Monitoring of the Federal Legislation dated 17.10.2006

Federal Constitutional Law No. 4-FKZ of October 16, 2006 on the Amendment to Article 32 of the Federal Constitutional Law on the Human Rights Commissioner in the Russian Federation

The amendments refine the authority of the human rights commissioner in the Russian Federation pursuant to the adoption of the Federal Law on the parliamentary investigation. In cases of a major or large-scale violation of the rights and freedoms of man and citizen guaranteed by the Constitution, the commissioner may apply to the State Duma to create the parliamentary commission to investigate the facts and circumstances having caused the parliamentary investigation.

Besides, he is empowered with the right to participate in the session of the chambers of the Federal Assembly when they endorse the final report of the mentioned commission, as well as the right to appeal to the State Duma with a proposal to arrange parliamentary hearings of the facts of violation of the rights and freedoms of citizens and participate in these hearings.

Federal Law No. 161-FZ of October 16, 2006 on the Amendments to Article 30 of the Federal Law on the Higher and Post-Graduate Professional Education

The amount of mark-ups to scientific and pedagogical personnel of higher educational institutions for the scientific grade of the candidate of sciences and the doctor of sciences is increased to Rbl 3,000 and Rbl 7,000 respectively. Earlier, the mentioned amounts made Rbl 900 and Rbl 1,500 .

The Federal Law is entered into force from November 1, 2006.

Federal Law No. 160-FZ of October 16, 2006 on the Amendments to the Legislative Acts of the Russian Federation and on Invalidation of Individual Provisions of Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on Advertising

Bring the provisions of the legislative acts of the Russian Federation regulating relations in the sphere of advertising in compliance with the Federal Law No. 38-FZ of March 13, 2006 on advertising.

Amendments pertaining to regulation of relations in the sphere of advertising are introduced in the Laws of the Russian Federation on mass media and on the protection of consumer rights, the Land Code, Tax Code, Budget Code, Code of Administrative Violations, Federal Law on narcotic drugs and psychotropic substances and a number of other legislative acts of the Russian Federation.

The Federal Law is entered into force ten days after the day of its official publication with exceptions.

Ruling of the Constitutional Court of the Russian Federation No. 261-O of July 12, 2006 to the Requests of the Duma of the Taymyr (Dolgano-Nenets) Autonomous District and the Norilsk City Court of the Krasnoyarsk Territory to Check the Constitutionality of the Provision of Paragraph 2 of Item 8 of the Rules of Calculation of the Periods of Work Permitting to Get an Early Labour Old-Age Pension under Articles 27 and 28 of the Federal Law on Labour Pensions in the Russian Federation, As Well As on the Appeal of Citizens A.V.Gorodchikov, M.N.Grechko and Other Against Violation of Their Constitutional Rights by the Same Provision

The Constitutional Court of the Russian Federation recognised as unconstitutional the provision of Paragraph 2 of Item 8 of the rules of calculation of the periods of work permitting to get an early labour old-age pension under Articles 27 and 28 of the Federal Law on labour pensions in the Russian Federation endorsed by the Decision of the Government of the Russian Federation No. 516 of July 11, 2002 where it does not include the leisure intervals in rotational schemes of work in the length of work in the regions of the Far North and localities of similar status necessary for an early assignment of the labour old-age pension.

The Labour Code of the Russian Federation does not regard the leisure intervals in rotational schemes of work as a separate type of leisure (Article 107). The leisure intervals in rotational schemes of work is actually a sum of the daily and weekly leisure (unused and accumulated during the rotational scheme of work) that, because of the specific nature of the given type of work, is granted at the end of the period of rotation.

According to Article 300 of the Labour Code of the Russian Federation, the rotational scheme of work implies a summation of the working time per month, quarter or another longer period, however, not greater than one year. The recorded period includes both the whole of the working time, time of travel from the place of location of the employer or the point of assembly to the place of work and back and the time of leisure for the given calendar period of time, including the leisure intervals. The total length of the working time for the recorded period must not be greater than the normal working hours specified in the Labour Code of the Russian Federation.

Hence, if the actually spent working hours in the recorded period for the persons working in the regions of the Far North and localities of similar status on the rotational basis is not less than the normal working hours specified in the Labour Code of the Russian Federation (Article 91), the leisure intervals (overtime work) must not be excluded from the total calendar period forming the length of work permitting to get an early labour pension similar to the days of leisure that are not excluded from the calendar period forming the length of work for the citizens working in any other regime in the regions of the Far North and localities of similar status.

