Monitoring of the Federal Legislation dated 9.02.2006

Decision of the Government of the Russian Federation No. 73 of February 1, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 31 of January 23, 2004

Brings in compliance with the actual legislation the procedure of application of estimated rates of the export customs duty for raw oil and the tax on extraction of mineral resources (oil) in calculation of additional incomes of the federal budget due for transfer to the Stabilisation Fund.

Instead of the earlier available fixed values of the basic price for oil used to calculate the rates, now an estimated rate of export customs duty for raw oil is applied with the basic price for oil specified in Item 2 of Article 96.1 of the Budget Code equal to the limiting rate of the export customs duty for raw oil calculated according to Item 4 of Article 3 of the Law of the Russian Federation No. 5003-1 of May 21, 1993 on the customs tariff. The same procedure is used to calculate the rate of the tax on extraction of mineral resources (oil).

According to Item 2 of Article 96.1 of the Budget Code, the basic price for oil is implied to be the price for the raw Urals oil equivalent to USD 197.1 per ton (as of January 1, 2006).

Amendments are introduced in the time limits for calculation of additional incomes of the federal budget and the procedure of their transfer.

Decision of the Government of the Russian Federation No. 72 of February 4, 2006 on the Granting of Subsidies from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Reimburse Part of Expenses to Pay the Interest under Credits Obtained by Citizens Engaged in Part-Time Farming in Russian Credit Organisations in 2006 for up to 5 Years

The subsidies are granted to the budgets of the subjects of the Russian Federation to reimburse part of expenses to pay the interest under credits obtained for 2 to 5 years (depending on credit goal). The total amount of credits obtained by the borrower within 2 years may not be greater than Rbl 300,000.

The subsidies are provided to borrowers on the monthly basis in the amount of 95% of the bank rate of the Central Bank of Russia. If the interest rate of the credit is lower than the bank rate, the subsidy is granted in the amount of 95% of the actual expenses.

The Decision lists the documents necessary to get the subsidy.

The subsidies are transferred by the Ministry of Agriculture of Russia to the budgets of the subjects of the Russian Federation on the basis of the estimate certificate drawn up to the provided form submitted to the Ministry of Agriculture of Russia on the monthly basis.

Decision of the Government of the Russian Federation No. 71 of February 4, 2006 on the Granting of Subsidies from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Reimburse Part of Expenses to Pay the Interest under Credits Obtained by Agricultural Consumer Cooperatives in Russian Credit Organisations in 2006 for up to 2 Years

The subsidies are granted to the budgets of the subjects of the Russian Federation to reimburse part of expenses to pay the interest under credits obtained by agricultural consumer cooperatives, where at least 70% of the members are peasant (farmers') enterprises and citizens engaged in part-time farming, in Russian banks in 2006 for up to 2 years. The credits must be used for designated purposes to purchase home-made agricultural raw materials for industrial processing, fuels and lubricants, spare parts and materials for repair of agricultural equipment, mineral fertilisers, means of protection of plants, fodders, veterinary preparations and other material resources for seasonal works, the list being endorsed by the Ministry of Agriculture of Russia, to purchase young animals and poultry, as well as to pay insurance contributions when insuring the crops.

The subsidies are granted to borrowers on the monthly basis in the amount of 95% of the bank rate of the Central Bank of Russia.

The Decision introduces a limit on the total amount of the credit obtained by one agricultural consumer cooperative: it may not be greater than Rbl 10,000.

Decision of the Government of the Russian Federation No. 69 of February 4, 2006 on the Endorsement of the Rules of Granting of Subsidies from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Reimburse Part of Expenses to Pay the Interest under Investment Credits Obtained in 2006 by Agricultural Producers, Organisations of the Agroindustrial Complex of All Proprietary Forms and Peasant (Farmers') Enterprises in Russian Credit Organisations for up to 8 Years for Construction, Reconstruction and Modernisation of Animal Breeding Complexes (Farms)

The subsidy is granted by the Ministry of Agriculture of Russia to the borrower from the budget of the subject of the Russian Federation on the monthly basis on condition of timely redemption of the credit and payment of interest accrued under the credit contract concluded with the bank. The subsidy for reimbursement of interest for overdue debts is not provided.

The subsidy is provided to agricultural producers and organisations of the agroindustrial complex in the amount of 2/3 of the suffered expenses to pay the interest, however, not greater than 2/3 of the bank rate of the Central Bank of Russia, and for peasant (farmers') enterprises - in the amount of 95% of the bank rate of the Central Bank of Russia.

The Decision lists the documents to be submitted to the authorised body to get the subsidy.

