Victoria Abramchenko: The law on responsibility of business for the elimination of environmental damage will work since September 1, 2022

The bill was supported by the government commission on legislative activity.

According to Deputy Prime Minister Victoria Abramchenko, the amendments are aimed at eliminating the consequences of negative impact on the environment fr om operation of the most hazardous production facilities. The starting point for creation of a new regulation was cleaning of the territory of the former Soviet combine Usolekhimprom in Usolye-Sibirskoye in Irkutsk region.

‘There is an example of Usolye-Sibirskoye, wh ere hazardous waste from the activities of a chemical plant has been accumulating since the 30s of the last century. It would seem that you have accumulated waste - be kind, eliminate it. However, such property is often either sold or the owner declares himself bankrupt. Then the burden of environmental problems actually rests on the shoulders of the state, all taxpayers. Moreover, the profit from the company's activities is received by the owner who created environmental problems. This is a key environmental law. We will eliminate this loophole and implement the principle "if you littered – clean up after yourself" in practice,’ Victoria Abramchenko said. 

The regulation will affect industrial sites and workshops of large chemical and oil refineries, enterprises that use toxic substances, as well as facilities for the disposal of the most hazardous waste.

Owners of industrial facilities five years before the end of their operational life should develop an action plan to eliminate the negative consequences of the company's activities. Entrepreneurs either decommission the facility, or reconstruct the facility and extend its service life.

The measures must be approved by the state environmental expertise.

The Deputy Prime Minister noted that the extension of the service life is allowed only if there is a positive conclusion of the state expertise of the project documentation with mandatory environmental audit. Also, the liquidator is obliged to prepare an estimate of the implementation of the measures provided for in the plan and confirm the financial support of the measures. There are several ways to do this: get a guarantee, sign a surety agreement, or create a reserve fund on an escrow account.

Rosprirodnadzor will monitor the validity of the calculation of financial security and the results of the implementation of the plan and issue a conclusion.

For non-fulfillment of obligations to eliminate the damage caused to the environment, proportionate liability is provided for the owners of industrial facilities: a compensation payment in the amount of the cost of liquidation measures. In case of non-payment - suspension of the announcement of payment and payment of dividends until the payment of the compensation or the provision of an action plan with a positive conclusion of the state economic expertise and appropriate financial security.

In order to prevent the resale of problematic objects in favor of one-day firms, transaction control mechanisms are being introduced. If the transaction is concluded more than five years before the end of the service life, the new owner must submit to the authorized federal body documents confirming its financial stability.

In case of alienation of an object less than five years before the end of its service life, the new owner must have a liquidation plan approved by environmental expertise and financial support. ‘The new owner must clearly understand and be ready to be responsible for the "heritage" that he buys. The accumulated damage should not be a surprise to anyone. If a transaction is carried out, then together with the industrial enterprise, the new owner acquires responsibility for the general cleaning of the territory and the elimination of the environmental damage,’ the Deputy Prime Minister noted.

During his Address to the Federal Assembly, President Vladimir Putin noted that the efforts of every level of government, business, development institutions, and the Russian Academy of Sciences should be subordinated to the main, central task of improving the quality of life of our people: ‘And here, I emphasize, our approaches in the field of environmental protection are absolutely principled and, of course, are not subject to revision.’

‘Recent events in Norilsk, in Usolye-Sibirskoye, and in some other places have shown what a different path threatens. We will definitely help the people who live here, but we cannot allow such environmental situations to arise again. I ask you to speed up the adoption of a law that will establish financial responsibility of the owners of enterprises for elimination of accumulated damage, for reclamation of industrial sites. This approach is very simple. How it sounds: if you made a profit at the expense of nature - clean up after yourself,’ Vladimir Putin said.