Russian Ministry of Justice confirms change in accounting procedures for NGOs
New accounting procedures for non-commercial organisations will be introduced from 2019. These require that reports detailing expenditure should be submitted by all Russian legal entities receiving funds from abroad.
The document, which introduces bookkeeping changes for NGOs, was published on the federal portal for draft legislation. It will also appear shortly on the Russian Ministry of Justice website.
The changes were approved by order of the Ministry of Justice in August 2018. NGOs must now account for funds and assets received from foreign governments, their agencies and authorised representatives, as well as from Russian juridical persons who receive financial support from abroad.
The order was criticised by the Presidential Council for Human Rights on the grounds that, in effect, the new system made NGOs subject to the same accounting rules as ‘foreign agents’. The Council called on the Ministry to develop new ways of accounting in collaboration with the Public Chamber. The Ministry of Justice announced that it did not intend to introduce any further changes, but agreed that the new style of reporting on financial matters should be introduced from 2019.