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 7.03.2006

Federal Law No. 35-FZ of March 6, 2006 on the Combating of Terrorism

Makes more specific legal regulation of activities in combating terrorism, as well as specifies the main directions in the sphere of prevention of terrorist acts and combating of terrorism. Defines anew the main principles, notions, organisational and coordination mechanisms of combating terrorism and its prevention.

Distributes clearly the authority in the sphere of combating terrorism among the federal bodies of executive power. Respectively, defines the persons in charge of each measure in the framework of the anti-terrorist action. The main subject in charge of the measures to stop terrorist activities is the Federal Security Service of Russia.

Describes the mechanism of attraction of the Armed Forces of the Russian Federation to anti-terrorist operations. To prevent terrorist acts in the air, the vessels failing to respond to radio commands and signals of interceptor fighters may be forced to land through the use of arms and destroyed in the case of refusal to land. Similar provisions apply to sea- and river-going vessels.

An anti-terrorist operation regime may be introduced on the territory where it is carried out. A number of special measures may be envisaged on the territory when introducing the given regime: checking of personal identification documents with the natural persons and delivering them to the bodies of internal affairs (other competent bodies) in case of their absence to identify the persons; control of telephone traffic and other information transmitted over telecommunication channels, suspension of communication services for natural persons and legal entities or restricted use of such communication; temporary relocation of natural persons in safe areas while providing stationary or temporary dwelling space etc.

To encourage the public to assist, payments are envisaged to persons rendering assistance in revealing, prevention, stopping, investigating the terrorist act, find and arrest persons preparing, committing or having committed such act, reward from the federal budget.

Makes significantly more stringent the procedure of informing of the public of the circumstances pertaining to the terrorist act.

Regulates clearly the issues of reimbursement of the damage to persons participating in anti-terrorist operations and persons having become victims as a result of a terrorist act.

The Federal Law is entered into force from the day of its official publication except for a number of articles entering into force from January 1, 2007.

Decision of the Government of the Russian Federation No. 118 of March 3, 2006 on the Endorsement of the Rates of Import Customs Duties for Fine Fabric (Veiling) of Glass Fibre

From April 24, 2006 introduces on the permanent basis the rates of the import customs duties for the fine fabric (veiling) of glass fibre. For the fabric greater than 300 cm in width (code according to the Foreign Trade Commodity Nomenclature 7019 32 000 1), the rate is fixed in the amount of 5% of the customs cost, for other (code according to the Foreign Trade Commodity Nomenclature 7019 32 000 9) - 15% of the customs cost.

Earlier, the Decision of the Government of the Russian Federation No. 306 of May 18, 2005 introduced the mentioned rates for 9 months.

Decision of the Government of the Russian Federation No. 117 of March 3, 2006 on the Federal Body of Executive Power Authorised to Keep the Register of State Contracts Concluded on Behalf of the Russian Federation As a Result of Placing of Orders

From January 1 to December 31, 2006 the keeping of the Register of State Orders concluded on behalf of the Russian Federation as a result of placing of orders is vested in the Ministry of Economic Development of Russia. From January 1, 2007 the functions of the federal body of executive power in charge of the keeping of the Register will be fulfilled by the Federal Treasury.

Decision of the Government of the Russian Federation No. 113 of March 2, 2006 on the Endorsement of the Regulation on the Measures to Prevent the Conflict of Interests Pertaining to Officials of the Federal Bodies of Executive Power Involved in the Regulation, Control and Enforcement in the Sphere of Obligatory Pension Insurance, Officials of the Pension Fund of the Russian Federation and Members of the Public Council in Investing of Resources of Accumulated Pensions

The mentioned measures are aimed at prevention of opportunities of obtaining of material or personal advantages by officials personally or through a legal or actual representative because of the availability with them or members of their families or close relatives of the rights providing such opportunities because of the use of service authority by them pertaining to investing of resources of accumulated pensions, as well as information on investing of resources of accumulated pensions having become known to them or available with them because of the work pertaining to the forming and investing of resources of accumulated pensions.

Decision of the Government of the Russian Federation No. 109 of February 28, 2006 on the Particulars of Application of Individual Provisions of the Highway Traffic Rules of the Russian Federation

Postpones until January 1, 2007 the entry into force of the new norm of the Highway Traffic Rules requiring to transport children up to 12 years of age in transport vehicles outfitted with safety belts using special child restraint devices or other means permitting to attach the child with safety belts. This does not apply to transportation of children on the front seat of the car, where it should be done only with the use of the special child restraint devices.

Makes less stringent the requirements to the lighting devices installed on the transport vehicles, in particular, revokes the earlier introduced requirements to the side lamps and retro-reflecting devices. Omits the earlier available requirement prohibiting operation of transport vehicles with red lamps installed in the rear.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 24 of February 9, 2006 on the Rules of Granting Subsidies to the Federal State-Run Enterprises

Provides the procedure of granting subsidies to the federal state-run enterprises at the expense of resources of the federal budget allocated by the Ministry of the Industry and Power Supplies in Section 02 "National Defence".

Operating and formed federal state-run enterprises shall get subsidies within the limits of budget allocations and limits of budget obligations endorsed by the Ministry of the Industry and Power Supplies of Russia for the appropriate fiscal year in Section 02 "National Defence", Subsection 08 "Other Issues of National Defence", tied Article 214 "Implementation of State Functions Pertaining to National Defence", type of expenses 252 "Measures in the Sphere of National Defence", Article 241 "Gratuitous and Unrepaid Transfers to State and Municipal Organisations".

The subsidies shall be granted to enterprises on a gratuitous and unrepaid basis to cover tied expenses and expenses to create federal state-run enterprises.

The volumes of subsidies for each enterprises shall be endorsed by the Minister on the basis of the draft distribution of subsides. Such draft distribution shall be formed by the Commission for Proposals on the Volumes and Directions of Spending of Subsidies granted to the federal state-run enterprises against requests of operating and newly formed enterprises. Operating enterprises shall prepare requests upon expiry of the reporting fiscal period, and the newly formed - according to the endorsed separation balance report and/or transfer act, as well as the plan of measures to settle creditor debts. The rules specifies the list of documents to be submitted by enterprises to the Commission to investigate the requests.

Department of the Budget Policy and Finances shall transfer the resources according to established procedure on the basis of the distribution of resources by enterprises endorsed by the Minister from the personal account of the Ministry of the Industry and Power Supplies of Russia in the territorial body of the Federal Treasury to settlement accounts of enterprises. The Department shall also control the use for designated purposes of resources of the federal budget allocated to grant the mentioned subsidies.

Enterprises, in turn, shall submit according to established procedure quarterly and annual reports of the actual use of subsidies.

Registered in the Ministry of Justice of the Russian Federation on March 2, 2006. Reg. No. 7554.

Direction of the Ministry of Defence of the Russian Federation No. 205/2/35 of February 18, 2006

According to the direction, it is necessary to distinguish clearly personal discipline of commanders (chiefs) and the condition of the military (labour) discipline of the subordinate personnel. The cases of calling to account commanders (chiefs) should be excluded for the crimes, incidents and misdemeanours of subordinate personnel not being a direct result of their activities or failure to take measures to prevent them.

The need to take other measures is also emphasised to provide for the objective assessment of the work of commanders (chiefs) in the Armed Forces of the Russian Federation to enhance the military (labour) discipline.

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