Monitoring of the Federal Legislation dated 16.06.2004

Federal Law No. 47-FZ of June 8, 2004 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Ukraine on the Settlement of Claims Having Emerged because of the Aerial Collision Occurred on October 4, 2001

Ratifies the Agreement on the settlement of claims having emerged because of the aerial collision occurred on October 4, 2001 signed in Moscow on December 26, 2003. Under the Agreement, Ukraine pays out to the Russian Federation a lumpsum settlement amount of USD 7,809,066.66 to be distributed between the relatives of the victims of the aerial collision.

Direction of the Central Bank of Russia No. 1437-U of June 7, 2004 on the Amendments to the Regulation of the Bank of Russia No. 205-P of December 5, 2002 on the Rules of Accounting Work in Credit Organisations Located on the Territory of the Russian Federation

The changes are introduced pursuant to the entry into force of the new Law on currency regulation and currency control having introduced new instruments of currency regulation: reservation and special bank accounts.

The chart of accounts in credit organisations is extended to include new Accounts 30227 "Resources of Clients Reserved for Currency Operations" (passive), 30228 "Amounts of Reservation for Currency Operations Transferred to the Bank of Russia" (active), 40818 "Special Bank Accounts of Non-Residents in the Currency of the Russian Federation" (passive) and 40819 "Special Bank Accounts of Residents in the Foreign Currency" (passive).

The Direction provides the description of the mentioned accounts.

The Direction is entered into force from June 18, 2004.

Registered in the Ministry of Justice of the Russian Federation on June 11, 2004. Reg. No. 5840.

Direction of the Central Bank of Russia No. 1445-U of June 11, 2004.

From June 15, 2004, the normative of obligatory reserves for attracted resources of legal entities in the currency of the Russian Federation and for attracted resources of legal entities and natural persons in foreign currencies is reduced from 9% to 7%. The normative of obligatory reserves for the monetary resources of natural persons attracted in deposits in the currency of the Russian Federation is preserved at the 7% level.

Direction of the Central Bank of Russia No. 1438-U of June 9, 2004 on the Invalidation of Individual Normative Acts of the Bank of Russia

Pursuant to the entry into force of the Federal Law on currency regulation and currency control invalidates a number of acts of the Bank of Russia on the particulars of transactions of non-residents with securities of Russian issuers in the currency of the Russian Federation and conversion transactions (Regulation of the Bank of Russia No. 68-P of March 23, 1999), procedure of sale by the Bank of Russia of foreign currency to banks authorised to open and keep special type S accounts and acting in their own name by the order and at the expense of non-resident investors (Regulation of the Bank of Russia No. 69-P of March 23, 1999).

The Direction is entered into force from the day of its official publication in the Herald of the Bank of Russia.

Letter of the Ministry of Taxation of the Russian Federation No. 24-2-02/410 of May 27, 2004 on the Motivated Request of the Tax Body Sent to the Bank

The Tax Code of the Russian Federation does not contain restrictions pertaining to requests to banks for information on operations of organisations and independent entrepreneurs as being sent in the framework of the tax checks only, as well as restrictions on the types of operations and periods permitting the tax bodies to request the mentioned information. However, the sending of requests of the tax bodies to credit organisations must be motivated as pertaining to tax control measures carried out with regard to the taxpayers (payers of fees, tax agents). If the motivation of the need to present appropriate information is not available in the request of the tax body or in case of inappropriate motivation other than the one pertaining to the goals and tasks of the tax bodies, as well as if the particular period of requested information is not indicated in the request, such requests must not be executed by the banks.

Letter of the Ministry of Taxation of the Russian Federation No. 09-1-02/1911 of April 29, 2004 on the Issue of the State Registration

At present, information on the opening (closing) of bank accounts of legal entities and independent entrepreneurs is submitted by credit organisations to the tax bodies twice (in pursuance of Item 1 of Article 86 of the Tax Code of the Russian Federation and Article 5 of the Federal Law No. 129-FZ of August 8, 2001 on the state registration of legal entities and independent entrepreneurs). The Letter explains that the given information, to avoid its replication, must be presented once to the tax body at the place of location of the legal entity, at the place of residence of the independent entrepreneur within five days from the moment of opening (closing) of the account.