Administrative responsibility for non-execution of the contract is established

According to the Federal law of July 13, 2015 No. 265-FZ "About modification of separate acts of the Russian Federation" administrative responsibility for non-execution of the state and municipal contracts is established.

This type of responsibility extends on officials of the customer, and also on the individual entrepreneurs and legal entities who are performers of the contract in case of causing essential harm to the interests of society and the state protected by the law. The concept "essential harm" is subjective now and isn't regulated by standards of the Code of Administrative Offences.

In case of violation to individual entrepreneurs the penalty up to 15 percent from the cost of the obligations which aren't fulfilled under the contract (but not less than 30 thousand rubles) or disqualification for up to two years can be appointed. For legal entities punishment in the form of a penalty which size can reach the triple cost of not fulfilled obligations is prescribed (but not less than 300 thousand rubles). Administrative responsibility is applied in case of lack of involvement of violators to criminal liability.

Changes come into force since July 24, 2015.