Putin approved the concept of the Ministry of Finance and the Central Bank for regulating leasing – Kommersant

At the end of 2023, Russian President Vladimir Putin approved the concept for regulating leasing activities, which was prepared by the Ministry of Finance and the Central Bank, reports Interfax citing a source familiar with the situation.

According to the agency, the concept was presented to the president in a letter by Finance Minister Anton Siluanov and Bank of Russia Chairman Elvira Nabiullina. Interfax’s interlocutor, referring to the letter, claims that the concept was developed with the participation of the Prosecutor General’s Office in pursuance of Vladimir Putin’s instructions dated July 20, 2019. The President’s order addressed only the issue of compliance with legislation and consumer rights when leasing cars back, and not the entire range of problems of the leasing business in Russia.

In June 2023, the State Duma rejected bill, who proposed introducing regulation by the Central Bank of the activities of leasing companies associated with the state and receiving or applying for state support. The document envisaged the creation of a register of special subjects of leasing activities.

According to the agency, in the new concept of the Ministry of Finance and the Bank of Russia there is no division of leasing companies into those associated with the state and all others. The departments propose to regulate only leasing commercial organizations that have voluntarily entered the Central Bank register and received the status of a non-credit financial organization, the agency reports. The activities of other leasing companies, including individuals and foreign organizations, will not be limited in any way, the letter says.

According to Interfax, there are no plans to regulate the operational activities of leasing operators. To be included in the register, a company must have minimum reliability, keep records in accordance with IFRS, and carry out a mandatory audit of financial statements. Such companies will be subject to standard requirements for financial organizations, a source told the agency.

The authors of the concept also do not plan to regulate with whom and on what terms leasing agreements can be concluded, Interfax reports. In their opinion, the register will help reduce the number of consumer complaints, and companies included in the register will be able to reduce the cost of borrowed funds and offer cheaper services to lessors.

Erdni Kagaltynov