Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 1.03.2004

Decision of the Government of the Russian Federation No. 113 of February 27, 2004 on the Procedure of Spending in 2004 by the Closed Administrative Territorial Formations of Subventions for the Implementation of Social Benefits and Guarantees Envisaged in the Federal Laws

Defines the procedure of spending in 2004 by closed administrative territorial formations of subventions allocated to finance expenses pertaining to the implementation of certain social benefits and guarantees. The subventions are provided by the Ministry of Finance of Russia on the basis of the summary budget list of the federal budget within the volumes of financing and the limits of budget obligations.

Decision of the Government of the Russian Federation No. 109 of February 26, 2004 on the Price Forming for Electric and Thermal Power in the Russian Federation

Endorses two documents: fundamentals of price forming for electric and thermal power in the Russian Federation and the rules of state regulation and application of tariff rates for electric and thermal power in the Russian Federation.

Defines the main principles and methods of regulation of tariff rates (prices) for electric and thermal power and for the appropriate services, as well as the reasons and procedure of fixing of such tariff rates.

The system of tariff rates (prices) includes tariff rates (prices) for electric power at the wholesale market and/or their limiting levels, tariff rates for electric and thermal power at the retail trade market, tariff rates and (amount of payment) for the services rendered in this sphere.

The Decision lists the types of activities where organisations engaged in the regulated activities must keep separate records. Three methods may be used in the regulation of tariff rates: method of economically substantiated expenses (spendings), method of economically substantiated profitability of invested capital and the method of indexing of tariff rates. Tariff rates and/or their limiting levels are entered into force from the beginning of the subsequent year for at least one year.

Decision of the Government of the Russian Federation No. 108 of February 26, 2004 on the Invalidation of the Acts of the Government of the Russian Federation on the Payment for the Use of the Objects of Fauna

Pursuant to the entry into force from January 1, 2004 of Chapter 25.1 "Fees for the Use of Objects of Fauna and for the Use of Objects of Aquatic Biological Resources" of the Tax Code of the Russian Federation, invalidates individual acts of the Government of the Russian Federation. In particular, invalidates Decisions No. 1251 of September 29, 1997 on the payment for the use of objects of fauna and its limiting amounts and No. 138 of February 8, 1999 on the limiting amounts of payment for the use of objects of fauna included in the objects of hunting removed from their habitat and No. 1 of January 4, 2000 on the limiting amounts of payment for the use of objects of fauna included in the objects of hunting prohibited from removal form their habitat without the license.

Decision of the Government of the Russian Federation No. 107 of February 25, 2004 on the Endorsement of the Regulation on the Licensing of Activities in the Sphere of Use of Sources of Ionising Radiation

Defines the procedure and terms of licensing of design works, production, installation, operation, technical maintenance, storage and utilisation of the sources of ionising radiation, as well as design works, production and operation of the means of their radiation protection. The endorsed Regulation does not apply to activities pertaining to development, production, testing, operation and utilisation of nuclear weapons and nuclear power units of military destination. The licensing is vested in the Ministry of Public Health of Russia. The license is granted for 5 years. Consideration of the application for the license is charged at Rbl 300, the issue of the license - at Rbl 1,000. The charge for the excerpt from the register of licenses is Rbl 10, for the redrawing of the license - Rbl 100.

The earlier issued licenses preserve their force until expiry.

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