Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 30.07.2004

Federal Law No. 59-FZ of June 29, 2004 on the Creation and Abolishment of Some of the Garrison Military Courts

Creates the Budyonnovsk and Nalchik Garrison Military Courts and defines the territories of their jurisdiction. Abolishes the Bataysk, Kansk, Olga, Petropavlovsk-Kamchatski, Tiksi Garrison Military Courts, as well as the 54th and the 64 Garrison Military Courts.

The Federal Law is entered into force from the day of its official publication except for individual provisions entered into force from the day of assigning to their positions of the judges of the Budyonnovsk and the Nalchik Garrison Military Courts.

Federal Law No. 58-FZ of June 29, 2004 on the Amendments to Some of the Legislative Acts of the Russian Federation and Invalidation of Some of the Legislative Acts of the Russian Federation As the State Management Improvement Measures

In view of implementation of state management improvement measures, amends more than 70 legislative acts. The changes are aimed at creation of the legislative basis of the reformation of the federal bodies of executive power in charge of the taxes and fees, labour and employment, technical and export control, state registration, execution of punishments and the customs affairs.

Specifies, in particular, that the Federal Tax Service is a successor of the abandoned Federal Service of Russia for Financial Rehabilitation and Bankruptcy in all legal relations pertaining to representation of interests of the Russian Federation in bankruptcy proceedings. Defines that the customs bodies shall act as currency control agents.

The Federal Law is entered into force from the day of its official publication except for Articles 54 and 62 (changes in the Tax Code of the Russian Federation) to be entered into force one month after the day of its official publication. Item 4 of Article 62 shall not apply before January 1, 2005 inasmuch as it envisages coordination of the forms of settlement letters with the Ministry of Finance of Russia.

Decision of the Government of the Russian Federation No. 316 of June 28, 2004 on the Endorsement of the Regulation on the Federal Agency of Nuclear Power

The Federal Agency of Nuclear Power is an authorised federal body of executive power in charge of the state policy, normative-and-legal regulation, rendering of state services and state property management in the sphere of use of nuclear power, development and safe functioning of the nuclear power industry, nuclear armaments complex, nuclear fuel cycle, nuclear science and technologies, nuclear and radiation safety, non-proliferation of nuclear materials and technologies, as well as international cooperation in this sphere. The management of the activities of the Federal Agency of Nuclear Power is vested in the Government of the Russian Federation.

The Federal Agency of Nuclear Power shall continue temporarily the licensing of activities of legal entities in the use of radio active materials (nuclear materials and radio active substances) when carrying out works for defence purposes, including the development, production, testing, transportation, operation, storage, elimination and utilisation of nuclear weapons and nuclear power plants of military destination.

Decision of the Government of the Russian Federation No. 315 of June 28, 2004 on the Endorsement of the Regulation on the Ministry of Agriculture of the Russian Federation

The Ministry of Agriculture of Russia is a federal body of executive power in charge of the working out of the state policy and normative-and-legal regulation in the sphere of the agroindustrial complex, including the animal breeding, veterinary, plant growing, plant quarantine measures, land improvement, soil fertility, regulation of the market of agricultural raw materials and foodstuffs, foodstuff and processing industry, production and circulation of ethyl alcohol from edible and non-edible raw materials, alcohol-containing, alcoholic and tobacco items, stable development of agricultural territories, as well as the sphere of fishing, production on the vessels of the fishing fleet and in the sea ports, protection, investigation, preservation, reproduction and use of objects of fauna qualified as objects of hunting, water biological resources and their habitat.

The Ministry of Agriculture of Russia shall coordinate and control the activities of supervised by it Federal Service of Veterinary and Phytosanitary Enforcement, Federal Fishery Agency and the Federal Agency of Agriculture.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 77 of June 21, 2004

Describes the issues pertaining to execution by tipstaff services of the acts of courts of arbitration.

Explains, in particular, that if the joint proceedings combine execution of a writ of execution of the court of general jurisdiction and a writ of execution of the court of arbitration, applications challenging the actions of the tipstaff service pertaining to execution of the mentioned writs of execution shall be processed by the court of general jurisdiction.

Emphasises, that the person not being a participant of the proceedings may appeal against the actions of the tipstaff service in court if he supposes that such actions violate the rights and legal interests of the applicant.

Applicant cassation appeal against the decision of the court of arbitration having entered into legal force may not prevent from initiation of executive proceedings if the execution of the judicial act is not suspended by the cassation court.

The tipstaff, when executing the writ of execution of the court, may demand from the bank information on available monetary resources on the accounts of his debtor clients within the amount due for collection under the writ of execution.

Decision of the Government of the Russian Federation No. 320 of June 30, 2004 on the Endorsement of the Regulation on Federal Agency of Communication

The Federal Agency of Communication is a federal body of executive power in charge of the state property management and rendering of state services in the sphere of tele- and postal communication, including the creation, development and use of communication networks, satellite communication systems, TV and radio broadcasting systems. The Federal Agency of Communication is supervised by the Ministry of Information Technologies and Communication.

Decision of the Government of the Russian Federation No. 319 of June 30, 2004 on the Endorsement of the Regulation on the Federal Agency of Information Technologies

The Federal Agency of Information Technologies is a federal body of executive power in charge of the state property management and rendering of state services in the sphere of information technologies, including the use of information technologies to build state information resources and provide access to them. The Federal Agency is an authorised federal body of executive power in the sphere of use of electronic digital signature. The Federal Agency is supervised by the Ministry of Information Technologies and Communication.

Decision of the Government of the Russian Federation No. 318 of June 30, 2004 on the Endorsement of the Regulation on the Federal State Service of Supervision in the Sphere of Communication

The Federal Service of Supervision in the Sphere of Communication is a federal body of executive power in charge of control and supervision in the sphere of information technologies and communication. The Federal Service is supervised by the Ministry of Information Technologies and Communication. The Federal Service shall license activities in the sphere of communication services, international exchange of the federal information resources and the joint information resources of the Russian Federation and its subjects, activities of the centres of certification of the electronic digital signature, as well as control of observance of available license requirements and terms.

Decision of the Government of the Russian Federation No. 317 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Financial Markets

The Federal Service of Financial Markets is a federal body of executive power in charge of the adoption of the normative legal acts, control and supervision in the sphere of financial markets (except for the insurance, bank and audit activities). The management of the Federal Service of Financial Markets is vested in the Government of the Russian Federation. The Federal Service shall license professional activities at the securities market, activities of non-state pension funds, joint-stock investment funds, activities in the management of investment funds, shared investment funds and non-state pension funds, as well as activities of the specialised depositaries of investment funds, shared investment funds and non-state pension funds.

Order of the State Customs Committee of the Russian Federation No. 646 of June 7, 2004 on the Endorsement of the Regulation on the Certification of Experts

Defines the requirements to the certification of the experts of the Central Expert and Criminalistics Customs Department and the expert and criminalistics services of the regional customs departments wishing to carry out independently expert evaluation in the customs sphere.

Registered in the Ministry of Justice of the Russian Federation on June 30, 2004. Reg. No. 5879.

Letter of the Ministry of Public Health and Social Development of the Russian Federation No. 01/52-04-32 of June 15, 2004

Explains that the normatives of the area of the apothecary organisations envisaged in the Industry Standard 915000.05.0007-2003 "Rules of Sale of Medicines in Apothecary Organisations. Main Provisions" are not of obligatory nature and may not apply in the licensing of pharmacy activities. Emphasises that the regulation of the normatives of the area of the apothecary organisations at present is an unmotivated and inexpedient administrative barrier preventing from efficient work and development of the pharmacy industry.

Federal Law No. 62-FZ of June 30, 2004 on the Amendments to Article 217 of Part 2 of the Tax Code of the Russian Federation

Exemption from the income tax for natural persons applies to awards in the monetary form and/or in kind received by sportsmen and invalid sportsmen at paralympic games and the world chess olympiads.

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

Federal Law No. 61-FZ of June 30, 2004 on the Amendment to Article 32 of the Law of the Russian Federation on Education

The sphere of reference of the state educational institutions does not include now opportunities of getting and using bank credits, which is in compliance with Article 118 of the Budget Code of the Russian Federation. Non-state educational institutions still enjoy this opportunity.

Federal Law No. 60-FZ of June 30, 2004 on the Amendments to Article 29 of Part 2 of the Tax Code of the Russian Federation

Amends individual articles of Chapter 29 of the Tax Code of the Russian Federation "Gambling Tax" defining objects of taxation, procedure of calculation of the tax and the time limits for payment. Specifies that each object of taxation must be registered in the tax body at the place of installation. Earlier, the given objects were registered at the place of registration of the taxpayer. Taxpayers not registered in the tax bodies on the territory of the subject of the Russian Federation where the object of taxation is installed must register in the tax bodies at the place of its installation no later than two working days in advance of the date of such installation.

The tax declaration, respectively, for the expired tax period must be submitted at the place of registration of the objects of taxation rather than the place of registration of the taxpayer.

The Federal Law is entered into force from January 1, 2005 except for the provisions refining the procedure of calculation of the tax to be entered into force one month after the day of official publication of the Federal Law, however, no sooner than the 1st of the subsequent tax period for the gambling tax.

Direction of the Central Bank of Russia No. 1442-U of June 11, 2004 on the Amendments to the Regulation of the Bank of Russia No. 2-P of October 3, 2002 on Cashless Payments in the Russian Federation

Provides a new working for the chapters regulating the procedure of payments under the letters of credit, as well as the procedure of work with the letters of credit in the issuing bank and the executing bank. Provides a new wording for the Form 0401065 "Register of Accounts".

Emphasises that the letter of credit is a separate and independent tool as regards the main contract. Specifies the duty of the issuing bank in cases of change of terms or revocation of the revocable letter of credit to send an appropriate notification to the recipient of the resources no later than the working day following the day of the change of the terms or revocation of the letter of credit.

Having received the letter of credit, the executing bank must report it immediately to the recipient of the resources using the method agreed with him followed by subsequent confirmation in writing drawn up in free form no later than the working day following the day of receiving of the letter of credit from the issuing bank. If the executing bank is not the one servicing the recipient of the resources, the executing bank may report to the recipient of the resources the receiving of the letter of credit via the bank of the recipient of the resources.

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 June 30, 2004. Reg. No. 5880.

Decision of the Government of the Russian Federation No. 336 of July 2, 2004 on the Endorsement of the Regulation on the State Commission for Radio Frequencies

The State Commission for Radio Frequencies is an interagency coordinating body operating under the auspices of the Ministry of Information Technologies and Communication and regulating on the collegiate basis the use of radio frequency range in the Russian Federation.

Decision of the Government of the Russian Federation No. 325 of June 30, 2004 on the Endorsement of the Regulation on the Federal Agency of Public Health and Social Development

The Federal Agency of Public Health and Social Development is a federal body of executive power in charge of the rendering of state services and state property management in the sphere of public health and social development including the rendering of medical aid, services in resort affairs, organisation of forensic medical and psychiatric examinations, prosthetic aid, rehabilitation of invalids, social guarantees specified in the legislation of the Russian Federation for socially unprotected categories of citizens, social services to the population, sociomedical examination, blood donation, transplantation of human organs and tissues. The Federal Agency is supervised by the Ministry of Public Health and Social Development.

Decision of the Government of the Russian Federation No. 324 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Labour and Employment

The Federal Service of Labour and Employment is a federal body of executive power in charge of control and supervision in the sphere of labour, employment and alternative civil service, rendering of state services in assisting population employment and protection against unemployment, labour migration and regulation of collective labour disputes. The Federal Service is supervised by the Ministry of Public Health and Social Development.

Decision of the Government of the Russian Federation No. 323 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Supervision in the Sphere of Public Health and Social Development

The Federal Service of Supervision in the Sphere of Public Health and Social Development is a federal body of executive power in charge of control and supervision in the sphere of public health and social development. The Federal Service is supervised by the Ministry of Public Health and Social Development. The Federal Service shall license medical, pharmacy activities, activities in the rendering of prosthetic aid, production of medicines and medical equipment. The Federal Service shall also issue permissions for the application of new medical technologies, import and export of medicines.

Order of the State Customs Committee of the Russian Federation No. 707 of June 21, 2004 on the Invalidation of Some of the Legal Acts of the State Customs Committee of Russia

Invalidates the Order of the State Customs Committee of Russia No. 358 of March 24, 2004 on the places of declaring of commodities classified under Heading 33 of the Foreign-Trade Commodity Nomenclature of Russia with amendments.
The Order is entered into force from the day of its official publication.
Registered in the Ministry of Justice of the Russian Federation on July 1, 2004. Reg. No. 5883.

