The Federal Law, dated 3 July 2016, No. 315-FZ (hereinafter -
the 'Law No. 315-FZ') amended Article 317.1 'Interest
on Monetary Obligation' and Article 395 'Liability for
Failure to Perform Monetary Obligation' of the Civil Code of
the Russian Federation (hereinafter - the 'Civil
The relevant changes to the Civil Code become effective from 1
I. Changes in Article 317.1 of the Civil Code
Within the reform of the civil legislation, the Federal Law,
dated 8 March 2015, No. 42-FZ 'On the Introduction of
Amendments to Part One of the Civil Code of the Russian
Federation' introduced a new Article 317.1 'Interest on
Monetary Obligation' into the Civil Code.
According to the previous version of Article 317.1 of the Civil
Code (as effective up to 1 August 2016), unless otherwise provided
by law or an agreement, the creditor on a monetary obligation, the
parties to which are commercial organizations, shall be entitled to
receive from the debtor the amount of interest on the debt for the
period of the funds use. Where the agreement does not provide for
the amount of interests, such an amount shall be determined
according to the refinancing rate of the Bank of Russia as
effective during the respective periods (legal interests).
Thus, the previous wording of the Article contained a provision,
according to which, the interests on a monetary obligation (legal
interests) could be recovered from the debtor, if the latter was a
commercial organization, while the law or the agreement did not
provided for the removal or restriction of such a right. The
interest rate was determined on the basis of the refinancing rate
of the Bank of Russia as effective in the respective periods.
From 1 August 2016, the said Article is significantly amended.
In particular, according to the amendments, where the law or the
agreement provides that the amount of a monetary obligation is
subject to interests for the period of the funds use, the rate of
interests shall be determined under the key interest rate of the
Bank of Russia (legal interest) as effective in the respective
periods, unless another interest rate is set by law or the
Thus, from 1 August 2016 the legal interests shall be accrued in
cases expressly provided by law or agreement, in which case the
interest rate shall be determined on the basis of the key rate of
the Bank of Russia being in effect at the relevant period of time
(rather than the refinancing rate of the Bank of Russia).
According to the Information of the Bank of Russia, dated 10
June 2016, (Minutes of the meeting of the Board of Directors of the
Bank of Russia, dated 10 June 2016) the key rate from 14 June 2016
The changes affected, inter alia, the parties that are subject
to Article 317.1 of the Civil Code. As previously mentioned, the
legal interests could be recovered from the debtor, if the latter
is a commercial organization, the new wording of the Article does
not contain such restrictions, therefore, it applies to all parties
of the civil turnover.
II. Changes in Article 395 of the Civil Code
In accordance with the previous wording of Article 395 of the
Civil Code, for the use of other's funds as a result of illegal
retention thereof, avoidance of return, a delay in payment or
unjust receipt or saving at the expense of another person, the
interest on the amount of such funds shall be paid. The interest
rate shall be determined by the average banking rates on deposits
of individuals effective at the place of residence of the creditor
or, if the creditor is a legal entity, at the place of its location
and published by the Bank of Russia in the relevant periods. These
rules apply, unless another interest rate is set by law or
The Law No. 315-FZ amended the procedure for determining the
amount of interests on third-party money: the interest rate is now
determined under the key rate of the Bank of Russia as effective in
the respective periods, rather than the average bank interest rates
on deposits of individuals, as provided earlier.
The new wording of Article 395 of the Civil Code also provides
that these rules apply, unless another interest rate is set by law
or agreement. Consequently, the parties to the agreement may
provide another interest rate different from that provided by the
Civil Code of the Russian Federation.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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