Monitoring of the Federal Legislation dated 2.11.2005

Federal Constitutional Law No. 7-FKZ of October 31, 2005 on the Amendments to Articles 10 and 11 of the Federal Constitutional Law on the Procedure of Adoption to the Russian Federation and Forming within It a New Subject of the Russian Federation

Suggestion of the subjects of the Russian Federation to form a new subject within the Russian Federation must be sent to the President of the Russian Federation in coordination with the legislative (representative) bodies of state power and higher officials of the interested subjects of the Russian Federation. The mentioned suggestion must also include a coordinated wording of the issue put forward for the referendum.

The issue of the forming of the new subject must be put forward for the referenda in the interested subjects of the Russian Federation after consultations with the President of the Russian Federation and getting his support of the appropriate initiative.

The Law defines the particulars of the referendum. Thus, the initiative to carry out such a referendum rests with the higher officials of the interested subjects of the Russian Federation. The higher officials and the deputies of the legislative bodies of the interested subjects of the Russian Federation may take part in agitation. It is permitted to arrange a repeated voting in the subjects where the referenda failed on condition that other interested subjects approved the forming of the new subject.

The Federal Constitutional Law is entered into force from the day of its official publication.

Order of the Ministry of Economic Development of the Russian Federation No. 220 of September 14, 2005 on the Regulation on the Ministry of Economic Development and Trade of the Russian Federation

Defines the general rules of organisation of activities of the Ministry of Economic Development of Russia in implementation of their authority in the specified sphere of reference, including the rules of internal activities and the rules of interaction with the Federal Customs Service of Russia, Federal Agency of Cadastre of Objects of Immovable Property, Federal Agency of Federal Property Management, Federal Agency for State Reserves, Federal Agency for the Management of the Special Economic Zones, as well as the Russian Federal Property Fund.

Also specifies the structure and payroll of the Ministry of Economic Development of Russia and its territorial bodies, authority of the heads. Defines the rules of working out of administrative regulations and standards of state services, preparation and adoption of the normative legal acts. Provides the main rules of organisation of document turnover, particulars of preparation and processing of draft acts, as well as the procedure of processing of appeals of citizens and organisations.

Registered in the Ministry of Justice of the Russian Federation on October 28, 2005. Reg. No. 7124.

Order of the Federal Service for Financial Markets No. 05-43/pz-n of September 29, 2005 on the Endorsement of the Method of Calculation of Own Resources of Professional Participants of the Securities Market

Defines the rules of calculation of own resources for brokers, dealers, trustees, depositaries, specialised depositaries and other professional participants of the securities market, except for credit organisations.

As compared to the earlier available method endorsed by the Decision of the Federal Commission for Securities Market of Russia No. 03-26/ps of May 21, 2003, reduces from 10% to 5% the share of participation of a professional participant in organisations and organisations in a professional participant permitting to exclude investments in the given organisations from assets. All figures taken into account in the method are being brought in compliance with the actual legislation of the Russian Federation.

The Order is entered into force from January 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on October 28, 2005. Reg. No. 7120.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 280 of October 19, 2005 on the Procedure for Qualifying Industrial Products As Products of High Degree of Processing

Organisation allocating credit resources for the export of products with a high degree of processing shall enjoy reimbursement within budget allocations of the part of expenses to pay the interest under the credits obtained in 2005 in Russian credit organisations. The products with a high degree of processing are those having undergone several stages of technological processes of processing, processing of initial materials, raw materials and semi-finished products. Industrial products with a high degree of processing include items that do not require further processing (medicines, clothing, shoes etc.) and the products of industrial consumption (ball and roller bearings, integrated circuits and micro assemblies etc.).

Registered in the Ministry of Justice of the Russian Federation on October 28, 2005. Reg. No. 7118.

Letter of the Central Bank of Russia No. 133-T of October 28, 2005 on the Opening of Accounts to the Territorial Bodies of the Federal Treasury in the Currency of the Russian Federation for Resources Received in Temporary Use of the Federal Institutions in the Institutions of the Bank of Russia or Credit Organisations (Branches)

To register resources in the Russian currency received for temporary use of the federal institutions, territorial bodies of the Federal Treasury shall open in the institutions of the Bank of Russia or credit organisations (branches) after conclusion of the bank account contract separate personal accounts with a distinguishing code of 1 as the fourteenth digit of the number of the personal account on the Balance Account 40302.

Letter of the Central Bank of Russia No. 132-T of October 27, 2005 on the Inclusion of Securities in the Lombard List of the Bank of Russia

The Lombard List of the Bank of Russia shall include now the bonds of the Samara Province with the state registration number of issue RU25002SAM0.

The Letter shall apply beginning with the day of its publication in the Herald of the Bank of Russia, however, no sooner than the day when the above bonds are permitted for circulation at the organised securities market for payments pertaining to state federal securities.