Monitoring of the Federal Legislation dated 30.11.2006

Decision of the Government of the Russian Federation No. 630 of October 27, 2006 on the Endorsement of the Rules of Application of Individual Security Measures Pertaining to Victims, Witnesses and Other Participants of Criminal Proceedings <br>

The endorsed rules shall regulate application of individual security measures pertaining to persons protected by the bodies of internal affairs, bodies of the Federal Security Service, customs bodies, institutions and bodies of the criminal execution system, bodies of control of circulation of narcotics, as well as the command of appropriate military units in the criminal cases processed by them or by courts or the prosecutor office.

The mentioned bodies shall choose independently the necessary security measures and determine the methods of their application, which is recorded in the decision drawn up according to the provided form. The chosen security measures, their changing and results of application are reported by the body implementing the security measures (while observing confidentiality of information on the protected person) to the court (judge), prosecutor, chief of the body of investigation or the investigator processing the application (report) of the crime or the criminal case.

The mentioned bodies may provide for the personal security of the protected person, as well as protection of his place of residence and property. To provide for self-defence and personal security, the protected person may get, if necessary, a body armour, electric strike, gas balloon, as well as a portable radio device, cellular phone and/or a pager.

Replacement of personal identification documents, other documents for the protected person to change the name and other information, as well as a change of appearance of the protected person, are used only in cases of heavy and specially heavy crimes and only if the security may not be ensured by other means.

Decision of the Plenum of the Supreme Court of the Russian Federation No. 18 of October 24, 2006 on Certain Issues of Application of the Special Part of the Code of Administrative Violations of the Russian Federation Emerging with the Courts <br>

The Plenum of the Supreme Court of the Russian Federation prepared explanations on the issues of application in court disputes of individual provisions of certain chapters of the Code of Administrative Violations of the Russian Federation combining administrative violations in the sphere of highway traffic, entrepreneurial activities, finance, taxes and fees, securities market, as well as the customs sphere (violations of the customs rules).

The Decision provides explanations on determination of the subjects of the above categories of violations, particulars of qualification of individual wrongful acts, particulars permitting to differentiate certain violations, circumstances affecting the qualification or omitted in qualification, as well as the issues of assigning individual punishments for these or those categories of violations.

Thus, it is emphasised, in particular, that in the determination of the subject of violations in the sphere of highway traffic one should keep in mind that the driver is the person operating the transport vehicle regardless of the whether he does have the right to operate the transport vehicle of all categories or only certain category or does not have this right at all. The driver is also assumed to be the person teaching to drive.

The sanction in the form of the deprivation of the right to drive a transport vehicle may not apply to the person who does not have it.

A refusal of certification of drunk driving is not only a refusal of certification in general, but also a refusal of this or that type of investigation in the framework of certification.

When qualifying the violations envisaged in Article 14.1 of the Code of Administrative Violations of the Russian Federation (carrying out entrepreneurial activities without registration or without the special permission (license), it is necessary to keep in mind that the presence or absence of incomes from activities is of no significance for the purpose of qualification, since making profit is the goal of the given activities, not an obligatory result.

An independent entrepreneur may not be called to account for the violation of the time limit of registration in the tax body (Article 15.3 of the Code of Administrative Violations of the Russian Federation) as an official even in the case when he fulfils independently appropriate official duties.

When assigning a punishment in the form of a fine for concealing commodities from customs control through the use of hiding places (Part 2 of Article 16.1 of the Code of Administrative Violations of the Russian Federation) one should keep in mind that the transport vehicle used to hide the commodities may be regarded as an instrument of the administrative violation. Hence, confiscation of the given transport vehicle in such cases is obligatory when assigning the punishment.

Order of the Ministry of Internal Affairs of the Russian Federation No. 743 of September 20, 2006 on the Monetary Subsistence of Certain Categories of the Federal State Civil Servants <br>

Pursuant to the adoption of the Federal Law on the state civil service of the Russian Federation, the Decree of the President of the Russian Federation No. 763 of July 25, 2006 specified the amounts of the monetary subsistence for the federal state civil servants, in particular, the amounts of the monthly salaries, monthly monetary awards, monthly mark-ups for the length of service and for the work with information comprising the state secret. The given payments apply in full amount to the federal state civil servants of the central office of the Ministry of Internal Affairs of Russia and are made from August 1, 2006.

The civil servants of the central office of the Ministry of Internal Affairs of Russia shall also get bonuses for the specially important and complex tasks, the monthly mark-up for the special conditions of civil service. The amount of the bonus for the specially important and complex tasks is determined depending on the results of activities of the civil servant in percent of the salary of the monetary subsistence and does not have maximum restrictions. The monthly mark-up for the special conditions of civil service is introduced as a material incentive for the most qualified, competent, responsible and enterprising civil servants fulfilling their functional duties, as a rule, in other than normal conditions (complexity, urgency and improved quality of work, special working regime and schedules, mastering and use of technical devices, foreign languages). The amount of the mark-up depends on the occupied position.

The federal state civil servants of the central office of the Ministry of Internal Affairs of Russia may get annual material aid in the amount of one salary of the monetary subsistence. In exclusive cases (natural disasters, disease, death of close relatives and other justifiable reasons), an additional material aid may be rendered.

Besides, when getting the annual paid leave, the mentioned civil servants shall get lumpsum payments in the amount of 2 salaries of the monthly monetary subsistence.

Since qualification grades are revoked and class grades of the state civil service are introduced, civil servants who had qualification grades will get, before being assigned class grades, the monthly mark-up to the salary for the occupied position for the qualification grade in the amount of the salary for the appropriate class grade.

The persons having occupied state positions of the federal state service and re-assigned with their consent to positions of the federal state civil service in the central office of the Ministry of Internal Affairs of Russia with lower salaries for the occupied position shall preserve the salaries for the occupied positions as of August 1, 2006 during their work in the new position. The preserved salaries for the occupied position shall be paid out to the mentioned persons before they get the right for a higher salary for the occupied position because of its increase (indexing) or being assigned to the position of the federal civil service with a higher salary for the occupied position.

Registered in the Ministry of Justice of the Russian Federation on October 27, 2006. Reg. No. 8406.

Letter of the Central Bank of Russia No. 01-13-5/3805 of October 24, 2006 on the List of Organisations <br>

The list of organisations whose promissory notes (claims rights under credit contracts) may be accepted as a security for the credits of the Bank of Russia, as well as organisations that may act as guarantors for the promissory notes (claims rights under credit contracts) accepted as a security for the credits of the Bank of Russia, shall include the open-type joint-stock company Magnitogorsk Metallurgical Integrated Works (OAO MMK).

Letter of the Central Bank of Russia No. 36-3/1993 of October 17, 2006 <br>

Explains the status of the Letter of the Central Bank of Russia No. 08-17/2540 of July 17, 2006 having applied to independent entrepreneurs the limiting amount of payments in cash between legal entities under one transaction specified in the Direction of the Bank of Russia No. 1050-U of November 14, 2001.

The Bank of Russia explained that the given Letter is a reply to the particular request of the Federal Tax Service, is not being a normative act of the Bank of Russia and may not be applied as such.

Decision of the Government of the Russian Federation No. 637 of October 30, 2006 on the Endorsement of the Regulation on the Licensing of Passenger Transportation by Motor Vehicles Outfitted for Transporting More Than 8 Persons (Except for the Cases When Such Activities Are Carried out for Own Needs of the Legal Entity or Independent Entrepreneur) <br>

Specifies the procedure of licensing of passenger transportation by motor vehicles outfitted for transporting more than 8 persons carried out by legal entities or independent entrepreneurs.

The licensing is vested in the Federal Service of Enforcement in the Sphere of Transport. The license for the mentioned type of activities is granted for 5 years. The license may be prolonged against application of the license holder according to the procedure envisaged for the redrawing of the document confirming the presence of the license.

To get the license, the candidate must have a motor vehicle meeting the requirements for passenger transportation permitted for operation, have an official in charge of the traffic safety certified for the appropriate position, have drivers with necessary qualification, length of work and medical certification, conditions for technical maintenance of motor vehicles and expert workers. The license holder must also have a contract of obligatory insurance of civil liabilities of owners of transport vehicles.

To get the license, the application and the documents mentioned in Item 1 of Article 9 of the Federal Law on the licensing of individual types of activities are presented, as well as the documents confirming the presence of the mentioned conditions with the candidate.

Decision of the Government of the Russian Federation No. 635 of October 30, 2006 on the endorsement of the Regulation on the Federal Agency for Hi-Tech Medical Aid <br>

Defines the authority and the procedure of organisation of activities of the Federal Agency for Hi-Tech Medical Aid.

The Agency has been formed under the Decree of the President of the Russian Federation No. 658 of June 30, 2006 to render state services and manage the state property in the sphere of public health pertaining to development and implementation of up-to-date medical technologies, new methods of diagnostics and organisation of hi-tech medical aid.

The main functions of the Agency are organisation of hi-tech medical aid (including transplantation of human organs and tissues), development, introduction and use of up-to-date medical technologies, new methods of diagnostics and treatment, sending citizens of the Russian Federation for treatment abroad, organisation of post-graduate training of medical workers for the sphere of public health where it pertains to development, implementation of up-to-date medical technologies and hi-tech medical aid. Before the creation of the Agency, the mentioned functions were fulfilled by the Federal Agency for Public Health and Social Development.

The Federal Agency for Hi-Tech Medical Aid is headed by the person assigned to his position and dismissed from it by the Government of the Russian Federation at the presentation of the Minister of Public Health and Social Development of the Russian Federation. The Agency is supervised by the Ministry of Public Health and Social Development of Russia.

Order of the Federal Service for Financial Markets No. 06-102/pz-n of September 21, 2006 on the Types and Form of the Qualification Certificates <br>

Depending on the specialisation, the Federal Service for Financial Markets specified six types of qualification certificates of specialists of the financial market handed out by accredited organisations as a result of qualification examinations: qualification certificate of the specialist of the financial market for brokerage, dealer activities and activities of management of securities (first type); for organisation of trade at the securities market (stock exchange activities) and clearing activities (second type); for the keeping of the register of holders of securities (third type); for depositary activities (forth types); for the management of investment funds, shared investment funds and non-state pension funds (fifth type); for activities of specialised depositaries of investment funds, shared investment funds and non-state pension funds (sixth type).

The Order endorses the form of the qualification certificate.

Registered in the Ministry of Justice of the Russian Federation on October 31, 2006. reg. No. 8426.

Order of the Federal Service of Military and Technical Cooperation No. 53 of Septembers 6, 2006 on the Drawing up of Applications and Licenses for the Import (Export) of Products of Military Destination and on the Procedure of Submission of Documents for the Licenses <br>

Endorses the Instruction specifying general requirements to the drawing up of applications for the licenses for the import and export of products of military destination, drawing up of the mentioned licenses, as well as defining the procedure of submission of documents for the licenses.

In the presence in the supplies products of military destination of information comprising the state secret, applications are being drawn up after adoption of appropriate decisions on the transfer of such information. The license is drawn up as a single copy on the special paper protected against forgery according to established form.

To get the license, an application is submitted to the Federal Service of Military and Technical Cooperation, a copy of the contract, copy of the contract with the producer when exporting the products or with the consumer organisation when importing them, the documents confirming coordination with the Ministry of Justice of issues of legal protection of interests of the state in the process of transfer of results of research works of military destination to foreign clients contained in the transferred products with the rights belonging to the Russian Federation, end-user certificate which is a document containing obligations to use the exported products for declared purposes only without permitting a re-export of it or transfer to third parties without the consent of the Russian Federation, as well as a copy of the permission to the foreign organisation to carry out foreign trade activities for the products of military destination and the documents confirming the authority of the foreign organisation to concl ude the contract.

The Order invalidates the Order of the Committee for Military and Technical Cooperation of Russia No. 3 of January 19, 2001 on the entry into force of the procedure of submission of documents for the licenses for the import (export) of products of military destination and No. 41 of July 2, 2001 on the amendments to it.

Registered in the Ministry of Justice of the Russian Federation on October 30, 2006. reg. No. 8420.

Order of the Ministry of Natural Resources of the Russian Federation No. 228 of October 2, 2006 on the Endorsement of the Procedure of Drawing up of the Results of Checks in the Course of the State Control of the Condition, Use, Guarding, Protection of the Forestry Fund and Reproduction of Forests, As Well As the Form of Orders to Eliminate the Revelled Violations and the Acts of the Carried out Checks <br>

The Federal Service of Enforcement in the Sphere of Use of Natural Resources and its territorial bodies shall control the condition, use, guarding and protection of the forestry fund, as well as reproduction of forests. As a result of the carried out control measures, the acts of the checks of observation of the requirements of the forestry legislation are drawn up.

The procedure of drawing up of the mentioned acts is regulated for the purpose of uniform drawing up of the results of the checks. The act of the check is drawn up in 2 copies and is signed by the official (officials) in charge of control measures. One copy of the act is handed in to the checked person, the other is attached to the file in the Federal Service of Enforcement in the Sphere of Use of Natural Resources (its territorial body). The Order provides the list of information recorded in the act, the list of attachments to the act of check.

If an administrative violation is revealed as a result of the check, the protocol is drawn up and the orders are issued to eliminate the revealed violations.

The Order endorses the forms of the act of check of observation of the requirements of the forestry legislation of the Russian Federation and the orders to eliminate the revealed violations of the requirements of the forestry legislation.

Registered in the Ministry of Justice of the Russian Federation on October 30, 2006. Reg. No. 8418.

Direction of the Central Bank of Russia No. 1725-U of September 21, 2006 on the Amendments to the Regulation of the Bank of Russia No. 266-P of December 24, 2004 on the Issue of Bank Cards and Operations Committed Using the Pay Cards <br>

The amendments to the procedure of issue of bank cards on the territory of the Russian Federation by credit organisations and carrying out of operations using pay cards permit the credit organisation to provide monetary resources to resident clients for making payments in operations committed using credit cards without using the client bank account. Earlier, providing monetary resources for payments in operations committed using credit cards was permitted only by transfer of the mentioned recourses to the client bank accounts. A documentary confirmation of the granted credit without the use of the client bank account is a register of payments received by the credit organisation, if otherwise is not envisaged in the credit contract. The client in this case may carry out the same operations as when the resources are entered on his bank account.

The Direction specifies the duty of credit organisations to inform the clients holding prepaid cards that are used without concluding the bank account contract of the procedure and terms of carrying out of operations using prepaid cards, in particular, by placing the information in the places of servicing of clients. When using prepaid cards, the client natural persons may carry out all operations carried out using other bank cards (pay (debit), credit cards) within the limits of resources available for payments using prepaid cards. The only limit is that prepaid cards may not be used in operations with the currency other than the one available for payments.

When handing out (accepting) in the points of handing out of cash of the credit organisation to client natural persons using pay cards the cash in the currency of the Russian Federation from accounts (to accounts) in the currency of the Russian Federation opened in the given credit organisation, a register of operations with cash and checks may be drawn up, as well as the document confirming the operation with cash and checks. Earlier, there was not opportunity to draw up the mentioned documents when carrying out the mentioned operations. At the same time, the Direction specifies that in operations of currency exchange, including those with pay cards, the document confirming the mentioned operations is not drawn up.

The rules of issue of bank cards on the territory of the Russian Federation and carrying out operations using pay cards apply not only to the Russian credit organisations but also to the foreign banks.

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 30, 2006. Reg. No. 8416.

Order of the Ministry of Finance of the Russian Federation No. 121n of October 3, 2006 on the Maximum Amount of the Single Bank Guarantee and the Maximum Amount of All Simultaneously Available Bank Guarantees Granted by the Same Bank or the Same Organisation for the Purpose of Bank Guarantees Accepted by the Customs Bodies As a Security of Customs Payments <br>

Pursuant to Articles 242 and 243 of the Customs Code of the Russian Federation, the security of customs payments collected by the customs bodies, as well as observation of the requirements of the customs legislation of the Russian Federation, include bank guarantees of the banks, credit organisations or insurance organisations included in the Register of Banks and Other Credit Organisations.

The Order specifies the criteria of analysis of the financial standing of banks and organisations where the maximum amount of the single bank guarantee and the maximum amount of all simultaneously available bank guarantees is determined for the purpose of bank guarantees accepted by the customs bodies. Such criteria include the amount of own resources of the bank and the normative of sufficiency of own resources (capital) of the bank (N1).

Normative N1 for the banks with own resources amounting to greater than Rbl 4 billion is envisaged in the amount not greater than 11%. Meanwhile, the minimum permissible numerical valued of N1 normative specified by the Central Bank of Russia for the banks with the amount of own resources from EUR 5 million and greater makes 10%.

The maximum amount of all simultaneously available bank guarantees of the same bank with own resources greater than Rbl 20 billion makes Rbl 3,500 million, and the maximum amount of the single bank guarantee - Rbl 700 million. For the banks with the capital greater than Rbl 10 billion, the given amounts make respectively Rbl 1,700 million and Rbl 345 million, and for the banks with the capital greater than Rbl 4 billion - Rbl 700 million and Rbl 140 million.

For other banks, as well as all other credit organisations and insurance organisations, there is a limit of Rbl 170 million (maximum amount of all simultaneously available guarantees) and Rbl 35 million (maximum amount of the single guarantee).

As to the non-bank credit organisations and insurance organisations, special requirements to the amount of own resources (capital) are not defined.

Registered in the Ministry of Justice of the Russian Federation on October 30, 2006. Reg. No. 8415.

Order of the Ministry of Economic Development of the Russian Federation No. 303 of September 29, 2006 on the Endorsement of the Regulation on the Procedure for Carrying out Expert Evaluation of the Report of Assessment of Securities, on the Requirements and Procedure of Selection of the Self-Regulating Organisation of Assessors Carrying out Expert Evaluation <br>

The Federal Law No. 7-FZ of January 5, 2006 introduces the duty of the person owning as of July 1, 2006 more than 95% of the total number of ordinary stocks and preference stocks of the open-type joint stock company to buy out the rest of the stocks and securities converted into such stocks at the demand of their holders. A similar rule also applies to the persons who had more than 85% of the stocks of the open-type joint-stock company as of the mentioned date and became later the holders of 95% of the packet of stocks. In the above cases, the cost of the purchased securities must be determined by an independent assessor and confirmed by the self-regulating organisation of assessors.

The endorsed Regulation regulates the procedure of carrying out of expert evaluation of the report of assessment of securities, as well as the requirements and procedure of selection of the self-regulating organisation of assessors carrying out the expert evaluation.

The expert evaluation may be carried out by the self-regulating organisation of assessors meeting simultaneously the following conditions: presence in the organisation of at least 300 persons entitled to carry out assessment activities; presence of a permanent structural division of the organisation in charge of appropriate expert evaluations; presence in the given structural division of persons with a state diploma of professional education in the sphere of assessment activities, length of work in the sphere of assessment activities of at least 5 years who signed at least 10 valid reports of assessment of businesses or securities; presence of an internal document of the organisation on expert evaluations.

The Order defines the composition of documents submitted by the self-regulating organisation to the request of the party ordering the expert evaluation, the subject matter of the expert evaluation and the content of the expert statement.

Registered in the Ministry of Justice of the Russian Federation on October 31, 2006. Reg. No. 8427.

Letter of the Federal Tax Service No. ShT-6-03/1027 of October 23, 2006 on the Application of the Agreement with the Republic of Belarus <br>

Provides explanations on the application of the Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on the principles of collection of indirect taxes to operations of sale of commodities between economic subjects of the Russian Federation and the Republic of Belarus in cases of their participation in exhibitions.

If the taxpayer of the state of one side of the given Agreement has a contract for supplies of commodities with the taxpayer of the state of the other side envisaging that the commodity as of the moment of the beginning of delivery (transportation) is on the territory of the country of exporter, and the terms of the given contract envisage that the commodity participates in exhibitions on the territory of the country of the importer as a prototype, the economic operation of export (import) of such commodities is regarded in each of the countries as export (import) of commodities respectively.

Letter of the Federal Tax Service No. ShT-15-03/1137 of October 17, 2006 on the Value Added Tax

In the determination of the amount of the value added tax due to the budget when the re-seller taxpayer carried out operations of sale of second-hand automobiles purchased from persons not being VAT payers, there appears to be no right for tax exemptions. The mentioned procedure of VAT calculation applies not only to operations of sale of second-hand imported automobiles purchased from persons not being VAT payers, but also of sale of other commodities purchased from these persons.

According to the Federal Tax Service of Russia, the change of the procedure of calculation of the value added tax in operations of sale of second-hand imported automobiles does not affect the level of prices for the given products, as well as the buying capacity of new automobiles and an active renovation of the automobile fleet.

Federal Law No. 188-FZ of November 4, 2006 on the Amendments to the Federal Law on the Continental Shelf of the Russian Federation and the Federal Law on the Exclusive Economic Zone of the Russian Federation

The Federal Laws on the continental shelf of the Russian Federation and on the exclusive economic zone of the Russian Federation are being brought in compliance with the norms of the Federal Law on fishing and conservation of aquatic biological resources where it pertains to the unification of the used terms and definitions, as well as establishing a uniform procedure of granting aquatic bioresources for use.
The Federal Law introduces a uniform procedure and terms of submission of requests for the licenses for the catching of aquatic biological resources. Since the catching on the continental shelf and in the exclusive economic zone have particulars associated with remote location of fishing vessels from the base and impossibility of changing directly the originals of the decisions, an opportunity is envisaged to draw up urgent permissions by telegraph dispatches.
Apart from these changes, the Federal Law brings in compliance with the Decree of the President of the Russian Federation No. 649 of March 9, 2004 issues of the structure of the federal bodies of executive power the names and the sphere of reference of the federal bodies of executive power in charge of the state management in the sphere of fishing and conservation of aquatic bioresources.
The Federal Law is entered into force ninety days after the day of its official publication.

