Sanctions pressure and prosecution risks: important considerations for Russian companies and their employees

On 8 April 2025, the State Duma adopted in the third reading a package of bills – No. 870801-8 and No. 871724-8 – which, among other things, amend the provisions of Article 284.2 of the Russian Criminal Code (calls for the introduction of restrictive measures) as well as provisions governing a number of related crimes (Articles 280.3 and 284.3 of the Russian Criminal Code). 

On 16 April 2025, the Federation Council approved amendments to the Criminal Code of the Russian Federation and forwarded the bill to the President of the Russian Federation for signing. Once signed by the President, the law will enter into force immediately upon its official publication.

Main changes:

• Introduction of the qualifying criterion "out of mercenary motives or for hire" (a new part 2 of Article 284.2 of the Russian Criminal Code), which provides for a fine of up to 3 million rubles, or imprisonment for up to 5 years, or forced labor for the same period with deprivation of the right to hold certain positions or engage in certain activities for the same period.
• Abolition of mandatory administrative prejudice for acts committed out of self-interest or for hire.
• The possibility of the confiscation of funds and property obtained from a crime (amendments to Article 104.1 of the Russian Criminal Code).

Articles 280.3 and 284.3 of the Russian Criminal Code also introduce a similar qualifying criterion - "out of mercenary motives or for hire", with punishment increased to up to 7 years in prison and with the possibility of property being confiscated.

The adopted changes significantly increase the personal risks of criminal prosecution for employees, especially managers and senior executives of Russian subsidiaries of foreign groups, whose parent companies require them to take sanctions restrictions into account in their activities. 

The main risks are as follows:

• Any public statement or action of an employee that is related to compliance with foreign sanctions may be characterized as a crime committed "for hire", i.e., creates a risk of criminal proceedings being initiated.
• The abolition of administrative prejudice prevents a statement at issue from being corrected or withdrawn in order to avoid criminal liability.

In order to minimize criminal prosecution risks for employees, it is advisable to exclude from companies’ public statements (where they are published in the name of individual employees) any wording sourced from mass media, social networks or public events that may be interpreted as support for or approval of sanctions.