Decision of the Higher Arbitration Court of the Russian Federation No. 4091/04 of May 28, 2004

The applicant challenged provisions of Paragraph 36 of Section "Procedure of Filling of the Declaration (Lines 0100-1100)". The Instruction on the filling of the tax declaration for the uniform social tax for the persons making payments to natural persons: organisations, independent entrepreneurs, natural persons not recognised as independent entrepreneurs (Appendix 2 to the Order of the Ministry of Taxation of Russia No. BG-3-05/550 of October 9, 2002 in the wording of December 24, 2003) and Paragraph 41 of Section "Procedure of Filling of Section 2 "Estimation of Advance Payments for the Uniform Social Tax" of the procedure of filling of the estimate of advance payments for the uniform social tax for the persons making payments to natural persons; organisations, independent entrepreneurs, natural persons not recognised as independent entrepreneurs (Appendix 2 to the Order of the Ministry of Taxation of Russia No. BG-3-05/722 of December 29, 2003).

The Higher Arbitration Court of the Russian Federation recognised the challenged provisions as complying with Article 239 of the Tax Code of the Russian Federation, since the given Article does not envisage reduction of the taxable base by the payments made to the mentioned categories of employees. The applicant's argument stating that the amount of the tax exempted by Article 239 of the Tax Code of the Russian Federation must be calculated at the 28% rate without its reduction by the amount of insurance payments for obligatory pension insurance from payments and other rewards less than Rbl 100,000 within the estimate period per employee begin group I, II or III invalid was not taken into account, since this would mean application of the given benefit also to insurance contributions for obligatory pension insurance.

Decision of the Government of the Russian Federation No. 322 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Supervision in the Sphere of Protection of Consumer Rights and Human Welfare

The Federal Service of Supervision in the Sphere of Protection of Consumer Rights and Human Welfare is an authorised federal body of executive power in charge of control and supervision in the sphere of sanitary and epidemiological well-being of the population, protection of consumer rights and the consumer market. The Federal Service is supervised by the Ministry of Public Health and Social Development. The Service shall license activities pertaining to the use of infecting agents, as well as activities in the sphere of use of sources of ionising radiation.

Decision of the Government of the Russian Federation No. 321 of June 30, 2004 on the Endorsement of the Regulation on the Ministry of Public Health and Social Development of the Russian Federation

The Ministry of Public Health and Social Development of the Russian Federation is a federal body of executive power in charge of the working out of the state policy and normative-and-legal regulation in the sphere of public health, social development, labour, physical culture, sports, tourism and protection of consumer rights, including organisation of medical prevention work, in particular, infectious diseases and AIDS, medical aid and medical rehabilitation, pharmacy activities, quality, efficiency and safety of medicines, sanitary and epidemiological well-being, living conditions and incomes of the population, demographic policy, medical and sanitary support of the workers of individual industries featuring specially hazardous working conditions, medical and biological assessment of impact on the human body of specially hazardous factors of physical and chemical nature, resort affairs, labour remuneration, pension support, including the non-state pension support, social insurance, labour safety and working conditions, social partnership and labour relations, population employment and unemployment, labour migration, alternative civil service, state civil service (except for the labour remuneration issues), social protection of population including the social protection of the family, women and children.

The Ministry shall coordinate and control activities of supervised by it Federal Service of Supervision in the Sphere of Protection of Consumer Rights and Human Welfare, Federal Service of Supervision in the Sphere of Public Health and Social Development, Federal Service of Labour and Employment, Federal Agency of Public Health and Social Development, Federal Agency of Physical Culture, Sports and Tourism, as well as coordination of activities of the Pension Fund, Social Insurance Fund and the Federal Fund of Obligatory Medical Insurance.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-21/368@ of June 15, 2004 on the Endorsement of the Form of Information of the Received License (Permission) for the Use of Objects of Water Biological Resources, Amounts of the Fee for the Use of Objects of Water Biological Resources Due for Payment in the Form of a Single and Regular Payments

In pursuance of Chapter 25.1 of the Tax Code of the Russian Federation "Fees for the Use of Objects of Fauna and for the Use of Objects of Water Biological Resources" endorses the form of the information on the received license (permission) for the use of objects of water biological resources, amounts of the fee for the use of objects of water biological resources due for payment in the form of a single and regular payments (KND Form 1110005).

Registered in the Ministry of Justice of the Russian Federation on July 1, 2004. Reg. No. 5886.

Order of the Federal Service of Financial Markets No. 04-22/pz-n of June 29, 2004 on Some Issues of Activities in Organisation of Trade and Clearing Activities at the Securities Market

Specifies the requirements organisers of trade (including the stock exchanges) and clearing organisations are ordered to bring in compliance their activities with before January 1, 2005. Specifies, in particular, that inclusion of securities in quotation lists, as well as the rendering of services assisting transactions with obligations depending on the change of prices for securities or on the change of indices calculated proceeding from the multitude of prices for securities (stock indices), including the transactions envisaging exclusively the duty of the parties to pay depending on the change of prices for securities or the change of stock indices, may be done by the stock exchanges only.

The Order is entered into force from June 30, 2004.

Registered in the Ministry of Justice of the Russian Federation on June 30, 2004. Reg. No. 5882.

Direction of the Central Bank of Russia No. 1469-U of June 30, 2004 on the Invalidation of Individual Normative Acts of the Bank of Russia

Invalidates the Direction of the Bank of Russia No. 1062-U of December 7, 2001 on the procedure of import by the authorised banks to the Russian Federation of the euro currency notes in cash before the euro notes and coins are introduced for circulation in the countries of the European Economic and Currency Union.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

The text of the Direction has been published in the Herald of the Bank of Russia on July 7, 2004, No. 39.

Direction of the Central Bank of Russia, Ministry of Finance of the Russian Federation, State Customs Committee of the Russian Federation No. 1464-U, 55n, 01-10/12 of June 29, 2004 on the Invalidation of the Regulation of the Bank of Russia, Ministry of Finance of Russia and the State Customs Committee of Russia No. 02-29/36, No. 11-05-02 and No. 01-20/10075 of October 6, 1993 (Respectively) on the Procedure of Export and Delivery from the Russian Federation and Import and Delivery to the Russian Federation of the Currency of the Russian Federation

Invalidates the Regulation of the Bank of Russia, Ministry of Finance of Russia and the State Customs Committee of Russia No. 02-29/36, No. 11-05-02 and No. 01-20/10075 of October 6, 1993 on the procedure of export and delivery from the Russian Federation and import and delivery to the Russian Federation of the currency of the Russian Federation.

The Direction is entered into force 10 days after the day of its official publication.

The text of the Direction has been published in the Herald of the Bank of Russia on July 7, 2004, No. 39.

Direction of the Central Bank of Russia, State Customs Committee of the Russian Federation No. 1462-U, 01-10/10 of June 29, 2004 on the Invalidation of Individual Normative Legal Acts

Invalidates the Regulation of the Bank of Russia and the State Customs Committee of Russia No. 13 of April 19, 1993 and No. 01-20/3371 of April 14, 1993 on the procedure of import to the Russian Federation and export from the Russian Federation of foreign currencies and securities in foreign currencies by the authorised banks and the Regulation of the Bank of Russia and the State Customs Committee of Russia No. 324 of September 5, 1996 and No. 01-23/16099 of September 4, 1996 on the procedure of information exchange and submission of documents when importing, exporting and delivering the currency of the Russian Federation.

The Direction is entered into force 10 days after the day of its official publication.

The text of the Direction has been published in the Herald of the Bank of Russia on July 7, 2004, No. 39.

Direction of the Central Bank of Russia, Ministry of Finance of the Russian Federation No. 1460-U, 54n of June 29, 2004 on the Invalidation of Some of the Normative Acts

Invalidates the Letter of the Bank of Russia and the Ministry of Finance of Russia No. 124 of December 7, 1994 and No. 160 of December 6, 1994 on the import to the Russian Federation by the authorised banks of traveller's cheques of foreign issuers and the Letter of the Bank of Russia and the Federal Service of Russia for Currency and Export Control No. 29-T and No. 01-26/183 of January 19, 1999 on the additional measures to enhance control over observation of the procedure of obligatory sale of the export currency receipts received in the Russian Federation.

The Direction is entered into force 10 days after its official publication. The text of the Direction has been published in the Herald of the Bank of Russia No. 39 of July 7, 2004.

Telegram of the Central Bank of Russia No. 75-T of July 2, 2004

Fixes the rouble equivalents of the registered capital for the created banks regardless of the share of participation of foreign capital in them (at least Rbl 176,457,500), for the created non-bank credit organisations (at least Rbl 17,654,750), own resources (capital) for the operating credit organisations requesting the general license for bank operations (at least Rbl 176,457,500) and for non-bank credit organisations requesting the status of a bank (at least Rbl 176,457,500) for the III quarter of 2004.

Decision of the Government of the Russian Federation No. 340 of July 6, 2004 on the Endorsement of the Regulation on the Commission of the Government of the Russian Federation for the Agroindustrial and Fishery Complex

The Commission of the Government of the Russian Federation for the Agroindustrial and Fishery Complex is a coordinating body formed to provide for the coordinated actions of the interested federal bodies of executive power in the sphere of the agroindustrial and fishery complex, as well as the stable development of rural territories.

Decision of the Government of the Russian Federation No. 338 of July 5, 2004 on the Measures to Implement the Federal Law on the Lotteries

The working out of the state policy and normative-and-legal regulation of the lottery activities is vested in the Ministry of Finance of Russia. The issue of permissions to arrange all-Russia lotteries, examination of notifications of the arranged incentive lotteries, the keeping of the state registers of lotteries, as well as control over them is vested in the Federal Tax Service.

The Decision defines the rules of keeping of the state registers, rules of preparation and submission of the documents to get permissions to arrange all-Russia state lotteries. Lists information of the arranged lotteries to be presented by the lottery organiser and/or operator to the Federal Tax Service.

Decision of the Government of the Russian Federation No. 330 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Insurance Supervision

The Federal Service of Insurance Supervision is a federal body of executive power in charge of control and supervision in the sphere of insurance activities. The Federal Service is supervised by the Ministry of Finance. The Federal Service shall control and supervise insurer work aimed at providing financial stability and solvency inasmuch as it pertains to the building of insurance reserves, composition and structure of assets accepted to cover insurance reserves, quotas for reinsurance, normative correlation of own resources of the insurer and assumed obligations.

The Service shall also license the subjects in the insurance sphere except for the insurance actuaries.

Decision of the Government of the Russian Federation No. 328 of June 30, 2004 on the Endorsement of the Regulation on the Federal Agency of Agriculture

The Federal Agency of Agriculture is a federal body of executive power in charge of the rendering of state services, state property management in the sphere of the agroindustrial complex, including the animal breeding, plant growing, land improvement, soil fertility, regulation of the market of agricultural raw materials and foodstuffs, foodstuff and processing industry, production and circulation of ethyl alcohol from edible and non-edible raw materials, alcohol-containing, alcoholic and tobacco items, as well as veterinary and plant quarantine measures, protection, investigation, reproduction and use of objects of fauna qualified as objects of hunting. The Federal Agency is supervised by the Ministry of Agriculture.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-01/356@ of June 7, 2004 on the Endorsement of the Procedure and Time Limits of Submission to the Tax Bodies by the Investor under a Product Sharing Agreement of the Documents of Exemption from the Property Tax from Organisations for the Property Used Exclusively for the Activities Envisaged in the Product Sharing Agreement

The procedure applies to the Russian and foreign legal entities being investors under product sharing agreements having notified the tax bodies of the application of the special tax regime specified in Chapter 26.4 of the Tax Code of the Russian Federation. The documents presented by the investor to the tax bodies to exempt from the property tax from organisations for the property used exclusively for the activities envisaged in the product sharing agreement are submitted to the tax body at the place of registration of the investor together with the tax estimate of the advance payment for the property tax from organisations for the first reporting period of the tax period where the exemption from the property tax applies.

The Order provides the forms of registers of fixed assets, non-material assets and reserves and expenses available on the taxpayer balance and their filling recommendations.