Federal Law No. 187-FZ of November 4, 2006 on the Reorganisation of the Courts of General Jurisdiction of the Perm Province and the Komi-Permyatsky Autonomous District Pursuant to the Forming of the Perm Territory

In pursuance of the Federal Constitutional Law No. 1-FKZ of March 25, 2004, forms a new subject of the Russian Federation - Perm Territory - as a result of the merger of two subjects of the Russian Federation - the Perm Province and the Komi-Permyatsky Autonomous District.
In this connection, the Law abandons the Perm Province Court and the Court of the Komi-Permyatsky Autonomous District while creating the Perm Territory Court to assume the jurisdiction of the abandoned courts.
The regional courts of the Perm Province and the regional courts of the Komi-Permyatsky Autonomous District having operated before the entry into force of the Federal Law are reorganised into the regional courts of the Perm Territory.
The judges, chairmen and deputy chairmen of the abandoned courts may be assigned, with their consent, to the similar positions of the Perm Territory Court.
The Federal Law is entered into force form the day of its official publication, except for individual provisions entering into force from the day of assigning to their positions of at least four fifths of the judges of the Perm Territory Court of their specified number.

Federal Law No. 186-FZ of November 4, 2006 on the Creation of the Arbitration Court of the Perm Territory

Pursuant to the creation as a result of the merger of the Perm Province and the Komi-Permyatsky Autonomous District of the new subject of the Russian Federation - Perm Territory - creates the Arbitration Court of the Perm Territory. The Arbitration Court of the Perm Province and the Arbitration Court of the Komi-Permyatsky Autonomous District are abandoned. The issues of jurisdiction of the abandoned courts are handed over to the newly created Arbitration Court of the Perm Territory.
The judges of the abandoned arbitration courts may be assigned, with their consent, to positions of judges of the Arbitration Court of the Perm Territory. In this case, a positive statement of the appropriate qualification commission of judges is not required.
The Federal Law is entered into force from the day of its official publication. The Arbitration Court of the Perm Territory will start its activities from the moment of assigning to their positions of at least four fifths of the judges of the Arbitration Court of the Perm Territory of their specified number. The official Decision on the day of the beginning of activities of the Arbitration Court of the Perm Territory will be taken by the Plenum of the Higher Arbitration Court of the Russian Federation.

Federal Law No. 185-FZ of November 4, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of India on Cooperation in the Sphere of Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement with the Government of the Republic of India on cooperation in the sphere of investigation and use of the outer space for peaceful purposes.
The given Agreement signed in New Delhi on December 3, 2004 will replace the intergovernmental Agreement on cooperation in investigation and use of the outer space for peaceful purposes of June 30, 1994 to take account of the qualitatively new standards and perspective scale of the Russian-Indian cooperation.
The Agreement defines necessary conditions of efficient development of mutually beneficial cooperation with India in the whole range of promising directions of peaceful use of the outer space and application of outer space engineering and technologies. The Agreement is of comprehensive nature and envisages an appropriate complex of political-and-legal and organisational measures. Implementation of the Agreement envisages development of cooperation in such spheres as investigation of the outer space, remote probing of the Earth from the outer space, outer space materials, outer space medicine and biology, outer space communication, satellite TV and radio broadcasting, satellite navigation and pertinent technologies and services, manned and unmanned flights, launching services.
The Agreement is subject to ratification including, in particular, the provisions on exemption from taxes and customs duties of certain categories of commodities being the objects of cooperation in the outer space.

Federal Law No. 184-FZ of November 4, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Chile on Cooperation in Investigation and Use of the Outer Space for Peaceful Purposes

Ratifies the Agreement between the Government of the Russian Federation and the Government of the Republic of Chile on cooperation in investigation and use of the outer space for peaceful purposes singed in Santiago de Chile on November 19, 2004 .

Federal Law No. 181-FZ of November 3, 2006 on the Amendment to Article 8.39 of the Code of Administrative Violations of the Russian Federation

Increases the amount of the administrative fine for the violation of the rules of guarding and use of natural resources on the specially protected nature territories.
Violation of the specified regime or other rules of protection and use of the natural environment and natural resources on the territories of the state nature sanctuaries, national parks, nature parks, state nature reserves, as well as the territories housing monuments of nature, on other specially protected nature territories or in their protected zones (districts) is punished with a fine imposed on the citizens in the amount of 10 to 20 minimum amounts of labour remuneration (earlier, 5 to 10 minimum amounts of labour remuneration), on the officials in the amount of 20 to 40 minimum amounts of labour remuneration (earlier, from 10 to 20 minimum amounts of labour remuneration), on legal entities - from 300 to 600 minimum amounts of labour remuneration (earlier, form 300 to 400 minimum amounts of labour remuneration).
Violations of the regime of the specially protected nature territory include, in particular, penetration on the territory of the sanctuary, carrying out economic activities in the reserve zones of national parks, prospecting and developing mineral deposits, providing gardening and cottage land plots on the territory of the national parks, as well as the right of travel and parking for motor vehicles etc.
Imposing a fine may be combined with a confiscation of the instruments of the administrative violation and the products of illegal use of natural resources.

Federal Law No. 180-FZ of November 3, 2006 on the Amendment to Federal Law on the Entry into Force of Part II of the Tax Code of the Russian Federation and on the Amendments to Some of the Legislative Acts of the Russian Federation on Taxes

According to the introduced amendments, from January 1, 2007, however, no sooner than the first of the subsequent tax period to December 31, 2008 inclusive, VAT exemption applies to the import to the Russian Federation of breeding bovine animals, breeding swine, sheep and goats, semen and embryos of the mentioned breeding animals, breeding horses and ova.
VAT exemption applies to the import by agricultural producers meeting the criteria of switchover to the uniform agricultural tax (according to Item 2 of Article 346.2 of the Tax Code of the Russian Federation) and Russian organisations engaged in leasing activities followed by subsequent supplies of them to the given producers.
At present, operations of import of breeding bovine animals, breeding swine, sheep and goats to the territory of the Russian Federation are subject to the 10% VAT rate.
Exemption from taxation of the mentioned operations creates favourable conditions for development of animal breeding and improves financial standing of agricultural producers.
The Federal Law is entered into force one month after the day of its official publication.

Federal Law No. 179-FZ of November 3, 2006 on the Amendment to Article 10 of the Law of the Russian Federation on the Commemoration of the Deceased Defenders of the Fatherland

Activities of the authorised federal body of executive power in the sphere of commemoration of the deceased defenders of the Fatherland and the work in this sphere shall be carried out according to the procedure defined by the President of the Russian Federation (earlier, the Government of the Russian Federation).
The need to introduce the given amendments is stipulated by the Decree of the President of the Russian Federation No. 37 of January 22, 2006 vesting the authority in the given sphere in the Ministry of Defence of Russia supervised by the President of the Russian Federation.

Federal Law No. 178-FZ of November 3, 2006 on the Amendments to Article 398 of Part 2 of the Tax Code of the Russian Federation

According to Chapter 31 "Land Tax" of the Tax Code being in effect from January 1, 2005, independent entrepreneurs must determine independently the taxable base and calculate the land tax for the land plots used in entrepreneurial activities. However, the legislator, while specifying the tax period, procedure and time limits of advance payments, did not include in the rules of submission of the tax reports (Article 398 of the Tax Code of the Russian Federation) the provision that respective duties emerge with the independent entrepreneur only when using the land plot in entrepreneurial activities.
The introduced amendment to Article 398 of the Tax Code of the Russian Federation eliminates the mentioned drawback and specifies that the tax declaration and the tax estimate for advance payments for the tax is submitted by entrepreneurs using in entrepreneurial activities the land plots they possess on the proprietary basis or as a permanent (unlimited) use.
The Federal Law is entered into force no sooner than one month after the day of its official publication and no sooner than the 1st of the subsequent tax period for the land tax.

Federal Law No. 176-FZ of November 3, 2006 on the Amendment to Article 149 of Part 2 of the Tax Code of the Russian Federation

The Federal Law makes more specific the provisions of Subitem 1 of Item 3 of Article 149 of Part 2 of the Tax Code exempting from the value added tax the sale of items of religious destination and religious literature produced by religious organisations. The given norm of the Tax Code of the Russian Federation in the previous wording permitted application of tax exemptions only when the items of religious destination and religious literature were sold by the same organisations that produce them. The amendments introduce alternative conditions of application of the VAT exemption.
The Law also makes more specific the subjects enjoying the given tax exemption. According to the new wording, VAT exemption applies to the sale of items of religious destination and religious literature produced by religious organisations (associations) and organisations the only founders (participants) of which are religious organisations (associations) and sold by the given or other religious organisations (associations) and organisations the only founders (participants) of which are religious organisations (associations).
The Federal Law is entered into force from January 1, 2007, however, no sooner than one month after the day of its official publication and no sooner than the first of the subsequent tax period for the value added tax.

Federal Law No. 175-FZ of November 3, 2006 on the Amendments to the Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on the Autonomous Institutions, As Well As to Refine the Legal Capacities of State and Municipal Institutions

Pursuant to the adoption of the Federal Law on the autonomous institution envisaging creation of a new type of the state (municipal) institution, introduces appropriate amendments to the Civil and the Budget Codes of the Russian Federation, as well as the legislative acts regulating activities of educational and cultural institutions.
Refines the notion of institution. This is a non-commercial organisation created by the owner for the purpose of managerial, social-and-cultural or other functions of non-commercial nature. The institution may be created by a citizens or legal entity (private institution) or the Russian Federation, subject of the Russian Federation or municipal formation respectively (state or municipal institution).
The state (municipal) institutions are subdivided into the budget-supported and autonomous ones. The autonomous institution is liable for its obligations with all their property except for the immovable property and especially valuable movable property assigned to the autonomous institution by the owner of this property or purchased by the autonomous institution at the expense of resources allocated by such owner. The owner of the property of the autonomous institution is not liable for the obligations of the autonomous institution.
The autonomous institution may not, without the consent of the owner, dispose of the immovable property and especially valuable property assigned to it by the owner or purchased by the autonomous institution at the expense of resources allocated to it by the owner for the purchase of such property. The rest of the property assigned to it may be disposed of by the autonomous institution independently, if otherwise is not specified in the law.
Incomes from the use of the property assigned to the autonomous institution are not transferred to the appropriate budget, but are used by the institution at their own discretion.
Subsidies and subventions allocated to the autonomous institution from the appropriate budget are exempted from the profit tax.
When an autonomous educational institution is created by the change of the type of the existing state (municipal) educational institution, such institution may engage in the types of activities defined in the charter on the basis of the license and certificate of the state accreditation obtained by the educational institution before expiry of these licenses and the certificate.
When an organisation of culture is created in the form of an autonomous institution, the founder must provide in full amount for the financing of expense of maintenance, preservation and replenishment of the state part of the Museum Fund of the Russian Federation, library, archive funds, as well as the preservation and use of objects of cultural heritage handed over to the autonomous institution.
The Federal Law is entered into force sixty days after the day of its official publication except for the individual provisions where another time limit is specified for the entry into force.

Federal Law No. 174-FZ of November 3, 2006 on the Autonomous Institutions

In the framework of the carried out restructuring of the budget-supported sector, introduces a new type of the state (municipal) institution - autonomous institution.
This is a non-commercial organisation created by the Russian Federation, subject of the Russian Federation or a municipal formation to carry out works, render services to implement the authority of the bodies of state power, authority of the bodies of local government in the spheres of science, education, public health, culture, social protection, employment of population, physical culture and sports.
The property of the autonomous institution is assigned to it on the basis of operative control. The autonomous institution may not, without the consent of the founder, dispose of the immovable property and especially valuable property assigned to it by the founder or purchased by the autonomous institution at the expense of resources allocated by the founder to purchase this property. The rest of the property, including the immovable one, is in the independent control of the autonomous institution. The owner of the property of the autonomous institution is not liable for the obligations of the autonomous institution.
Incomes of the autonomous institution are in its independent disposal and are used by it to reach the goals for which it has been created.
The main type of activities of the autonomous institution is rendering services to the order of the founder free or on the partially paid basis for the consumer. The financing of the mentioned activities is implemented from the appropriate budget in the form of subventions, subsidies, from the state extra-budgetary funds and other sources. The autonomous institution may render paid services in the framework of its main activities in excess of the volumes ordered by the founder.
The Law defines the procedure of creation of the autonomous institution and managing it. Reorganisation of existing state (municipal) institutions into the autonomous ones is permitted with the founder consent only. When an autonomous institution is created by changing the type of an existing state (municipal) one, it is not permitted to withdraw or reduce the property (including the monetary resources) assigned to the state (municipal) institution.
Creation of the autonomous institution by changing the type of the existing state or municipal institution is not considered to be its reorganisation.
The changing of the type of existing state and municipal institutions of public health is not permitted.
To provide for the public control of activities of the autonomous institution, a supervisory board of the autonomous institution is created including representatives of the founder, other state (municipal) bodies of power, the public, work collective. One of the functions of the supervisory board is approving major transactions with the property of the autonomous institution.
The Federal Law is entered into force sixty days after the day of its official publication.

Ruling of the Constitutional Court of the Russian Federation No. 273-O of June 14, 2006 on the Appeal of Citizens V.N.Kovalev, I.V.Kovalev, E.V.Kovalev and V.M.Kovaleva Against Violation of Their Constitutional Rights by Provisions of Item 6 of Part 1 of Article 13, Item 5 of Part 1 and Item 3 of Part 3 of Article 27.1 of the Law of the Russian Federation on the Social Protection of Citizens Having Been Exposed to Radiation Because of the Disaster at the Chernobyl Nuclear Power Station

The Constitutional Court of the Russian Federation recognised that provisions of Item 6 of Part 1 of Article 13, Item 5 of Part 1 and Item 3 of Part 3 of Article 271 of the Law of the Russian Federation on the social protection of citizens having been exposed to radiation because of the disaster at the Chernobyl Nuclear Power Station (in the wording of the Federal Law No. 122-FZ of August 22, 2004) do not exclude for the citizens evacuated from the alienation zone in 1987 (including those having quitted it on the voluntary basis) the right for the monthly monetary payment specified in Article 27.1 of this Law. The Decision was stipulated by the fact that the citizens applying to the Constitutional Court of the Russian Federation with the demand to recognise the mentioned norms as unconstitutional were deprived by the territorial department of the Pension Fund of the Russian Federation of the right for the monthly monetary payment stating that this payment is introduced for the citizens evacuated from the alie nation zone in 1986, which is not the case for the applicants.
The court explained that according to the earlier available legal regulation (before the entry into force of the Federal Law No. 122-FZ - the Law on monetization), the citizens evacuated from the alienation zone in 1987 received the same certificates and the same benefits and compensations as those who quitted in 1986 proceeding from the fact that they were affected by radiation to a greater - not lesser - degree. Introduction of the new legal regulation by the Law on monetization that did not take account of the settled interpretation of the challenged norms resulted in that the citizens evacuated from the alienation zone in 1987 or later were deprived of the part of the measures of social support in kind forming part of the reimbursement of the damage to health incurred through the disaster at the Chernobyl Nuclear Power Station and did not acquire the right for the monthly monetary compensation intended as a replacement. The switchover to the new regulation must have envisaged appropriate legal mechanisms permitting to provide for the continuation of the available level of protection of their rights and freedoms, guarantees of their social protection taking into account the specific legal status of these persons. Moreover, the rights of citizens evacuated from the alienation zone for reimbursement of the damage to health may not depend on the time of quitting (evacuation), since the reason to grant reimbursement of the damage to health according to the Law of the Russian Federation on the social protection of citizens having been exposed to radiation because of the disaster at the Chernobyl Nuclear Power Station is exposure to radiation, not any other circumstances.

Ruling of the Constitutional Court of the Russian Federation No. 272-O of June 13, 2006 on the Appeals of Citizens D.V.Yevdokimov, M.E.Miroshnikov and A.S.Rezanov Against Violation of Their Constitutional Rights by Provisions of Article 333.36 of the Tax Code of the Russian Federation and Article 89 of the Code of Civil Procedures of the Russian Federation

The Constitutional Court recognised that normative provisions of Article 333.36 of the Tax Code of the Russian Federation interconnected with Item 2 of Article 333.20 of the Tax Code of the Russian Federation and Article 89 of the Code of Civil Procedures of the Russian Federation that do not permit the courts of general jurisdiction and justices of the peace to adopt decisions on the requests of natural persons to exempt from the state duty, if another reduction of the amount of the state duty, providing respite (extension schedule) do not provide for a free access to jurisdiction, loose their force and may not be applied by the judicial bodies. This is because the absence with the court of the right to exempt from the state duty by its own decision the citizens other than the categories directly indicated in the law prevents implementation of the right for protection in court for citizens whose property status does not permit to pay the state duty. It is emphasised that reduction of the amount of the state duty by the court to the request of natural persons may not be regarded as being a benefit of personal nature prohibited by the tax legislation and implying these or those advantages (in the grounds, procedure and terms of payment of taxes and fees) for some taxpayers (payers of the fees) as compared to other.

Federal Law No. 189-FZ of November 5, 2006 on the Amendments to the Code of Administrative Violations of the Russian Federation (Enhancing Responsibility for the Violation of the Procedure of Employment of Foreign Citizens and Stateless Persons in the Russian Federation)

The amendments enhance responsibility for the employment of the foreign workforce in the Russian Federation in violation of the specified procedure, as well as introduce responsibility for the failure to execute the duties envisaged in the Federal Law No. 109-FZ of July 18, 2006 on the Migration Register for Foreign Citizens and Stateless Persons in the Russian Federation.

The Code of Administrative Violations of the Russian Federation is extended to include new Articles 18.15-18.17 introducing administrative responsibility for the illegal employment in the Russian Federation of a foreign citizen and stateless person, violation of the rules of employment of foreign citizens and stateless persons in trade outlets (including the trade complexes), the failure to observe restrictions of individual types of activities imposed on foreign citizens, stateless persons and foreign organisations.

The amendments introduce responsibility of the legal entity, its branch or representation managing a trade outlet (including the trade complex), officials of the mentioned legal entity, branch or representation, as well as the persons engaged in entrepreneurial activities without the forming of the legal entity, for providing a place for trade, trade, warehouse or another production, service or auxiliary room to a foreign citizen or stateless person illegally employed in trade outlets (including trade complexes).

Increase the amounts of administrative fines for the violation of immigration rules, rules of stay (living) in the Russian Federation for foreign citizens and stateless persons, rules of employment in the Russian Federation of foreign citizens and stateless persons (including the foreign workforce). Introduce opportunities of administrative suspension of activities for up to 90 days for the persons engaged in entrepreneurial activities without the forming of the legal entity and legal entities for the administrative violations committed by them pertaining to restrictions on individual types of activities specified in the Federal Law for foreign citizens and stateless persons and to the rules of employment of foreign citizens and stateless persons in trade outlets (including trade complexes).
The Federal Law is entered into force from the day of its official publication, except for individual provisions envisaging responsibility for the failure to execute the duties envisaged in the Federal Law No. 109-FZ of July 18, 2006 on the Migration Register for Foreign Citizens and Stateless Persons in the Russian Federation. These provisions are entered into force simultaneously with the mentioned Federal Law from January 15, 2007.

Federal Law no. 183-FZ of November 3, 2006 on the Amendments to the Federal Law on Agricultural Cooperation and to Individual Legislative Acts of the Russian Federation

The main changes to the Federal Law on agricultural cooperation ensure the rights and interests of the members of the cooperative and the cooperatives themselves. The Federal Law regulates the procedure of transfer of shares by cooperative members to third parties, procedure of adoption of decisions on the reorganisation of the cooperative and conclusion of transactions, refines the norms regulating the issues of contributions, the shared and indivisible funds of the cooperative.
      The amendments confirm the established proprietary structure of in rural areas, namely, introduce a procedure of permission (on the part of the cooperative) of sale of the share, introduce sanctions in the form of reimbursement of the losses of the auditor union for the persons having initiated an early dismissal of the chairman of the cooperative or executive director from his position, introduce a procedure of reimbursement of expenses to the auditor union of the audit check.
      Introduce a procedure of conclusion of transactions for the cooperative. Refine the norms regulating the issues of contributions, shared and indivisible funds of the cooperative. Refine the procedure of correction of the shared fund of the cooperative if it exceeds the amount of net assets. Extend the norms regulating the procedure of convocation and carrying out of general meetings of the cooperative and decision taking.

The draft law suggests additional norms of regulation of creation and activities of auditor unions to improve their capacity to protect the interests of the members of the cooperative and its property. Refines the list of persons who may become members of the credit agricultural cooperative. The sphere of reference of the general meeting includes the issue of endorsement of the property mortgage contract as a security for cooperative obligations under credits.

Introduces additional norms regulating the procedure of reorganisation of cooperatives that do not permit a withdrawal of shares of members and associated members of the cooperative, providing for their fair labour and proprietary participation in the organisations created as a result of the reorganisation of the cooperative.

Appropriate changes are introduced in the Federal Law on accounting work, on the credit consumer cooperatives of citizens and on the audit activities.