This was the logic of the legislator who did not exclude the leisure intervals from the insured length of work envisaged in Articles 10-13 of the Federal Law on labour pensions in the Russian Federation for assigning the labour old-age, disability and lost-breadwinner pension. Similarly, the length of work of employees with a special nature of work permitting an early assignment of the pension includes both the period of work and the period of leisure.

Order of the Federal Service for Tariff Rates No. 199-e/b of September 15, 2006 on the Endorsement of the Methodology Directions for the Calculation of Tariff Rates for Electric Power under the Contracts of Purchase and Sale at Regulated Tariff Rates (Prices) at the Wholesale Market

The endorsed Methodology Directions for the calculation of tariff rates for electric power under the contracts of purchase and sale at regulated tariff rates (prices) at the wholesale market define the procedure of calculation by the Federal Service for Tariff Rates of prices for electric power for suppliers engaged in power supplies under the contracts of purchase and sale at regulated tariff rates (prices) at the wholesale market.

The Federal Service for Tariff Rates shall specify in each period of regulation indicative prices for electric power to form regulated contracts concluded in the appropriate period of regulation. The indicative prices are differentiated by the subjects of the Russian Federation proceeding from the particulars of production of electric and thermal power in the appropriate subjects of the Russian Federation.

For suppliers of electric power, dual tariff rates are introduced that include one rate for 1 kilowatt-hour of electric power and the rate for 1 kilowatt-hour of introduced generating capacity. The tariff rates are calculated proceeding from the need to compensate to the supplier expenses pertaining to production of electric power and to support economically substantiated profit.

The Methodology Directions specify the procedure of calculation of expenses of suppliers and assessment of their economic substantiation, the formula of determination of the necessary gross receipts for the coverage of economically substantiated expenses, methods of calculation of tariff rates for electric power under the contracts of purchase and sale at regulated tariff rates (prices) at the wholesale market.

Registered in the Ministry of Justice of the Russian Federation on October 13, 2006. Reg. No. 8383.

Order of the Ministry of Internal Affairs of the Russian Federation, Ministry of Foreign Affairs of the Russian Federation and the Federal Security Service of the Russian Federation No. 785/14133/461 of October 6, 2006 on the Endorsement of the Instruction on the Procedure of Drawing up and Issue of the Passport of the Citizen of the Russian Federation, Diplomatic Passport and the Service Passport Being the Main Personal Identification Documents of the Citizen of the Russian Federation Abroad and Containing Electronic Media

The Instruction defines the procedure of drawing up and issue of the passport of the citizen of the Russian Federation, diplomatic passport and the service passport being the main personal identification documents of the citizen of the Russian Federation abroad and containing electronic media.

The Instruction has been worked out in execution of the Decree of the President of the Russian Federation No. 1222 of October 19, 2005.

The drawing up and issue of the passport containing electronic media is vested in the Ministry of Foreign Affairs of Russia, Federal Migration Service of Russia, their territorial bodies on the territories of the Kaliningrad Province, diplomatic representations and consular institutions of the Russian Federation in the Federal Republic of Germany and the Lithuanian Republic. The diplomatic passport and the service passport containing electronic medium are drawn up and issued by the Ministry of Foreign Affairs of Russia.

The new generation passport is drawn up for 5 years (except for the specific cases) to the written application of the citizen having reached 18 years of age submitted personally or through a legal representative. The underage or a citizen recognised as incapacitated according to established procedure shall get the passport to the written application of one of the parents, adoptive parents, trustees (legal representatives). The Order specifies the list of documents submitted together with the application.

In cases envisaged in the Federal Law on the procedure of exit from the Russian Federation and entry in the Russian Federation, a request is submitted by the organisation sending the citizen abroad.

When drawing up new generation passports, servicemen shall attach in addition the permission of the commander. Males 18 to 27 years of age shall present also the military card with a stamp of the end of the draft military service or the appropriate certificate of the military commissar at the place of residence.

The time limit for the drawing up of the new generation passport may not be greater than one month from the date of submission of all necessary documents and photographs. Prolongation of this time limit is permitted in exclusive cases.

The drawing up of the new generation passport is not permitted without withdrawal of the earlier issued new generation passport or another passport of personal identification abroad if it has not expired or is not invalid.