Registered in the Ministry of Justice of the Russian Federation on July 7, 2004. Reg. No. 5891.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-22/415@ of July 7, 2004 on the Amendments to Appendices to the Order of the Ministry of Taxation of the Russian Federation No. BG-3-22/58 of January 28, 2004 on the Endorsement of the Forms of Documents When Applying the System of Taxation for Agricultural Producers

Provides the new wording for the main forms of documents applied when switching over to the system of taxation for agricultural producers: Form 26.1-1 "Application for the Switchover to the System of Taxation for Agricultural Producers", Form 26.1-2 "Notification of the Possibility of Application of the System of Taxation for Agricultural Producers", Form 26.1-3 "Notification of the Impossibility of Application of the System of Taxation for Agricultural Producers", Form 26.1-4 "Notification of the Refusal to Apply the System of Taxation for Agricultural Producers" and Form 26.1-5 "Application for the Recalculation of the Tax Obligations and Switchover to the Common Taxation Regime".

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-22/414@ of July 7, 2004 on the Amendments to Appendices to the Order of the Ministry of Taxation of the Russian Federation No. VG-3-22/495 of September 19, 2002 on the Endorsement of the Forms of Documents for Application of the Simplified System of Taxation"

Provides the new wording for the main forms of documents applied when switching over to the simplified system of taxation: Form 26.2-1 "Application for the Switchover to the Simplified System of Taxation", Form 26.2-2 "Notification of the Possibility of Application of the Simplified System of Taxation", Form 26.2-3 "Notification of the Impossibility of Application of the Simplified System of Taxation", Form 26.2-4 "Notification of the Refusal to Apply the Simplified System of Taxation" and Form 26.2-5 "Report of the Loss of the Right for the Simplified System of Taxation".

Order of the Federal Agency for Construction and the Housing and Communal Sector No. 15 of May 12, 2004 on the drawing up of the document confirming the presence of the license for the types of activities qualified as the sphere of reference of the Federal Agency for Construction and the Housing and Communal Sector

Provides the description of the form of the document confirming the presence of the license for the types of activities qualified as the sphere of reference of the Federal Agency for Construction and the Housing and Communal Sector. The blank forms for the document of confirmation of the presence of the license are made in the print-house being strict-registration forms.

Decree of the President of the Russian Federation No. 857 of July 8, 2004 on the Amendment to the Decree of the President of the Russian Federation No. 1091 of September 18, 1992 on the Measures to Improve Payment Procedures for the Products of the Fuel and Power Supply Complex

Excludes an opportunity of direct debit procedures for the resources of payers in the payments for the electric and thermal power and gas delivered by power-supply and gas-supply organisations, as well as for the oil and oil products sold by oil producing associations and enterprises and organisations of the Rosnefteprodukt concern. The given rule shall apply to legal relations emerging from March 1, 1996.

The Decree is entered into force from the day of its signing.

Order of the State Customs Committee of the Russian Federation No. 687 of June 17, 2004 on the Endorsement of the Form of the Application of the Natural Person and the Procedure of Filling of the Application of the Natural Person

Endorses the form of the application of the natural person for the purposes of declaring of commodities (except for cars) moved across the customs border for personal use in unattended luggage. The application shall also apply when declaring commodities sent to a natural person not crossing the customs border and intended for personal use by this person.

The Order is entered into force 90 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on July 7, 2004. Reg. No. 5894.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-01/355@ of June 7, 2004 on the Endorsement of the Procedure and Time Limits of Submission to the Tax Bodies by the Investor under a Product-Sharing Agreement of the Documents Exempting from the Transport Tax for the Owned by Him Transport Vehicles (Excerpt for Cars) Used Exclusively for the Purposes of the Product-Sharing Agreement

The endorsed procedure applies to the Russian and foreign legal entities being investors under a product-sharing agreement having notified the tax bodies of the application of the special tax regime specified in Chapter 26.4 of the Tax Code of the Russian Federation.

The documents are presented to the tax body where the investor is registered for the purposes of the product-sharing agreement together with the tax declaration for the transport tax.

Registered in the Ministry of Justice of the Russian Federation on July 7, 2004. Reg. No. 5892.

Budget Message of the President of the Russian Federation to the Federal Assembly of the Russian Federation of July 12, 2004 on the Budget Policy in 2005

The Message contains the main directions and guidelines of the budget policy for the year 2005. The most important task of the budget policy is still the overall macroeconomy balance. The main parameters of the budget must provide for the guaranteed execution of obligations inherent in the budget, restriction of excessive money liquidity, as well as consistent reduction of expenses pertaining to the servicing of the state debt taking into account the significant volume of payments in the framework of external debt falling on the year 2005.

Resources of the Stabilisation Fund of the Russian Federation accumulated in 2005 in excess of the fixed minimum amount (Rbl 500 billion) should be used exclusively to replace the sources of redemption of the external debt and financing of the deficit of the Pension Fund.

In 2004, new chapters of the Tax Code must be adopted pertaining to the succession and donation tax, local immovable property tax, land and water tax. These taxes should contribute to the civilised turnover of land and other property, become a stable source of incomes for the regional and local budgets.

The Message emphasises that the main priorities of the budget expenses for the year 2005 lay in the sphere of financial support of social reforms, modernisation of the military infrastructure of the state, development of the public infrastructure.

Decision of the Government of the Russian Federation No. 345 of July 9, 2004 on the Endorsement of the General Rules of Keeping of the Creditor Claims Register by Bankruptcy Commissioners

The creditor claims register is a uniform system of records of creditors containing the listed information. The register is kept in the Russian language on paper and electronic media. If there is an inconsistency of information, the paper records should enjoy the priority status. Amount of creditor claims is shown in the currency of the Russian Federation. The register consists of three sections containing information on creditor claims of the first, second and third order priorities. If the creditor claim is redeemed completely, or the creditor refuses his claim, a note is entered in the appropriate record of the register excluding the creditor claim indicating the date and the reason of the exclusion.

Decision of the Government of the Russian Federation No. 344 of July 9, 2004 on the Endorsement of the Interim Regulation on the Placing and Spending of Resources of Compensation Funds of Self-Regulating Organisations of Bankruptcy Commissioners

Resources of the Compensation Fund of a self-regulating organisation of bankruptcy commissioners are built exclusively in the monetary form at the expense of the contributions of its members out of bankruptcy commissioners and at the expense of the incomes obtained from the placing of the resources of the Compensation Fund. The contribution of each of the bankruptcy commissioners must be at least Rbl 50,000. In case of reduction of the amount of the resources of the Compensation Fund below the minimum level, the self-regulating organisation of bankruptcy commissioners must notify of it within 1 day the federal body of executive power in charge of control over the activities of self-regulating organisations of bankruptcy commissioners. Measures to restore the amount of the Compensation Fund must be taken within 2 months from the date of the reduction of resources of the Compensation Fund.

Resources of the Compensation Fund are intended to reimburse to the persons involved in the bankruptcy cases and procedures the losses incurred by the bankruptcy commissioners out of the members of the self-regulating organisation of bankruptcy commissioners because of the failure to execute or improper execution of the duties vested in the bankruptcy commissioners in the Federal Law on insolvency (bankruptcy).

Decree of the President of the Russian Federation No. 870 of July 11, 2004 "Issues of the Federal Security Service of the Russian Federation"

The Federal Security Service forms new independent divisions - services - instead of the departments. The services shall consist of departments and bureaus. Servicemen of the bodies of the Federal Security Service before the termination of the staff organisation measures shall continue execution of their service duties in the earlier occupied positions.

The Decree is entered into force from the day of its signing.

Decree of the President of the Russian Federation No. 868 of July 11, 2004 "Issues of the Ministry of the Russian Federation of Civil Defence, Emergency Situations and Elimination of Consequences of Natural Disasters"

The Ministry of the Russian Federation of Civil Defence, Emergency Situations and Elimination of Consequences of Natural Disasters is a federal body of executive power in charge of the working out and implementation of the state policy, normative-and-legal regulation, as well as supervision and control in the sphere of civil defence, protection of population and territories against emergency situations of natural and technical nature, fire safety and people's safety on water objects.

The system of the Ministry of Emergency Situations of Russia include the State Fire Service, civil defence troops, State Inspection of Small Vessels, as well as the rescue formations, educational, scientific research, medical, sanatoria-and-resort and other institutions and organisations supervised by the Ministry of Emergency Situations of Russia.

Decision of the Government of the Russian Federation No. 343 of July 9, 2004 on the Paying out in 2004 to Individual Categories of Citizens of the Russian Federation of the Preliminary Compensation (Compensation) for the Deposits in the Savings Bank of the Russian Federation and Deposits (Contributions) in the State Insurance Organisations (Open-Type Joint-Stock Company Russian State Insurance Company and the Companies of the Rosgosstrakh System)

Defines the procedure of paying out in 2004 to individual categories of citizens of the Russian Federation of the preliminary compensation for the deposits in the Savings Bank of the Russian Federation as of June 20, 1991 being guaranteed savings according to the Federal Law on the restoration and protection of savings of citizens of the Russian Federation. Also defines the procedure of paying out in 2004 to individual categories of citizens of the Russian Federation of the preliminary compensation for the deposits in the state insurance organisations (OAO Russian State Insurance Company and companies of the Rosgosstrakh system) as of January 1, 1992 being guaranteed savings.

The preliminary compensation for the deposits is paid out in the amount of Rbl 1,000 to the following categories of citizens of the Russian Federation (including the first priority heirs included in the mentioned categories of citizens): citizens up to 1947 year of birth inclusive; group I invalids, group II invalids up to 1955 year of birth inclusive; parents and trustees of the invalid children; parents and trustees of invalids from childhood; parents whose children were killed or diseased during the draft military service in peace time.

The paying out of the preliminary compensation for the deposits to the citizens of the Russian Federation of 1946-47 years of birth shall be made from September 1, 2004.

The amount of the compensation depends on the duration of the deposits and is determined using specified coefficients.

Decision of the Government of the Russian Federation No. 332 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Tariff Rates

The Federal Service of Tariff Rates is a federal body of executive power in charge of the legal regulation in the sphere of state regulation of prices (tariff rates) for commodities (services) and control over their application, except for the prices and tariff rates in the sphere of reference of other federal bodies of executive power, as well as the federal body of executive power in charge of the regulation of natural monopolies defining (fixing) the prices (tariff rates) and controlling the issues of determination (fixing) and application of prices (tariff rates) in the spheres of activities of the subjects of natural monopolies. Activities of the Federal Service of Tariff Rates are supervised by the Government of the Russian Federation.

Decision of the Government of the Russian Federation No. 327 of June 30, 2004 on the Endorsement of the Regulation on the Federal Service of Veterinary and Phytosanitary Supervision

The Federal Service of Veterinary and Phytosanitary Supervision is a federal body of executive power in charge of control and supervision in the sphere of veterinary, plant quarantine and protection, use of pesticides and agricultural chemicals, soil fertility, selection achievements, protection, reproduction, use of objects of fauna qualified as objects of hunting, water biological resources and their habitat, as well as protection of population against diseases common to the human being and animals. The Federal Service is supervised by the Ministry of Agriculture. The service shall license individual types of activities in the sphere of animal breeding, seed growing, storage of grains and products of their processing. The Federal Service shall also license activities in naturalisation, resettlement and hybridisation, breeding of animals qualified as objects of hunting and water biological resources in semi-wildlife conditions and artificially created habitat. The Service shall issue permissions to withdraw objects of fauna qualified as objects of hunting and licenses for the use of objects of fauna qualified as objects of hunting and water biological resources.

Decision of the Government of the Russian Federation No. 326 of June 30, 2004 on the Federal Agency of Physical Culture, Sports and Tourism

The Federal Agency of Physical Culture, Sports and Tourism is a federal body of executive power in charge of the rendering of state services and state property management in the sphere of physical culture, sports, including the anti-doping measures, and tourism. The Federal Agency is supervised by the Ministry of Public Health and Social Development. The Federal Agency shall license on the temporary basis tourist operators and agents and the sale of club accommodations, as well as organisation and maintenance of sweepstakes and gambling institutions.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-02/351@ of June 3, 2004 on the Amendments to the Orders of the Ministry of Taxation of Russia No. BG-3-02/614 of November 11, 2003 and No. BG-3-02/585 of December 29, 2001

Changes the form of the declaration for the profit tax from organisations and its filling Instruction. The changes reflect the particulars of filling of the declaration and the estimate of the tax by agricultural producers failing to switch over to the uniform agricultural tax envisaged in Chapter 26.1 of the Tax Code of the Russian Federation. The changed parts of the declaration form are provided in the new wording.

