Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 23.08.2005

Decision of the Government of the Russian Federation No. 531 of August 20, 2005 on the Endorsement of the Rates of Export Customs Duties for Commodities Exported from the Territory of the Russian Federation outside the Member-States of the Customs Union Agreements <br>

Introduces the export customs duty for individual commodities in the amount of 0% of the customs cost. In particular, the mentioned rate is introduced for the export of benzene, toluene and xylene used as a fuel (earlier, the rate amounted to USD 104.1 per ton), as well as for ethyl alcohol (earlier, the rate amounted to 6.5% of the customs cost) and a number of other commodities.

The Decision is entered into force one month after the day of its official publication.

Decision of the Government of the Russian Federation No. 530 of August 19, 2005 on the Federal Agency for the Management of the Special Economic Zones <br>

The Federal Agency for the Management of the Special Economic Zones is a federal body of executive power in charge of the rendering of state services and judicial functions in the sphere of management of the special economic zones, as well as control over execution of agreements on industrial production or technical innovation activities. The federal agency is supervised by the Ministry of Economic Development of Russia.

The Decision lists the authority of the federal agency. In particular, the federal agency shall register legal entities and independent entrepreneurs as residents in the special economic zone and control execution of agreements on industrial production and technical innovation activities by them.

Decision of the Government of the Russian Federation No. 529 of August 19, 2005 on the Organisation of and Control over Introduction and Revocation of Restrictive Measures (Quarantine) at the Order of the Territorial Body in Charge of the State Sanitary and Epidemiological Enforcement <br>

If there is a danger of occurrence or dissemination of infection diseases on the territory of the subject of the Russian Federation, the body of executive power of the given subject shall be obliged to take decision on the basis of the order of the territorial body of the state sanitary and epidemiological enforcement within 24 hours to introduce quarantine on the whole territory of the given subject or its individual cities or regions. The given body shall be obliged to inform the population in due time and in full amount of the epidemiological situation and of the measures aimed at prevention of dissemination of infectious diseases.

Decision of the Government of the Russian Federation No. 528 of August 19, 2005 on the Procedure of Spending and Registration of Resources Allocated to Finance the Payments to Invalids Having Received Transport Vehicles through the Bodies of Social Protection of Population, Compensations of Insurance Premiums under the Contracts of Obligatory Insurance of Civil Liabilities of Owners of Transport Vehicles <br>

The subventions are granted within the limits of budget obligations allocated to the Federal Agency of Public Health and Social Development for the mentioned purposes. Registration of the paying out of compensations of insurance premiums to invalids shall be arranged on the personal account of the recipient of resources of the budget of the subject of the Russian Federation opened in the territorial body of the Federal Treasury. The rules of paying out of compensations of insurance premiums to invalids shall be specified by the subjects of the Russian Federation independently.

The bodies of state power of the subjects of the Russian Federation shall submit reports of the spending of subventions on the quarterly basis drawn up to the form specified by the Ministry of Finance of Russia.

Decision of the Government of the Russian Federation No. 527 of August 19, 2005 on the Interim Rates of Import Customs Duties for Individual Types of Technological Equipment for the Furniture and Wood-Processing Industries <br>

The rate of the import customs duty for individual types of equipment for the furniture and wood-processing industries (codes according to the Foreign Trade Commodity Nomenclature of the Russian Federation 8465 10 900 0, 8465 91 200 0, 8465 95 000 0) is reduced from 5% to 0% of the customs cost. The new rates shall apply for 9 months.

The Decision is entered into force one month after the day of its official publication.

Decision of the Government of the Russian Federation No. 525 of August 18, 2005 on the Procedure of Spending and Registration of Resources of the Federal Budget Allocated to Finance Transportation between the Subjects of the Russian Federation, As Well As within the Territories of the CIS Member-States, of Teenagers Having Quitted on the Voluntary Basis Their Families, Children's Homes, Boarding Schools, Special Education and Other Children's Institutions <br>

Amount of subventions granted to the subjects of the Russian Federation is determined proceeding from the number of the mentioned teenagers that must be returned to the places of permanent living and amount of expenses to pay for the travel, as well as the trip expenses of the accompanying persons, meals and medical aid. The number of accompanying persons must not be greater than 2 per teenager. If more than 1 teenager is transported, the number of accompanying persons is determined by the administration of the instruction where the teenagers stay or live (depending on the age of the teenagers, length of travel and other factors).

Subventions are granted within the limits of budget obligations allocated to the Federal Agency of Public Health and Social Development for the work pertaining to transportation of teenagers. The Federal Agency of Public Health and Social Development shall distribute and transfer the subventions, including their redistribution among the subjects of the Russian Federation, on the basis of information received from the bodies of executive power of the subjects of the Russian Federation.

Decision of the Government of the Russian Federation No. 524 of August 18, 2005 on the Endorsement of the Rules of Granting Subsidies from the Federal Fund of Regional Development in 2005 <br>

Defines the rules of granting subsidies in 2005 from the Federal Fund of Regional Development to the budgets of the subjects of the Russian Federation for shared financing of objects and measures under the federal tied program "Equalisation of Deviations in Socio-Economic Development of the Regions of the Russian Federation (Years 2002-2010 and Until 2015)". The subsidies are allocated for co-financing of construction and reconstruction of objects the primary, general and secondary (special) education, public health, power, thermal, gas and water supplies. The levels of co-financing may be increased or reduced by 10 percentage points depending on the time limits of construction, but may not be greater than 70% of the annual expenses allocated for construction and reconstruction of the mentioned objects at the expense of the subsidies and resources of the subjects of the Russian Federation.

Decision of the Government of the Russian Federation No. 523 of August 18, 2005 on the Amendments to the Customs Tariff of the Russian Federation Pertaining to Used Grain and Silo Combines <br>

The Foreign Trade Commodity Nomenclature includes now new codes pertaining to grain and silo combines older than 3 years of age. The rate of the import customs duty for the mentioned combines amounts to EUR 70 per kW of the engine power rating, and 5% of the customs cost for other combines. The new rates are introduced for 9 months. Earlier, the grain and silo combines of the codes of the Foreign Trade Commodity Nomenclature of the Russian Federation 8433 51 000 0 and 8433 59 110 0 were imported at the uniform rate of 5% of the customs cost.

The Decision is entered into force 2 months after the day of its official publication.

Direction of the Central Bank of Russia No. 1599-U of July 29, 2005 on the Amendments to the Instruction of the Bank of Russia No. 110-I of January 16, 2004 on the Obligatory Normatives for the Banks <br>

For the banks forming part of a bank group (bank holding), extends until January 1, 2006 the time limit for the entry into force of the requirement of Item 4.5 on the inclusion in the estimate of the obligatory normative of the maximum amount of risk per borrower or group of interconnected borrowers (N6) of residues on correspondent accounts in credit organisations being members of the same bank group (bank holding).

The Direction is entered into force from the day of its official publication in the Herald of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on August 19, 2005. Reg. No. 6926.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 97 of August 8, 2005 on the Endorsement of the Requirements to the Architecture of a Public-Use Telephone Communication Network <br>

Communication centres located within the boundaries of the Russian Federation must use communication lines passing over this territory only or through communication satellites controlled from the Russian Federation. These requirements do not apply to the fragments of the network of international and intercity telephone communication working within the boundaries of the Kaliningrad Province and on the territories falling in the jurisdiction of the Russian Federation outside its boundaries.

The Order also provides the requirements to the architecture of the network of intercity and international telephone communication, as well as the regional and local telephone communication.

The endorsed requirements are entered into force from January 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on August 18, 2005. Reg. No. 6916.

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