Federal Law No. 182-FZ of November 3, 2006 on the Amendments to the Code of Administrative Violations of the Russian Federation

To enhance responsibility for the violation of the legislation of the Russian Federation in the sphere of protection and use of marine biological resources, amends a number of articles of the Special Part of the Code of Administrative Violations of the Russian Federation increasing amounts of fines envisaged in these articles.

The failure to fulfil the rules of keeping of on-board documents by the vessel captain catching aquatic biological resources in internal sea waters, territorial sea, continental shelf and/or in the exclusive economic zone of the Russian Federation is fined in the amount of 100 minimum amounts of labour remuneration now, while earlier the mentioned amount was twice as low.

The maximum fine for the destruction of rare and perishing species of animals and plants makes 25 minimum amounts of labour remuneration for natural persons (not 20). Committing the mentioned violation by an official implies an administrative fine in the amount of 150 to 200 minimum amounts of labour remuneration, by legal entity - in the amount of 3,000 to 5,000 minimum amounts of labour remuneration. Initially, the maximum amount of the fine for officials was limited to 40 minimum amounts of labour remuneration, for organisations - 400 minimum amounts of labour remuneration.

The Law increases two times the fine for the violation by a natural person of the rules of fishing, as well as the rules of catching of aquatic biological resources other than fish, making from 10 to 20 minimum amounts of labour remuneration. If the subject of the violation is an official, 100 to 150 minimum amounts of labour remuneration are collected (instead of 20-30 minimum amounts of labour remuneration), if it is a legal entity - from 1,000 to 2,000 minimum amounts of labour remuneration (instead of 100-200 minimum amounts of laboured remuneration).

According to the new wording, violation of the procedure of passing of installed control points by vessels committed by an official is punished with a fine of 150 to 200 minimum amounts of labour remuneration (not 40-50 minimum amounts of labour remuneration). For the cases when the mentioned violation is committed by a legal entity, the amount of the fine is increased from 400-500 minimum amounts of labour remuneration to 2,000-4,000 minimum amounts of labour remuneration.

If the failure to fulfil the legal demand of the official of the guards of the continental shelf of the Russian Federation or the guards of the exclusive economic zone of the Russian Federation to stop the vessel, as well as prevention of execution of the authority of this official, was punished with a fine of 100 to 150 minimum amounts of labour remuneration, the amendments increase this amount to 150-200 minimum amounts of labour remuneration.

Federal Law No. 177-FZ of November 3, 2006 on the Amendment to Article 346.2 of Part 2 of the Tax Code of the Russian Federation

Provides a new wording for Article 346.2 of the Tax Code defining the payers of the uniform agricultural tax. The main novelty of the Law is the right of transfer to this tax to individual types of agricultural consumer cooperatives (processing, sales, supplier, gardening, animal breeding ones) where the share of incomes from the sale of agricultural products of own production of the members of the given cooperatives and from fulfilled works (services) for the members of the given cooperatives makes at least 70% in the total volume of incomes.

The Law combines the given norm with the amendments introduced in Article 346.2 of the Tax Code of the Russian Federation in pursuance of the Federal Law No. 39-FZ of March 13, 2006. The amendments are as follows.

The payers of the uniform agricultural tax are recognised to be agricultural producers. In this connection, the text of the Article is changed to introduce the norm defining the general signs of the agricultural products for the purpose of this tax. The given products do not include fish and other aquatic biological resources, except for the fish and other aquatic biological resources of the city- and town-forming Russian fisheries. There is a special regulation of the terms of transfer to the uniform agricultural tax for the newly created organisations and newly registered independent entrepreneurs.

The list of taxpayers that may not switch over to the given tax includes in addition organisations and independent entrepreneurs engaged in entrepreneurial activities in the sphere of gambling, as well as the budget supported institutions.

The taxpayers transferred to the uniform imputed income tax for only one or several types of entrepreneurial activities may switch over to the uniform agricultural tax for other types of entrepreneurial activities carried out by them.

The Federal Law, except for individual norms, is entered into force from January, 2007, however, no sooner than one month after the day of its official publication.

The provisions pertaining to the general terms of transfer to the uniform agricultural tax (including the agricultural producers) are entered into force no sooner than one month after the day of the official publication of the Federal Law.

Decree of the President of the Russian Federation No. 1226 of November 3, 2006 on the Amendments to the Regulation on the Procedure of Processing of Issues of Citizenship of the Russian Federation Endorsed by the Decree of the President of the Russian Federation No. 1325 of November 14, 2002

According to the Federal Law No. 5-FZ of January 3, 2006, the most favourable conditions for obtaining the citizenship of the Russian Federation that were applied earlier to the former citizens of the USSR having moved to the Russian Federation from the former USSR constituent republics and registered at the place of residence in the Russian Federation as of July 1, 2002 or having obtained the permission for temporary stay in the Russian Federation shall apply also to the former citizens of the USSR having obtained the residence permit after July 1, 2002. Hence, the presence of the stamp of registration at the place of residence as of July 1, 2002 in the residence permit is not vital now for obtaining the Russian citizenship in pursuance of Part 4 of Article 14 of the Federal Law on the citizenship of the Russian Federation. Therefore, appropriate changes are introduced in the Regulation.

The amendments abandon the procedure of drawing up of the citizenship of the Russian Federation from birth with children up to 14 years of age, except for the cases when a child is left without parental support and there are no documents confirming the presence of the Russian citizenship with him. The presence of the Russian citizenship with such children may be certified with certificate of birth. In this connection, Item 45 of the Regulation containing the list of documents certifying the presence of the Russian citizenship is extended to include the birth certificate with information on the Russian citizenship of the parents, one of the parents or the single parent of the child. The mentioned list also includes the certificate of birth with a stamp confirming the presence of the citizenship of the Russian Federation entered by the authorised body in charge of the citizenship matters.

The birth certificate with the mentioned stamp may certify the Russian citizenship of the child without its drawing up procedure if one of the parents has Russian citizenship and the other is a foreigner or both of the parents or the single parent living on the territory of the Russian Federation are foreign citizens or stateless persons (on condition that the child is born on the territory of the Russian Federation and the foreign state whose citizens are the parents or the single parent does not grant its citizenship).

The stamp in the certificate of the birth of such children is entered proceeding from the oral declaration of the parents (parent) on the day when they apply.

The Decree is entered into force three months after the day of its official publication.

Order of the Ministry of Finance of the Russian Federation No. 115n of September 18, 2006 on the Amendments to the Normative Legal Acts on Accounting Work

In pursuance of the Order of the Ministry of Finance of Russia No. 116n of September 18, 2006, changes the classification of incomes and expenses of organisations. The incomes are subdivided into the incomes from ordinary types of activities and other incomes. Earlier, the classification envisaged three types of incomes: incomes from ordinary types of activities; operational incomes; non-sales incomes. The incomes earlier designated as "extraordinary" are included in other incomes. According to the new classification of expenses, operational expenses, non-sales expenses and extraordinary expenses are also united into the single type of expenses - other expenses.

Proceeding from the above new classification of incomes and expenses of organisations, appropriate changes are introduced in the accounting Regulation "Accounting Reports of the Organisation" (PBU 4/99) endorsed by the Order of the Ministry of Finance of Russia No. 43n of July 6, 1999, Regulation "Information by Segments" (PBU 12/2000) endorsed by the Order of the Ministry of Finance of Russia No. 11n of January 27, 2000, Regulation "Registration of Non-Material Assets" (PBU 14/2000) endorsed by the Order of the Ministry of Finance of Russia No. 91n of October 16, 2000, Regulation "Registration of the State Aid" (PBU 13/2000) endorsed by the Order of the Ministry of Finance of Russia No. 92n of October 16, 2000, Instruction on the application of the chart of accounts of financial and economic activities of organisations endorsed by the Order of the Ministry of Finance of Russia No. 94n of October 31, 2000, Regulation "Registration of Loans and Credits and Their Servicing Expenses" (PBU 15/01) endorsed by the Order of the Ministry of Finance of Russia No. 60n of August 2, 2001, as well as the Order of the Ministry of Finance of Russia No. 67n of July 22, 2003 on the forms of accounting reports of organisations.

The Order is entered into force beginning with the annual accounting reports for the year 2006. According to the Statement of the Ministry of Justice of the Russian Federation No. 01/9423-SV of October 27, 2006, the Order does not need the state registration.

Decision of the Higher Arbitration Court of the Russian Federation No. 8540/06 of October 11, 2006

The Higher Arbitration Court of the Russian Federation invalidated individual provisions of the Letter of the Federal Tax Service of Russia No. GV-6-05/912@ of January 30, 2006 explaining the procedure of calculation of penalties for the unpaid (underpaid) amounts of advance payments for the uniform social tax and insurance contributions for obligatory pension insurance.

Thus, the Direction of the Federal Tax Service of Russia stating that tax bodies must accrue penalties for the unpaid (underpaid) amounts of advance payments for the uniform social tax and insurance contributions from the 16th of the month following the month of the advance payment for each month of the tax period applies to only those taxpayers that did not pay the difference between the amount of the uniform social tax calculated from the taxable base accrued as a sum total from the beginning of the tax period to the end of the appropriate reporting period and the amount of the monthly advance payments transferred for the same period within the time limits specified for submission of the tax estimate. Besides, such procedure may be applied also to insurants that did not pay the difference between the amounts of advance payments transferred for the reporting (estimate) period and the amount of insurance contributions due for payment under the estimate (declaration) no later than within 15 days from the day s pecified for submission of the estimate (declaration) for the reporting (estimate) period.

Applying the mentioned procedure to taxpayers and insurants having paid the mentioned amounts within the time limits specified in the legislation is in contradiction of Paragraphs 3 and 5 of Item 3 of Article 243 of the Tax Code of the Russian Federation and Item 2 of Article 24 of the Federal Law on obligatory pension insurance in the Russian Federation and, therefore, may not be applied by tax bodies.

Ruling of the Constitutional Court of the Russian Federation No. 274-O of June 13, 2006 on the Appeals of Citizens M.G.Akhalbedashvili and K.V.Moldovanov Against Violation of Their Constitutional Rights by Subitem 10 of Item 1 of Article 333.19 of the Tax Code of the Russian Federation

The Constitutional Court of the Russian Federation has confirmed its position expressed in the Ruling No. 272-O of June 13, 2006 stating that the courts may exempt from the state duty the citizens whose benefits are not envisaged in the legislative acts. This time, the motive for the decision appeared to be the appeal of citizens serving the term in the form of imprisonment who pleaded to recognise as unconstitutional Subitem 10 of Item 1 of Article 333.19 of the Tax Code of the Russian Federation whereby they were refused copies of the judicial act, since the appropriate application did not have attached the documents of transfer of the state duty in the amount specified in the challenged provision and the applicants are not included in the categories of citizens exempted from the state duty by virtue of Article 333.36 of the Tax Code of the Russian Federation.

It is emphasised that the absence with the interested person of opportunities to execute the duty to pay the state duty because of his property status must not prevent implementation of his right for protection in court, since this would be in violation of the provisions of the Constitution of the Russian Federation guaranteeing such right. Taking this into account, the Tax Code of the Russian Federation defines the categories of citizens exempted from the state duty, as well as envisages that the courts of general jurisdiction or the justices of the peace, proceeding from the property status of the payer, may reduce the amount of the state duty or grant a respite (extension schedule) for its payment. Nevertheless, these measures may appear insufficient to provide access to justice for citizens, especially if this is the case with the convicts of the criminal execution system sentenced to imprisonment who are not employed and do not have money on the personal account. Therefore, Subitem 10 of Item 1 of Articl e 333.19 of the Tax Code of the Russian Federation interconnected with Item 2 of Article 333.20 of the Tax Code of the Russian Federation, as not permitting the court to take decisions on requests of natural persons to reduce (up to the zero amount) the state duty due at submission of the application for a repeated issue of copies of judicial acts, if another reduction of the amount of the state duty or granting a respite (extension schedule) for its payment do not provide for a free access to justice, looses its force and may not be applied by judicial bodies.

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 55 of October 12, 2006 on the Provisional Measures Applied by Arbitration Courts

The Plenum of the Higher Arbitration Court of the Russian Federation provides explanations pertaining to the procedure of application of provisional measures when solving the disputes in the sphere of economic activities. A principally important one appeared to be the Plenum's explanation pertaining to opportunities of application of preliminary provisional measures (providing for the proprietary interests of the applicant) by the court whose territorial location does not permit to use them most efficiently. In spite of the fact that according to Part 3 of Article 99 of the Code of Arbitration Procedures of the Russian Federation the application for the preliminary provisional measures is submitted to the arbitration court at the place of location of the applicant or the place of location of monetary resources or another property the applicant requests to secure or the place of violation of the rights of the applicant, the court may refuse to apply these measures if their application by another competent cour t according to the mentioned norm is more efficient (the property being the secured object is in the jurisdiction of another court; legal entity whose activities are being secured is registered in another subject of the Russian Federation etc.). Moreover, the court may refuse to satisfy the application requesting application of provisional measures submitted at the place of location of the applicant if the place of location of the debtor or his property or monetary resources is known and application of the measures by the court chosen on the basis of the given criteria will be more efficient.

Besides, according to Part 2 of Article 90 of the Code of Arbitration Procedures, provisional measures may be applied at any stage of the arbitration process, including the period of suspension of the case proceedings. However, during this period, the persons involved in the case, may appeal to request other procedural actions envisaged in Chapter 8 of the Code of Arbitration Procedures, including a revocation of provisional measures, replacement of one provisional measure with another, requesting countersecurity.

Arbitration courts should also keep in mind that provisional measures are a means of faster protection. Therefore, their application does not require the evidence in the volume necessary for substantiation of claims and arguments of the party in the dispute. It is obligatory for the applicant to present the proof of disputed or violated right, as well as its violation. When applying countersecurity, it is necessary to keep in mind that the countersecurity presented by the applicant in the absence of the reasons to apply provisional measures envisaged in Part 2 of Article 90 of the Code of Arbitration Procedures of the Russian Federation may not serve as an independent substantiation of application of such measures.

Decision of the Government of the Russian Federation No. 656 of November 4, 2006 on the Endorsement of the Rules of Determination of the Initial Cost of the State Contract When the State Defence Order is Placed Through Tenders, As Well As the Price of the State Contract If the State Defence Order is Placed with a Single Supplier (Executor, Contractor)

The rules are endorsed to implement the provisions of the Federal Law No. 19-FZ of February 2, 2006 bringing legislative acts of the Russian Federation in compliance with the Federal Law No. 94-FZ of July 21, 2005 on the placing of orders for supplies of commodities, carrying out works, rendering services for the state and municipal needs

Defines the procedure and criteria of forming by the state ordering party if the initial price of the state contract for placing the state defence order through tenders, as well as the price of the state contract if the state defence order is placed with a single supplier (executor, contractor).

The initial price of the state contract permits to established the amount of security of the request for participation in the contest and the amount of security of execution of the state contract granted to the state ordering party.

When forming the prices, the federal bodies of executive power must take account of the volumes of financing envisaged for them in appropriate types of expenses.

Decision of the Government of the Russian Federation No. 647 of November 4, 2006 on the Endorsement of the Regulation on the Licensing of Activities of Production of Prosthetic Appliances to Orders of Citizens

From July 2005, in the sphere of activities of rendering prosthetic aid, the licensing applies to only making of prosthetic appliances to orders of citizens. The repair and technical maintenance do not require licensing.

Prosthetic appliances include technical means of rehabilitation used to compensate for or eliminate stable life impairments: upper and lower extremities, mammary gland, orthopaedics including the upper and lower extremities, recliners, corsets, obturators, bandage, tutors and other orthopaedic correcting devices, orthopaedic shoes and correcting orthopaedic inserts (insoles).

The endorsed Regulation on the licensing of activities of making prosthetic appliances to orders of citizens specifies requirements to the applicants, the list of documents submitted by the applicant to get the license, procedure of checking the full and true information presented by the applicant, the list of major violations of the license requirements.

The applicant must have on the payroll persons with a higher or secondary professional education and the length of work in the occupation of at least 3 years as specialists in charge of production and quality of prosthetic appliances. There must also be specialists with a higher medical education.

The licensing of activities of production of prosthetic appliances is vested in the Federal Service of Enforcement in the Sphere of Public Health and Social Development. The license is issued to both legal entities and independent entrepreneurs for 5 years. The issue of the license is fee-paying.

The Regulation on the licensing of activities of rendering of prosthetic aid endorsed by the Decision of the Government of the Russian Federation No. 309 of May 13, 2002 is invalidated.

Decision of the Government of the Russian Federation No. 640 of November 4, 2006 on the Criteria to Qualify the Objects As Subject to the State Federal Control and the State Regional Control over the Use and Protection of Water Objects

In pursuance of Article 81 of the Water Code of the Russian Federation, endorses the criteria to qualify the objects as subject to the federal control and the regional control over the use and protection of water objects.

The criteria to qualify the objects as subject to the federal control over the use and protection of water objects include the use of: surface water objects located on the territories of two and more subjects of the Russian Federation; water objects or parts thereof located on the lands of defence and security, as well as the ones used to ensure defence and security of the state and for supplies of the federal power-supply systems, federal transport and other state needs; internal sea waters; territorial sea of the Russian Federation; specially protected water objects or the water objects being specially protected nature territories of federal significance or a part of these territories; water objects or parts thereof being the objects declared as fishing reserve zones; water objects serving as an environment for the anadromous and catadromous fishes; trans-border (borderline) water objects; water objects or parts thereof for the needs of the cities with population numbering one hundred thousand persons and m ore, as well as for the needs of enterprises and other organisations consuming water or disposing waste water in the volumes greater than 15 million cubic meters a year.

The criteria to qualify the objects as subject to the regional control is the use of water objects fully located within the boundaries of the appropriate subject of the Russian Federation and not included in the objects subject to the federal control.

The list of the objects subject to the state federal control will be endorsed within one month by the Ministry of Natural Resources of Russia.

Order of the Ministry of Economic Development of the Russian Federation, Ministry of Finance of the Russian Federation and the Federal Service of State Statistics No. 306/120n/139 of October 2, 2006 on the Reassessment of Fixed Assets and Non-Material Assets of Budget-Supported Institutions

Budget-supported institutions are ordered to carry out a reassessment of fixed assets and non-material assets as of January 1, 2007.

To carry out the reassessment, appropriate changes are introduced in the procedure of reassessment of fixed assets and non-material assets of budget-supported institutions endorsed by the joint Order of the Ministry of Economic Development of Russia, Ministry of Finance of Russia, Ministry of State Property Management of Russia and the State Statistics Committee of Russia No. 25/6n/14/7 of January 25, 2003.

According to the amendments, the objects of unfinished construction are not included in the reassessment.

In reassessment of accrued amortisation for the fixed assets and non-material assets, the coefficients apply that were worked out by the Federal Service of State Statistics of Russia on the basis of producer price indices for the fund-creating commodities and producer price indices in construction (construction and installation works) published in Rossiyskaya Gazeta before November 1, 2006.

The procedure, respectively, does not include the provisions envisaging a stepwise reassessment of fixed assets using the prices of various years.

Since from January 1, 2006 budget-supported institutions in accounting work use the accounting Instruction endorsed by the Order of the Ministry of Finance of Russia No. 25n of February 10, 2006, appropriate changes are introduced in the provisions regulating the procedure of recording of the results of reassessment in the accounting work.

There are also changes stipulated by the reorganisation of the structure of the federal bodies of executive power in compliance with the Decree of the President of the Russian Federation No. 649 of May 20, 2004.

Decision on subsequent reassessment shall be taken by the Ministry of Economic Development of Russia, Ministry of Finance of Russia and the Federal Service of State Statistics in coordination with the Federal Agency for Federal Property Management no later than November 1 of the year preceding the reassessment.

Registered in the Ministry of Justice of the Russian Federation on November 3, 2006. Reg. No. 8433.

Order of the Federal Customs Service No. 916 of September 21, 2006 on the Procedure for Providing Software of the Joint State Automatic Information System of Registration of the Volume of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products to Organisations Importing Ethyl Alcohol, Alcoholic and Alcohol-Containing Products and Its Installation in the Technical Means of Registration and Transfer of Information on the Volume of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products to the Joint State Automatic Information System of Registration of the Volume of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

Specifies the grounds, procedure and time limits of installation and removing of the software for registration and transfer of information to the Joint Information System of Registration of the Volume of Production and Circulation of Alcoholic Products for importer organisations.

The software shall be provided by the customs bodies. The installation is made to the application of the organisation within the time limits not greater than 9 days, which includes installation in the technical means of all components of the software and the means of protection of information.

The organisation having submitted the request for the installation is registered by the tax body in the database of the Joint Information System while generating the registration file and the electronic key of protection of information to be handed out to the representative of the organisation against his signature. Installation of the key and loading of the file of registration is made by the representative of the organisation having developed the software.

The checking of opportunities of use of the installed software is made jointly by representatives of the customs body, territorial tax body, developer organisation and the organisation, which is followed by the drawing up of the act and the technical means are sealed.

The software must be removed if the organisation fails to use the technical means with installed software for 6 months in a row. The grounds for the removal is the absence in the customs body for 6 months in a row of information that must be received from the organisation and registered in the Joint Information System.

Registered in the Ministry of Justice of the Russian Federation on November 1, 2006. Reg. No. 8432.

Decision of the Government of the Russian Federation No. 657 of November 8, 2006 on the Invalidation of the Decision of the Government of the Russian Federation No. 623 of October 17, 2005

From January 1, 2007, invalidates the Decision of the Government of the Russian Federation No. 623 of October 17, 2005 having endorsed the rules of preliminary registration of the account (deposit) opened in the bank outside the territory of the Russian Federation.