Direction of the Central Bank of Russia No. 1473-U of July 7, 2004

From July 8, 2004 reduces from 7% to 3.5% the normative of obligatory reserves for obligations to natural persons in the currency of the Russian Federation, as well as the normative of obligatory reserves for other obligations of credit organisations in the currency of the Russian Federation and obligations in foreign currencies.

Letter of the Central Bank of Russia No. 78-T of July 8, 2004 on the Non-Application to the Authorised Banks of Enforcement Measures for the Violation of the Acts of the Bodies of Currency Regulation

From June 18 through September 1, 2004 only preventive measures may apply to the authorised banks violating the requirements of the normative acts of the Bank of Russia in the sphere of currency regulation and currency control adopted in execution of the Federal Law on currency regulation and currency control.

Federal Law No. 63-FZ of July 13, 2004 on the Dissolution of the Aleutka Regional Court of the Kamchatka Province

Dissolves the Aleutka Regional Court of the Kamchatka Province while handing over its jurisdiction to the Yelizovo Regional Court of the Kamchatka Province.

Decree of the President of the Russian Federation No. 865 of July 11, 2004 "Issues of the Ministry of Foreign Affairs of the Russian Federation"

The Ministry of Foreign Affairs of the Russian Federation is a federal body of executive power in charge of the working out and implementation of the state policy and normative-and-legal regulation in the sphere of international relations of the Russian Federation. Activities of the Ministry of Foreign Affairs are supervised by the President of the Russian Federation.

The Decree is entered into force from the day of its signing.

Decision of the Government of the Russian Federation No. 350 of July 13, 2004 on the Endorsement of the Rules of Allocation and Use of the Numeration Resources of the Uniform Telecommunication Network of the Russian Federation

Defines the procedure of allocation and use of the numeration resources of the uniform telecommunication network of the Russian Federation, including the Russian segments of the international communication networks, taking into account recommendations of international organisations where the Russian Federation is a participant according to the Russian system of numeration and the numeration scheme of the communication networks of the uniform telecommunication network of the Russian Federation.

Numeration resources of the uniform telecommunication network of the Russian Federation form part of the numeration resource of the international communication network and consist of numeration resources of the telephone network, telegraph network, data transfer networks, telematic services, identification codes of the Internet network, as well as the service identification codes of communication networks, their elements and terminal equipment.

Allocation of a numeration resource for the telecommunication networks is vested in the Federal Agency of Communication against an application of the communication operator possessing a licence for the work in the sphere of communication services. An allocated numeration resource must be used fully or partly within 2 years from the day of allocation. An allocated numeration resources is considered to be used completely if it was used for at least 90%.

Direction of the Central Bank of Russia, Ministry of Finance of the Russian Federation and State Customs Committee of the Russian Federation Nos. 1463-U, 56n, 01-10/13 of June 29, 2004 on the Invalidation of Individual Normative Legal Acts

Invalidates the documents amending the Regulation of the Bank of Russia, Ministry of Finance of Russia and the State Customs Committee of Russia Nos. 02-29/36, 11-05-02 and 01-20/10075 of October 6, 1993 on the procedure of export and transfer from the Russian Federation and import and transfer to the Russian Federation of the currency of the Russian Federation.

The Direction is entered into force 10 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2004. Reg. No. 5906.

Direction of the Central Bank of Russia and the State Customs Committee of the Russian Federation No. 1461-U, 01-10/11 of June 29, 2004 on the Invalidation of Individual Normative Legal Acts

Pursuant to the entry into force of the Federal Law on currency regulation and currency control invalidates:

- Instruction of the Bank of Russia and the State Customs Committee of Russia No. 86-I and No. 01-23/26541 of October 13, 1999 on the procedure of currency control over the receipts from export of commodities received in the Russian Federation with amendments;

- Instruction of the Bank of Russia and the State Customs Committee of Russia No. 91-I and No. 01-11/28644 of October 4, 2000 on the procedure of currency control over the reasonableness of payment for the imported commodities by residents with amendments;

- Regulation of the Bank of Russia and the State Customs Committee of Russia No. 105-P and No. 01-100/1 of January 12, 2000 on the procedure of export of foreign currencies in cash from the Russian Federation by natural persons;

- Regulation of the Bank of Russia and the State Customs Committee of Russia No. 148-P and No. 01-11/22 of August 16, 2001 on the bank and customs currency control over the export of refined gold and silver by credit organisations.

The Direction is entered into force 10 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2004. Reg. No. 5905.

Direction of the Central Bank of Russia No. 1468-U of June 30, 2004 on the Invalidation of the Regulation of the Bank of Russia No. 170-P of December 19, 2001 on the particulars of Application of the Transaction Certificates in View of the Termination on January 1, 2002 of the Transient Period When the Member-States of the Economic and Monetary Union Used Both the Euro and the National Currencies of the Given Countries in Cashless Payments

The mentioned Regulation shall loose its force pursuant to the entry into force from June 18, 2004 of the new Federal Law on currency regulation and currency control.

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 July 13, 2004. Reg. No. 5903.

Direction of the Central Bank of Russia No. 1458-U of June 25, 2004 on the Amendments to the Regulation of the Bank of Russia No. 201-P of October 16, 2002 on the Procedure of Opening and Keeping by Resident Legal Entities of Accounts in Foreign Currencies outside the Russian Federation to Serve the Work of Their Representations

The amendments are of technical nature stipulated by the adoption of the new Law on currency regulation and currency control.

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 July 13, 2004. Reg. No. 5901.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-15/382@ of June 21, 2004 on the Endorsement of the Regulation on the Department of the Ministry of Taxation of Russia in the Subject of the Russian Federation

The Department of the Ministry of Taxation of Russia in the subject of the Russian Federation forms part of the uniform centralised system of the bodies of taxation. The Department is the authorised territorial body in charge of the state registration of legal entities, peasant (farmers') enterprises, natural persons as independent entrepreneurs. The Department is the authorised territorial body in charge of representation of the claims in obligatory payments and claims of the Russian Federation in monetary obligations in cases of bankruptcy and bankruptcy procedures. The Order defines the tasks, functions, rights and duties of the Department. The Department, in particular, may impose fines on organisations and natural persons violating the legislation on the use of cash registers in payments with population, as well as the fines for the failure to observe the terms of handling cash and procedure of carrying out cash operations in the Russian Federation by organisations and independent entrepreneurs.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2004. Reg. No. 5907.

Direction of the Central Bank of Russia No. 1459-U of June 28, 2004 on the Opening for the Bodies of State Power of the Subjects of the Russian Federation or the Bodies Providing Cash Services for the Budgets of the Subjects of the Russian Federation, Including the Federal Treasury Bodies of the Ministry of Finance of the Russian Federation, of Accounts to Register Resources from Entrepreneurial and Other Profitable Activities Obtained by Institutions Supervised by the Bodies of State Power of the Subjects of the Russian Federation in the Institutions of the Bank of Russia or Credit Organisations (Branches)

Defines the numbers of the balance accounts used to open personal accounts for the bodies of state power of the subjects of the Russian Federation or the bodies providing cash services for the budgets of the subjects of the Russian Federation, including the Federal Treasury bodies of the Ministry of Finance of Russia, in the institutions of the Bank of Russia or credit organisations (branches) to register resources from entrepreneurial activities.

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 July 13, 2004. Reg. No. 5904.

Direction of the Central Bank of Russia No. 1457-U of June 25, 2004 on the Amendments to the Regulation of the Bank of Russia No. 200-P of October 16, 2002 on the Procedure of Opening and Keeping by Resident Legal Entities of Accounts in Foreign Currencies outside the Russian Federation to Make Payments under International Construction Contracts

The amendments are of technical nature stipulated by the adoption of the new Law on currency regulation and currency control.

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 July 13, 2004. Reg. No. 5902.

Order of the State Customs Committee of the Russian Federation No. 688 of June 17, 2004 on the Endorsement of the Form of the Customs Declaration for a Car and Procedure of Filling of the Customs Declaration for a Car

Endorses the form of the customs declaration for a car and its filling procedure for declaring the cars moved across the customs border (except for the temporarily imported ones) by natural persons for personal use.

The Order is entered into force 90 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on July 8, 2004. Reg. No. 5898.

Decision of the Constitutional Court of the Russian Federation of July 16, 2004 on the Case of Constitutionality of Individual Provisions of Part 2 of Article 89 of the Tax Code of the Russian Federation Pursuant to Appeals of Citizens A.D.Yegorov and N.V.Chuyev

The applicants challenged the constitutionality of provisions of Part 2 of Article 89 of the Tax Code of the Russian Federation stating that an on-site tax check may not continue for more than two months (three as an exception) with the time of the check including only the actual presence of the inspectors on the territory of the checked taxpayer. According to the applicants, the given norm permits the tax bodies to suspend the on-site checks for an indefinite period of time, thus restricting the freedom of their entrepreneurial activities and jeopardizing the stability of their financial standing.

The Constitutional Court of the Russian Federation explained that the specified two-months period (three months as an exception) includes only the periods directly associated with inspectors presence on the taxpayer territory, namely, the time of the inventory taking, inspection of the territory and rooms used by the taxpayer for making profit or pertaining to objects of taxation, withdrawal of documents and items, as well as investigation by the inspectors of the taxpayer documents directly on his territory.

As to the counterchecks and expert evaluations, their time is not included in the period of the on-site tax check if the inspectors are not present on the taxpayer territory. The time necessary for the drawing up of the results of the check is not included in it either. Thus, the time of the on-site tax check is a sum of the periods when the inspectors are present on the taxpayer territory, with the calendar calculation of the time not applied in these cases.

In view of the above, the Constitutional Court of the Russian Federation recognised the provisions of Part 2 of Article 89 of the Tax Code of the Russian Federation regulating the time and duration of the on-site tax checks, including the renewed ones arranged by the supervising tax body as a control measure over the activities of the tax body having carried out the check, as not contradicting the Constitution of the Russian Federation.

The Decision is entered into force immediately after annunciation.

Decision of the Constitutional Court of the Russian Federation of July 16, 2004 on the Case of Constitutionality of Part 5 of Article 59 of the Code of Arbitration Procedures of the Russian Federation Pursuant to the Requests of the State Assembly - Kurultay of the Republic of Bashkortostan, the Governor of the Yaroslavl Province, Arbitration Court of the Krasnoyarsk Territory, Appeals of a Number of Organisations and Citizens

Case examination was stipulated by the appeals of a group of persons requesting to check the constitutionality of Part 5 of Article 59 of the Code of Arbitration Procedures of the Russian Federation stating that organisations in the court of arbitration may be represented by the heads of organisations acting within their sphere of authority envisaged in the federal law, other normative legal act, constituent documents or staff personnel of the mentioned organisations or lawyers and Item 4 of Article 2 of the Federal Law on the advocacy in the Russian Federation stating that organisations, bodies of state power, bodies of local government in civil and administrative cases, cases of administrative violations may only be represented by lawyers except for the cases when these functions are fulfilled by staff personnel of the mentioned organisations, bodies of state power and bodies of local government if otherwise is not envisaged in the federal law.

According to the applicants, the above norms unreasonably restrict the freedom of choice for the organisations being the parties in arbitration proceedings, as well as hamper implementation of the rights of these organisations for a quality legal aid, restrict significantly the rights of auditors and persons rendering legal services inasmuch as they pertain to opportunities to represent their clients in arbitration courts forcing them to become lawyers.

The Constitutional Court of the Russian Federation recognised as unconstitutional Part 5 of Article 59 of the Code of Arbitration Procedures of the Russian Federation inasmuch as in combination with Item 4 of Article 2 of the Federal Law on the advocacy in the Russian Federation it excludes opportunities for the persons rendering legal aid and selected by organisations to act as representatives in the court of arbitration if they are not being lawyers or staff employees of these organisations.

The Decision is entered into force immediately after annunciation.

Decree of the President of the Russian Federation No. 910 of July 16, 2004 on the Measures to Improve State Management

Forms the Commission on Improvement of State Management under the auspices of the President of the Russian Federation. The Commission shall handle the issues of optimisation of the structure and adjustment of the functions and authority of the federal bodies of state power, as well as prevention of duplication of the functions and authority of the federal bodies of executive power, bodies of executive power of the subjects of the Russian Federation and bodies of local government. Besides, the tasks of the Commission include restriction of the interference of the state in the economic activities of the subjects of entrepreneurial activities including excessive state regulation.

Three interagency workgroups are created under the auspices of the Commission: in charge of the measures pertaining to state service reforms; in charge of the federal relations and local government; in charge of the system and structure of the federal bodies of executive power.

