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Article 1. Foundation Principles of Civil Legislation 
1. Civil legislation is founded on the recognition of the equality of participants in the relations which 
regulate the inviolability of property, the freedom of contract, the impermissibility of arbitrary 
interference by anyone whomsoever in private matters, the necessity for unimpeded exercise of civil 
law rights, and securing the restoration of violated rights as well as their defence in the courts of law. 
2. Citizens (physical persons) and legal persons acquire and exercise law rights through their own free 
will and in their own interest. They are free in establishing their rights and responsibilities on the basis 
of a contract and in determining the conditions of the contract to the extent that such conditions do not 
contradict legislation. 
Civil law rights may be limited on the basis of federal law and only to the extent that is necessary for 
purposes of defending the foundations of constitutional order, public morality, health, or the rights and 
lawful interests of other persons, or ensuring national defence and the security of the state. 
3. Goods, services and capital shall vote freely throughout the entire territory of the Russian 
Federation. Limitations on the movement of goods and services may be imposed in accordance with 
federal law, if such is necessary for ensuring public safety, defending the life and health of persons, 
protecting the environment and cultural treasures. 
Article 2. Relations Regulated by Civil Legislation 
1. Civil legislation determines the legal status of participants in civil law relations, the grounds for the 
creation and procedure for the exercise of the rights of ownership and other rights in rem, rights to the 
result of intellectual activities and similar forms of individualized creativity (intellectual rights) 
regulates contractual and other obligations, as well as other property and related personal (nonmaterial) 
relations, based on equality, autonomy of will and proprietary independence of their participants. 


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Citizens (physical persons) and legal persons are the participants in relations regulated by civil 
legislation. The Russian Federation, subjects of the Russian Federation and municipal formations may 
also participate in relations which are regulated by civil legislation. 
Civil legislation regulates relations between persons engaged in entrepreneurial activities or 
participating in such activities, based on the fact that entrepreneurial activities are independent 
activities undertaken at one’s own risk and directed at the systematic making of profit from the use of 
property, sale of goods, performance of work or provision of services by persons registered in this 
capacity in accordance with the procedure stipulated by law. 
Rules established by civil legislation are applicable to relations involving the participation of foreign 
citizens, stateless persons and foreign legal persons, unless otherwise provided by federal law. 
2. Inalienable human rights and freedoms and other nonmaterial values are protected by civil 
legislation, unless otherwise indicated by the nature of these nonmaterial values. 
3. Civil legislation is not applicable to property relations based on administrative or other 
governmental subordination of one party to another, including tax and other administrative relations, 
unless otherwise provided by legislation. 


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