Order of the Ministry of Economic Development of the Russian Federation No. 339 of December 22, 2005 on the Particulars of Declaring of Individual Commodities in the Cargo Customs Declaration

Specifies the list of individual types of commodities placed under the customs regime of release for internal consumption where information on commodities of the same name featuring different technical and/or commercial characteristics must be declared separately using additional sheets to the cargo customs declaration for each group of commodities of different trade-marks and/or models.

Besides, information for the given commodities in Column 31 "Cargo Items and Description of Commodities" of the cargo customs declaration under number 1 is entered using the character ";" in a certain sequence: name; trade-mark; model; information on the commodity permitting to identify and classify the commodities according to the Foreign Trade Commodity Nomenclature, including the one envisaged in individual normative legal acts in the customs sphere.

The mentioned list includes: heating devices (7321 11 according to the Foreign Trade Commodity Nomenclature), linen dryers (8421 12 000 0 according to the Foreign Trade Commodity Nomenclature), household dish washing machines (8422 11 000 0 according to the Foreign Trade Commodity Nomenclature) and other types of commodities.

The Order is entered into force 90 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on February 7, 2006. Reg. No. 7462.

Order of the Ministry of Justice of the Russian Federation No. 16 of January 31, 2006 on the Endorsement of the Instruction on the Organisation and Implementation by the Ministry of Justice of the Russian Federation of the Agency Control of Observation of Human Rights in Institutions and Territorial Bodies of the Criminal Execution System

The Instruction specifies the procedure of organisation and implementation by the Ministry of Justice of the Russian Federation of agency control of observation of the rights and legal interests of convicts and detainees of institutions and territorial bodies of the criminal execution system. Agency control is arranged for the purpose of protection of the rights of convicts, suspects and the accused in the course of execution of criminal punishments and detention, as well as to investigate and summarise the practice of the Federal Service of Execution of Punishments of Russia pertaining to observation of human rights.

The main tasks of the agency control is revealing and elimination of violations of the rights and legal interests of detainees, working out the measures to eliminate and prevent violations of human rights, as well as the reasons and conditions contributing to them. Materials are being prepared as a result of the checks on observation of human rights in the course of execution of punishments to inform the President of the Russian Federation and the Government of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on February 7, 2006. Reg. No. 7459.

Order of the Federal Fund of Obligatory Medical Insurance No. 127 of December 27, 2005 on the Endorsement of the Procedure of Transfer by the Territorial Fund of Obligatory Medical Insurance of Resources to Accounts of the Pharmacy Organisation in Case of Absence in the Subject of the Russian Federation of a Medical Insurance Organisation Providing Necessary Medicines to Citizens in 2006

According to the endorsed procedure, resources of the territorial fund of obligatory medical insurance are transferred to accounts of the pharmacy organisation on the basis of the state contract concluded after an open contest among pharmacy organisations for the right of supply and sale of medicines to citizens entitled for the state social aid in compliance with the Federal Law No. 178-FZ of July 17, 1999 on the state social aid.

After checking the documents submitted by the pharmacy organisation carried out by the territorial fund of obligatory medical insurance, resources are transferred to the accounts of the organisation from a separate account of the territorial fund of obligatory medical insurance opened in the institution of the Central Bank of Russia.

The territorial fund of obligatory medical insurance may not cover expenses of the pharmacy organisation to provide medicines to persons other than those included in the federal register of persons entitled for the state social aid, as well as the medicines other than those included in the appropriate list of medicines endorsed by the Ministry of Public Health and Social Development of the Russian Federation.

The payment for the medicines is arranged after their sale to citizens using the prices not higher than those registered according to established procedure, taking into account the trade mark-up.

Final settlement of payments for the medicines actually sold to individual categories of citizens in 2005 will be made in the I quarter of 2006.

Registered in the Ministry of Justice of the Russian Federation on February 7, 2006. Reg. No. 7457.

Decision of the Management Board of the Pension Fund of the Russian Federation No. 246p of December 14, 2005 on the Endorsement of the Procedure of Adjustment of Information of the Personified Records and Personal Accounts of the Insured Pertaining to the (Insured) Length of Service Available before January 1, 2002 by the Territorial Bodies of the Pension Fund of the Russian Federation

Defines the rues of adjustment of information of the personified records in the personal accounts of the insured pertaining to the (insured) length of service for the period from the date of opening of the personal account to January 1, 2002 and the procedure of adjustment of the personal accounts of the insured pertaining to the mentioned length of service by the territorial bodies of the Pension Fund of Russia.

The adjustment is arranged to provide for a full and correct information on the (insured) length of service for the period before January 1, 2002 in the personal accounts of the insured, timely and motivated assigning of labour pensions. Adjustment of information of the personified records and adjustment of the personal accounts is carried out when the insured applies to correct information on the length of service, in cases of failure on the part of the insurant to present correct information within 2 weeks after being asked to eliminate inconsistencies, refusal on the part of the insurant to present information and if the state (municipal) body or insurant present additional documents confirming the (insured) length of service of the insured for the period before January 1, 2002.

