Analytics Publications

Russian legislation establishes special conditions for the licensing of legal entities engaged in activities relating to railway transport. The licensing procedure has been considerably simplified by Russia's administrative reforms.

The licensing of railway transport operators is regulated by the Federal Law on the Licensing of Certain Activities. Licences are required for:

• the carriage of passengers and luggage;
• the carriage of heavy cargo;
• the carriage of light cargo;
• the transportation of cargo without a contract on railway lines in general use; and
• hazardous cargo-handling activities involving railway transport.

The government decree determining the licensing provisions was passed on March 15 2006. Licences are granted for five-year terms by the Federal Service on Transport Supervision and Control, part of the Ministry of Transport. A licensee wishing to extend its licence after expiration must apply to the service and pay a state tax.

Applicants for a licence or renewal must supply an application form (with accompanying documents), proof of payment of the licence fee and specific documents relating to the activity in question. For example, applicants for a licence to carry passengers and luggage must supply:

• documents confirming ownership or title of the stock and other machinery to be used for the carriage of passengers and luggage;
• certificates demonstrating that the stock and other machinery complies with technical requirements;
• details of internal company regulations confirming the establishment of a dedicated department for responding to accidents and emergencies;
• a copy of the internal company order appointing the senior employee responsible for the carriage of passengers and luggage;
• diplomas or other certification demonstrating the responsible employee's qualifications and suitability for the position;
• diplomas or other certification for all employees whose professional activity is directly related to the carriage of passengers and luggage;
• diplomas or other certification for all employees whose professional activity directly involves the operation of trains; and
• documents confirming the appointment of the employee responsible for safety and the investigation of transport incidents and their causes.

This list is exhaustive.

The service has 45 days to decide whether to approve an application. It may refuse to grant a licence if the documents presented by the applicant contain inadequate or inaccurate information, or the applicant or its assets do not meet the licensing requirements and conditions. Refusals may be appealed in court.

Each licensed activity has its own specific licensing requirements and conditions, which include the licensee's duty to comply with all applicable legislation in the field of the activity. The conditions for the carriage of passengers and luggage include a duty to comply with:

• the Federal Law on Railway Transport;
• the Railway Transport Code;
• service regulations for the carriage of passengers;
• service regulations for the carriage of luggage and heavy or light cargo;
• rules on the environmental safety of railway transport; and
• other applicable laws and regulations.

The conditions also include organizational and technical requirements for carrying out the activity in question (eg, assets required, necessary qualifications for personnel and contracts held with specialized agencies). They provide that a licensee carrying passengers and luggage must:

• own certain rolling stock;
• have a corporate structure which includes a dedicated emergency response department; and
• ensure that the senior employee responsible for the organization of the carriage of passengers and luggage has a higher or specialized secondary education qualification and has been employed in the field of the licensed activity for a minimum of three of the past 10 years of his or her employment.

Simplified licensing rules may apply if the licensee has civil liability insurance or internationally recognized certification to carry out the activities in question. Under the simplified procedure, the licensing body waives the preliminary inspection and all further scheduled inspections of the licensee's activities.