This is because the provisions of Article 18 of the Federal Law No. 173-FZ of December 10, 2003 on the currency regulation and currency control envisaging obligatory preliminary registration of such account are entered into force from January 1, 2007 in the framework of liberalisation of the currency legislation.

Decision of the Government of the Russian Federation No. 654 of November 4, 2006 on the Activities of the Bodies and Organisations of Foreign States in Adoption of Children on the Territory of the Russian Federation and Control of It

Specifies the procedure of issue of permissions for the opening of representations of foreign state organisations and permissions for activities of representations of foreign non-commercial organisations in adoption of children on the territory of the Russian Federation, as well as defines the terms of their activities and control procedures.

Adoption activities of a foreign state organisation may be carried out on the basis of the permission to open a representation issued by the Ministry of Education and Science. The foreign non-commercial organisation must also inform the Federal Registration Service of Russia of the creation of the representation. The permission is issued to the representation of the foreign non-commercial engaged in adoption activities on the territory of its own state for at least 5 years.

To get the permission, the foreign state organisation submits application with copies of constituent documents, information on employees, copy of the license, list of services, obligation to observe the requirements of the legislation of the Russian Federation and control the living conditions and upbringing of adopted children.

The representation of the foreign non-commercial organisation submits in addition the letter of recommendations of the body having issued the license, information on the head of the representation, excerpt from the Register of Branches and Representations of International Organisations and Foreign Non-Commercial Organisations.

Decision to issue the permission is taken by the Ministry of Education and Science within 3 months in the presence of the statements of the Ministry of Foreign Affairs, Ministry of Internal Affairs, Ministry of Justice of Russia, Federal Service of Enforcement in the Sphere of Public Health and Social Development of Russia.

The Decision specifies the grounds of refusal to issue the permission that include submission of incorrect information, negative statements of the federal bodies, unfavourable situation, military actions in the state of location of the foreign organisation hampering the measures of protection of citizens of the Russian Federation on the part of the Russian Federation.

The Ministry of Education and Science may suspend the permissions, in particular, in cases of a single violation by the foreign organisation or its representation of the legislation of the Russian Federation or its obligations to control the living conditions and upbringing of adopted children, as well as in the presence of information of major violation of the legislation received from competent bodies of the foreign state, as well as the bodies of local government.

Inspection of the living conditions and upbringing of the child during the first three years after adoption is carried out four times. Further on until coming of age, the investigation is carried out at the decision of the body of executive power of the subject of the Russian Federation depending on the particular situation in the adoptive family.

Foreign non-commercial non-governmental organisations carrying out adoption activities on the territory of the Russian Federation, accredited and having submitted notifications of the opening of representations according to established procedure may carry out their activities without the mentioned permission before expiry of the accreditation.

Decision of the Government of the Russian Federation No. 648 of November 4, 2006 on the Endorsement of the Regulations on the Licensing of Activities in the Sphere of Circulation of Narcotic Drugs and Psychotropic Substances

Defines the procedure of licensing of activities pertaining to circulation of narcotic drugs and psychotropic substances included in Lists II and III in compliance with the Federal Law on narcotic drugs and psychotropic substances carried out by legal entities. The licensing is vested in the Federal Service of Enforcement in the Sphere of Public Health and Social Development. The license is granted for 5 years.

The Decision lists the types of activities subject to licensing, defines the licensing terms and requirements. Provides the list of documents to be submitted to the Federal Service of Enforcement in the Sphere of Public Health and Social Development to get the license.

Information pertaining to activities in the sphere of circulation of narcotic drugs and psychotropic substances is placed in the official electronic and printed mass media of the licensing body, as well as on information stands in the rooms of the licensing body.

Decision of the Government of the Russian Federation No. 644 of November 4, 2006 on the Procedure of Submission of Information on Activities in the Sphere of Circulation of Narcotic Drugs and Psychotropic Substances and Registration of Operations in the Sphere of Circulation of Narcotic Drugs, Psychotropic Substances and Their Precursors

Endorses the rules specifying in pursuance of Article 37 of the Federal Law on narcotic drugs and psychotropic substances the procedure and time limits of submission of reports of activities in the sphere of narcotic drugs and psychotropic substances included in the list of narcotic drugs, psychotropic substances and their precursors subject to control in the Russian Federation endorsed by the Decision of the Government of the Russian Federation No. 681 of June 30, 1998 and information on their reserves as of December 31 of the reported year; reports of activities in the sphere of circulation of substances under international control in compliance with the Convention on psychotropic substances of 1971 not included in the mentioned list and information on their reserves as of December 31 of the reported year; as well as information on the yearly demand in the Russian Federation for narcotic substances, psychotropic substances and those under international control not included in the List.

The Decision specifies the forms of reports and indicates information on the authorised federal bodies of executive power (their territorial bodies) where to submit the reports drawn up to the given forms.

The Decision also endorses the rules specifying the procedure of keeping and storage of the special ledgers of operations in the sphere of circulation of narcotic drugs, psychotropic substances and their precursors included in the list of narcotic drugs, psychotropic substances and their precursors subject to control in the Russian Federation. The given rules do not apply to the keeping and storage of special ledgers in cases when the use of narcotic drugs and psychotropic substances is permitted without the license (in expert and operative investigation work).

Registration of operations is arranged for each name of the narcotic drug, psychotropic substance and their precursors on a separate sheet of the ledger or in a separate ledger. Any operations changing the quantity and condition of narcotic drugs, psychotropic substances and their precursors must be entered in the ledger.

The duty to keep the mentioned ledgers rests with the legal entities carrying out respective types of activities, as well as their divisions.

The Decision provides the form of the ledger of operations in the sphere of circulation of narcotic drugs and psychotropic substances and the ledger of operations pertaining to circulation of precursors of narcotic drugs and psychotropic substances.

Invalidates the Decision of the Government of the Russian Federation No. 577 of July 28, 2000 having regulated the procedure of submission of the mentioned information.

Decision of the Government of the Russian Federation No. 642 of November 4, 2006 on the List of Commodities, Works, Services for the State and Municipal Needs Where the Orders Are Placed with Small Businesses and on Their Limiting (Lot) Prices

According to the actual legislation, the state ordering parties, when they place orders for supplies of commodities, carrying out works, rendering serves for the state needs (except for the needs of the country's defence and security), must place them in small businesses in the amount of at least 15% of the total volume of supplies of commodities, carrying out works, rendering services.

The Government of the Russian Federation has defined the list of commodities, works, services for the state and municipal needs where the orders are placed with small businesses. The list includes products of plant growing, animal breeding, fish farming and forestry, textiles, foodstuffs and cosmetics, household chemistry, computers, furniture, transportation, hotel, tourist, advertising services, service of house cleaning, hiring personnel and other.

The placing of orders with small businesses without restriction of volumes of supplies for the mentioned list of commodities (works, services) is also permitted to municipal ordering parties and the state ordering parties when supplying commodities, carrying out works, rendering services for the needs of the country's defence and security.

The placing of orders with small businesses is arranged through tenders. The Decision defines the limiting lot prices for commodities, works, services where the orders are placed with small businesses. Thus, for commodities and works, the limiting price makes Rbl 3 million, for services - Rbl 2 million.

Decision of the Government of the Russian Federation No. 641 of November 4, 2006 on the Endorsement of the Regulation on the Register of Organisations Entitled to Carry out Foreign Trade Activities for Products of Military Destination

Endorses a new Regulation on the register of organisations having obtained the right for foreign trade activities pertaining to products of military destination.

According to the new Regulation, the keeping of the register is vested in the Federal Service of Military and Technical Cooperation having been reorganised from the Committee of the Russian Federation for Military and Technical Cooperation with Foreign States.

The Decision extends the list of organisations included in the register. Apart from the Russian organisations having obtained in pursuance of the act of the President of the Russian Federation the right for foreign trade activities for products of military destination or in pursuance of the act of the Federal Service for Military and Technical Cooperation adopted with the authority of the President of the Russian Federation the right for foreign trade activities for products of military destination pertaining to supplies of spare parts, units, instruments, component parts, special, teaching and auxiliary property, works of technical maintenance and repair of these products of military destination, the register includes also Russian organisations having obtained the right to carry out works of certification, benchmark works, extending service life, unitisation and other works providing for complex servicing of the earlier supplied products of military destination, training of foreign specialists to carry out s uch works.

The Decision endorses the new forms of the register, changes in the register, as well as the certificate for the right of foreign trade activities pertaining to products of military destination.

The previous Regulation on the register of organisations of the Russian Federation entitled to carry out foreign trade activities pertaining to products of military destination endorsed by the Decision of the Government of the Russian Federation No. 244 of February 21, 1998 is invalidated.

Federal Law No. 190-FZ of November 9, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of Romania on the Status of Russian Military Burials on the Territory of Romania and Romanian Military Burials on the Territory of the Russian Federation

Ratifies the Agreement between the Government of the Russian Federation and the Government of Romania on the status of Russian military burials on the territory of Romania and Romanian military burials on the territory of the Russian Federation.

The Agreement was signed on November 8, 2005 in Bucharest to create a legal basis to ensure a proper care of the Russian military burials on the territory of Romania. The Agreement defines the procedure of granting (free of charge for permanent (unlimited) use) of land plots for the Russian and Romanian military burials, exhumation and re-burying of remnants, providing for protection and preservation of the burials. The notion of "military burials" includes in the Agreement also the monuments and other memorial structures including those located out of places of entombment of the deceased.

Implementation of the Agreement will require allocation of resources on the annual basis for the works of maintenance and care for the Romanian military burials on the territory of the Russian Federation. Similar obligations pertaining to Russian military burials on its territory are assumed by the Romanian side.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-294 of October 26, 2006

Taxpayers possessing land plots on the proprietary basis, granted for permanent (unlimited) use or as life-time inherited possession must pay the land tax to the budget of the municipal formation at the place of location of the land plots. The tax declarations for the land tax (estimates of advance payments) must be submitted to the tax body at the place of location of the land plots while indicating the OKATO code of the municipal formation at the place of location of these land plots.

The taxable base in the calculation of the land tax for the land plots located on the territories of several municipal formations (linear objects) must be determined for the area of the land plot located on the territory of the appropriate municipal formation as a share of the cadastral cost of the land plot in proportion to the share of the area occupied by the land plot on the territory of the appropriate municipal formation. If the taxpayer cannot determine independently the size of the land plot (under the linear object) on the territory of the municipal formation, it is recommended to apply to the bodies of the Federal Agency of Cadastre of Objects of Immovable Property.

If the object of immovable property subject to taxation is actually located on the territories of different subjects of the Russian Federation or on the territory of the subject of the Russian Federation and in the territorial sea of the Russian Federation, the taxable base for the mentioned object of immovable property is determined separately and is accepted in the tax calculation in the appropriate subject of the Russian Federation in proportion to the balance cost of the object of immovable property on the territory of the appropriate subject of the Russian Federation. The organisation running on its balance the immovable property actually located on the territories of different subjects of the Russian Federation shall determine independently the share of the cost of property falling on the appropriate subject of the Russian Federation as of the reporting date. The share of the cost of property actually located on the territories of the appropriate subjects of the Russian Federation is calculated proceedi ng from the physical or cost figures of the given object.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/224 of October 23, 2006

The debt of the organisation subject to the bankruptcy proceedings and included in the creditor claims register may not be recognised as desperate for the profit tax purposes because of expiry of the period of limitation and is not registered in expenses when generating the taxable base for the profit tax before the end of the bankruptcy proceedings.

For taxation purposes, the bank as a bankruptcy creditor may abstain from accruing interest for the granted credits from the date of opening of bankruptcy proceedings for the borrowers recognised bankrupt until the decision is taken in the bankruptcy proceedings or the date of the actual liquidation of the debtor.

Decision of the Government of the Russian Federation No. 661 of November 11, 2006 on the Transfer of Days-Off in 2007

In 2007, the day-off instead of Saturday, April 28 is shifted to Monday, April 30, instead of Saturday, June 9 - to Monday, June 11 and instead of Saturday, December 29 - to Monday, December 31.

As a result, the length of the working week in the mentioned cases is extended to 6 days.

Decision of the Government of the Russian Federation No. 665 of November 11, 2006 on the Endorsement of the Quota for the Year 2007 of Invitations to Foreign Citizens to Enter the Russian Federation for Employment

The quota of invitations to foreign citizens for the entry to the Russian Federation for employment in 2007 will make 308,842. In 2006, the mentioned quota amounted to 329, 300.

The quota for the issue of invitations to foreign citizens for entry in the Russian Federation for employment is endorsed on the annual basis by the Government of the Russian Federation against proposals of the executive bodies of state power of the subjects of the Russian Federation taking into account the demographic situation in the appropriate subject of the Russian Federation and opportunities of the given subject to accept foreign citizens. The quota does not apply to foreign citizens from the CIS member-states (except for Georgia and Turkmenistan) that enjoy visa-free entry procedure on the basis of international treaties with the Russian Federation.

Order of the Federal Security Service of the Russian Federation No. 452 of September 28, 2006 on the Endorsement of the Rules of the Borderline Regime

The rules of the borderline regime has been worked out for the purpose of implementation of Article 16 of the Law of the Russian Federation on the state border of the Russian Federation and specify the particular content, spatial and time limits of application of the rules of the borderline regime and the circle of persons affected by them.

The rules define the categories of persons entering (passing through) the borderline zone with personal identification documents, as well as using personal or collective passes issued by the borderguard departments of the Federal Security Service of Russia in the subjects of the Russian Federation in the presence of the personal identification documents. The Order also defines the list of documents (apart from the listed above) when entering (passing through) the borderline zone.

The Order describes the list of the grounds permitting to refuse the passes to the citizens or organisations having submitted the application or request, or to shift the entry to the borderline zone to a later period of time.

The places of entry (trespassing) are specified on the communication routes where the persons and transport vehicles are transferred to the borderline zone and are marked with warning signs.

The Order defines the procedure of travel of people and transport vehicles on the territory of the borderline zone. Thus, in cases of transit shipment through the borderline zone, there is a prohibition to stop (except for the emergency stop), embark (disembark) people, unload cargo, commodities, animals and embark them on the transport vehicle.

The stay of citizens in the borderline zone is permitted for up to 6 months and may be prolonged for up to 6 months in cases of serious diseases of citizens (relatives), as well as in other cases not permitting to leave the borderline zone in proper time.

The Order also regulates the procedure of economic and other activities, carrying out public, cultural and other measures in the borderline zone; rules of registration and maintenance of Russian small vessels and non-self-propelled (surface and underwater) vessels and means of travel over the ice, their navigation and moving over the ice; rules of fishing, research and other activities in the Russian part of the waters of the borderline rivers, lakes and other water bodies, in the internal sea waters and in the territorial sea of the Russian Federation.

The Order provides mail addresses and telephone numbers of the bodies of management of the borderguard departments of the Federal Security Service of Russia in the subjects of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on November 10, 2006. Reg. No. 8463.

Order of the Ministry of Regional Development of the Russian Federation No. 120 of October 19, 2006 on the Endorsement of the Instruction on the Procedure of Filling of the Form of the Permission for Construction

According to Article 51 of the City-Planning Code of the Russian Federation, the document confirming compliance of the design documentation with the requirements of the development plan of the land plot permitting the construction party to carry out construction, reconstruction of objects of capital construction, as well as their capital repair, is the permission for construction.

The endorsed Instruction regulates the procedure of filling of the permission for construction, the form being endorsed by the Decision of the Government of the Russian Federation No. 698 of November 24, 2005.

It is envisaged that design characteristics of the object of capital construction must include the following information: total area of the object of capital construction; area of the land plot; number of storeys and/or the height of the building, structure; construction volume including the underground part; number of locations, capacity, power rating, production efficiency; number of stages of the object of capital construction. In construction, reconstruction, capital repair of objects of capital construction financed from appropriate budgets, it is necessary to indicate also the estimate cost of the object of capital construction and the specific cost per 1 square meter of the area.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2006. Reg. No. 8451.

Order of the Federal Customs Service No. 937 of September 28, 2006 on the Customs Bodies Authorised to Accept Customs Declarations

Specifies the particulars of acceptance of the customs declarations by individual customs bodies, including the ones depending on the sphere of activities of the customs body, customs regime, goals of moving of commodities and the categories of persons moving the commodities and submitting the declaration.

Defines the list of the customs bodies that may not accept customs decorations, as well as the list of the customs bodies authorised to accept customs declarations for only commodities moved by natural persons and other strictly defined commodities.

Customs declarations for commodities declared for placing under the customs regime of free customs zone (free warehouse), as well as commodities exported form the territory of the special economic zone (free warehouses) and/or declared for placing under other customs regimes are accepted by only the customs bodies on the territory of the special economic zone or the customs bodies covering the region where the special economic zone (free warehouse) is located.

Other customs bodies have the common authority to accept customs declarations.

The Order does not apply to commodities undergoing customs registration using ATA carnets.

The given Order invalidates the Order of the Federal Customs Service of Russia No. 360 of April 19, 2006 having defined earlier the authority of the customs bodies pertaining to acceptance of customs declarations.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2006. Reg. No. 8449.

Order of the Federal Customs Service No. 948 of September 28, 2006 on the Authority of the Customs Bodies to Carry out Customs Operations for Excisable and Other Commodities of Certain Type

The customs posts of the Central Excise-Duty Customs Office and the North-Western Excise-Duty Customs Office (except for the Specialised Customs Post of the Central Excise-Duty Customs Office and the Central Excise-Duty (Specialised) Customs Post of the North-Western Excise-Duty Customs Office) are specialised customs bodies whose sphere of reference is restricted exclusively to customs operations for excisable commodities, as well as commodities used in production and sale of excisable commodities or imported in the same commodity consignment with excisable commodities.

The Order defines the list of the customs bodies providing excise-duty stamps to importers. Specifies the customs bodies that have the authority to carry out customs operations for excisable commodities imported to the customs territory of the Russian Federation and subject to licensing and/or that must be labelled with excise-duty stamps, as well as the wine materials, cognac alcohols and beer (including the alcohol-free one). Also defines the list of the customs bodies entitled to carry out customs operations for commodities imported to the customs territory of the Russian Federation that must get certificates of transport vehicles according to established procedure.

Specifies the customs bodies entitled to carry out customs operations for expensive cars imported to the customs territory of the Russian Federation and classified in Heading 8703 of the Foreign Trade Commodity Nomenclature of Russia not older than 3 years from production (ASTON-MARTIN, BENTLEY, BUGATTI, FERRARI, HUMMER and some other).

Defines the customs bodies than may not carry out customs operations for lubricants (Heading 3403 and Subheadings 2710 19 710 0-2710 99 000 0 of the Foreign Trade Commodity Nomenclature of Russia) except for the materials necessary for normal operation and technical maintenance of the air, sea (river) vessels, materials other than those being the main object of the foreign trade transaction and included in the set of spare parts or in the equipment and moved for the purpose of putting in operation, repair or maintenance works and non-excisable commodities declared through the electronic system of declaring.

The specified distribution of authority does not apply to the placing of commodities under the customs regimes of free trade, moving of reserves, international customs transit, destruction, moving of commodities intended for prevention and elimination of natural disasters and other emergency situations, for commodities moved by natural persons for personal, family, household and other needs other than entrepreneurial activities, exhibition prototypes and prototypes for certification testing, as well as commodities moved in international mail dispatches.

The Order of the Federal Customs Service of Russia No. 1005 of October 28, 2005 having specified the authority of the customs bodies to carry out customs operations for excisable and other commodities of certain type is invalidated.

The Order is entered into force from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2006. Reg. No. 8455.

Order of the Federal Customs Service No. 1006 of October 16, 2006 on the Rates to Calculate the Amount of Security for Importer Obligations

Specifies the new rates for calculation of the amount of security for importer obligations pertaining to tobacco and tobacco items. The new rates in contrast to the previous ones are fixed in roubles rather than euros. The rates for cigars are fixed on the piece basis rather than per 1,000 pieces as was specified earlier.

According to the actual customs legislation of the Russian Federation, excise duty stamps are handed out by the customs body on condition that the importer secures obligations to import the labelled commodities to the Russian Federation for sale on the territory of the Russian Federation, place the imported labelled commodities in authorised places of delivery and storage, return the damaged and/or unused excise duty stamps to the customs body having issued them and present a report of the use of excise duty stamps. The amount of security is defined by the customs bodies of the Russian Federation proceeding from the amount of customs payments paid out for the excisable commodities released for free circulation.

The Order of the State Customs Committee of Russia No. 402 of April 27, 2001 having specified the rates for calculation of the amounts of security for importer obligations pertaining to tobacco items, wines, liqueurs and alcoholic drinks is invalidated.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2006. Reg. No. 8447.

Order of the Federal Service for Financial Markets No. 06-74/pz-n of July 11, 2006 on the Endorsement of the Regulation on the Procedure of Keeping of the Register of Holders of Registered Securities and Carrying out of Depositary Activities in Cases of Purchase of More Than 30% of Stocks of the Open-Type Joint-Stock Company

According to the actual legislation, the joint-stock company from the moment of its state registration must keep a register of stockholders. Activities of the keeping of the register, apart from the keeping of the personal accounts of the registered persons and registration of securities on the emission and personal accounts of the issuer, shall include also operations of registration of the transfer of the proprietary right for the securities, including the cases of purchase of more than 30% of stocks of the joint-stock company.