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

Decision of the Government of the Russian Federation No. 354 of July 15, 2004 on the Endorsement of the Rate of the Export Customs Duty for Raw Oil and Raw Oil Products from Bituminous Materials Exported from the Territory of the Russian Federation outside the Member-States of the Customs Union Agreements

From August 1, 2004 increases the rate of the export customs duty for raw oil and raw oil products from bituminous materials (code according to the Foreign-Trade Commodity Nomenclature of Russia 2709 00) from USD 41.6 to USD 69.9 per ton.

Order of the Ministry of Taxation of the Russian Federation No. SAE-3-04/366@ of June 15, 2004 on the Endorsement of the Forms of Declarations for the Income Tax from Natural Persons and Their Filling Instruction

Endorses the forms of the declarations for the income tax from natural persons 3-NDFL and 4-NDFL and their filling instructions. Form 3-NDFL applies to the incomes received by natural persons from January 1, 2004 and Form 4-NDFL, from January 1, 2005.

The declaration is submitted by the taxpayer to the territorial inspection of the Ministry of Taxation of the Russian Federation at the place of his registration (place of residence) no later than April 30 of the year following the reported one.

Registered in the Ministry of Justice of the Russian Federation on July 9, 2004. Reg. No. 5900.

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 10 of June 2, 2004 on Some Issues of the Practice of Examination of Cases of Administrative Violations

Explains individual issues emerging in the judicial practice pertaining to cases of administrative violations.

Since the time limits for examination of the cases of administrative violations are reduced, and it is not always possible to notify the participants of the arbitration process of the time and place of the court session at least fifteen days ahead of it, the courts are recommended to notify or summon the persons participating in the case and other participants of the arbitration process over the phone, with a telegram, by fax or e-mail, or using other means of communication.

If the application of the administrative body calling to administrative responsibility or the protocol of administrative violation contain erroneous qualification of the committed violation, the court may decide to call to administrative responsibly using a proper qualification. However, if the drawing up of the protocol of the committed violation as a result of the case re-qualification is not the sphere of reference of the appealing body, the court may not sew for administrative responsibility. Having revealed a low significance of the violation during the case examination, the court may decide to refuse to satisfy the demand of the administrative body and exempt the violator from administrative responsibility because of the low significance of the violation confining itself to an oral reprimand, which is stated in the resolution. The low significance of the violation is qualified if the protected public relations are not endangered significantly. Such circumstances as the personality and the property status of the sewed person, voluntary elimination of the consequences of the violation, redemption of the incurred damage are not regarded as showing proof of the low significance of the violation.

Federal Law No. 64-FZ of July 19, 2004 on the Ratification of the Agreement on the Adaptation of the Treaty on Conventional Armed Forces in Europe

Ratifies the Agreement signed in Istanbul on November 19, 1999. The Agreement envisages the presence of conventional armaments and equipment of a participating state on the territory of another participating state only in compliance with the international law, obviously expressed agreement of the admitting participating state or appropriate resolution of the UN Security Council.

Decision of the Government of the Russian Federation No. 355 of July 15, 2004 on the Amendments to the Regulation on the Procedure of Assigning and Paying out of the Monthly Life Annuity to the Retired Judges of the Constitutional Court of the Russian Federation and the Monthly Subsistence and Procedure of Its Paying out to the Dependent Family Members of the Deceased (Killed) Judge

Specifies that the calculation of the amount of the monthly life annuity to the retired judge of the Constitutional Court of the Russian Federation takes into account the 50% supplement for the special working conditions to the salary for the occupied position and the monthly monetary award.

Order of the Ministry of Defence of the Russian Federation No. 185 of June 25, 2004 on Some Issues of the State Pension Support of the Federal State Servants of the Central Bodies of Military Management of the Armed Forces of the Russian Federation

Defines the measures pertaining to the state pension support of the federal state servants of the central bodies of military management of the Armed Forces of the Russian Federation. Lists the documents attached to the presentation for the length-of-service pension. The presentation for the length-of-service pension is sent to the Pension Fund of Russia within 14 days from the day of receiving of the application of the federal state servant for the length-of-service pension and other documents.

Registered in the Ministry of Justice of the Russian Federation on July 19, 2004. Reg. No. 5920.

Ruling of the Constitutional Court of the Russian Federation No. 169-O of April 8, 2004 on the Refusal to Accept for Processing of the Appeal of the Limited-Liability Company PromLine against Violation of the Constitutional Rights and Freedoms by the Provision of Item 2 of Article 171 of the Tax Code of the Russian Federation

The applicant challenged the constitutionality of Item 2 of Article 171 of the Tax Code of the Russian Federation stating that exemption applies to VAT amounts put out to the taxpayer and paid by him when buying commodities (works, services) on the territory of the Russian Federation. According to the applicant, the given provision does not permit to accept for exemption VAT amounts paid to the supplier when offsetting mutual claims if the claim right put out to the supplier by the taxpayer is not paid to the previous creditor.

Earlier, arbitration courts opted to decide in favour of the tax bodies having called the applicant to responsibility for the incomplete VAT payment.

The Constitutional Court of the Russian Federation emphasised that the challenged norm itself permitting to accept for exemption only the actually paid to suppliers tax amounts when calculating the final VAT amount due for payment to the budget by the taxpayer does not restrict constitutional rights and freedoms of citizens. Earlier, the Constitutional Court of the Russian Federation expressed the legal position stating that the payment by contracting parties in a transaction in the form without the flow of monetary resources (a cashless form of payment) does not exempt taxpayers from the duty to enter in the budget the same amount of taxes as when the payment is made in the monetary form. Only if the taxpayer fulfils such obligatory conditions as the payment to the previous creditor for the claim right to supplier obtained from him, the offsetting of the counterclaims may be recognised as implying real taxpayer expenses for the accrued tax amounts with him, with the tax amounts themselves being actually paid by the taxpayer, therefore, subject to exemption.

In view of the above, the Constitutional Court of the Russian Federation refused to accept for processing applicant appeals.

Ruling of the Presidium of the Supreme Court of the Russian Federation No. 5pv-04 of May 19, 2004

As an enforcement measure, revokes the Ruling of the Judicial Board on Civil Cases of the Supreme Court of the Russian Federation of February 13, 2003 having satisfied the appeal on the application of the land tax exemption in the amount of 3% of this tax rate. Thus, the actions of the tax body having collected the land tax in the amount of 100% of the tax rate are recognised as legal. The exemption specified in Part 5 of Article 8 of the Law of the Russian Federation of October 11, 1991 on the payment for the land applies to the lands occupied by the housing fund. In the applicant's case, such exemption may not apply, since the building located on his land plot is not finished after construction, the property right for it has not been registered, it has not been included in the housing fund by the bodies of technical registration.

Decree of the President of the Russian Federation No. 928 of July 19, 2004 "Issues of the Federal Migration Service"

Judicial functions and the functions of control, enforcement and rendering of state services in the sphere of migration are vested in the Federal Migration Service. Before the completion of the building of the territorial bodies of the Service, the mentioned functions will be fulfilled by the ministries of internal affairs, directorates, departments of internal affairs of the subjects of the Russian Federation, departments (sections) of internal affairs of the regions, cities and other municipal formations, departments (sections) of internal affairs in the closed administrative territorial formations, at the specially important and regime objects.

The Decree is entered into force from the day of its signing.

Decision of the Government of the Russian Federation No. 363 of July 21, 2004 on the Fixing of the Amounts of the Basic Parts of Labour Pensions and Endorsement of the Indexing Factor from August 1, 2004 of the Insured Part of the Labour Pension

From August 1, 2004, the amounts of the basic parts of the labour old-age pension, disability labour pension and the lost-breadwinner labour pension are calculated proceeding from the indexed taking into account the growth of inflation basic part of the labour old-age pension defined as Rbl 660 per month. Earlier (from April 1, 2004), the basic part of the labour old-age pension was defined in the amount of Rbl 621. The indexing factor of the insured part of the labour pension is fixed in the amount of 1.0628.

Order of the Ministry of Finance of the Russian Federation and the Ministry of Internal Affairs of the Russian Federation No. 53n/405 of June 28, 2004 on the Endorsement of the Procedure of Endorsement and Conveying the Limits of Budget Obligations for the Year 2004

Defines the rules of endorsement and conveying the limits of budget obligations to the Ministry of Internal Affairs for the maintenance of divisions of the bodies of internal affairs of the Russian Federation providing for the guarding of the property of legal entities and natural persons and providing other services pertaining to citizens' guarding and security on contractual basis.

Registered in the Ministry of Justice of the Russian Federation on July 16, 2004. Reg. No. 5919.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 21 of June 22, 2004 on the Average Market Cost of 1 Square Meter of the Total Housing Space for the III Quarter of 2004 to Estimate the Amounts of Free Subsidies and Loans for the Purchase of Housing Space by All Categories of Citizens at the Expense of the Resources of the Federal Budget

Defines the average market cost of 1 square meter of the total housing space (in roubles) to estimate the amounts of free subsidies and loans allocated to all categories of citizens at the expense of the resources of the federal budget for the purchase of the housing space.

Registered in the Ministry of Justice of the Russian Federation on July 15, 2004. Reg. No. 5915.

Operative Direction of the Central Bank of Russia No. 82-T of July 16, 2004 on the Procedure of Calculation of the Amount of Interest under Attracted Deposit of a Credit Organisation

Specifies the rules of calculation of the amounts of interest under the deposits of credit organisations attracted by the Bank of Russia in compliance with the Regulation of the Bank of Russia No. 203-P of November 5, 2002 on the procedure of carrying out of deposit operations with credit organisations in the currency of the Russian Federation by the Central Bank of the Russian Federation.

Decree of the President of the Russian Federation No. 927 of July 19, 2004 "Issues of the Ministry of Internal Affairs of the Russian Federation"

The Ministry of Internal Affairs of Russia is a federal body of executive power in the charge of the working out and implementation of the state policy and normative-and-legal regulation in the sphere of internal affairs, including the sphere of migration. The Ministry of Internal Affairs of Russia is supervised by the President of the Russian Federation. The Ministry of Internal Affairs of Russia shall coordinate and control activities of subordinate to it Federal Migration Service of Russia.

The Decree is entered into force from the day of its signing.

Direction of the Central Bank of Russia No. 1475-U of July 13, 2004 on the Special Broker Accounts and Accounts for Payments with Non-Resident Clients in Brokerage Operations with Securities Opened before June 18, 2004

Until August 1, 2004, accounts opened before June 18, 2004 to register monetary resources received by the broker in execution of the brokerage contract concluded with a non-resident client for individual operations with securities will be used to carry out all operations envisaged in these accounts' regimes. Monetary resources may be transferred by authorised banks from the mentioned accounts to the special, broker type S, A, O accounts opened in compliance with the Instruction of the Central Bank of Russia No. 115-I of June 7, 2004.

The Direction is entered into force from 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 July 21, 2004. Reg. No. 5929.

Direction of the Central Bank of Russia No. 1472-U of July 7, 2004 on the Invalidation of the Regulation of the Bank of Russia No. 134-P of February 20, 2001 on the Procedure of Making Payments in Foreign Currencies Involving Offsetting of Mutual Claims between Residents Engaged in Fishing and Non-Residents Rendering Agency Services

Pursuant to the entry into force of the Federal Law on currency regulation and currency control invalidates the Regulation of the Bank of Russia No. 134-P of February 20, 2001 defining the rules of making payments in foreign currencies involving offsetting of mutual claims between residents engaged in fishing and non-residents rendering agency services.

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 July 20, 2004. Reg. No. 5925.

Order of the State Customs Committee of the Russian Federation No. 760 of June 30, 2004 on the Endorsement of the List of the Customs Bodies Authorised to Carry out Customs Operations with Commodities Moved Using ATA Carnets

Provides the new wording for the list of the customs bodies permitted to accept ATA carnets for the purposes of customs registration specified in the Order of the State Customs Committee of Russia No. 255 of March 1, 2004.

The Order is entered into force 10 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on July 15, 2004. Reg. No. 5914.

Order of the Ministry of Internal Affairs of the Russian Federation No. 415 of July 6, 2004 on the Invalidation of the Normative Legal Acts of the Ministry of Internal Affairs of Russia

Invalidates the Order of the Ministry of Internal Affairs of Russia No. 347 of May 24, 2003 pertaining to the procedure of replacement of the passport of the citizen of the USSR for the passport of the citizen of the Russian Federation to the citizens registered at the place of residence in one subject of the Russian Federation but actually living or registered at the place of stay in another subject of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on July 21, 2004. Reg. No. 5935.

