MOSCOW, January 26 (RAPSI) – Russia's Interior Ministry has proposed changes to the Criminal Code toughening penalties for fraud as the ministry is seeking to reduce by six times the damage caused as a result of a large-scale fraud, RIA Novosti reported on Monday.

The Russian Criminal Code has seven articles on fraud, with penalties varying between up to five and up to 10 years. Damage in fraud cases is considered serious when it exceeds 250,000 rubles ($3,940 at the current exchange rate) and major if it exceeds 1 million rubles ($15,775). However, under four articles, including on corporate fraud, large and very large-scale damage amounts to 1.5 million rubles ($23,662) and 6 million rubles ($94,645), respectively.

In December 20914, the Constitutional Court concluded following analysis of fraud articles that it is unfair to hand down smaller penalties for bigger damage and that the said principles contradict the constitution.

According to the Interior Ministry, the bill has been drafted in compliance with the Constitutional Court’s ruling and to strengthen legal protection of individual groups of citizens, including the consumers of business services and the business people who face an increased risk from the fraudulent actions of their counteragents. The ministry believes that amendments to the Criminal Code “should encourage aboveboard businesses.”