The endorsed Regulation specifies the procedure of keeping of the register of holders of registered securities in cases of purchase of more than 30% of stocks of the open-type joint-stock company and requirements to the activities of professional participants of the securities market keeping the register of holders of securities (recorders), as well as carrying out depositary activities in the mentioned case.

In cases of purchase of more than 30% of stocks of the open-type joint-stock company, the keeper of the register must prepare the list of holders of securities pertaining to the voluntary (obligatory) proposal received by the issuer, notification of the right to demand redemption of securities or the demand to buy out securities, enter in the register a record of blocking of all operations on the personal account until the moment of payment for the redeemed securities, as well as a record of the transfer of the proprietary right for securities.

The Regulation specifies the time limits and procedure for the register keeper to fulfil the mentioned actions. Defines the procedure of entry of records in the custody accounts in cases of purchase of more than 30% of stocks of the open-type joint-stock company.

The specified requirements shall apply also to the issuers of securities keeping their register independently.

Registered in the Ministry of Justice of the Russian Federation on November 13, 2006. Reg. No. 8467.

Order of the Federal Service of Ecological, Technological and Nuclear Enforcement No. 675 of July 10, 2006 on the Endorsement of the Instruction on the Organisation of Issue of Permissions for Disposal of Pollutants into the Environment (Water Objects)

Endorses the Instruction specifying the procedure and terms of issue (refusal to issue), suspension and renewal of permissions for disposal of pollutants in waste and/or drainage waters into the water objects to legal entities (their territorial separate divisions) and independent entrepreneurs disposing pollutants into the water objects.

Permissions for disposal are issued by the territorial bodies of the Federal Service of Ecological, Technological and Nuclear Enforcement at the place of location of the outlets of waste and/or drainage water into the appropriate water objects.

Permissions for disposal specify the quantity of pollutants permitted for disposal into the water objects separately for each outlet of waster and/or drainage waters: within the endorsed normatives or within the endorsed limits.

To take the decision to issue the permission, the territorial bodies of the Federal Service of Ecological, Technological and Nuclear Enforcement examine also the plans of reduction of pollutants presented by the applicants, coordinated by appropriate bodies of executive power and providing for a stepwise achieving of the normative values.

The Order specifies the list of documents submitted to get the permission and the procedure of their processing. Defines the reasons of suspension of the permission and its renewal.

The list and quantity of pollutants disposed in the water objects as waste and drainage waters are indicated in the permissions for disposal separately for each outlet.

In the presence of endorsed normatives, the permission for disposal is issued for the period of validity of the mentioned normatives. In the presence of specified limits for disposal, the period of the permission for disposal makes one year from the date of issue of the permission.

The Order provides the form of the permission.

Registered in the Ministry of Justice of the Russian Federation on November 10, 2006. Reg. No. 8461.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 703 of October 13, 2006 on the Amendment to the Order of the Ministry of Public Health and Social Development of the Russian Federation No. 785 of December 14, 2005

Coaxil (tianeptine) and Zaldiar (tramadol hydrochloride 37.5 mg + paracetamol 325 mg) are included in the list of medicines subject to registration in the apothecary institutions (organisations), organisation of wholesale trade of medicines, treatment and preventive institution and with private practicing physicians. The mentioned list is endorsed by the Order of the Ministry of Public Health and Social Development of the Russian Federation No. 785 of December 14, 2005.

Registered in the Ministry of Justice of the Russian Federation on November 7, 2006. Reg. No. 8445.

Federal Law No. 191-FZ of November 10, 2006 on the Amendments to Article 35 of the Law of the Russian Federation on the Customs Tariff and Article 150 of Part 2 of the Tax Code of the Russian Federation

According to the amendments, commodities (except for excisable ones) moved across the customs border of the Russian Federation in the framework of international cooperation of Russia in the sphere of investigation and use of the outer space, as well as agreements on the services of launching of outer space vehicles, are fully exempted from the customs duties and the value added tax.

The amendments permit to provide for a most favoured regime where it pertains to the customs and tax exemptions for the import to the Russian Federation of commodities of outer space destination from the countries where appropriate international agreements are concluded.

The Federal Law is entered into force one month after the day of its official publication, however, no sooner than the next tax period for the value added tax.

Decision of the Government of the Russian Federation No. 667 of November 11, 2006 on the Amount of Payment Collected for the Granted Copies of Documents Containing Information Included in the State Water Register and Procedure of Its Collection

According to the new Water Code of the Russian Federation entering into force from January 1, 2007, the State Water Register is created for providing information support of the complex use of water objects, use of water objects for designated purposes, their protection. The Register is a systematised summary of documented information on the water objects available in the federal property, property of the subjects of the Russian Federation, municipal formations, natural persons and legal entities, their use, river basins, basin districts.

Information of the State Water Register is of open nature. Copies of documents containing information included in the State Water Register are provided at cost. The amount of payment for legal entities and natural persons makes Rbl 50 for a page of A4 format.

Copies of documents are provided to the application of the person submitted to the Federal Agency of Water Resources or its territorial body. The payment is transferred through the bank or another credit organisation and is entered as incomes in the federal budget. The document confirming the transfer of payment (copy of the payment order, slip) is presented by the interested party to the Federal Agency of Water Resources or its territorial body where the application is received.

The Decision is entered into force from January 1, 2007.

Order of the Ministry of the Industry and Power Supplies, Federal Agency for Nuclear Power and the Federal Outer Space Agency No. 265/508/124 of October 26, 2006 on the Endorsement of the Procedure of Issue of the Document Confirming the Length of Production Cycle for Commodities (Works, Services)

To confirm the moment of determination of the taxable base for the value added tax in compliance with Item 13 of Article 167 of the Tax Code of the Russian Federation by taxpayers producing commodities (works, services) where the length of production cycle is greater than 6 months, endorses the procedure of issue of the document confirming the length of production cycle for the commodities (works, services).

The given document is issued by the Ministry of the Industry and Power Supplies of Russia within two weeks from the day of the appeal.

The Order specifies the list of documents submitted to the Ministry to get the document of confirmation, among which is the statement of the federal body of executive power (including the Federal Agency for Nuclear Power, Federal Outer Space Agency, Federal Agency of the Industry and other) on the length of the production cycle for the appropriate types of commodities (works, services) indicating their name, OKP (OKVED) code, time of production, name of producer organisation.

The checking of completeness and compliance of the documents with the requirements of the above provision of the Tax Code of the Russian Federation and the preparation of draft statements on the length of production cycle is vested in the Department of the Defence and Industrial Complex of the Ministry of the Industry and Power Supplies of Russia.

The document of confirmation is issued according to the lists of commodities (works, services) endorsed by the Decision of the Government of the Russian Federation No. 468 of July 28, 2006.

Registered in the Ministry of Justice of the Russian Federation on November 14, 2006. Reg. No. 8470.

Decision of the Government of the Russian Federation No. 682 of November 15, 2006 on the Endorsement of the Quota for the Issue of Permissions in 2007 for Employment to Foreign Citizens Arriving to the Russian Federation According to the Procedure That Does Not Require Obtaining the Visa

To provide for the optimum balance of labour resources, assist priority employment of citizens of the Russian Federation, the Government of the Russian Federation may introduce quotas for the issue of permissions for employment to foreign citizens arriving to the Russian Federation according to the procedure that does not require obtaining the visa. The visa-free procedure of entry in the Russian Federation is available for the citizens of the CIS member-states (except for Georgia and Turkmenistan). The amount of the quota is determined depending on the demand for the foreign workforce taking into account the political, economic, social and demographic situation.

For the year 2007, the Government of the Russian Federation specified the quota in the amount of 6 million permissions for employment to foreign citizens arriving to the Russian Federation according to the visa-free procedure. The given quota does not apply to the foreign citizens out of skilled specialists employed in their occupations according to the list of the most required professions in the Russian Federation (occupations, positions).

The Decision is entered into force from January 15, 2007.

Decision of the Government of the Russian Federation No. 683 of November 15, 2006 on the Fixing of the Permissible Share of Foreign Workers in 2007 Used by Economic Subjects Engaged in the Sphere of Retail Trade on the Territory of the Russian Federation

Introduces a permissible share of foreign workers for the year 2007 used by economic subjects engaged in the types of activities in the sphere of retail trade on the territory of the Russian Federation envisaged in the All-Russia Classifier of the Types of Economic Activities.

The mentioned shares will make in sphere of retail trade: alcoholic drinks including beer (code 52.25.1) - 0% of the total number of employees; pharmacy - (code 52.31) - 0% of the total number; in pavilions and marketplaces (code 52.62), as well as other retail trade outside the rooms of the shops (code 52.63) - in the amount of 40% of the total number for the period from January 15 to April 1, 2007 and 0% for the period from April 1 to December 31, 2007.

Economic subjects engaged in retail trade are ordered to bring the number of used foreign workers in compliance with the permissible shares.

Suggestions on the determination of the permissible share of foreign workers in various sectors of the economy for the next year shall be submitted to the Government of the Russian Federation on the annual basis until November 15 by the Ministry of Public Health and Social Development of Russia.

The Decision is entered into force from January 1, 2007.

Decision of the Government of the Russian Federation No. 681 of November 15, 2006 on the Procedure to Issue Permissions for Temporary Employment to Foreign Citizens in the Russian Federation

To provide for implementation of provisions of the Federal Law No. 110-FZ of July 18, 2006 simplifying the mechanism of employment for foreign citizens, as well as the stateless persons, on the territory of the Russian Federation and create conditions to bring illegal migrants out of the shadow sector, endorses the rules of issue of permissions for temporary employment to foreign citizens in the Russian Federation.

The rules regulate the procedure of issue, suspension and revocation of the following documents: permission to attract and use foreign workers confirming the appropriate right of the employer; employment permissions for foreign citizens and stateless persons arriving to the Russian Federation according to the procedure that requires obtaining a visa; employment permissions for foreign citizens and stateless persons arriving to the Russian Federation according to the visa-free procedure.

The permission to attract and use foreign workers is issued by the Federal Migration Service of Russia or its territorial bodies in the presence of the statement of the body of executive power of the subject of the Russian Federation in charge of the issues of employment of population in the appropriate region.

Employment permissions are issued by the body of the migration service.

The Decision also specifies the time limits for the authorised body to take the decision and the grounds to refuse the issue of documents.

Permissions issued before the adoption of the rules shall preserve their force until expiry.

The Decision is entered not force from January 15, 2007.

Decision of the Government of the Russian Federation No. 663 of November 11, 2006 on the Endorsement of the Regulation on the Call up to the Military Service for the Citizens of the Russian Federation

Regulates the procedure of call up to the military service for male citizens of the Russian Federation 18 to 27 years of age registered for the military service and not being in the reserve, as well as those having graduated from the state, municipal or non-state institutions of higher professional education that have state accreditation in appropriate areas of training and included in the reserve as officers.

In addition to the available authority of military commissars pertaining to organisation of the call up to the military service, the following are also included: submission of requests for medical personnel to the heads of medical institutions and requests for technical personnel and necessary material resources to the bodies of local government; military and professional guidance for draft servicemen; arranging registers of draft servicemen avoiding the military service; selection and preparation of materials for the Federal Security Service on citizens to execute the special duties of the military service.

Regulates in detail the issues of outfit of draft and assembly points. They must have, in particular, instruments and medical equipment necessary for the medical examinations and certification, as well as equipment and materials for professional psychological selection.

With assistance of the body of executive power, the sale of first necessity items is arranged at the assembly point, education work is carried out with draft servicemen.

According to the new Regulation, munitions are provided to draft servicemen at the assembly point.

Before leaving to the place of service, the draft servicemen are assigned the military grade of non-rated men through the order of the Military Commissar of the subject of the Russian Federation.

Decision of the Government of the Russian Federation No. 664 of November 11, 2006 on the Endorsement of the Rules of Paying out of Lumpsum Allowances to Victims, Witnesses and Other Participants of Criminal Proceedings Where a Decision Is Taken According to Established Procedure on Their State Protection

The rules define the amounts and procedure of paying out of lumpsum allowances to victims, witnesses and other participants of criminal proceedings (according to Article 2 of the Federal Law on the state protection of victims, witnesses and other participants of criminal proceedings) where a decision was taken according to established procedure on the state protection, and in case of death of the protected person because of his participation in the criminal proceedings, to the family members of the deceased and his dependants.

The grounds to pay out the allowance is the decision (ruling) on the measures of social protection taken by: the court (judge), prosecutor, chief of the body of investigation or the investigator processing the application of the crime or the criminal case, if otherwise is not envisaged in the legislation of the Russian Federation on the criminal procedures.

The Decision (ruling) contains the reasons for paying out the allowance in the specified amount, information of the personal identification document of the recipient, as well as the details of the account opened by the protected person (family members of the deceased and his dependants) in credit organisations or the mail address (at the choice of the mentioned persons).

The Decision (ruling) is sent for execution to the Federal Service of Enforcement in the Sphere of Public Health and Social Development, as well as to the persons in case.

The allowance is paid out to the application without time limits.

The Decision also defines the procedure of paying out of allowances if the injuries or another damage to health later incurred a disability or death of the protected person.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 115 of October 24, 2006 on Certain Issues Pertaining to Execution of Decisions in Cases of Administrative Violations

The Presidium of the Higher Arbitration Court of the Russian Federation explained some issues emerging in the course of execution of decisions in cases of administrative violations. It emphasised, in particular, the issues of execution of decisions disqualifying independent entrepreneurs engaged in activities of management of the legal entity, including the bankruptcy commissioners.

Since execution of such decisions is done through discontinuation of the appropriate contract with the person having permitted violations, the courts in the operative part of the resolution disqualifying the independent entrepreneurs (except for the bankruptcy commissioners) should indicate information on the contract for the mentioned activities, if such contract with this person has been concluded as of the moment taking the decision. The decision on the punishment in the form of disqualification is considered to be executed from the moment of its entry in force, therefore, the disqualified person may not engage in activities of management of the legal entity from this moment.

As to the bankruptcy commissioners, their disqualification is implemented according to the procedure envisaged in the Federal Law on insolvency (bankruptcy). In this connection, the copy of the appropriate decision must be sent to the federal body of executive power in charge of control of activities of self-regulating organisations of bankruptcy commissioners; to the Ministry of Internal Affairs of the Russian Federation (appropriate territorial body); to the self-regulating organisation of bankruptcy commissioners where the given bankruptcy commissioner is a member; to the arbitration court processing the appropriate bankruptcy case; as well as on paper or in the electronic form to the Higher Arbitration Court of the Russian Federation for placing on its Internet site.

Having received such decision, the arbitration court processing the case of bankruptcy must adopt a ruling to dismiss the bankruptcy commissioner. Any solicitation on the part of participants of the arbitration process is not required.

The Information Letter also contains explanations pertaining to the procedure of calculation of the yearly time limits specified in Part 1 of Article 31.9 of the Code of Administrative Procedures of the Russian Federation, after which the decision on the administrative punishment is not executed.

Decision of the Higher Arbitration Court of the Russian Federation No. 10652/06 of October 23, 2006

The Higher Arbitration Court of the Russian Federation invalidated Paragraph 13 of Section "For the Purposes of Article 171 of the Tax Code of the Russian Federation" of the Appendix to the Letter of the Federal Tax Service of Russia No. MM-6-03/886 of October 19, 2005 explaining that VAT amounts accepted for exemption by the taxpayer in compliance with Articles 171, 172 of the Tax Code of the Russian Federation for commodities (works, services), including the fixed assets and non-material assets, purchased for operations recognised as objects of taxation under Chapter 21 of the Tax Code of the Russian Federation but not used for the mentioned operations must be restored and transferred to the budget; the cost of the stolen property must be reimbursed at the expense of the culprits with VAT included.

The court, while rejecting the appeal to terminate the proceedings stating that the challenged act is not of normative nature, emphasised that since the challenged explanations are conveyed to the tax inspections with a directive to use them in their work, therefore, the Letter is intended for continuous application by the tax bodies, including the functions of tax control. Therefore, it may not be regarded as an act of normative nature in spite of the form, as well as the absence of the state registration of the Letter and its publication in the official source. Meanwhile, according to the Regulation on the Federal Tax Service endorsed by the Decision of the Government of the Russian Federation No. 506 of September 30, 2004, the Federal Tax Service has no authority to issue normative legal acts on issues of taxes and fees. Thus, the mentioned Letter, which has the nature of the normative legal act, has been issued by an unauthorised body.

As to the essence of the challenged provision, the court explained the following. Item 3 of Article 170 of the Tax Code of the Russian Federation envisages the cases when VAT amounts accepted for exemption by the taxpayer for commodities (works, services), including the fixed assets and non-material assets, proprietary rights, must be restored. The shortage of commodities revealed during inventory taking or pilferage are not included in the cases listed in Item 3 of Article 170 of the Tax Code of the Russian Federation. Therefore, the challenged provision contains the rule obliging the taxpayers to transfer to the budget VAT amounts earlier accepted for exemption, which is not envisaged in the legislation on taxation.

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 53 of October 12, 2006 on the Assessment by Arbitration Courts of the Reasons of Obtaining of Tax Benefits by the Taxpayer

The Plenum of the Higher Arbitration Court of the Russian Federation explains, for the purpose of resolving of tax disputes, which circumstances may certify or, on the contrary, not certify the fact of obtaining unreasonable tax benefits by the taxpayer. The tax benefit is implied to be a reduced amount of tax duty because, in particular, of reduction of the taxable base, obtaining a tax exemption, application of a lower tax rate, as well as obtaining the right for a return (offsetting) or reimbursement of the tax from the budget.

The lack of substantiation of the tax benefit may be certified, in particular, by the following circumstances:

impossibility of implementation by the taxpayer of the mentioned operations taking into account the time, place of location of the property or the volume of material resources necessary economically for production of commodities, carrying out works or rendering services;

absence of necessary conditions to reach the results of appropriate economic activities because of the absence of managerial or technical personnel, fixed assets, production capacities, warehouses, transport vehicles;

registration for taxation purposes of only those economic operations that are directly associated with the tax benefit if the given type of activities requires also other economic operations;

committing operations with commodities that have not been produced or could not be produced in the amount indicated by the taxpayer in the accounting documents.

However, it is necessary to keep in mind that individual circumstances may not serve as grounds to recognise the tax benefit unreasonable. Among them the Higher Arbitration Court emphasised:
creation of the organisation shortly before committing the economic operation;
interdependence of participants of transactions;
erratic nature of economic operations;
violations of the tax legislation in the past;
carrying out a single operation;
carrying out operation at other than the place of location of the taxpayer;
making payments through the same bank;
transit payments between participants of interconnected economic operations;
use of intermediaries in economic operations.

Meanwhile, all these circumstances in aggregate and if interconnected with other circumstances may be qualified as certifying the fact of obtaining an unreasonable tax benefit by the taxpayer.

Recognising the tax benefit as unreasonable by the court implies a refusal to satisfy the taxpayer claims pertaining to it. In this case, one should keep in mind that recognising the tax benefit as unreasonable must not affect other rights of the taxpayer envisaged in the tax legislation.

Decision of the Government of the Russian Federation No. 689 of November 15, 2006 on the State Land Control

According to the new Regulation, the state land control is vested in the Federal Agency of Cadastre of Objects of Immovable Property, Federal Service of Enforcement in the Sphere of Use of Natural Resources, Federal Service of Veterinary and Phytosanitary Enforcement and its territorial bodies. Earlier, the land control formed part of the functions of the Federal Service of the Land Cadastre of Russia (reorganised in 2004 into the Federal Agency of Cadastre of Objects of Immovable Property) and its territorial bodies, Ministry of Natural Recourses of the Russian Federation, Ministry of Agriculture of the Russian Federation, State Committee of the Russian Federation for Construction and the Housing-and-Communal Complex.

The task of the state land control is providing for observation by organisations regardless of their organisational and legal forms and forms of ownership, their heads, officials, as well as the citizens, of the land legislation, requirements of protection and use of lands.

The Regulation defines the functions of control bodies in the sphere of the state land control depending on the sphere of reference, authority of their officials. Thus, the Federal Agency of Cadastre of Objects of Immovable Property controls the use of the lands for designated purposes (including the lands of the forestry fund), preservation of landmarks of the borders of land plots, prevention of unauthorised capture of lands. The Federal Service of Enforcement in the Sphere of Use of Natural Resources controls implementation of measures of restoration of lands after construction, survey and other works, as well as observation of the regime of use of the land plots in forests in water protection zones and the coastal strips of water objects. The sphere of reference of the Federal Service of Veterinary and Phytosanitary Enforcement includes control of implementation of measures of preservation and reproduction of fertility of lands of agricultural destination.

Officials of the Federal Agency of Cadastre of Objects of Immovable Property and its territorial bodies have the status of state inspectors of the Russian Federation for the use and protection of lands. Earlier, such status was assigned to officials of the Federal Service of the Land Cadastre of Russia.

The state inspectors may request from the bodies of power, organisations and citizens information on the condition, use and protection of lands, including the documents certifying the rights for the land plots and objects located on them. Information on the organisation of the industrial land control are submitted by the persons using the land plots no sooner than once a year.

The pervious Regulation on the state land control endorsed by the Decision of the Government of the Russian Federation No. 833 of November 19, 2002 is invalidated.