The passport is handed out personally to the citizen (legal representative) after the holder signs it. An appropriate stamp is put in the internal passport of the holder at issue, as well as in the certificate of birth of the child under 14 years of age holding the new generation passport.

The Order also defines the particulars of the procedure of drawing up of the new generation passports in cases of exit from the Russian Federation, describes the particulars of drawing up and issue of the passport in the Ministry of Foreign Affairs of Russia, its territorial bodies, diplomatic representations and consular institutions, regulates the procedure of interaction of the authorised bodies with the bodies of the Federal Security Service, arranging checks to applications, specifies the procedure of registration and disposal of the new generation passports.

Provides the forms of appropriate applications to obtain the passport, certificate to obtain the passport, list of requirements to the photographs, as well as a specimen of the stamp of issue of the new generation passport.

Registered in the Ministry of Justice of the Russian Federation on October 13, 2006. Reg. No. 8378.

Direction of the Central Bank of Russia No. 1721-U of September 14, 2006 on the Amendments to the Regulation of the Bank of Russia No. 262-P of August 19, 2004 on the Identification of Clients and Beneficiaries by Credit Organisations for the Purpose of Combating Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism

Pursuant to the introduction of amendments to the Federal Law on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism excluding for credit organisations the duty to identify the client when accepting payments from natural persons up to Rbl 30,000, as well as lifting the duty to identify the natural person buying or selling foreign currencies for less than Rbl 15,000, appropriate changes are introduced in the Regulation of the Bank of Russia No. 262-P of August 19, 2004. Also introduces a provision recommending the credit organisation, if it is impossible to finish the identification of the beneficiary because of the failure to present necessary documents and information on the part of the client, to send a report of it to the authorised body indicating all information on the beneficiary available with the credit organisation as of the date of sending of the report.

The Direction is entered into force 10 days after 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 October 11, 2006. Reg. No. 8374.

Order of the Federal Service for Tariff Rates No. 189-s/l of September 5, 2006 on the Endorsement of the Procedure of Calculation of Tariff Rates and Pricing Plans for the Services of Local Telephone Communication

The procedure of calculation of tariff rates and pricing plans for the services of local telephone communication is intended for use of the federal body of executive power in charge of regulation of natural monopolies and communication operators being the subjects of natural monopolies in the sphere of communication in the calculation of tariff rates and pricing plans for the regulated services of local telephone communication.

The pricing plan is implied to be the multitude of pricing conditions offered by the communication operator for the use of one or several services of telephone communication.

Calculation of tariff rates (pricing plans) implies bringing them to the level of economically substantiated expenses and reimbursement of the normative profit taking into account the limiting change of the level of tariff rates for the services of local telephone communication specified by the Government of the Russian Federation.

Calculation of economically substantiated expenses and normative profit must be done in compliance with the method of calculation endorsed by the Order of the Federal Service for Tariff Rates of Russia No. 122-s/l of June 9, 2006 on the basis of information obtained from separate accounting of expenses of the communication operator.

The tariff rate for the local telephone connections must be at the level of economically substantiated expenses taking into account the normative profit.

Tariff rates (pricing plans) for the services of telephone communication may be specified separately for legal entities, citizens using the services of telephone communication for personal, family and household needs, as well as the citizens using the services of telephone communication for other needs. Differentiated tariff rates may be fixed for the same communication services. The pricing plan may also envisage differentiated tariff rates depending on the time of day, days of the week, selection and volume of rendered services.

The Order defines the list of obligatory pricing plans offered by the communication operator to user citizens in the presence of technical opportunities of recording of the length of local telephone connections on the pay-by-the-time basis. The list envisages: a pricing plan with a pay-by-the-time system, pricing plan with a user fee system envisaging unrestricted volume of local telephone connections, as well as the pricing plan with a combined system of payment.

The regulatory body shall specify for the communication operator on the obligatory basis a single pricing plan for the services of local telephone communication for legal entity users and citizens using the services for the needs other than personal, family, household ones etc. not pertaining to entrepreneurial activities. Apart from the obligatory pricing plans, the regulatory body may introduce, to the request of the communication operator, also other pricing plans for the services of local telephone communication.

There is a prohibition to increase (decrease) communication operator incomes and, correspondingly, total consumer expenses because of the introduction of obligatory tariff rates. The services are defined that are not included in the volume (length) of local telephone connections.

Calculation of tariff rates and pricing plans for the local telephone connections is done on the basis of information of the reporting period (quarter, six months, nine months, year).

