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Monitoring of the Federal Legislation dated 28.11.2006

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.

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