Decision of the Government of the Russian Federation No. 685 of November 15, 2006 on the Measures to Protect Russian Producers of Large Diameter Pipes

To protect economic interests of Russian producers, introduces a special duty for 3 years in the amount of 8% of the customs cost for pipes of large diameter (with the outer diameter greater than 508 mm) imported to the Russian Federation under the customs regime of release for internal consumption and classified under the headings of the Foreign Trade Commodity Nomenclature of Russia 7304 10 900 2, 7304 10 900 9, 7304 31 990 0, 7304 39 990 0, 7304 59 990 0, 7305 11 000 1, 7305 11 000 2, 7305 11 000 3, 7305 11 000 9, 7305 12 000 1, 7305 12 000 9, 7305 19 000 0, 7305 31 000 0, 7305 39 000 0, 7305 90 000 0.

The special duty does not apply to the import of large diameter pipes originating in the developing countries enjoying the national system of preferences of the Russian Federation.

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

Decision of the Government of the Russian Federation No. 695 of November 16, 2006 on the Endorsement of the Rates of Export Customs Duties for Raw Oil and Individual Categories of Commodities of Oil Exported from the Territory of the Russian Federation Outside the Member-States of the Customs Union Agreements and on Invalidation of Some of the Acts of the Government of the Russian Federation

From December 1, 2006, reduces the rates of the export customs duties for raw oil and individual categories of commodities of oil exported from the territory of the Russian Federation outside the member-states of the Customs Union agreements.

The rate of the export customs duty for raw oil will make USD 180.7 per ton instead of the present-day USD 237.6.

Export from the Russian Federation of propane, butane, ethylene, propylene, butylenes, butadiene and other liquefied gasses, xylenes, light and medium distillates, gas oils, benzene, toluene will be subject to the rate of USD 134 per ton (at present, USD 172.4).

The rate of the export customs duty for liquid fuels, lubricants, spent oil products, petrolatum, paraffin, gatch, mineral waxes and similar products (other than the raw ones), as well as the oil coke, oil bitumen and other residues of processing of oil and oil products from bituminous materials (other than calcined oil coke), will make USD 72.2 per ton instead of today's USD 92.9.

Decisions of the Government of the Russian Federation introducing or changing the amount of the rates of export customs duties for the mentioned commodities are invalidated.

Order of the Ministry of Economic Development of the Russian Federation, Ministry of the Industry and Power Supplies of the Russian Federation and the Ministry of Finance of the Russian Federation No. 311/250/124n of October 5, 2006 on the Amendments to the Procedure Defining the Notion of "Industrial Assembly" and Specifying Application of the Given Notion to the Import to the Territory of the Russian Federation of Auto Components for Production of Motor Vehicles of Commodity Headings 8701-8705 of the Foreign Trade Commodity Nomenclature, Their Units

To improve the efficiency of industrial production of motor vehicles, their units implemented in compliance with the Decision of the Government of the Russian Federation No. 166 of March 29, 2005, amends the procedure defining the notion of "industrial assembly" and specifying application of the given notion to the import to the territory of the Russian Federation of auto components for production of motor vehicles of commodity Headings 8701-8705 of the Foreign Trade Commodity Nomenclature, their units endorsed by the Order of the Ministry of Economic Development of Russia, Ministry of the Industry and Power Supplies of Russia and the Ministry of Finance of Russia No. 73/81/58n of April 15, 2005.

The auto components imported for the purpose of industrial assembly are subject to the beneficial import rate or duty free.

According to the amendments, individual operations of industrial assembly may be carried out in cooperation with other Russian enterprises.

The Order defines the document confirming execution of the requirements on the stepwise reduction of the import of auto components for industrial assembly of motor vehicles. Such document is the report of the names, quantity and cost of auto components import of which is reduced.

When indicating in the draft agreement on the import by Russian legal entities of commodities intended for industrial assembly of the list of auto components or parts thereof planned for import, it is necessary to include information on the deadlines of carrying out of obligatory technological operations in the production cycle.

After the entry into force of the final agreement, the Ministry of Economic Development of Russia notifies the Federal Customs Service of Russia of the period of validity of the list. The Federal Customs Service of Russia conveys the appropriate notification to the customs bodies in charge of the customs registration of auto components imported to the territory of the Russian Federation.

The Order does not permit to extend the list of the units for motor vehicles as a result of processing of appeals of interested parties to the Ministry of Economic Development of Russia.

The criteria defining the notion of "industrial assembly" of units for motor vehicles includes in addition: drive axles (design capacity with two-shift working regime at least 5,000 pieces a year; presence in the production cycle of obligatory technological operations - mechanical treatment of the crankcase; assembly and control operations); other units of the automotive equipment (presence in the production cycle of obligatory technological operations: processing of parts; assembly and control operations).

There is a requirement on the stepwise reduction of the import of auto components for industrial assembly of units of motor vehicles. No later than 18 months after the date of the entry into force of the agreement, the import must be reduced by at least 10% of the total cost according to the procedure defined in the agreement, followed by subsequent reduction of the import of auto components no later than 30 months after by at least 10% and no later than 40 months after by at least 10% more.

The Order defines the deadlines for conclusion of agreements on the import of parts to the territory of the Russian Federation for industrial assembly of units of motor vehicles. The agreements are concluded: for up to 7 years for organisation of industrial assembly of internal combustion engines, gear boxes and drive axles; for up to 5 years for organisation of industrial assembly of other units of the automotive equipment.

Registered in the Ministry of Justice of the Russian Federation on November 14, 2006. Reg. No. 8471.

Order of the Ministry of Economic Development and Trade of the Russian Federation No. 359 of November 3, 2006 on the Deflator Coefficient K_1 for the Year 2007

In 2007, the deflator coefficient K_1 necessary for the calculation of the taxable base for the uniform imputed income tax in compliance with Chapter 26.3 of the Tax Code of the Russian Federation is fixed in the amount of 1.096.

K1 is the deflator coefficient specified for the calendar year taking account of the change of consumer prices for commodities (works, services) in the Russian Federation in the previous period.

In 2006, the given deflator coefficient according to the Order of the Ministry of Economic Development of Russia No. 277 of October 27, 2005 amounted to 1.132.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8492.

Order of the Ministry of Economic Development and Trade of the Russian Federation No. 360 of November 3, 2006 on the Deflator Coefficient for the Purposes of Chapter 26.2 of the Tax Code of the Russian Federation "Simplified System of Taxation" for the Year 2007

For the purposes of Chapter 26.2 of the Tax Code of the Russian Federation "Simplified System of Taxation", specifies the limiting amount of incomes of the organisation restricting its right to switchover to the simplified system of taxation.

The amount of the mentioned incomes is subject to indexing using the deflator coefficient specified on the annual basis for each subsequent calendar year and taking account of the change of consumer prices for commodities (works, services) in the Russian Federation in the previous calendar year.

In 2007, the deflator coefficient necessary for the indexing of the limiting amount of incomes restricting the right to switchover and/or apply the simplified system of taxation in compliance with Chapter 26.2 of the Tax Code of the Russian Federation is fixed in the amount of 1.241.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8494.

Decision of the Government of the Russian Federation No. 696 of November 18, 2006 on the Control in the Sphere of Legal Protection and Use of Results of Scientific Research, Design and Technological Works of Civil Destination Carried out at the Expense of Resources of the Federal Budget

Specifies the procedure of implementation of control in the sphere of legal protection and use of results of scientific research, design and technological works of civil destination carried out at the expense of resources of the federal budget.

Control in the sphere of legal protection and use of results of scientific and technical activities is vested in the Federal Service of Intellectual Property, Patents and Trademarks in interaction with state ordering parties and academies of sciences possessing the state status. Subject to control are organisations having at their disposal the rights of the Russian Federation for the results of scientific and technical activities and organisations carrying out scientific research, design and technological works for the federal state needs.

The goal of control measures is providing for the legal protection of the results of scientific and technical activities created at the expense of resources of the federal budget and protection of interests of the Russian Federation in the sphere of intellectual property.

When carrying out control measures, the checking includes the presence in the state contract for the scientific research, design and technological works for the federal state needs of provisions on the distribution of rights for the results of scientific and technical activities, correspondence of the volume of legal protection of the results of works with the contract terms, execution of the terms of the state contract where it pertains to the use of obtained results of works, keeping of the state register of results of scientific and technical activities, use of results of works in own production of the organisation possessing the rights or in the framework of license contracts and the rights cession contracts.

The Decision defines the periods, deadlines and the procedure to carry out control measures, procedure of drawing up of the results of the check.

When revealing the facts of violations of the normative legal acts, provisions of the concluded state contracts, as well as the rights of the Russian Federation, Russian legal entities and natural persons, an order is sent to the checked organisation to eliminate the violations. A notification of the revealed facts of violations may also be sent to the federal body of executive power supervising the checked organisation.

The given control procedure does not apply to the control in the sphere of results of scientific research, design and technological works of military, special and dual-use destination, as well as the results of scientific and technical activities in the agroindustrial complex, animal breeding and plant growing.

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 52 of October 12, 2006 on the Fiscal Control over the Use of Resources of the Federal Budget Allocated to Arbitration Courts of the Russian Federation

Explains the procedure of fiscal control over the use of resources of the federal budget by arbitration courts of the Russian Federation.

The authority of fiscal control over the use of resources of the federal budget by arbitration courts is vested in the Audit Chamber of the Russian Federation and the Federal Service of Financial and Budget Enforcement. The Federal Service of Financial and Budget Enforcement represents in arbitration courts the rights and interests of the Russian Federation in issues of its sphere of reference. Combining the control authority where it pertains to the use of resources of the federal budget by arbitration courts and the authority of the representative of the person participating in proceedings in arbitration courts creates conditions for the conflict of interests and interference in the activities of administration of justice of arbitration courts, provokes mistrust with the persons participating in the case about objective and unbiased decision taking. In this connection, control measures of the mentioned service pertaining to arbitration courts must be carried out proceeding from the constitutional provisions on the delimitation of authority, independence of the bodies of executive and judicial powers, independence of judges in administration of justice.

The Higher Arbitration Court of the Russian Federation, while being the chief administrator of resources of the federal budget, may attract the Federal Service of Financial and Budget Enforcement (with its consent) to control measures to check the use for designated purposes of budget resources by arbitration courts and timely submission of reports. The list of the checked arbitration courts is defined by the Higher Arbitration Court of the Russian Federation, the time limits and volumes of control measures are specified in coordination with the Federal Service of Financial and Budget Enforcement. Extraordinary checks are permitted in exclusive cases on the basis of a separate agreement between the Higher Arbitration Court of the Russian Federation and the Federal Service of Financial and Budget Enforcement. When control measures are carried out by the Audit Chamber of the Russian Federation, the Federal Service of Financial and Budget Enforcement may not interfere.

When carrying out control measures, officials of the Federal Service of Financial and Budget Enforcement may not block court hearings, demand of the judges of the arbitration court any actions or documents, or interfere in any other way in the activities of administration of justice of arbitration courts. If there are violations of the mentioned requirements, the Higher Arbitration Court of the Russian Federation may stop the control measures pertaining to the arbitration court while notifying of it the Federal Service of Financial and Budget Enforcement and the appropriate arbitration court.

Decision of the Government of the Russian Federation No. 700 of November 20, 2006 on the Abandoning of the Licensing of Import of Starch Treacle to the Russian Federation

Abandons the licensing of import to the Russian Federation of starch treacle (code according to the Foreign Trade Commodity Nomenclature of Russia 1702 30 990 1).

The licensing of import of starch treacle (except for commodities originating in the member-states of the Customs Union) was introduced on August 1, 1998 to protect home producers. The issue of licenses was vested in the Ministry of Economic Development and Trade of Russia.

The Decision is entered into force from the day of its official publication.

Order of the Federal Tax Service No. SAE-3-04/706@ of October 13, 2006 on the Endorsement of the Form of Information on the Incomes of Natural Persons

The form endorsed earlier by the Order of the Federal Tax Service of Russia No. SAE-3-04/616@ of November 25, 2005 is replaced with a new one, No. 2-NDFL "Certificate of Incomes of the Natural Person for the Year 200_". The given certificate is submitted by tax agents on the annual basis before April 1 to the tax body at the place of their registration and to natural persons against their application (in compliance with Item 2 and Item 3 of Article 230 of the Tax Code of the Russian Federation).

The Order also prepares recommendations on the filling of information on the incomes of natural persons according to the new form and the format of information on incomes presented in the electronic from.

According to the recommendations, the certificates, as before, are submitted by tax agents for each natural person obtaining incomes from the given tax agent separately for each tax rate.

The Order provides the guides of codes of documents, codes of incomes, codes of regions and the codes of exemptions.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8507.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 730 of October 25, 2006 on the Amendments to the Order of the Ministry of Public Health and Social Development of the Russian Federation No. 701 of November 28, 2005 on the Birth Certificate

From 2007, the birth certificate will be used to cover not only the services of medical aid to women during pregnancy and delivery, but also the services of out-patient examinations of the child during the first year of life. Thus, additional financing may apply, beside public health institutions rendering medical aid to women during pregnancy and delivery, also to medical treatment and preventive institutions providing out-patient examinations for the child during the first year of life that have licenses for medical activities in the sphere of paediatrics (i.e. child out-patient clinics).

In this connection, the Order endorses a new form of the birth certificate and amends its filling procedure. The birth certificate will consist of six parts (instead of the previous four ones). The new parts 5 and 6 are intended to cover the services of public health institutions of out-patient examinations of the child.

When filling out the column "Length of Pregnancy" in the birth certificate, only full weeks of pregnancy will be indicated as of the moment of issue of the birth certificate to the woman. At present, the certificate shows also full weeks of pregnancy as of the moment of registration of the woman for examinations because of the pregnancy.

The birth certificate will also show the total number of children with the woman, including those born before.

The Order is entered into force from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8478.

Direction of the Central Bank of Russia No. 1737-U of October 27, 2006 on the Amendments to the Instruction of the Bank of Russia No. 105-I of August 25, 2003 on the Procedure of Checking of Credit Organisations (Their Branches) by Authorised Representatives of the Central Bank of the Russian Federation

The amendments introduce opportunities of checking of credit organisations (their branches) by audit organisations. In this case, the check is carried out to the Order of the Board of Directors of the Bank of Russia.

The Direction changes the periods of carrying out of checks. The checks are carried out at least once in 18 months (except for the checks of observation of the normatives of obligatory reserves and the checks of organisation of work, carrying out and registration of individual types of bank operations and other transactions with foreign currencies in cash and the currency of the Russian Federation, checks in foreign currencies involving natural persons). Earlier, the minimum period of the check amounted to one year.

The number of persons in the group of authorised representatives of the Bank of Russia carrying out the check may not be less than 2 persons.

A supplement to the Order to carry out the check, which is an integral part of the Order, is drawn up not only in cases of change of the personal composition of the working group, but also in cases of prolongation of the time limits of the check, as well as the checking of additional offices, credit and cash offices, operational cash departments outside the cash centre, exchange offices and other internal structural divisions of the authorised bank (its branch).

The Direction refines the authority of officials of the Bank of Russia to assign the checks, including the signing of the given orders.

Apart from the earlier envisaged authority, the head and the members of the working group carrying out the check may demand from the credit organisation (its branch) a revision of banknotes, coins and other values by the commission of the credit organisations (its branch) in the presence of the head and/or members of the working group, as well as the drawing up of results of the revision of foreign currencies in cash.

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 November 15, 2006. Reg. No. 8479.

Order of the Ministry of Finance of the Russian Federation No. 122n of October 3, 2006 on the Endorsement of the Procedure of Issue of Certificates of Registration of the Person Carrying out Operations with Straight-Run Gasoline

According to the Federal Law No. 134-FZ of July 26, 2006, from January 1, 2007, the duty to pay excise duty taxes is shifted from the persons engaged in wholesale and retail sale of oil products to producers of oil products and those processing them, thus abandoning the issue of certificates for operations with oil products, except for operations with straight-run gasoline. Opportunities of getting the certificate of registration of the person carrying out operations with straight-run gasoline is envisaged from October 1, 2006.

The endorsed procedure regulates the rules of issue, suspension, renewal and revocation of the certificate for production of straight- run gasoline and the certificate for its processing.

The given certificates are issued to organisations and independent entrepreneurs engaged, respectively, in production of straight-run gasoline, including the one from the customer-supplied raw materials (materials), or production of petrochemical products using the straight-run gasoline as a raw material.

To get the certificate, it is necessary to present to the tax body: application of the person; copies of documents confirming the presence of capacities for production of straight-run gasoline or petrochemical products using straight-run gasoline as a raw material; information on the presence of production capacities necessary for the declared type of activities.

The Order defines the time limits for the authorised body to take the decision, the list of information shown in the certificate and the grounds of refusal to issue the certificate, suspend or revoke it.

The fact of issue of the certificate is registered in the ledger on the same day, with information on the issue of the certificate entered in the special register.

The Order of the Ministry of Finance of Russia having endorsed the procedure of issue of certificates of registration of the person carrying out operations with oil products is invalidated from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8483.

Order of the Ministry of Finance of the Russian Federation No. 123n of October 3, 2006 on the Endorsement of the Forms of Registers of Invoices, Procedure of Submission of Registers of Invoices and Procedure for the Tax Bodies to Put the Stamp on the Registers of Invoices Submitted by the Payers of Excise Duty Taxes

Endorses the forms of registers of invoices: put forward by producers of denatured ethyl alcohol possessing the certificate for production of denatured ethyl alcohol; put forward by producers possessing the certificate for production of straight-run gasoline; put forward by the persons possessing the certificate for processing of straight-run gasoline.

Also endorses the procedure of submission of registers of invoices and the procedure for the tax bodies to put the stamp on the registers of invoices submitted by the payers of excise duty taxes.

The given forms of registered of invoices shall apply from January 1, 2007.

The Order of the Ministry of Finance of the Russian Federation No. 155n of December 23, 2005 on the endorsement of the forms of registers of invoices, procedure of submission of registers of invoices and the procedure for the tax bodies to put the stamps on the registers of invoices submitted by the payers of excise duty taxes is invalidated from the same date.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8474.

Order of the Ministry of Finance of the Russian Federation No. 125n of October 9, 2006 on the Endorsement of the Procedure of Issue of Certificates of Registration of the Organisation Carrying out Operations with Denatured Ethyl Alcohol

According to the actual legislation on taxes and fees, organisations carrying out operations with denatured ethyl alcohol, to include them in the payers of excise duty taxes, get certificates of registration of the organisation carrying out operations with denatured ethyl alcohol from the tax bodies.

The Order endorses a new procedure of issue of certificates of registration of the organisation carrying out operations with denatured ethyl alcohol pursuant to the introduction from January 1, 2007 of excise duty taxes for producers of alcohol-containing perfumery and cosmetics and products of household chemistry in metallic spray packages using denatured ethyl alcohol as a raw material.

According to the new procedure, the mentioned certificates will be issued not only for production of denatured ethyl alcohol and non-alcohol-containing products using denatured ethyl alcohol as a raw material, but also for production of alcohol-containing perfumery and cosmetics and products of household chemistry in metallic spray packages.

Certificates for production of alcohol-containing perfumery and cosmetics and products of household chemistry in metallic spray packages will be issued in the presence with the organisation on the proprietary basis (economic management and/or operative control) of capacities for production, storage and sale of the above products using denatured ethyl alcohol as a raw material. The issued certificate may be revoked in cases of production of other alcohol-containing products rather than the one indicated in the certificate, as well as if the certificate is handed over to another person.

The issued certificate of registration of the organisation carrying out operations with denatured ethyl alcohol may not be revoked in case of the reorganisation of the organisation in the form of isolation and separation.

The Order is entered into force from January 1, 2007.

The previous procedure of issue of certificates of registration of the organisation carrying out operations with denatured ethyl alcohol endorsed by the Order of the Ministry of Finance of the Russian Federation No. 157n of December 23, 2005 is invalidated from January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8498.

Order of the Ministry of Internal Affairs of the Russian Federation No. 750 of September 22, 2006 on the Endorsement of the Instruction on the Processing of Appeals of Citizens in the Framework of the Ministry of Internal Affairs of Russia

The Instruction on the processing of appeals of citizens in the framework of the Ministry of Internal Affairs of Russia has been worked out to improve organisation of work with appeals of citizens in the bodies of internal affairs of the Russian Federation, internal troops of the Ministry of Internal Affairs of Russia, divisions, institutions and organisations of the system of the Ministry of Internal Affairs of Russia and regulates the procedure of work with oral and written appeals of citizens of the Russian Federation, foreign citizens, stateless persons, legal entities, their representatives, collectives of enterprises, institutions, public organisations.

All written applications (including anonymous ones) received in the division of the Ministry of Internal Affairs of Russia must be registered on the obligatory basis by the business management division within 3 days from the moment of receiving. Written applications submitted to the body of internal affairs directly by the author or the person representing his interests must be accepted and registered in the duty department on the round-the-clock basis. The author gets a token of notification. Departments of internal affairs in the subjects of the Russian Federation must have mail boxes installed in convenient places to receive written applications of citizens. Collection of correspondence from the boxes shall be arranged by the business management department at least 2 times a day. It is permitted to accept applications in the form of electronic messages (Internet messages).

The appeal falling in the sphere of reference of the division of the Ministry of Internal Affairs of Russia must be processed within 30 days. It is prohibited to send the application to the division of the Ministry of Internal Affairs of Russia, another state body, body of local government or the official whose decision or action (failure to act) is appealed against. The citizen whose appeal is processed in the division of the Ministry of Internal Affairs of Russia may present additional materials and documents, investigate the materials pertaining to his appeal, apply to terminate the case.

The reply to the citizen is provided in written form on the official letterhead of the division of the Ministry of Internal Affairs of Russia signed by the head of the division. The citizen may appeal against the adopted decision.