The regulatory body provides for the state regulation of tariff rates for the services of local telephone communication: providing access to the network regardless of the type of user line (wired or radio line) of the network of fixed telephone communication; providing the user line for permanent use regardless of its type; providing local telephone connections to the user of the network of fixed telephone communication for transfer of voice information, fax messages and data (except for the coin-operated phones).

The Order defines the procedure of calculation of tariff rates for each of the mentioned services.

Registered in the Ministry of Justice of the Russian Federation on October 11, 2006. Reg. No. 8372.

Order of the Ministry of Regional Development of the Russian Federation No. 108 of September 28, 2006 on the Average Market Cost of 1 Square Meter of Total Dwelling Space by the Subjects of the Russian Federation for the IV Quarter of 2006

Endorses the average market cost of 1 square meter of total dwelling space (in roubles) by the subjects of the Russian Federation for the IV quarter of 2006. As compared to the III quarter of 2006, the average market cost of the square meter of dwelling space has increased practically in all regions. Thus, in Moscow it amounted to Rbl 39,650 (as compared to Rbl 29,600 in the III quarter), in St.Petersburg, Rbl 21,500 (in the III quarter, Rbl 21,200), in the Nizhny Novgorod Province, Rbl 16,050 (in the III quarter, Rbl 13,650), in the Murmansk Province, Rbl 16,000 (as compared to Rbl 13,000 in the III quarter).

The average market cost of the square meter of dwelling space is applied for the calculation of the amount of subsidies for the purchase of dwelling space allocated from the federal budget to dismissed servicemen and employees of the law-enforcement bodies, citizens having been exposed to radiation, forced migrants, citizens leaving (having left) the regions of the Far North and localities of similar status.

Registered in the Ministry of Justice of the Russian Federation on October 11, 2006. Reg. No. 8369.

Direction of the Central Bank of Russia No. 1728-U of September 27, 2006 on the Amendments to the Regulation of the Bank of Russia No. 255-P of March 29, 2004 on the Obligatory Reserves of Credit Organisations

Introduces amendments to the procedure of depositing of obligatory reserves by credit organisations in the Bank of Russia pertaining to calculation of obligatory reserves by major credit organisations with a wide network of divisions.

Major credit organisations with a wide network of divisions are permitted to equalise the obligatory reserves. The period of equalisation for the mentioned credit organisations is the one from the first of the second month following the reported one to the first of the third month following the reported one inclusive.

The major credit organisation with a wide network of divisions shall submit the estimate on the forth working day of the second month following the reported one.

According to the introduced amendments, the amount of obligations of the credit organisation in issued securities is reduced by the amount of investments of the credit organisation in obligations (including the promissory notes) of credit organisations and the bonds of the Bank of Russia – designation code 520514. A reduction is permitted within the amount of obligations of the credit organisation in issued securities.

The Direction is entered into force from December 1, 2006 and applies beginning with the estimate of the amount of obligatory reserves for the reporting period from December 1, 2006 to January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on October 11, 2006. Reg. No. 8368.

Order of the Federal Service for Financial Markets No. 06-68/pz-n of June 22, 2006 on the Endorsement of the Regulation on the Activities in Organisation of Trade at the Securities Market

Specifies general requirements to activities in organisation of trade at the securities market.

In addition to quotation lists A, B and C, introduces also quotation list I including only stocks meeting a number of requirements and terms. Thus, the board of directors of the issuer must include at least one member of the board of directors meeting special requirements.

Issuer stocks shall be placed for the first time by an open subscription through a stock exchange or a broker rendering the services of their placement, or are offered for the first time for public circulation through a stock exchange or a broker for transactions of stocks alienation. The number of placed stocks (offered for public circulation) must be at least 10% of the total amount of the issuer ordinary stocks.

Capitalisation of stocks of the given type according to the authorised financial advisor must be at least Rbl 60 million for inclusion in the quotation list of ordinary stocks, and at least Rbl 25 million for inclusion in the quotation list of preference stocks. The authorised financial advisor must present to the stock exchange a statement with a substantiation of the assessment of the capitalisation of stocks.

Inclusion of stocks in quotation list I may be done within the time limits not greater than 5 years from the date of inclusion of the issuer stocks by the stock exchange in the appropriate quotation list.

The Order also specifies the permission and circulation procedure for exchange-traded bonds.

Registered in the Ministry of Justice of the Russian Federation on October 10, 2006. Reg. No. 8366.