Direction of the Central Bank of Russia No. 1465-U of June 29, 2004 on the Reservation Requirements When Entering Money on the Special Bank Accounts and Writing off from the Special Bank Accounts

Lists operations on the special bank accounts implying requirements of reservation in the specified amounts and within the specified time limits.

In particular, when writing off from the special bank account R2 of a resident in a foreign currency (except for the writing off of money transferred to the special bank account R2 of a resident in a foreign currency or on the bank account of a resident in an authorised bank not being a special bank account) sets froth a reservation requirement in the amount of 50% of the written off monetary resources for the period of 15 calendar days.

The Direction is entered into force from August 1, 2004.

Registered in the Ministry of Justice of the Russian Federation on July 21, 2004. Reg. No. 5931.

Direction of the Central Bank of Russia No. 1471-U of July 6, 2004 on the Particulars of Depositing of Obligatory Reserves by Credit Organisations in the Bank of Russia Pursuant to the Entry into Force of the Regulation of the Bank of Russia No. 255-P of March 29, 2004 on the Obligatory Reserves of Credit Organisations

Beginning with the regulation of the amount of obligatory reserves for the reported period from July 1 to August 1, 2004 if there is an underpaid contribution due for transfer to the accounts for obligatory reserves because of the inclusion of obligations to non-resident banks in the reserved obligations and/or change of the procedure of reservation of obligations under issued securities, credit organisations are provided with an opportunity of stepwise transfer. Redemption of the underpaid contribution is arranged according to the schedule drawn up by the credit organisation in a free form. The period of the schedule may not be greater than 6 months. If the schedules are fulfilled within their specified periods of validity, the fines for the violation of the normatives of obligatory reserves do not apply to credit organisations. Also in this period, credit organisations may not enjoy the equalisation right.

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 July 21, 2004. Reg. No. 5930.

Federal Law No. 39-FZ of May 11, 2004 on the Amendments to Articles 8, 18 and 27 of the Federal Law on the State Registration of the Rights for Immovable Property and Transactions with It

Envisages preservation with the state bodies (organisations) in charge of the state registration and technical inventory taking of objects of immovable property of the authority to only register the objects of immovable property. Thus, the inventory taking work is separated from the state registration of objects of immovable property.

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

Decision of the Government of the Russian Federation No. 366 of July 21, 2004 on the Restructuring in 2004 of the Monetary Obligations to the Russian Federation in Foreign Currencies Redrawn into Obligations of the Subjects of the Russian Federation

Defines the procedure and terms of redrawing into obligations of the subjects of the Russian Federation of the monetary obligations of municipal formations and legal entities to the Russian Federation in foreign currencies including obligations under the agreements (contracts) concluded to attract to the Russian Federation tied foreign credits (borrowings), grant credits (loans) in foreign currencies, as well as of the resources of the tied financing of legal entities granted under the condition of transfer of stocks in the property of the Russian Federation. The redrawing is arranged on the voluntary basis.

Also defines the procedure of restructuring of the mentioned monetary obligations. The restructuring of the redrawn obligations is arranged through conclusion of an agreement with the subject no later than December 31, 2004. The restructuring is carried out by consolidation of these obligations with simultaneous writing off of the debt in accrued penalties and fines and granting of a respite in the payment of the consolidated debt until January 1, 2005 followed by subsequent equalised extension schedule until January 1, 2012.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 78 of July 7, 2004

Reviews the practice of application by courts of arbitration of interlocutory injunction and recommendations on its application.

Reflects the issues of the grounds of application of interlocutory injunction, authority of the courts of arbitration of the Russian Federation in the application of such measures, procedural particulars of application of interlocutory injunction, fixing the time limits for presenting claims, perpetuation of evidence. Also explains the counterinjunction procedure, revocation of interlocutory injunction, appealing against the ruling on interlocutory injunction and other issues.

Federal Law No. 73-FZ of July 21, 2004 on the Amendments to the Criminal Code of the Russian Federation

Increases the fines for the legalisation (laundering) by an organised group of monetary resources or other property purchased by other persons in a criminal way or as a result of a crime. Increases significantly the responsibility for the crimes envisaged in Article 196 "Deliberate Bankruptcy" and Article 215.2 "Disabling the Life-Safety Objects".

Changes the sanctions for the organisation of prostitution: the mentioned activities are punished with freedom restriction for up to 3 years (earlier, up to 5 years) or imprisonment for up to 5 years (no change).

Also removes a number of controversies and inconsistencies. Thus, the definition of human exploitation for the purposes of Article 127.1 "Human Traffic" now does not contain removal of organs and tissues. Refines the subject of the crime envisaged in 135 "Sexual Abuse" - it may be the person having reached 18 years of age. Article 171 "Illegal Entrepreneurial Activities" now does not contain the remark defining the notion of the "Large Incomes" and "Specially Large Incomes", since the mentioned notions are described in the note to Article 169 envisaging criminal responsibility for the hampering of the legal entrepreneurial activities or other activities.

The sanction in the form of imprisonment for the property damage through fraudulence or abuse of credence in the absence of the signs of steeling is reduced from 6 to 2 years. Thus, the sanctions specified in Parts 1, 2 and 3 of Article 165 are being brought in logical compliance (earlier, the mentioned crime with qualifying signs envisaged a lighter responsibility).

Pursuant to the removal of criminal responsibility for the average damage to health through carelessness, appropriate changes are introduced in Articles 349 and 350 pertaining to military crimes.

Technical changes are also introduced in the wordings of the sanctions for the murder (Article 105), infringement on the life of a state or public figure (Article 277), person in charge of administration of justice or preliminary investigation (Article 295), employee of a law enforcement body (Article 317), as well as for the genocide (Article 357).

Decision of the Government of the Russian Federation No. 374 of July 23, 2004 on the Endorsement of the Regulation on the Federal Highway Agency

The Federal Highway Agency is a federal body of executive power in charge of the rendering of state services and state property management in the sphere of highway transport and highway maintenance, including the registration of the federal highways. The Federal Highway Agency is supervised by the Ministry of Transport.

Decision of the Government of the Russian Federation No. 373 of July 23, 2004 on the Endorsement of the Regulation on the Federal Agency of State Reserves

The Federal Agency of State Reserves is a federal body of executive power in charge of the rendering of state services and state property management in the sphere of management of the state material reserves. The Federal Agency is supervised by the Ministry of Economic Development and Trade.

Decision of the Government of the Russian Federation No. 372 of July 23, 2004 on the Federal Service of Hydrometeorology and Environmental Monitoring

The Federal Service of Hydrometeorology and Environmental Monitoring shall fulfil the functions of the management of the state property and rendering of state services in the sphere of hydrometeorology and adjacent spheres, monitoring of the natural environment and its pollution. The Service shall also fulfil the functions of the state supervision of the works in active interference in the meteorological and other geophysical processes.

The Service shall issue licenses (permissions) for the works in active interference in the hydrometeorological and geophysical processes and phenomena, as well as for activities in the sphere of hydrometeorology and adjacent spheres.

The activities of the Service are supervised by the Government of the Russian Federation.

Decision of the Government of the Russian Federation No. 371 of July 23, 2004 on the Endorsement of the Regulation on the Federal Agency of the Sea and River Transport

The Federal Agency of the Sea and River Transport is a federal body of executive power in charge of the rendering of state services and state property management in the sphere of the sea (including the merchant marine, fishing, other than fish farms, and specialised ports) and river transport. The Federal Agency is supervised by the Ministry of Transport.

Decision of the Government of the Russian Federation No. 370 of July 22, 2004 on the Endorsement of the Regulation on the Ministry of Natural Resources of the Russian Federation

The Ministry of Natural Resources of Russia is a federal body of executive power in charge of the working out of the state policy and normative-and-legal regulation in the sphere of investigation, use, reproduction, protection of natural resources, including the management of the state fund of subsoil resources and the forestry enterprises, use and protection of the water fund, use, preservation, protection of the forestry fund and reproduction of forests, operation and security of water storage facilities and water systems of complex use, protection and other hydrotechnical structures (except for the navigation hydrotechnical structures), use of objects of fauna and their habitat (except for the objects of fauna qualified as objects of hunting), specially protected natural territories.

The Ministry of Natural Resources of Russia shall coordinate and control activities of supervised by it Federal Service of Enforcement in the Sphere of Natural Use, Federal Agency of Natural Use, Federal Forestry Agency and the Federal Agency of Water Resources.

Order of the Ministry of Justice of the Russian Federation No. 126 of July 20, 2004 on the Endorsement of the Instruction on the Procedure of State Registration of the Rights of the Underaged for the Immovable Property and Transactions with It

Specifies the particulars of the state registration of the rights of the underaged for the immovable property and transactions with it, including submission of documents for the state registration, legal expert evaluation of the documents and legality of the transaction, entering records in the Joint State Register of the Rights for Immovable Property and Transactions with It.

The state registration, besides the documents envisaged in the legislation on the state registration of the rights for immovable property and transactions with it, needs submission of the documents confirming the rights of the legal representatives of the underaged. The Order lists the cases requiring preliminary permission (consent) of the body of trusteeship when carrying out the legal expert evaluation of the documents and checking the legality of the transaction.

Registered in the Ministry of Justice of the Russian Federation on July 22, 2004. Reg. No. 5938.

Federal Law No. 78-FZ of July 26, 2004 on the Amendment to Article 74 of the Criminal Code of the Russian Federation

Introduces an additional reason to revoke a suspended sentence other than the regular or fraudulent failure to execute by the convict of the duties imposed on him during probation. If the convict avoids control, the court may decide to execute the assigned punishment at the presentation of the body in charge.

Federal Law No. 77-FZ of July 26, 2004 on the Amendment to Article 23.11 of the Code of Administrative Violations of the Russian Federation

According to the introduced amendments, the district military commissars are empowered to process the cases of administrative violations envisaged in Articles 19.25, 21.1-21.7 of the Code of Administrative Violations of the Russian Federation.

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

Federal Law No. 76-FZ of July 26, 2004 on the Accession of the Russian Federation to the Treaty of Friendship and Cooperation in the South-East Asia

The Russian Federation accesses to the Treaty of friendship and cooperation in the South-East Asia of February 24, 1976 while declaring that its rights and duties under the Treaty will be equal to those of other member-states from other regions.

Federal Law No. 75-FZ of July 21, 2004 on the Khanty-Mansiysk Regional Court of the Khanty-Mansiysk Autonomous District of Yugra

Abandons the Khanty-Mansiysk Regional Court and the Khanty-Mansiysk City Court of the Khanty-Mansiysk Autonomous District of Yugra while handing over the judicial issues to the created Khanty-Mansiysk Regional Court of the Khanty-Mansiysk Autonomous District of Yugra.

The Federal Law is entered into force six months after the day of its official publication.

Federal Law No. 74-FZ of July 21, 2004 on the Amendments to Articles 57 and 205 of the Criminal Code of the Russian Federation

Enhances criminal responsibility for the crime envisaged in Article 205 of the Criminal Code of the Russian Federation "Terrorism". The terms of imprisonment for the terrorism without aggravating circumstances are increased from 5 to 10 years to 8 to 12 years, and for the terrorism with aggravating circumstances - from 8 to 15 years to 10 to 20 years, for the terrorism with specially heavy aggravating circumstances - from 10 to 20 years to 15 to 20 years or life-time imprisonment.

Besides, the new wording is provided for Article 57 of the Criminal Code of the Russian Federation stating that life-time imprisonment is specified for the specially heavy crimes infringing on the life, as well as for the specially heavy crimes against public security.

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

Federal Law No. 72-FZ of July 20, 2004 on the Amendments to the Law of the Russian Federation on the Copyright and Adjacent Rights

Significant number of changes are aimed to bring the Law of the Russian Federation No. 5351-I of July 9, 1993 on the copyright and adjacent rights in compliance with the Bern Convention for the protection of literary and artistic works of 1886.

Increases the period of validity of the copyright from 50 to 70 years after the death of the author, thus permitting to ensure an additional protection of the works of Russian authors abroad. The copyright of legal entities emerging before the entry into force of the Law ends 70 years after the day of the legal publication of the work, and if not published, from the day of creation of the work.

Exclusive copyright includes the right to communicate the work in a way permitting anyone to access it in the interactive regime from any place any time at their choice (right of public communication). The given provision is entered into force from September 1, 2006.

