for constitutional amendments previously scheduled for April 22 will be rescheduled.