Personal reception of citizens in the division of the Ministry of Internal Affairs of Russia must be arranged at least 2 time a week in the evening (after 18 pm). In the duty divisions of the bodies of internal affairs, reception of citizens is carried out on the round-the-clock basis. The heads of the divisions must receive citizens at least once a week. The essence of the oral appeal is recorded in the card of reception.

The Order defines the procedure of storage of written appeals and materials of their processing.

The Instruction does not apply to applications of citizens of special nature pertaining to the loss and handing out of identification documents, permissions, licenses, certificates, statements, state registration marks, tokens, passports, acts, documents.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8487.

Order of the Ministry of Internal Affairs of the Russian Federation No. 846 of October 25, 2006 on the Endorsement of the Typical Regulation on the Ministry of Internal Affairs, Directorate, Department of Internal Affairs in the Subject of the Russian Federation

Endorses a new Typical Regulation on the ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation.

The ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation are the bodies of executive power implementing in the framework of their sphere of reference the tasks and functions of the bodies of internal affairs of the Russian Federation on the territory of the appropriate subject of the Russian Federation. The ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation forms part of the system of the bodies of internal affairs of the Russian Federation and is subordinate to the Ministry of Internal Affairs of the Russian Federation.

The functions implemented by the ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation now do not include participation in the migration policy on the territory of the subject of the Russian Federation, since the given function is vested in the Federal Migration Service. Simultaneously, the sphere of reference of the mentioned divisions shall include now providing for the protection of the rights and freedoms of man and citizen.

The Order expands the authority of the minister of internal affairs, chief of the directorate, department of internal affairs in the subject of the Russian Federation. The mentioned officials shall participate, among other things, in the work of the antiterrorist commission and the operative headquarters in the subject of the Russian Federation, as well as maintain interaction with the territorial body of the Federal Migration Service of Russia and the bodies of state power of the subject of the Russian Federation in issues of implementation of the state migration policy.

Control of activities of the ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation is vested in the Ministry of Internal Affairs of Russia. Earlier, the control function was also vested in the directorate of the Ministry of Internal Affairs of Russia in the federal district.

The new Typical Regulation defines the rights of the ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation to implement the granted authority.

The previous Typical Regulation on the ministry of internal affairs, directorate, department of internal affairs in the subject of the Russian Federation endorsed by the Order of the Ministry of Internal Affairs of Russia No. 730 of September 15, 2003 is invalidated.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8490.

Order of the Ministry of Internal Affairs of the Russian Federation No. 847 of October 25, 2006 on the Endorsement of the Typical Regulation on the Section (Department) of Internal Affairs in the Region (Municipal Region), City (City District) and Another Municipal Formation, Including the Several Municipal Formations

The Typical Regulation defines the main tasks and principles of activities, authority, structure of the section (department) if internal affairs in the region (municipal region), city (city district ) and another municipal formation, including the several municipal formations, as well as regulates the issues of financing and material and technical support

The main tasks of the mentioned body of internal affairs implemented on the covered territory are: providing for personal security; prevention and stopping crimes and administrative violations; investigation of crimes; protection of public order and public security; providing for traffic safety; protection of property of natural persons and legal entities under contracts; rendering aid, within their sphere of reference. to natural persons and legal entities to protect their rights and legal interests.

The body of internal affairs in the municipal formation is headed by the chief appointed to his position and dismissed form it by the minister of internal affairs, chief of the directorate, department of internal affairs in the subject of the Russian Federation according to the procedure established by the Ministry of Internal Affairs of Russia.

The chief has under his command an operative board to consider current issues, the Regulation and its personal composition being endorsed by the chief of the section (department) of internal affairs of the municipal formation.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8497.

Order of the Prosecutor General of the Russian Federation and the Ministry of Defence of the Russian Federation No. 911k/407 of October 3, 2006 on the Monetary Subsistence of the Federal State Civil Servants of the Bodies of the Office of the Military Prosecutor

Regulates general issues of the system of labour remuneration of the federal state civil servants of the Office of the Military Prosecutor of the Russian Federation, as well as endorses the normative acts regulating the procedure for the monthly and other additional payments.

According to the procedure of paying out of the monthly supplement for the special conditions of civil service, the main criteria to assign the given supplement include: execution of service duties in compliance with the service regulation in conditions other than normal while observing the requirements to the service conduct of the civil servant; participation in unforeseen, specially important and demanding works; proficiency in adoption of managerial decisions; state awards, scientific grades, other distinguishing signs for personal achievements.

The amount of the supplement may be reduced or the payment of it stopped in pursuance of the order of the representative of the employer indicating the reasons.

To enhance material incentives of civil servants to improve fulfilment of tasks and implement the functions of the military prosecutor, responsible attitude, the Order envisages bonuses for the specially important and complex tasks paid out according to the endorsed procedure.

The procedure of paying out of material aid from the labour remuneration fund of the federal state civil servants is defined in the Regulation stating that material aid is paid out in cases of material difficulties associated with a loss or damage of property because of fire, another natural disaster; in cases of birth of children, death of close relatives of the federal state civil servant; other exclusive cases.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8496.

Order of the Ministry of Transport of the Russian Federation, Ministry of Justice of the Russian Federation, Ministry of Internal Affairs of the Russian Federation and the Ministry of Public Health and Social Development of the Russian Federation No. 124/315/817/714 of October 17, 2006 on the Endorsement of the Terms and Procedure of Professional Certification of Expert Technicians Providing Independent Technical Expert Evacuation of Transport Vehicles, Including the Requirements to Expert Technicians

The terms and procedure of professional certification of expert technicians providing independent technical expert evaluation of transport vehicles, including the requirements to expert technicians, have been worked out in execution of the Federal Law No. 40-FZ of April 25, 2002 on the obligatory insurance of civil liabilities of owners of transport vehicles and the Decision of the Government of the Russian Federation No. 238 of April 24, 2003 on the organisation of independent technical expert evaluation of transport vehicles.

The mentioned expert evaluation is arranged to pay out insurance reimbursement under the contract of obligatory insurance of civil liabilities of the owner of transport vehicle.

The professional certification is carried out to confirm the qualification skills and knowledge of the candidate expert technician to carry out the works of independent technical expert evaluation of transport vehicles and include him in the state register of expert technicians.

The professional certification is vested in the Interagency Certification Commission.

The professional certifications is permitted for: specialists with a higher education with experience of work of at least 1 year in the sphere of expert evaluation of transport vehicles to establish the presence, reasons and nature of technical damages of the transport vehicle, as well we the technology, volume and cost of its repair, and having prepared at least 5 statements (reports) in the mentioned sphere; other persons with a higher education and having undergone special training in educational programs of professional retraining and professional development of expert technicians.

To include the state court experts in the State Register of Expert Technicians, certification decisions are sent to the Ministry of Justice of Russia.

The Order describes the list of documents submitted for the professional certification, defines the requirements to the expert technicians pertaining to the level of professional training, regulates the procedure of passing of the certification.

The Order provides the form of the application for the certification.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8499.

Decision of the Government of the Russian Federation No. 697 of November 18, 2006 on the Amendments to the Classification of Fixed Assets Included in the Amortization Groups

Revises the classification of fixed assets included in the amortization groups.

In particular, computers are excluded for the third group (property with the period of useful life from 3 to 5 years inclusive) and are included in the second group (property with the period of useful life from 2 to 3 years inclusive). Household instruments are transferred from the fourth group (property with the period of useful life from 5 to 7 years inclusive) to the third group. General-purpose trucks with the cargo capacity greater than 15 t are excluded from the sixth group (property with the period of useful life from 10 to 15 years inclusive) and included in the fifth group (property with the period of useful life from 7 to 10 years inclusive).

The classification of fixed assets by amortization groups is used to determine the period of useful life of the property taken into account in the calculation of amounts of amortization by the payers of the profit tax from organisations.

The Decision is entered into force form January 1, 2007.

Decision of the Government of the Russian Federation No. 698 of November 18, 2006 on the Amendments to Some of the Decisions of the Government of the Russian Federation on the Use of Lands of the Forest Fund

The Federal Law No. 154-FZ of July 27, 2006 amended the Forest Code of the Russian Federation envisaging opportunities of leasing parts of the forest fund for the purposes other than forest management or forest use, namely: geological surveys, prospecting and extraction of mineral reserves, as well as the pertinent construction works and operation of auxiliary objects, including the linear objects (for the period of such works, however, not greater than 99 years); for construction, reconstruction of electric power lines, communication lines, pipelines and other linear objects (for the period of construction, reconstruction, however, not greater than 99 years); for drilling works in the course of the regional geological investigation.

In this connection, appropriate changes are introduced in the leasing procedure for the parts of the forest fund and the rules of sale of stumpage wood.

The Decision extends the list of the types of use of forests permitting to lease the parts of the forest fund. The leasing of the parts of the forest fund for the purposes other than forest management and forest use is permitted without the forest contests on the basis of the Decision of the Federal Forestry Agency or the body of executive power of the subject of the Russian Federation in the presence of the positive statement of the state ecological expert evaluation for the documents substantiating activities planned on such parts of the forest fund. The Decision to lease the part of the forest fund is taken within 30 days from the date of receiving of the appropriate application with necessary documents from the interested party.

The amount of the rent when leasing the part of the forest fund for the purposes other than forest management and forest use is fixed taking into account the size of the land plot and the rates of payment per hectare of the part of the forest fund in use.

The lessees using the parts of the forest fund for the purposes other than forest management have the same rights and duties as the ones managing forests, except for the right to replace the land plot (part of the land plot) of the forest fund, increase its size or the right for an appropriate reduction of the rent because of the impairing condition of the part of the forest fund.

The Decision defines the procedure of allocation of cutting areas for felling and sale of stumpage wood used for the purposes other than forest management and forest use.

Decision of the Plenum of the Supreme Court of the Russian Federation No. 52 of November 16, 2006 on the Application by Courts of the Legislation Regulating Material Liability of Workers for the Damage on the Employer

The Supreme Court of the Russian Federation explains the particulars of application of the legislation regulating material liability of employees for the damage incurred on the employer when resolving appropriate disputes. Such cases fall in the jurisdiction of the justice of the peace, even if the lawsuit was filed by the employer after termination of the labour contract. The plaintiff is not exempted from the state duty.

The circumstances that are significant for the correct resolution of the case and that must be proved by the employer include in particular: absence of circumstances excluding material liability of the employee; illicit conduct (action or failure to act) of the person having incurred the damage; employee fault in incurring the damage; causal connection between the employee conduct and the occurred damage; presence of direst actual damage; amount of incurred damage; observation of the rules of concluding the contract of full material liability. Besides, if the employer proved the rightfulness of concluding the contract of full material liability with the employee and the presence of shortage with this employee, the latter must prove the absence of his fault in incurring the damage.

The court explained that the normal operational risk, which excludes opportunities of calling the employee to account, may include employee actions complying with the present-day knowledge and experience when the set goals could not be achieved otherwise, the employee fulfilled his duties appropriately displaying caution and care, took measures to prevent the damage, and the object of risk appeared to be material values rather than the life and health of people.

As to the procedure of calling the head of the organisation to account for material liability, the court emphasised in particular. Since the full material liability of the head of the organisation for the damage incurred on the organisation is envisaged in the law (Article 277 of the Labour Code of the Russian Federation), the employer may demand reimbursement of the damage in full amount regardless of whether or not the clause on the full material liability is included in the labour contract with this person.

When assessing the evidence confirming the amount of the damage incurred on the employer, the court must keep in mind that according to Part 1 of Article 246 of the Labour Code of the Russian Federation, in cases of loss and damage to the property, it is determined from the actual losses calculated proceeding from the market prices available in the given locality as of the day when the damage was incurred, however, not lower than the cost of the property according to accounting records taking into account the tear and wear of this property.

If it is impossible to specify the day when the damage was incurred, the employer may calculate the damage as of the day when it was revealed. If the amount of damage incurred on the employer has changed while the case was processed in court because of the growth or decrease of the market prices, the court may not satisfy the employer demand to reimburse the damage in a greater amount, or the employee demand to reimburse the damage in a lower amount as compared to the one determined as of the day when the damage occurred (was revealed), since the Labour Code of the Russian Federation does not provide such opportunity.

Pursuant to the adoption of this Decision, the court invalidated the Decision of the Plenum of the Supreme Court of the Russian Federation No. 1 of March 1, 1983 explaining similar issues.

Direction of the Central Bank of Russia No. 1738-U of October 30, 2006 on the Invalidation of the Regulation of the Bank of Russia No. 63-P of December 15, 1998 on the Procedure of Exchanging Cash to Natural Persons under the Decree of the President of the Russian Federation No. 822 of August 4, 1997 on the Change of the Nominal Value of the Russian Monetary Signs and the Scale of Prices

Invalidates the Regulation of the Bank of Russia No. 63-P of December 15, 1998 having regulated the procedure of exchanging to natural persons of cash of old type, circulation of which was terminated on the territory of the Russian Federation from January 1, 1999, for the banknotes and coins of the Bank of Russia of the specimen of 1997 to 2003.

The mentioned Regulation provided for the exchange in the period from January 1, 1997 to December 31, 2002 in the cash centres of the Bank of Russia of the banknotes of the Bank of Russia, the specimen of 1993 (including the modification of 1994), specimen of 1995 and the coins of the USSR and the Bank of Russia issued in 1961-1996, as well as the coins of the USSR of 1, 2 and 3 kopecks issued before 1961.

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 November 17, 2006. Reg. No. 8495.

Order of the Ministry of Regional Development of the Russian Federation No. 121 of October 19, 2006 on the Endorsement of the Instruction on the Procedure of Filling of the Form of the Permission to Put the Object in Operation

Endorses the Instruction on the procedure of filling of the permission to put the object in operation endorsed by the Decision of the Government of the Russian Federation No. 698 of November 24, 2005.

According to the City Planning Code of the Russian Federation, the permission to put the object in operation is a document certifying fulfilment of construction, reconstruction, capital repair of the object of capital construction in full amount in compliance with the permission for construction, compliance of the built, reconstructed, repaired object of capital construction with the development plan for the land plot and design documentation.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8477.

Order of the Ministry of Finance of the Russian Federation No. 126n of October 10, 2006 on the Endorsement of the Lists of Information Transferred by Automatic Means of Measurement and Registration of the Concentration and Volume of Anhydrous Alcohol in the Finished Products, the Volume of the Finished Products to the Technical Means of Registration and Transfer of Information on the Volume of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products to the Joint State Automatic Information System of Registration of the Volume of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

According to the Federal Law No. 102-FZ of July 21, 2005, from July 1, 2006, the main technological equipment for production of ethyl alcohol, alcoholic and alcohol-containing products must be outfitted with automatic means of measurement and registration of the concentration and volume of anhydrous alcohol in the finished products, the volume of the finished products. The mentioned automatic means must provide for the transfer of information to the technical means of registration and transfer of information on the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products to the Joint State Automatic Information System of Registration that must be used also to outfit the main technological equipment from February 1, 2007.

The means of measurement are subdivided into the types depending on the destination of the technological equipment where they are installed (production of ethyl alcohol, including the denatured one; production of alcoholic products (except for the wine); production of alcohol-containing edible products (except for the wine materials); production of non-edible alcohol-containing products; production of wine (except for the natural wine, including the sparkling wine, carbonated wine, champaign) and /or wine materials; production of natural wine, including the sparkling wine, carbonated wine, champaign).

The Order endorses the lists of information for each type of the means of measurement that must be transmitted to the technical means of registration and transfer of the Joint State Automatic Information System of Registration.

Any means of measurement must provide for the transfer of the following information: name of the means of measurement; its serial number; date and time of outfitting of the main technological equipment with the means of measurement; code of the type of products; working regime; date and time of stopping of the means of measurement; date and time of renewal of operation of the means of measurement.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8482.

Order of the Federal Fund of Obligatory Medical Insurance No. 134 of October 19, 2006 on the Amendments to the Order of the Federal Fund of Obligatory Medical Insurance No. 93 of December 31, 2004 on the Endorsement of the Procedure of Forming and Use of Resources of the Insurance Reserve out of Resources of Supplies of Medicines for Citizens

According to the Federal Law No. 178-FZ of July 17, 1997 on the state social aid, individual categories of citizens are entitled for the state social aid in the form of a set of social services that include also additional free medical aid envisaging among other things necessary medicines.

The financing of expenses to provide necessary medicines to citizens is provided at the expense of resources of the federal budget allocated by the Federal Fund of Obligatory Medical Insurance and transferred in the form of subventions to the territorial funds of obligatory medical insurance. If these resources are not sufficient, the insurance reserve is used.

The procedure of forming and use of resources of the insurance reserve includes provisions defining the procedure of decision taking to grant the resources of the insurance reserve to the territorial fund.

The given decision is taken by the Commission of the Federal Fund of Obligatory Medical Insurance for the Measures of Social Support of Individual Categories of Citizens on the basis of the request of the territorial fund submitted according to established form.

The Order also includes the list of documents forming an obligatory attachment to the request.

The Order invalidates the Order of the Federal Fund of Obligatory Medical Insurance No. 45 of April 27, 2005 having provided the earlier applied specimen of the request to finance expenses of social support to individual categories of citizens to provide necessary medicines at the expense of the insurance reserve.

Registered in the Ministry of Justice of the Russian Federation on November 15, 2006. Reg. No. 8475.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 256 of October 13, 2006 on the Endorsement of the Types of Power Stations with Differentiated Levels of the Maximum Economically Substantiated Expenses of Production of Electric Power (Regardless of the Power Source) Used to Identify the Cases of Manipulation of Prices at the Wholesale Market

In the transient period of reformation of the electric power industry, there is a system of identification of the cases of manipulation of prices for the electric power at the wholesale market.

When there are cases of manipulation of prices for electric power at the wholesale market by supplier, the total cost of the power rating for one or several estimate periods is reduced by the amount equal to the ratio of the cost of power sold by the supplier under regulated contracts in the appropriate estimate periods to the number of hours defined in the contract of connection to the trade system of the wholesale market.

The Order endorses the types of power stations with differentiated levels of the maximum economically substantiated expenses of production of electric power (regardless of the power source) used to identify the cases of manipulation of prices at the wholesale market.

The types are defined proceeding from the type of the power station (condensing power station, thermal power station, hydro power station, nuclear power station), types of sources of initial power used to produce electric power as the main or reserve fuel (gas, black oil, coal, peat, diesel fuel, hydro resources, nuclear fuel), pricing zone of the wholesale market of electric power in the transient period where the station is located.

Registered in the Ministry of Justice of the Russian Federation on November 17, 2006. Reg. No. 8508.

Decision of the Government of the Russian Federation No. 705 of November 21, 2006 on the Licensing of Activities in the Sphere of Geodesy and Cartography

Instead of the regulations earlier endorsed by the Decision of the Government of the Russian Federation No. 360 of May 28, 2002, introduces new regulations on the licensing of geodesic and cartography activities.

The regulations define the procedure of licensing of geodesic and cartography activities carried out by legal entities and/or independent entrepreneurs.

The regulations specify the licensing requirements to the license holders, license terms, specify the list of documents submitted to get the license and procedure of their checking, time limits for issue of copies of the license.

The Decision refines the earlier envisaged license prerequisite for carrying out geodesic and cartography activities pertaining to the level of education of the head of the legal entity requesting the license. It is necessary to have a higher professional or secondary professional education in geodesy or, respectively, cartography. The given prerequisite is considered fulfilled in the presence of the given education with the deputy head of the organisation or the head of the structural division of the legal entity.

The period of limitation of the license for geodesic and cartography activities makes 5 years as before, which may be prolonged.

The licensing of geodesic and cartography activities is vested in the Federal Agency of Geodesy and Cartography.

Where it pertains to geodesic works in oceans and seas for the sake of safety of navigation in general or creation of maps and hydrographical works to provide for the work of aviation and safety of general navigation, the mapping of the Antarctic, continental shelf of the Russian Federation, territories of foreign states and the World Ocean, including the creation of topographic and sea maps, the licensing is carried out in coordination with the Ministry of Defence of the Russian Federation.

Decision of the Government of the Russian Federation No. 673 of November 11, 2006 on the Endorsement of the Typical Concession Agreement for the Objects of Production, Transfer and Distribution of Electric and Thermal Power

To implement the Federal Law No. 115-FZ of July 21, 2005 on the concession agreements, works out a typical concession agreement for the objects of production, transfer and distribution of electric and thermal power

The concession agreement is a contract envisaging obligations of the independent entrepreneur or legal entity (concessionaire) to create and/or reconstruct at own expense immovable property, where the proprietary right belongs or will belong to the Russian Federation, subject of the Russian Federation or municipal formation (conceding party) and to carry out activities using the mentioned immovable property. The conceding party is obliged to grant to the concessionaire for a certain period of time the rights of possession and use of the object of the concession agreement to carry out the appropriative activities.

The typical agreement defines the following terms: the subject and object of the contract; the duties of the concessionaire to create and/or reconstruct the object of the agreement; procedure of granting land plots to the concessionaire; possession, use and disposal of the objects of property provided to the concessionaire; procedure of transfer of objects of property; procedure of operational activities carried out by the concessionaire; time limits and payments under the agreement and other terms.

The concession agreement for particular objects of production, transfer and distribution of electric and thermal power is concluded in compliance with the given typical agreement. It may include also other provisions not specified in the typical agreement, if they do not contradict the legislation of the Russian Federation.

