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 10.03.2004

Decree of the President of the Russian Federation No. 314 of March 9, 2004 on the System and Structure of the Federal Bodies of Executive Power

Creates a three-level system of the federal bodies of executive power including the federal ministries, federal services and federal agencies. The federal services and federal agencies shall be managed by the federal ministries.

Dissolves 13 ministries, 2 committees, 1 commission, 4 services and 4 agencies. Forms 42 new bodies of executive power getting the functions of the abandoned ones.

The ministries, in contrast to services and agencies, shall enjoy the authority to adopt normative legal acts. However, the ministries may not implement the functions of control and enforcement, judicial functions, as well as the functions in state property management except for the cases specified in the decrees of the President of the Russian Federation. The federal services shall implement the functions of control and enforcement, as well as the special functions in the sphere of defence, state security, protection of the state border, combating crime, public safety. Federal services and federal agencies may issue individual legal acts within their sphere of reference.

Federal agencies shall implement the functions in the rendering of state services, in state property management and judicial functions except for the functions of control and enforcement.

The Decree is entered into force from the day of its official publication with exceptions.

Federal Law No. 11-FZ of March 5, 2004 on the Amendment to the Federal Law on Executive Proceedings

Prohibits levy of execution for the debts of a professional participant of the securities market for the monetary resources of its clients available on a separate bank account (accounts) opened in a credit organisation.

The Law institutes the duty of the broker in cases of levy of execution for the client property to stop immediately operations with his monetary resources in the amount necessary for execution of the writ of execution, as well as to provide information on the client monetary resources within three days from the day of receiving of the tipstaff request.

Federal Law is published in Rossiyskaya Gazeta on March 10, 2004. No. 47.

Federal Law No. 10-FZ of March 5, 2004 on the Amendments to the Federal Law on the Fundamentals of Obligatory Social Insurance Pursuant to the Introduction of the Uniform Social Tax

Specifies that relations pertaining to the fixing and payment of obligatory social insurance fees, control over their payment, appealing against the actions (failure to act) of officials, calling to account of the delinquents shall also be regulated by the legislation of the Russian Federation on taxes and fees. Therefore, the Law shall also apply to other categories of citizens paying insurance contributions and/or taxes, or being paid for, with resources allocated to finance specific types of obligatory social insurance.

Excludes the provision stating that insurance contributions from employees with the amount of earnings below the cost of living specified in the legislation of the Russian Federation are not collected and are transferred for them by the employer insurant.

The Federal Law is published in Rossiyskaya Gazeta on March 10, 2004. No. 47.

Federal Law No. 9-FZ of March 5, 2004 on the Amendment to Article 16 of the Law of the Russian Federation on Education

The benefit to admit beyond the contest to the state and municipal institutions of the secondary professional and higher professional education (in cases of a successful passing of the entrance examinations) shall also apply to the persons up to 23 years of age out of orphan children and children without parental support.

The Federal Law is entered into force from the day of its official publication. The Federal Law is published in Rossiyskaya Gazeta on March 10, 2004. No. 47.

Federal Law No. 8-FZ of March 5, 2004 on the Invalidation of Individual Provisions of the Acts of Legislation of the Russian Federation on Outer Space Activities

Invalidates the requirements on obligatory ratification of all international treaties in the sphere of outer space activities. Thus, all categories of international treaties of the Russian Federation in the sphere of outer space activities are subject to the norms of Article 15 of the Federal Law on international treaties of the Russian Federation.

The Federal Law is entered into force from the day of its official publication. The Federal Law is published in Rossiyskaya Gazeta on March 10, 2004. No. 47.

Federal Law No. 7-FZ of March 5, 2004 on the Ratification of the Agreement between the Member-States of the Shanghai Organisation of Cooperation on the Regional Anti-Terrorist Structure

Ratifies the Agreement signed in St.Petersburg on June 7, 2002. The document institutes the Regional Anti-Terrorist Structure of the Shanghai Organisation of Cooperation with the headquarters in Bishkek. The Regional Anti-Terrorist Structure is a permanent body and is intended to assist coordination and interaction of the competent bodies of the parties in combating terrorism, separatism and extremism.

The Federal Law is published in Rossiyskaya Gazeta on March 10, 2004. No. 47.

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