The Law is extended to include the norms dedicated to the technical means of protection of the copyright and adjacent rights and the procedure of confiscation of counterfeit copies of the pieces of art and phonograms.

Specifies that the copyright holders may demand from the violator instead of the reimbursement of losses a compensation in double the amount of the cost of the copies of the pieces of art or objects of adjacent rights or double the amount of the cost of rights for the use of the works or objects of adjacent rights determined from the price usually collected in similar circumstances for the legal use of the works or objects of adjacent rights. The authors and performers in cases of violation of their personal non-proprietary or proprietary rights may also demand from the violator reimbursement of the moral damage.

The Federal Law is entered into force from the day of its official publication with exceptions to be entered into force from September 1, 2006.

Federal Law No. 71-FZ of July 20, 2004 on the Amendments to Articles 14 and 15 of the Federal Law on the Status of a Serviceman and Article 108 of the RSFSR Housing Code

Defining the procedure of possession, use and disposal of the property of servicemen is qualified as the sphere of reference of the Government of the Russian Federation.

Housing space to contract servicemen and their family members living together with them is provided in residential settlements at the place of location of the military units, and in the case of absence of opportunities to provide housing space in the mentioned residential settlements - in other residential settlements in close vicinity.

The amendments to the Housing Code envisage preservation of the service housing space with the federal body of executive power envisaging military service.

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

Federal Law No. 70-FZ of July 20, 2004 on the Amendments to Chapter 24 of Part 2 of the Tax Code of the Russian Federation, Federal Law on the Obligatory Pension Insurance in the Russian Federation and on the Invalidation of Some of the Provisions of Legislative Acts of the Russian Federation

The amendments envisage a number of measures to reduce the tax burden pertaining to the uniform social tax. Reduces the amounts of the basic tax rates of the uniform social tax for various categories of taxpayers and changes the regression scale. In particular, organisations making payments to natural persons shall use the following scale of tax rates:

- 26% if the payments make up to Rbl 280,000 per year;

- Rbl 72,800+10% from the amount in excess of Rbl 280,000 if the amount of payments makes from Rbl 280,001 to Rbl 600,000 per year;

- Rbl 104,800+2% from the amount in excess of Rbl 600,000 if the amount of payments makes more than Rbl 600,000 per year.

The Law specifies that taxation does not apply to the amounts of material aid paid out to natural persons from the budget sources by organisations financed from the budget up to Rbl 3,000 per natural person for the tax period.

The list of amounts exempted from taxation now does not include the amounts paid out at the expense of the member contributions of garden, garage-construction and housing-construction cooperatives (partnerships) to persons fulfilling works (rendering services) for the mentioned organisations, payments to trade-union members, as well as the payments in kind with own-made commodities - agricultural products and/or commodities for children - in the amount of up to Rbl 1,000 (inclusive) per natural person employee per calendar month.

The Law also reduces tariff rates of insurance contributions paid out by insurants in obligatory pension insurance. In particular, organisations shall use the following scale:

- 6% if the amount of payments makes up to Rbl 280,000;

- Rbl 16,800+2.4% from the amount in excess of Rbl 280,000 if the amount of payments is from Rbl 280,001 to Rbl 600,000;

- Rbl 24,480 if the amount of payments is greater than Rbl 600,000.

The Law specifies the rates of insurance contributions for the years 2005-2007 for insurants employing persons of the 1967 year of birth and younger. As compared to the 2004 rates, the given rates are also reduced.

The Federal Law is entered into force from January 1, 2005.

Federal Law No. 69-FZ of July 20, 2004 on the Invalidation of Some of the Provisions of the Legislative Acts of the Russian Federation on Militia

Omits the provision providing for the duty of the militia to register colour copiers purchased by natural persons and legal entities, to control observation of the rules of registration, storage and use.

Federal Law No. 68-FZ of July 20, 2004 on the Invalidation of Individual Provisions of the Legislative Acts of the Russian Federation in the Sphere of Education

Lifts the restriction for the admission to the state and municipal institutions of the secondary and higher professional education to teach specialists in the sphere of law, economy, management, state and municipal management under contracts with natural persons, as well as the non-state enterprises, institutions and organisations. Earlier, educational institutions could not admit on the paid basis more than 50% of the students for each of the mentioned directions of training (specialities).

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

Federal Law No. 67-FZ of July 20, 2004 on the Amendment to Article 1 of the Law of the Russian Federation on the Organisation of Insurance Work in the Russian Federation

The Law is extended to include the provision stating that it does not apply to relations in obligatory insurance of the deposits of natural persons in the banks.

Federal Law No. 66-FZ of July 20, 2004 on the Amendments to Articles 346.27 and 346.29 of Part 2 of the Tax Code of the Russian Federation

The system of notions of the Tax Code of the Russian Federation for the purposes of Chapter 26.3 "System of Taxation in the Form of the Uniform Imputed Income Tax for Individual Types of Activities" includes the notion of the "means of transport" implying motor vehicles intended for passenger and cargo transportation over the roads (any types of buses, cars and trucks). The "means of transport" do not include trailers, semi-trailers and draw-bar trailers. The Law specifies that the physical figure used to determine basic incomes for incomes calculation is a "means of transport", not a transport vehicle.

The given measure removes an obstacle preventing the switchover of organisations and independent entrepreneurs (while observing other restrictions specified in the Tax Code of the Russian Federation) to the uniform imputed income tax for the incomes obtained from operation of less than 20 trailer or semi-trailer vehicles. Earlier, such organisations could not switch over to the uniform imputed income tax, since the trailers and semi-trailers were included in the "means of transport".

The Federal Law is entered into force one month after the day of its official publication. The Law applies to legal relations emerging from January 1, 2004.

Federal Law No. 65-FZ of July 20, 2004 on the Amendments to Part 2 of the Tax Code of the Russian Federation

The services of keeping motor vehicles on paid parkings is separated into an independent type of activities for the purposes of the uniform imputed income tax. The paid parkings are implied to be the areas (including the open and closed sites) used to render paid services of the keeping of transport vehicles. The basic incomes factor per month for the mentioned type of activities makes Rbl 50 per square meter.

The Federal Law is entered into force one months after the day of its official publication, however, no sooner than the 1st of the subsequent tax period for the uniform imputed income tax for individual types of activities.

Decision of the Higher Arbitration Court of the Russian Federation No. 4052/04 of June 15, 2004 <br>& Ruling of the Higher Arbitration Court of the Russian Federation No. 4052/04 of July 2, 2004 on the Explanation of the Decision and Correction of the Misprint

The Higher Arbitration Court of the Russian Federation invalidated on June 15, 2004 as not complying with the Tax Code of the Russian Federation Paragraph 23 and Paragraph 26 of Section 2.1 "Estimation of the Total Tax Amount" of the Instruction on the filling of the declaration for the value added tax and the declaration for the value added tax for operations subject to the zero percent tax rate endorsed by the Order of the Ministry of Taxation of Russia No. BG-3-03/25 of January 21, 2002 (with amendments). The Code does not specify the duty of the taxpayer to restore in the tax declaration VAT amounts and pay them to the budget for the property earlier purchased by the taxpayer for operations subject to VAT and handed over later as a contribution to the registered (shared) capital of companies and partnerships or handed over to the successor (successors) in cases of the taxpayer reorganisation.

Federal Law No. 84-FZ of July 28, 2004 on the Amendments to the Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on the Invalidation of the Federal Law on the Restructuring of Credit Organisations and Individual Provisions of Legislative Acts of the Russian Federation, As Well As on the Procedure of Liquidation of the State Corporation "Agency for the Restructuring of Credit Organisations"

In view of the liquidation of the state corporation "Agency for the Restructuring of Credit Organisations" appropriate changes are introduced to the laws on the amendments to the RSFSR Law on banks and banking activities in the RSFSR, on insolvency (bankruptcy) of credit organisations and to Article 321 of the Tax Code of the Russian Federation.

Decision of the Government of the Russian Federation No. 379 of July 26, 2004 on the Changes to the Procedure of Execution of the Writs of Execution of Judicial Bodies Collecting Resources under Monetary Obligations of Recipients of Resources of the Federal Budget

Specifies the procedure of execution of demands of the writs of execution for the collection of resources under monetary obligations of recipients of resources of the federal budget from the personal accounts opened for them in the federal treasury bodies for the resources of the federal budget, as well as the resources from entrepreneurial and other profitable activities.

The demands of the writs of execution before January 1, 2005 shall be executed within the residues of the volumes of financing of expenses according to appropriate codes of the budget classification of the Russian Federation transferred from the personal accounts of the recipient of resources of the federal budget opened to the debtor, chief administrator of resources of the federal budget in the federal treasury bodies. In case of a failure to execute the mentioned writs of execution before January 1, 2005, the federal treasury bodies shall suspend the spending of resources from the personal accounts of the recipient of resources of the federal budget.

Decision of the Government of the Russian Federation No. 377 of July 23, 2004 on the Endorsement of the Regulation on the Commission for the International Humanitarian and Technical Aid of the Government of the Russian Federation

The Commission for the International Humanitarian and Technical Aid of the Government of the Russian Federation shall coordinate the activities of the bodies of state power and bodies of local government, legal entities and natural persons in reception and distribution of the international humanitarian and technical aid (assistance) received in the Russian Federation. The Commission shall take decisions confirming (refusing to confirm) the pertinence to the humanitarian or technical aid (assistance) of the resources and commodities provided to recipients, as well as the works carried out for and services rendered to them, on the free basis by foreign states, their federal or municipal formations, international and foreign institutions or non-commercial organisations, foreign natural persons.

Decision of the Government of the Russian Federation No. 331 of June 30, 2004 on the Endorsement of the Regulation on the Federal Antimonopoly Service

The Federal Antimonopoly Service is an authorised federal body of executive power in charge of the adoption of the normative legal acts, control and enforcement of observation of the legislation in the sphere of competition at commodity markets, protection of competition at financial markets, activities of subjects of natural monopolies (within the specified authority), advertising (within the specified authority).

Activities of the Federal Antimonopoly Service shall be supervised by the Government of the Russian Federation.

Decision of the Government of the Russian Federation No. 329 of June 30, 2004 on the Ministry of Finance of the Russian Federation

The Ministry of Finance of Russia is a federal body of executive power in charge of the working out of the state policy and normative-and-legal regulation in the sphere of budget, taxation, insurance, currency, bank activities, state debt, audit activities, accounting and reporting, production, processing and circulation of precious metals and precious stones, customs payments, determination of the customs cost of commodities and transport vehicles, investing of resources to finance the accumulated part of the labour pension, arranging lotteries, production and circulation of protected printed items, financial support of the state service, combating legalisation of incomes obtained in a criminal way and financing of terrorism.

The Ministry of Finance of Russia shall continue to implement its authority in organisation of execution of the federal budget and in the state regulation of audit activities.

The Ministry of Finance of Russia shall coordinate and control the activities of supervised by it Federal Tax Service, Federal Service of Insurance Enforcement, Federal Service of Financial and Budget Enforcement and the Federal Service of Financial Monitoring, as well as control execution by the Federal Customs Service of the normative legal acts on calculation and collection of the customs payments, determination of the customs cost of commodities and transport vehicles.

Order of the State Customs Committee of the Russian Federation No. 605 of May 25, 2004 on the Endorsement of the Instruction on the Procedure of Processing of Proposals, Applications and Appeals of Citizens to the State Customs Committee of Russia

Defines the procedure of registration and processing of appeals of citizens, control over their execution, organisation of reception of citizens in the State Customs Committee of Russia. Organisation of the processing of appeals of citizens and their reception, including those to the management of the State Customs Committee of Russia, is vested in the section in charge of the appeals of citizens of the Administrative Department of the State Customs Committee of Russia.

Envisaged procedure does not apply to the citizens' appeals specified in the legislation on criminal procedures, legislation on civil proceedings, legislation on administrative violations and the labour legislation of the Russian Federation.

Appeals of citizens must be examined within one month from the day of receiving in the State Customs Committee of Russia, those not requiring additional investigation and checking - within 15 days from the day of receiving. The period of examination (at the decision of the management of the State Customs Committee of Russia) may be prolonged in individual cases, however, not more than for 15 days while notifying of it the author of the appeal.

Registered in the Ministry of Justice of the Russian Federation on July 26, 2004. Reg. No. 5947.