Letter of the Federal Tax Service No. MM-6-21/1123@ of November 17, 2006 on the Calculation of the Rate of the Tax on Extraction of Mineral Resources for October 2006

In pursuance of the Federal Law No. 126-FZ of August 8, 2001, in the period from January 1, 2005 to December 31, 2006, the rate of the tax on extraction of mineral resources for oil amounts to Rbl 419 per ton and is applied with a coefficient characterising the dynamics of the world prices for oil - Kp.

The Letter provides information necessary for the calculation of the amount of tax by the taxpayer for October 2006.

Thus, with the average level of prices for the Urals oil of USD 54.65 a barrel and the average US dollar rate to the rouble for all days of the tax period of 26.8559, the Kp value is defined as 4.6972.

Taking this coefficient into account, the rate of the tax on extraction of mineral resources for oil has decreased nearly Rbl 158 as compared to the previous tax period to make Rbl 1968.1268 per ton.

Decision of the Government of the Russian Federation No. 702 of November 20, 2006 on the Endorsement of the Rules for the Federal Bodies of Executive Power to Determine the Reasons of Violation of Legislation on the City Planning Activities

The rules regulate the procedure of determination of the reasons of violation of the legislation on the city planning activities in cases of incurred damage on the life and health of natural persons, property of natural persons and legal entities in the course of construction, reconstruction, capital repair of objects using nuclear power (including nuclear plants, points of storage of nuclear materials and radio active substances), hazardous industrial objects, communication lines (including linear cable structures), other hazardous, technically complicated and unique objects, objects information of which comprises the state secret, defence and security objects.

The rules apply to relations that are not regulated by the legislation of the Russian Federation in the sphere of protection of population and territories against emergency situations, legislation of the Russian Federation on the safety of hydro technical structures and legislation of the Russian Federation on industrial safety of hazardous industrial objects, as well as the technical regulations.

To determine the reasons of violations, the Federal Service of Ecological, Technological and Nuclear Enforcement (Ministry of Defence of Russia for the objects of the military infrastructure of the Armed Forces of the Russian Federation) forms a technical commission to solve the following tasks: determination of the fact of the violation and its reasons; determination of the nature of incurred damage, its amount; determination of the causal connection between the violation of the legislation and the incurred damage, responsibility of persons; determination of measures to restore favourable conditions for human activities.

A statement is drawn up as a result of the work of the technical commission to be endorsed by the body of state construction enforcement.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-04/311 of November 13, 2006

Describes the procedure of payment of the incomes tax from natural persons, uniform social tax and insurance contributions for obligatory pension insurance from incomes of employees of separate divisions.

The parent organisation must pay the incomes tax from natural persons both at the place of its location and the place of location of the separate divisions, with the amount of tax from incomes obtained by employees of separate divisions being transferred to the budget at the place of location of separate divisions. Information on the incomes of natural persons - employees of both the parent organisation and the separate divisions - must be submitted by the parent organisation at the place of its registration.

If the organisation opens separate divisions on the territory of the Russian Federation that do not have a separate balance and payment account, the duty to pay the uniform social tax and insurance contributions for obligatory pension insurance, as well as submit appropriate estimates and declarations, rests with the parent organisation for the whole of it, including the above separate divisions, at the place of its location.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/2/235 of November 13, 2006

Provides explanations on the procedure of application from January 1, 2006 of the simplified system of taxation by the payers being participants in a contract of simple partnership (contract of joint activities) or a contract of trust control of property.

From January 1, 2006, the payers of the uniform tax being participants of the contract of simple partnership (contract of joint activities) or a contract of trust control of property must use as object of taxation incomes reduced by the amount of expenses. The payers having switched over to the simplified system of taxation from January 1, 2003 and having chosen incomes as object of taxation may change the object of taxation from January 1, 2006 while notifying of it the tax bodies no later than December 20, 2005.

If the taxpayer applied the simplified system of taxation with incomes as object of taxation from January 1, 2003, he could change the object of taxation for incomes less expenses from January 1, 2006 and be a participant of the simple partnership (contract of joint activities) or contract of trust control of property.

If the three-year term of application of the mentioned objects of taxation did not expire as of January 1, 2006 with the taxpayer being a participant of the contract of simple partnership (contract of joint activities) or a contract of trust control of property having chosen incomes as object of taxation, he must terminate from January 1, 2006 his participation in the contract of simple partnership (contract of joint activities) or the contract of trust control of property or switch over to the common taxation regime.

Federal Law No. 196-FZ of November 25, 2006 on the Amendments to the Federal Law on the State Pension Support in the Russian Federation

At present, a number of categories of citizens (including the invalids and participants of the Great Patriotic War) are entitled for two pension simultaneously. According to Article 2 of the Federal Law on the veterans, citizens awarded with the badge "Resident of Blockaded Leningrad" are included in the veterans of the Great Patriotic War.

The amendments provide for the right to get two pensions simultaneously for the given category of persons (the disability and the old-age pension), specify the amounts of the disability pension for the mentioned citizens.

Federal Law No. 195-FZ of November 25, 2006 on the Amendments to Article 6.2 of the Federal Law on the State Social Aid

The list of the set of social service provided to citizens include items of medical destination and specialised products of medicinal feeding for invalid children suffering from heavy diseases.

The law envisages providing medicines to individual categories of citizens prescribed by medical commissions of medical treatment and prevention institutions, however, not included in the list of medicines released to doctor (feldsher) prescription.

The Federal Law is entered into force from January 1, 2007.

Federal Law No. 194-FZ of November 25, 2006 on the Ratification of the Convention Revising the Seafarers' Identity Documents Convention of 1958 (Convention No. 185)

Ratifies the Convention revising the Convention of 1958 on the Seafarers' Identity Documents (Convention No. 185). The Convention has been adopted at the 91t session of the General Conference of the International Labour Organisation in Geneva on June 19, 2003.

The Convention envisages introduction of the sailor personal identification document containing biometric information of the holder, creation of the coordination centre working on the round-the-clock basis to confirm the authenticity of sailor identification documents to requests of immigration authorities of foreign states, as well as the keeping of the electronic database of issued identification documents.

Federal Law No. 193-FZ of November 25, 2006 on the Amendment to the Law of the Russian Federation on the Protection of Consumer Rights

Creates a legal basis for operative and timely regulation by the Government of the Russian Federation of relations at the consumer market to provide for the rights and legal interests of the subjects of trade, support home producers and provide a free access for them to the market, protect consumer rights, provide for foodstuff safety, satisfy the demand of the population of the Russian Federation for quality commodities, works, services.

The Government of the Russian Federation enjoys the authority of regulation of relations in the sphere of organisation of sale of commodities (carrying out works, rendering services) to consumers.

Federal Law No. 192-FZ of November 25, 2006 on the Amendment to Article 9 of the Federal Law on the Obligatory Insurance of Civil Liabilities of Owners of Transport Vehicles

Changes the procedure of fixing of coefficients forming part of insurance tariff rates applied by insurers in the determination of the insurance premium under the contract of obligatory insurance of civil liabilities of owners of transport vehicles.

In obligatory insurance for the cases of limited use of the transport vehicle envisaging driving a motor vehicle by only the drivers indicated by the insurant, the coefficients are fixed depending on the presence or absence of insurance payments made by insurers in the previous periods in the course of obligatory insurance of civil liabilities of each of these drivers.

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

Order of the Ministry of Transport of the Russian Federation No. 117 of September 25, 2006 on the Endorsement of the Procedure of Preparation of Proposals to Amend the List of Public-Use Highways of Federal Significance

Endorses the procedure regulating the procedure of preparation and processing of proposals to amend the list of public-use highways of federal significance in pursuance of the Decision of the Government of the Russian Federation No. 209 of April 11, 2006 on some issues pertaining to classification of highways in the Russian Federation.

Proposals to include in the list may only be introduced for the highways complying with the definition of the public-use highways of federal significance, and proposal to exclude from the list - when failing to comply with the given figures.

Proposals on the amendments to the list pertaining to the highway, highways, parts of highways are introduced by the bodies of state power of the subjects of the Russian Federation and the bodies of local government to the Federal Highway Agency. If the proposal is introduced by the body of local government, it must be coordinated with the executive body of state power of the subject of the Russian Federation. If the proposal is prepared for the highway passing over the territory of two or more subjects of the Russian Federation (two or more municipal formations), it is introduced jointly by the given bodies of power.

Proposals may also be introduced by the Federal Highway Agency to the Ministry of Transport of Russia at their own initiative in coordination with the owner of this highway, as well as for the new routes. The proposal must be coordinated with the executive body of state power of the subject of the Russian Federation.

The Order defines the requirements to information and documents submitted when introducing proposals.

The Federal Highway Agency may form a commission to process the proposals.

If a positive statement is adopted by the Federal Highway Agency as a result of examination of proposals, the Ministry of Transport of Russia shall prepare an appropriate draft decision of the Government of the Russian Federation on the basis of a motivated representation.

The Order provides the list of the reasons of refusal to satisfy the proposal.

The bodies of executive power of the subjects of the Russian Federation and the bodies of local government are recommended to use the given procedure as guidance while working out and endorsing appropriate procedures.

Registered in the Ministry of Justice of the Russian Federation on November 24, 2006. Reg. No. 8529.

Order of the Federal Service for Tariff Rates No. 297-e/12 of November 21, 2006 on the Endorsement of the Methodology Recommendations on the Determination of the Indicative Prices for Electric Power for the Buyers out of Subjects of the Wholesale Market of Electric Power to Make Regulated Contracts Concluded in the Appropriable Period of Regulation

Endorses the methodology recommendations defining the main provisions for the calculation of indicative prices for electric power for the buyers out of subjects of the wholesale market of electric power for the purpose of making regulated contracts concluded in the appropriate period of regulation.

The Directions are intended for use by the Federal Service for Tariff Rates of Russia and the buyers out of subjects of the wholesale market when generating the cost of the volumes of electric power purchased by the buyers in the framework of the regulated contract.

According to the Decision of the Government of the Russian Federation No. 109 of February 26, 2004, the indicative price for the electric power is a weighted mean of the cost of the unit of electric power calculated for the purpose of making regulated contracts at the wholesale market and used for the determination of the regulated tariff rates for electric power at the retail markets for the appropriate period of regulation.

The indicative prices are determined proceeding from the equality of the total cost of electric power bought by all subjects of the wholesale market and the cost of electric power supplied by all subject to the wholesale market at regulated tariff rates (prices).

The volumes of electric power included in the estimate of indicative prices are in correspondence of the total forecasted balance of production and supplies of electric power in the framework of the Joint Power Supply System of Russia by the subjects of the Russian Federation generated by the Federal Service for Tariff Rates of Russia.

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 regions.

Registered in the Ministry of Justice of the Russian Federation on November 24, 2006. Reg. No. 8528.

Order of the Federal Customs Service No. 1088 of November 1, 2006 on the Amendments to the Order of the State Customs Committee of Russia No. 388 of April 23, 2001

From January 1, 2007, introduces new rules of filling of the cargo customs declaration for the customs regime of release for free circulation of machines supplied in the form of individual components.

Pursuant to the introduction of new rules of filling of the cargo customs declaration and the transit declaration on the blank form stitched together as a set: "Cargo Customs Declaration/Transit Declaration (TD1)", "Cargo Customs Declaration/Transit Declaration (TD3)", additional sheets TD2 and TD4 endorsed by the Order of the Federal Customs Service of Russia No. 762 of August 11, 2006 entering into force from January 1, 2007, appropriate changes are introduced in the Instruction on the procedure of classification according to the Foreign Trade Commodity Nomenclature, customs registration and customs control of machines supplied in the form of individual components.

The mentioned Instruction defines the particulars of the procedure of classification, customs registration and control of equipment, mechanisms, installations, units or devices of Groups 84, 85, 90 of the Foreign Trade Commodity Nomenclature, except for machines intended for household application under the customs regime of release of commodities for free circulation.

The amendments pertain to the use and rules of filling for the mentioned purposes of the set "Cargo Customs Declaration/Transit Declaration (TD3)".

The Order is entered into force form the day of entry into force of the Order of the Federal Customs Service of Russia No. 762 of August 11, 2006.

Registered in the Ministry of Justice of the Russian Federation on November 24, 2006. Reg. No. 8526.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 4017/05 of October 24, 2006

The Presidium of the Higher Arbitration Court of the Russian Federation endorsed the accord concluded between the administration of the Airport of Domodedovo and the airport itself and pertaining to the terms of use of the property complex of the airport on the leasing basis. Earlier, the court of the federal district invalidated the lease contract for the property complex of the Airport of Domodedovo stating that the administration of the airport transferred the property in lease in violation of the special legal powers specified in its constituent documents. The Presidium, having found out that the Federal Agency for Federal Property Management agreed to the leasing of the property complex of the airport, recognised that the accord will not be in violation of the rights and legal interests of other parties.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 16916/05 of October 24, 2006

The Presidium of the Higher Arbitration Court of the Russian Federation revoked available court rulings and, having found significant violations of legislation during the contest, invalidated the decision of the contest commission having selected the developer investor to implement the project of construction of the new multifunction complex of buildings replacing the Rossia hotel.

According to Article 447 of the Civil Code of the Russian Federation, the trade organiser must be the owner of the property or the holder of the proprietary right or the specialised organisation. The specialised organisation acts on the basis of the contract with the owner of the property or the holder of the proprietary right and acts on their behalf or in its own name.

Since the contest involved an object belonging to several owners, therefore, the tenders involving their proprietary interests carried out without approval of all owners of such object are illegal. Moreover, the contest terms placed the duty to regulate proprietary relations with all interested parties in the contest winner when the latter did not have any legal relations with these parties.

The terms of the investment project and the contest documents envisaged emergence of the proprietary right for the newly created object with the city of Moscow and the investor in proportion of 49:51. The rights of other owners and the holders of title of the reconstructed object were ignored, which may result in violation of their rights and legal interests at the stage of implementation of the investment project.

Moreover, the issues of granting of the land plot for construction of the new multifunction complex of buildings as of the moment of tenders were note regulated according to the procedure specified in the law. In violation of the norms of the land legislation, the tenders for the sale of the land plot for construction of the new multifunction complex of buildings on the proprietary basis or for the sale of the right to conclude the contract of lease of the land plot were not envisaged in the contest documentation.

There were also violations pertaining to the choice of the winner of the contest, namely, the contest terms did not contain certain criteria permitting to select better proposals of its participants.

Under such circumstances, an arbitrary choice of the winner of the contest is not excluded, hence, the position of the courts of three instances stating that the court of arbitration may not process the issue of whether or not the winner of the contest was determined correctly is not in compliance with the law.

Decision of the Government of the Russian Federation No. 710 of November 22, 2006 on the Amendments to the Rules of Keeping of the Joint State Register of Rights for Immovable Property and Transactions with It

The amendments improve the procedure of registration, including a fuller protection of civil rights and legal interests of participants of the market of immovable property in compliance with the actual legislation.

In particular, the amendments take account of the procedure of entry of records in pursuance of the Federal Law No. 93-FZ of June 30, 2006 on the amendments to some of the legislative acts of the Russian Federation on the simplified procedure of registration of rights of citizens for individual objects of immovable property permitting notaries to act as applicants for the state registration of the right when they certify the transaction or another notary action.

Amendments are introduced in the procedure of entry of records at the registration of rights for objects forming part of the common property in an apartment house in compliance with provisions of the new Housing Code having excluded provisions on condominiums and included provisions on apartment houses.

Pursuant to the requirements of the Federal Law No. 214-FZ of December 30, 2004 on participation in shared construction of apartment houses and other objects of immovable property and on the amendments to some of the legislative acts of the Russian Federation, the rules are extended to include the norms pertaining to registration of rights for objects of shared construction.

The Decision refines the procedure of drawing up of the list of sections of the register including the additional sheets. Takes account of the interests of holders of rights in the presence of encumbrances pertaining to the emerged proprietary right. Special notes are used to enter records of incapacitated citizens, family members living together with the owner of the dwelling space, family members under guardianship or the underage having found themselves without parental support.

The Decision envisages the procedure of keeping of records for registration of the right of economic management or operative control for the state- or municipally-owned immovable property in cases of absence in the Joint State Register of Rights of the appropriate record of registration of the proprietary right, as well as the procedure of keeping of records pertaining to objects of unfinished construction, objects with different number of storeys, complicated objects, and for the registration of the right of common shared property for the land plot out of lands of agricultural destination.

The Decision also takes account of the procedure of entry of records for the registration of the rights for immovable property forming part of the shared investment fund, as well as the particulars of entry of records for the registration of the pledging of immovable property to secure the claims forming the mortgage coverage where the share in the common property is certified with the mortgage certificate of participation.

The rules are extended to include provisions pertaining to endorsement of records entered in the register by the recorder. Each record is certified with the signature of the recorder indicating his name and initials and the round seal rather than simply the signature of the recorder and the seal, as well as the date when the record is entered. When certifying the registration of rights and transactions, the records in the registration stamp on the documents are certified not only with the signature of the recorder as before, but also with the round seal.

Order of the Federal Service for Financial Markets No. 06-117/pz-n of October 10, 2006 on the Endorsement of the Regulation on the Information Disclosed by Issuers of Emission Securities

Regulates the composition, procedure and time limits of obligatory disclosing of information by the joint-stock company, disclosing of information at the stages of issue of emission securities, disclosing of information in the form of prospectus of securities, quarterly report of the issuer of securities and the reports of significant facts pertaining to financial and economic activities of the issuer, as well as specifies the requirements to the procedure of disclosing by issuers of other information of execution of issuer obligations and implementation of rights for the placed securities.

The Regulation applies to all issuers, including the foreign ones and international financial organisations whose securities are placed and/or are in circulation in the Russian Federation, except for the Central Bank of the Russian Federation and issuers of state and municipal securities.

Innovations include another procedure and time limits for publication of information at the stages of issue of securities. Thus, publication of information in the printed source remains obligatory at the stage of the state registration of the issue (additional issue) of securities. At the stage of decision taking to place, endorsement of the decision on the issue (additional issue), the information is published in the newsreel no later than 1 days after, and on the Internet page no later than 2 days after (earlier, 3 days after).

The Order also specifies the procedure of disclosing of information at the stages of issue of exchange-traded bonds, disclosing of information if there appears a stock-holder possessing at least 5% of ordinary stocks, as well as of any change when the share of ordinary stocks owned by a stock-holder becomes greater or lower than 5%, 10%, 15%, 20%, 25%, 30%, 50% or 75% of the placed ordinary stocks of the issuer.

The Order invalidates the Regulation on the information disclosed by issuers of emission securities endorsed by the Order of the Federal Service for Financial Markets of Russia No. 05-5/pz-n of March 16, 2005 and the Orders of the Federal Service for Financial Markets having amended it.

Registered in the Ministry of Justice of the Russian Federation on November 27, 2006. Reg. No. 8532.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-05/254 of November 17, 206

In the determination of the taxable base for the incomes tax from natural persons, the taxpayer is entitled for the property tax exemption in the amounts received during the tax period from the sale of dwelling homes, flats, land plots and shares in the mentioned property possessed by the taxpayer for less than 3 years, however, not greater than Rbl 1,000,000 on the whole. In this case privatised rooms in communal flats may be qualified as dwelling space the sale of which is covered by the tax exemption.

The Tax Code does not contain any restrictions pertaining to the repeated granting of the tax exemption for the sale of property that belonged to the taxpayer.

In the determination of the taxable base, the taxpayer is also entitled for the property tax exemption in the amount spent for the new construction or purchase of a dwelling home on the territory of the Russian Federation, flat or share (shares) in them. The list of objects covered by the mentioned exemption is closed and the rooms in a communal flat are not included in it.

According to the amendments to the Tax Code, from January 1, 2007, the rooms are included in the list of objects of immovable property the sale or purchase of which is covered by the property tax exemption. The appropriate provision will apply to transactions of purchase of dwelling space where expenses are made after January 1, 2007.

Decision of the State Duma of the Russian Federation No. 3779-4 GD of November 22, 2006 on the Main Directions of the Uniform State Monetary and Crediting Policy for the Year 2007

Envisages four options of forecasts of the balance of payments and their corresponding four options of the monetary program for the year 2007.

Option I has been worked out proceeding from the assumption that the average price for the Urals oil in 2007 will make USD 45 per barrel, option II - proceeding from the price of USD 61 per barrel, option III - USD 75 per barrel, option IV - USD 85 per barrel. All four options suggest that the net inflow of private capital will make USD 15 billion. Depending on the option, the surplus of the monetary base in 2007 will make from 16% to 24%. The surplus of money supply (aggregate M2) will make 19%-29%. Parameters of the monetary program may be refined according to the available macro economy situation.

By 2009, the level of inflation must be reduced to 4%-5.5%, with the goal for the year 2007 being reduction of inflation to 6.5%-8% from December to December.

Quantitative values of the possible increase of the real efficient rouble rate in 2007 lay in the wide range of: 0% to 10%. If close to the second option, the surplus of the real efficient rouble rate will make approximately 4%-5%. In case of a quick growth of world prices for oil, prices for other commodities exported by Russia, further increase of the net inflow of private capital, additional increase of regulated prices, additional expenses of the federal budget, the surplus of the real efficient rouble rate in 2007 may appear to be higher, approaching the upper boundary of the range.

The trend of dedollarization of the Russian economy will preserve. With significant drop of world prices for commodities exported by Russia, significant reduction of the inflow of private capital, the real efficient rouble rate in 2007 may remain at the level of the end of 2006.

The Decision is entered into force from the day of its adoption.