In simple terms
A penalty (неустойка, neustoyka) is a "punishment in roubles" for breaking a contract. For example, a contractor finished the renovation after the deadline, a shop did not return money on time, or a tenant paid late. The main convenience: you do not need to prove how much you lost — it is enough to prove the breach itself.
There are two kinds of penalty:
- Penalty interest (пеня) — a percentage for each day of delay, for example 0.1% of the amount per day. The longer the delay, the larger the sum.
- Fine (штраф) — a one-off sum or percentage for the breach itself, for example 5,000 ₽ for missing a deadline.
The size of the penalty is set in the contract (contractual) or in the law (statutory). If the contract has no penalty, for a money debt you can claim interest under Article 395 of the Civil Code.
Penalty for consumers
If you buy goods or order a service for yourself from a shop or company, the Consumer Rights Protection Law applies. It sets a penalty that a contract cannot reduce:
| Breach | Penalty |
|---|---|
| Prepaid goods were not delivered on time | 0.5% of the prepayment per day |
| A demand about defective goods (refund, replacement, repair) was not met on time | 1% of the price of the goods per day |
| Deadline for work or services was missed | 3% of the price of the work per day, but no more than the price |
If the seller does not voluntarily pay a justified claim, the court additionally awards a fine of 50% of the awarded sum.
Calculation example
You ordered a renovation from a company for 300,000 ₽ with a completion date of 1 June, and the work was finished on 26 June. The delay is 25 days (2 to 26 June).
Penalty = amount × daily rate × days of delay
- Under a contract that says 0.1% per day: 300,000 × 0.001 × 25 = 7,500 ₽.
- Under the Consumer Rights Protection Law, 3% per day: 300,000 × 0.03 × 25 = 225,000 ₽. This is less than the price of the work, so the cap does not apply.
A contract term that makes the consumer's position worse than the law is invalid, so you can demand the penalty under the law. You can calculate the sum by days in the penalty calculator.
Calculate it yourself
Change the numbers and the step-by-step calculation updates instantly. Russian rules for 2026.
When the penalty is reduced
Under Article 333 of the Civil Code a court may reduce a penalty if it is clearly disproportionate to the consequences of the breach. If the debtor is a company or an entrepreneur, the court reduces it only at their request. So in a dispute with a business you do not always recover the full sum, but it is usually not reduced to zero either.
How to avoid mistakes
- First send a written claim letter with a calculation — for example, using a claim letter template for a seller.
- Count the days from the date after the last day of the term up to and including the day of actual performance.
- Do not confuse the penalty with interest under Article 395 of the Civil Code: for the same delay only one of them is recovered.
- Remember the limitation period — 3 years.
In Russia, Kazakhstan and Belarus
Russia
The rules are in Articles 330–333 of the Civil Code (ГК РФ). For individual buyers and customers, the Consumer Rights Protection Law («О защите прав потребителей») sets its own rates: 0.5%, 1% or 3% per day. A court may reduce a clearly excessive penalty.
Kazakhstan
In Kazakhstan the penalty (fine, late interest) is provided by the Civil Code of Kazakhstan; a court may reduce it if it is clearly disproportionate to the consequences of the breach.
Belarus
In Belarus the penalty is set by the Civil Code of Belarus; a court may also reduce it if it is clearly disproportionate to the consequences of the breach.
Sources: ConsultantPlus: Civil Code of the Russian Federation («ГК РФ»), Article 330 «Понятие неустойки»