Order of the Ministry of Finance of the Russian Federation No. 57n of June 30, 2004 on the Endorsement of the Regulation on the Procedure of Carrying out Operations of Use of Resources Received in the Federal Budget from the Leasing of the Federally Owned Property Handed over for Operative Control to Budget-Supported Institutions Enjoying the Right for Additional Budget Financing

Specifies the procedure of use of resources received as incomes in the federal budget from the leasing of the federally owned property (including the movable one) handed over for operative control to budget-supported organisations enjoying the right under the law on the federal budget for the appropriate year for an additional source of budget financing for the maintenance and development of their material and technical base in excess of the amounts specified in the federal law on the federal budget.

Registered in the Ministry of Justice of the Russian Federation on July 26, 2004. Reg. No. 5946.

Order of the Federal Agency of Federal Property Management No. 104-r of July 6, 2004 on the Endorsement of the Approximate Form of the Contract of Leasing of the Federally Owned Plot of Land

Provides the new approximate form of the contract of leasing of the federally owned land plot.

Registered in the Ministry of Justice of the Russian Federation on July 23, 2004. Reg. No. 5943.

Direction of the Central Bank of Russia No. 1480-U of July 23, 2004 on the Partial Invalidation of the Instruction of the Bank of Russia No. 59 of March 31, 1997 on the Application to Credit Organisations of the Measures of Intervention for the Violation of the Prudential Norms of Work

Invalidates the provision stating that credit organisations supervised by the Agency for the Restructuring of Credit Organisations are exempted from envisaged in Article 75 of the Federal Law on the Central Bank of the Russian Federation (Bank of Russia) forced measures of intervention for the violation of bank enforcement measures.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia. The Direction is published in the Herald of the Bank of Russia on July 28, 2004, No. 44.

Federal Law No. 94-FZ of July 28, 2004 on the Amendments to the Code of Civil Procedures of the Russian Federation

The amendments envisage an opportunity to restore the yearly period unused because of justifiable reasons when the court rulings having entered into legal force may be appealed against in the court of enforcement instance.

The Law specifies the names of the acts adopted by the courts of the enforcement instance, terminology and individual provisions of the Code of Civil Procedures of the Russian Federation. The given measure is aimed at improvement of the civil proceedings taking into account the judicial practice accumulated after the entry into force of the new Code of Civil Procedures of the Russian Federation from February 1, 2003.

Federal Law No. 93-FZ of July 28, 2004 on the Amendments to the Code of Administrative Violations of the Russian Federation

Enhances the responsibility for the violation envisaged in Article 12.8 of the Code of Administrative Violations of the Russian Federation ("Driving a Vehicle in an Impaired Condition, Permitting to Drive a Vehicle to a Person Being in a Impaired Condition"). Committing the given violation implies suspension of the driver's license for one and a half to two years (earlier, a fine of 10 to 20 minimum amounts labour remuneration was imposed, and the driver's license was suspended for one year). Also, the chiefs of the territorial departments (sections) of internal affairs and similar bodies of internal affairs, their deputies, chiefs of territorial militia sections (divisions) and their deputies are entitled to process the cases of drunken conduct in public places defamatory to human dignity and public moral.

The Federal Law is entered into force 30 days after the day of its official publication.

Federal Law No. 92-FZ of July 28, 2004 on the Continuation of the Experiment on Taxation of Immovable Property in the Cities of Novgorod the Great and Tver and on the Amendments to the Federal Law on the Experiment on Taxation of Immovable Property in the Cities of Novgorod the Great and Tver

In 2004-2005 continues the experiment on taxation of immovable property in the cities of Novgorod the Great and Tver until 2005. To avoid double taxation of the payers registered outside Novgorod the Great and Tver, the taxable base for the property tax determined according to Chapter 30 of the Tax Code of the Russian Federation does not include immovable property available on the territories of these cities.

The Federal Law is entered into force from the day of its official publication. The Federal Law applies to legal relations emerging from January 1, 2004.

Federal Law No. 91-FZ of July 28, 2004 on the Amendment to the Federal Law on the Total Number of Justices of the Peace and the Number of Districts in the Subjects of the Russian Federation

Increases the specified number of justices of the peace and the number of districts in the Kabardino-Balkar Republic from 35 to 40.

Federal Law No. 89-FZ of July 28, 2004 on the Amendments to the Federal Law on the Securities Market

According to the amendments, trade organisers at the securities market not being stock exchanges are empowered with the right of listing (de-listing) of securities from January 1, 2005.

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

Federal Law No. 88-FZ of July 28, 2004 on the Amendments to the Federal Law on the Combating of Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism

The Law extends the list of subjects providing information to the authorised body at the expense of organisations rendering mediation services in the sale-and-purchase transactions for immovable property, as well as the lawyers, notaries and persons engaged in entrepreneurial activities in the sphere of legal or accounting services. In this case, the lawyers, notaries and person engaged in entrepreneurial activities in the sphere of legal or accounting services are exempted from the requirements of the Law on obligatory control. The mentioned persons shall notify the authorised body only if they suspect that appropriate transactions or financial operations are carried out or may be carried out for the purposes of legalisation (laundering) of incomes obtained in a criminal way or financing of terrorism.

Operations subject to obligatory control include interest-free loans granted by non-credit organisations for at least Rbl 600,000, as well as transactions with immovable property for at least Rbl 3 million.

Credit organisations may not open accounts without the personal presence of the person opening a deposit account or his representative, institute and maintain relations with non-resident banks operating without the physical presence on the territory of the states where they are registered. The Law lists the cases when credit organisations may refuse to conclude a contract for a bank account (deposit).

Organisations carrying out operations with monetary resources or other property are provided access to official information necessary for the checking of the clients, including information of the Joint State Register of Legal Entities, Summary State Register of Representations of Foreign Companies Accredited on the Territory of the Russian Federation, as well as information of the lost, invalid passports, passports of the deceased natural persons, lost blank passports.

The Federal Law is entered into force 30 days after the day of its official publication.

Federal Law No. 87-FZ of July 28, 2004 on the Invalidation of the Federal Law on the Restructuring of Credit Organisations and of Individual Provisions of the Legislative Acts of the Russian Federation, As Well As on the Procedure of Liquidation of the State Corporation "Agency for the Restructuring of Credit Organisations"

Invalidates the Federal Law No. 144-FZ of July 8, 1999 on the restructuring of credit organisations. Liquidates the state corporation "Agency for the Restructuring of Credit Organisations" operating on the basis of the mentioned Law. Creditor claims to the agency are accepted within two months from the day of publication of information on the liquidation in Rossiyskaya Gazeta.

Federal Law No. 86-FZ of July 28, 2004 on the Amendments to Chapter 22 of Part 2 of the Tax Code of the Russian Federation

Increases approximately 8% the specific excise duty rates for excisable goods except for the cigarettes. Filter cigarettes shall be subject to the rate of Rbl 65 per 1,000 pierces + 8%, however, not less than 20% of the prime price (earlier, Rbl 60 per 1,000 pieces + 5%).

The Federal Law is entered into force from January 1, 2005, however, no sooner than one month after the day of its official publication, with exceptions.

Federal Law No. 85-FZ of July 28, 2004 on the Amendment to the Federal Law on the Federal Budget for the Year 2004

The budgets of the subjects of the Russian Federation are granted the right of making payments under the loans granted in the current fiscal year and prolonged as of January 1, 2004 till the end of the fiscal year, i.e. December 31, 2004, not within 7 months as was envisaged earlier. The given rule does not apply to interest-free loans allocated for the complex of measures to prepare the objects of the housing and communal complex supervised by the subjects of the Russian Federation and the bodies of local government for the autumn-and-winter season of 2003/2004.

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

Federal Law No. 83-FZ of July 28, 2004 on the Amendments to Part 2 of the Tax Code of the Russian Federation, Amendment to Article 19 of the Law of the Russian Federation on the Fundamentals of the Taxation System in the Russian Federation, As Well As on Invalidation of Individual Legislative Acts of the Russian Federation

Part 2 of the Tax Code of the Russian Federation is extended to include Chapter 25.2 "Water Tax". The Law introduces specific tax rates for the river basins, lakes and seas and economic regions. Thus, the water tax for the water intake from the water bodies for supplies to the population is fixed in the amount of Rbl 70 per thousand cubic meters of water collected from the water object.

The tax period is a quarter. The tax must be paid to later than the 20th of the month following the expired tax period. The same period is used to submit the tax declaration.

The Law eliminates individual tax exemptions specified in the legislation of the Russian Federation on the payment for the use of water objects.

The Federal Law is entered into force from January 1, 2005, however, no sooner than one month after the day of its official publication.

Federal Law No. 82-FZ of July 28, 2004 on the Consumer Basket for the Whole of the Russian Federation for the Year 2004

The consumer basket for the main socio-demographic groups of population for the whole of the Russian Federation in 2004 is fixed according to the norms envisaged in the Federal Law No. 201-FZ of November 20, 1999 on the consumer basket for the whole of the Russian Federation.

The Federal Law is entered into force from the day of its official publication. It applies to legal relations emerging from January 1, 2004.

Federal Law No. 81-FZ of July 28, 2004 on the Amendment to Article 34 of the Federal Law on the Investing of Resources to Finance the Accumulated Part of the Labour Pension in the Russian Federation

Removes the inconsistency between Article 34 of the changed Law and the Federal Law No. 135-FZ of November 10, 2003 pertaining to the opportunities of transfer by the Pension Fund of the Russian Federation of resources of accumulated pensions to the management company chosen by the insured or to the state management company.

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

Federal Law No. 80-FZ of July 28, 2004 on the Amendment to Article 59 of the Code of Arbitration Procedures of the Russian Federation

Article 59 of the Code of Arbitration Procedures of the Russian Federation is being brought in compliance with the Decision of the Constitutional Court of the Russian Federation No. 15-P of July 16, 2004 having recognised Part 5 of the mentioned Article as not complying with the Constitution of the Russian Federation inasmuch as it excluded for the persons rendering legal aid and chosen by organisations opportunities to act as representatives in the court of arbitration if they were not being lawyers or staff employees of these organisations.

Federal Law No. 79-FZ of July 27, 2004 on the State Civil Service in the Russian Federation

Specifies the legal, organisational, financial and economic fundamentals of the state service in the Russian Federation. The Law regulates relations pertaining to the admission to the state service, its particulars and termination, as well as the determination of the legal status of the federal state civil servant and the state civil servant of the subject of the Russian Federation.

The Law defines the main rights and duties of state civil servants, restrictions and prohibitions of the state service, as well as the requirements to their service conduct.

Positions of the civil service are subdivided into categories (heads, assistants (councillors), specialists and support specialists) and groups (higher, chief, leading, senior and junior). All positions of the state civil service are included in the registers of positions of the state civil service. Class grades of the civil service are assigned to civil servants according to the occupied position within the limits of the group of positions of the civil service.

Civil service is open for entry to the citizens of the Russian Federation having reached the age of 18 speaking the state language of the Russian Federation and meeting the qualification requirements specifies in the Law. The limiting age for being in the state service is 65 years.

The Law introduces the notion of the "service contract", defines the parties, content, forms and the period of validity of the service contract, as well as the procedure of concluding it. Regulates in detail the issues of testing when admitting to the civil service, transfer to another position or significant change of the terms of the service contract with the servant's consent. Specifies an exhaustive list of reasons of termination of the service contract.

The Law regulates the issues of the service time and the leisure time of civil servants, defines the normal length of service time, terms of irregular working hours.

The Law regulates also the issues of labour remuneration of the state civil servants and defines the procedure of building of the labour remuneration fund of the federal state servants.

The Federal Law is entered into force six moths after the day of its official publication except for the individual norms envisaging a special procedure of entry into force.

Information Letter of the Ministry of Taxation of the Russian Federation No. 21-2-05/82 of July 21, 2004 on the Calculation of the Tax Rate for the Tax on Extraction of Mineral Resources for June 2004

Provides information on the average level of prices of the Urals oil and the official US dollar rates to the Russian rouble applied for the calculation of the tax on extraction of mineral resources for oil for June 2004. The tax rate is fixed in the amount of Rbl 961.8146 per ton taking into account the coefficient.

Letter of the Ministry of the Industry and Power Supplies of the Russian Federation No. AR-722 of July 27, 2004 on the Prices for the Design and Survey Works in Construction for the III Quarter of 2004

The average level of the basic prices for design works in construction is fixed in the amount of 1.64 to the level of January 1, 2001 and of 12.67 to the level of January 1, 1995.

Inflation index for survey works in construction is fixed in the amount of 1.67 to the level of prices of January 1, 2001 and 18.97 to the basic prices as of January 1, 1991.

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