Registered in the Ministry of Justice of the Russian Federation on February 3, 2006. Reg. No. 7454.

Order of the Ministry of Internal Affairs of the Russian Federation No. 1061 of December 28, 2005 on the Endorsement of the Instruction on the Preparation of Information on the Number of Participants of the Accumulated Mortgage System of Housing Support for Servicemen of Internal Troops of the Ministry of Internal Affairs of Russia to Form the Budget Estimate

Work to prepare information on the number of participants of the accumulated mortgage system of housing support for servicemen of internal troops of the Ministry of Internal Affairs of Russia for the subsequent calendar year shall be arranged from January 1 to April 1 of the current year.

Information on the students and servicemen wishing to participate in the accumulated mortgage system submitted by the chiefs of military institutions of higher professional education of internal troops of the Ministry of Internal Affairs of Russia and commanders of military units will be used by the military management bodies to prepare summarised information on the number of participants in the subsequent calendar year and send it to the body in charge of registration.

Information on the number of officers called up from the reserve having concluded the first contract in the previous year shall be submitted by the Personnel Department of the Command of Internal Troops of the Ministry of Internal Affairs of Russia to the Department of Quarterage and Logistic Construction of the Command of Internal Troops of the Ministry of Internal Affairs of Russia.

On the basis of obtained information of the military management bodies and taking into account statistical information, the body in charge of registration shall prepare information on the number of participants and plan the volume of budget allocations, prepare estimates and substantiation to be sent to the authorised federal body providing for the functioning of the accumulated mortgage system of housing support for servicemen.

The forms of submission of information are specified.

Registered in the Ministry of Justice of the Russian Federation on February 3, 2006. Reg. No. 7451.

Order of the Ministry of Internal Affairs of the Russian Federation No. 1060 of December 28, 2005 on the Documents Necessary to Form and Keep the Register of Participants of the Accumulated Mortgage System of Housing Support for Servicemen of Internal Troops of the Ministry of Internal Affairs of Russia

Endorses the form of the register of participants of the accumulated mortgage system of housing support for servicemen of internal troops of the Ministry of Internal Affairs of Russia on paper medium, the forms of documents necessary to form and keep the mentioned register, structure of the registration number of a participant of the accumulated mortgage system of housing support for servicemen of internal troops of the Ministry of Internal Affairs of Russia, as well as the procedure of introduction of changes in the registration number of participant.

The register is a list of information on participants of the accumulated mortgage system of hosing support for servicemen of internal troops of the Ministry of Internal Affairs of Russia formed and maintained according to the rules endorsed by the Decision of the Government of the Russian Federation No. 89 of February 21, 2005 by the federal bodies of executive power where military service is envisaged by the federal law.

The register on paper medium consists of the ledgers of participants and their registration files.

Registered in the Ministry of Justice of the Russian Federation on February 3, 2006. Reg. No. 7450.

Order of the Ministry of Economic Development of the Russian Federation No. 12 of January 25, 2006 on the Endorsement of Specimens, List of Requisites and Security Elements of Excise Duty Stamps for Labelling Alcoholic Products

All alcoholic products will be labelled with ten types of excise duty stamps. Three stamps are issued separately for wines. For other alcoholic drinks, the stamps are issued depending on the strength (greater than 9%, up to 25% and greater than 25%) and the volume of the container.

Excise duty stamps must have the same depiction for all importers of foreign-made alcoholic products showing three digits of the series and eight digits of the number, as well as protection against forgery of at least level "B" according to technical requirements and production conditions of protected printed items. The stamps will be used to enter the name of the producer, its place of location (city), year of production, level of protection.

To destroy the stamp in an attempt of removal, knurling is applied on it.

Registered in the Ministry of Justice of the Russian Federation on February 1, 2006. Reg. No. 7437.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/22 of January 16, 2006

Taxpayers suffering losses from operations with securities in the previous tax period may reduce the taxable base obtained for operations with securities in the reporting period.

Incomes from operations with securities available at the organised market of securities may not be reduced by expenses or losses from operations with securities other than those available at the organised market of securities. Incomes from operations with securities other than those available at the organised market of securities may not be reduced by expenses or losses from operations with securities available at the organised market of securities.

Thus, there is a restriction not permitting to reduce the profit from the main activities by the amount of losses from operations with securities in the determination of the taxable base.

In this cases, there is an opportunity to reduce the profit from operations with securities by the amount of losses obtained in the main activities.

In the determination of the overall taxable base for the profit tax, the losses from the main activities is reduced by the amount of profit for operations with securities.

If the amount of losses from the main activities is greater than the profit obtained in operations with securities, the object of taxation for the profit tax is not available.