Monitoring of the Federal Legislation dated 25.11.2004

Main Directions of the Uniform State Monetary and Credit Policy for the Year 2005 (Approved by the Council of Directors of the Central Bank of Russia on November 15, 2004)

The main goal of the monetary and credit policy is reduction of inflation to the planned level (to 7.5%-8.5% in 2005, 6.0%-7.5% in 2006 and 5.0%-6.5% in 2007).

Depending on the combination of external and internal factors, the official forecast of the Government of the Russian Federation of the socio-economic development of the Russian Federation in 2005 includes three options.

The first option of the development of the Russian economy suggests an impairment of the price situation for commodities of the Russian export at the world markets. The price for the Russian oil will decrease to USD 22.5 per barrel. GDP will grow 4.8%. Estimated average annual USD rate will be Rbl 30.7.

The second option implies that the prices at the power supply market will go down, however, to a lesser degree as compared to the first option. The price for the Russian oil according to this option will amount to USD 26 per barrel. Increased domestic demand - both consumer and investment one - will provide for the GDP growth by 6.0%. Estimated average annual USD rate will amount to Rbl 30.2.

The third option suggests the most favourable condition of the foreign-trade situation. The price for the Russian oil will be USD 28 per barrel. This price will be used in the estimate of incomes of the federal budget for the year 2005. GDP growth will reach 6.3%. Estimated average annual USD rate will be Rbl 30.0.
Besides, the Bank of Russia does not exclude the situation when the favourable foreign-trade situation for the Russian energy carriers similar to the one available in 2004 will not only preserve but may even improve. This permitted to develop two more options of the balance of payments and the monetary program corresponding to the average annual price for the Russian oil at the level of USD 31 per barrel (option 4) and USD 35 per barrel (option 5).

Decision of the Government of the Russian Federation No. 664 of November 19, 2004 on the Endorsement of the Rules of Consumption and Recording of Resources of Subventions Provided from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Make Annual Monetary Payments to Citizens Awarded with the Badge "Honoured Donor of Russia"

The subventions are entered in the budgets of the subjects of the Russian Federation on the accounts of the Federal Treasury bodies opened for cash services for the execution of the budgets of the subjects of the Russian Federation. Registration of operations of the granting of the monetary payments is arranged on the personal account of the recipient of the resources of the budget of the subject of the Russian Federation opened in the Federal Treasury body.

Decision of the Government of the Russian Federation No. 663 of November 19, 2004 on the Procedure of Awarding the Citizens with the Badge "Honoured Donor of Russia" and Providing the Annual Monetary Payment to Citizens Awarded with the Badge "Honoured Donor of Russia"

The badge "Honoured Donor of Russia" is awarded to citizens having donated blood 40 times and more and blood plasma 60 time and more free of charge. The awarding is vested in the Ministry of Public Health and Social Development of Russia at the presentation of the bodies of executive power of the subjects of the Russian Federation. When receiving the badge, the awarded get explanations of their rights for the social support. In particular, the mentioned citizens are entitled for the annual monetary payments in the amount of Rbl 6,000 (with subsequent indexing).

The Direction is entered into force from January 1, 2005.

Decision of the Plenum of the Supreme Court of the Russian Federation No. 23 of November 18, 2004 on the Judicial Practice in Cases of Illegal Entrepreneurial Activities and Legalisation (Laundering) of Monetary Resources and Other Property Obtained in a Criminal Way

Explains individual issues of application of legislation on the criminal responsibility for the crimes in the sphere of economic activities envisaged in Articles 171, 174 and 174.1 of the Criminal Code of the Russian Federation.

The incomes in Article 171 of the Criminal Code of the Russian Federation implies receipts from the sale of commodities (works, services) during the period of illegal entrepreneurial activities including the expenses made by the person pertaining to the illegal entrepreneurial activities.

If the person not registered as an independent entrepreneur purchased immovable property for personal needs or inherited it or obtained it under a donation contract, and leased it on the temporary basis because of the absence of the need to use it while getting an income as a result of such transaction (including the one in large and especially large amounts), the deed does not imply a criminal responsibility for the illegal entrepreneurial activities. If the mentioned person avoids the payment of taxes or fees from the obtained income, his actions contain the signs of the crime envisaged in Article 198 of the Criminal Code of the Russian Federation (avoidance of taxes).

If the legal entity possessing the special legal right to carry out only certain types of activities (for example, banking, insurance, audit) engages also in other types of activities not permitted in the constituent documents and available license, such actions pertaining to illegal types of activities must be regarded as illegal entrepreneurial activities.

Order of the Federal Guard Service of the Russian Federation No. 420 of October 29, 2004 on the Endorsement of the Instruction on the Procedure of Inclusion for the Servicemen of the Federal Bodies of the State Guard Service in the Length of Service for the Pension and Supplement for the Length of Service of Their Employment Periods before Admission to the Military Service

Contract servicemen out of qualified specialists may include in the length of service used for the pension purposes and calculation of the supplement for the length of service the periods of employment before admission to the military service included in the insured length of service permitting to get the pension. Inclusion of the periods of employment for the servicemen is arranged directly before their dismissal from the military service.

The periods of employment must be included in the length of service in calendar figures with the minimum length necessary to get the right for the pension, however, not greater than 10 years.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2004. Reg. No. 6138.

Order of the Ministry of Finance of the Russian Federation No. 71n of August 26, 2004 on the Endorsement of the Procedure of Transfer of Precious Metals and Precious Stones Converted in the State Property to the Ministry of Finance of Russia

The Ministry of Finance of Russia will get handed over to it confiscated (withdrawn) and ownerless values, values declared for withdrawal in favour of the state when moved across the customs border of the Russian Federation, buried treasures and other values converted in the state property. The state body (organisation) possessing the values or the bailiff shall send the values to the state institution in charge of the forming of the State Fund of Precious Metals and Precious Stones of the Russian Federation, storage, release and use of precious metals and precious stones of the Ministry of Finance of Russia.

The State Depository of Precious Metals of Russia is used to hand over the values of the buried treasures found on the land plots or in other property possessed by the Russian Federation, as well as the buried treasures containing items qualified as monuments of history or culture.

Acceptance of values is arranged using the act of acceptance of values, the form being provided.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2004. Reg. No. 6133.