Background

The Ministry of Finance (Minfin) is a federal executive body responsible for drafting and implementing government policy and legal regulation in the field of budget, tax, insurance, foreign exchange, banking, credit cooperatives, microfinance, financial markets, public debt, auditing, accounting and reporting, etc.

Accounting Standards

IFRS Accounting Standards were endorsed for use in the Russian Federation at the end of 2011 and became mandatory from 2012. IFRS Accounting Standards are mandatory for consolidated financial statements. Additionally, separate company financial statements must be prepared using Russian GAAP. Financial statements of certain companies that do not constitute a group, as defined by IFRS Accounting Standards but which are specified in the Federal Law 208-FZ On Consolidated Financial Statements (for instance listed companies, banks, except for banks with a basic licence, insurance companies, etc.), are required to be prepared in accordance with the IFRS Accounting Standards.

Sustainability Disclosure Standards

The Directive on the Preparation of Sustainable Development Reporting, approved by the Ministry of Economic Development of the Russian Federation's order No. 764 dated November 2023, provided companies with a list of ESG indicators for voluntary disclosure, including 44 indicators in the areas of environment, economy, society, and management. The methodology for preparing the report was developed based on the United Nations Conference on Trade and Development (UNCTAD) standards for sustainable development, adapted to the specific context of Russia.

*The information above has been translated and compiled from publicly available sources, including the official websites of relevant institutions and the website of IFRS.