1. Continuous state monitoring regime implemented at hazardous production facilities and hydraulic structures.

On May 22, 2012 Decree No.455 of the Government of the Russian Federation “On continuous state monitoring regime at hazardous production facilities and hydraulic structures” dated May 05, 2012, entered into effect (hereinafter “Decree No.455”).

Purpose of adoption:

Starting from July 01, 2012 continuous state monitoring regime is to be implemented at hazardous production facilities and hydraulic structures.

Classes of facilities:

Classification of hazardous production facilities and hydraulic structures in respect of which a continuous state monitoring regime is being implemented, is subject to approval by the Government of the Russian Federation. Such list has not been approved up to the present day.

Authorized body:

Continuous state monitoring is carried out by the Federal Environmental, Engineering and Nuclear Supervision Agency (hereinafter “Rostekhnadzor”) and its territorial bodies.

Powers of Rostekhnadzor:

Decree No.455 stipulates the list of actions carried out by Rostekhnadzor within the scope of continuous state monitoring. All outcomes of the actions, as well as the documents executed/received in this regard, must be reflected in the monitoring case file of a highly hazardous facility.

Frequency of conducting monitoring activity:

On a regular basis in accordance with the schedule approved by order of Rostekhnadzor. Establishing a continuous monitoring regime does not exclude conducting and arranging planned and unscheduled inspections in respect of such facility and entity in accordance with the legislation of the Russian Federation.

Obligations of the inspected entity:

To ensure unrestricted access of relevant persons to the highly hazardous facility, documents and means of security control of the specified facility.
Decree No.455 of the Government of the Russian Federation “On continuous state supervision regime at hazardous production facilities and hydraulic structures” dated May 05, 2012

2. New Regulations adopted on licensing operation of explosive and flammable production facilities.

Furthermore, on May 22, 2012 Decree No.454 of the Government of the Russian Federation dated May 05, 2012 entered into effect, approving new Regulations on licensing operation of explosive and flammable production facilities. The new Regulations are largely similar to the Regulations of 2008 which are now void; however, they contain a range of developments, among which are the following:

• License to operate explosive and flammable production facilities is granted for an indefinite term (previously for 5 years);

• License applicant and licensee must have ownership title or other legal rights in respect of land plots, buildings, installations and structures which contain explosive and flammable production facilities;

• The list of documents to be submitted to the licensing body by a license applicant along with the application has been expanded;

• The list of gross violations of license requirements, committing which or failing to eliminate which may result in initiating administrative proceedings against the entity in form of a fine or administrative suspension of activity up to 90 days, and, consequently, license suspension, has been expanded;

• The lists of documents and information necessary to re-execute the license in the event the licensee intends to change the address where its licensed activity is conducted, as well as to carry out works not indicated in the license, have been approved;

• The list of works carried out on explosive and flammable production facilities that are subject to licensing, has been specified.

Decree No.454 of the Government of the Russian Federation “On licensing operation of explosive and flammable production facilities” dated May 05, 2012

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Irina Onikienko, St. Petersburg Office of Capital Legal Services.

This Information letter keeps the clients of the Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this Information letter shall not be deemed as legal opinions.