Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 29.11.2004

Decision of the Constitutional Court of the Russian Federation of November 29, 2004 on the Case of Constitutionality of Paragraph 1 of Item 4 of Article 64 of the Law of the Leningrad Province on the Elections of the Deputies of Representative Bodies of Local Government and Officials of Local Government in the Leningrad Province Pursuant to the Appeal of Citizens V.I.Gnezdilov and S.V.Pashigorov

According to the applicants, the norm of the mentioned Law depreciate the rights of the electorate having voted against all candidates, because their opinion is not taken into account in the vote count. In the determination of the winners, only those votes are summed up who voted in favour of the candidates. According to the common rule, if there were more votes against all candidates than for the leading candidate, the election must be invalidated. However, according to the mentioned Law, in all other cases, the votes against all candidates do not affect the vote count. According to the applicants, this contradicts the norms of the Constitution of the Russian Federation stating that the supreme bearer of power in the Russian Federation is the people, the norms of free elections, as well as the norms of equality of citizens. According to the applicants, the challenged norm separates the citizens into two groups unequal in their rights: into those who voted for any candidate and whose votes are taken into acco unt and those who voted against all candidates and whose votes are not taken into account. Besides, the voter feels under pressure knowing that his vote will not be taken into account if he votes against all candidates.

The Constitutional Court of the Russian Federation pointed out that the fact of the negative attitude of the majority of voters to all candidates confirmed with the vote against all candidates by a larger number of voters as compared to those who voted for the candidate having collected the majority of votes means that the given candidate did not get support of the voters necessary and sufficient for the genuine representation of the people. Therefore, such candidate may not be recognised as elected under the available legal regulation.

The Constitutional Court of the Russian Federation recognised the provision of Paragraph 1 of Item 4 of Article 64 of the Law of the Leningrad Province on the elections of the deputies of representative bodies of local government and officials of the local government in the Leningrad Province as not contradicting the Constitution of the Russian Federation since the norm contained in it does not violate the delimitation of the sphere of reference and authority between the bodies of state power of the Russian Federation and the bodies of state power of its subjects specified in the Constitution of the Russian Federation, as well as the electoral rights of the citizens of the Russian Federation specified in it.

The Decision is entered into force immediately after annunciation.

Decision of the Government of the Russian Federation No. 690 of November 26, 2004 on the Program of State Guarantees of Rendering of Free Medical Aid to the Citizens of the Russian Federation in 2005

The program of state guarantees defines the types and volumes of medical aid rendered to the population free of charge. The financing of the program is implemented at the expense of resources of the budgets of all levels, resources of obligatory medical insurance and other receipts. The program is used by the bodies of state power of the subjects of the Russian Federation to work out and endorse the territorial programs that may envisage additional volumes and types of medical aid at the expense of resources of the budgets of the subjects of the Russian Federation.

In the framework of the program, the citizens of the Russian Federation shall enjoy free of charge emergency medical aid, out-patient and stationary medical aid, as well as the necessary medicines for individual categories of citizens. The program specifies the normatives of the volumes of medical aid, normatives of financial expenses per unit of volume of medical aid and per capita normatives of financing of the program.

The per capita normatives amount on the average to Rbl 3,157 per person per year, including Rbl 1,507.5 at the expense of resources of obligatory medical insurance (without expenses for the necessary medicines).

The Decision is entered into force from January 1, 2005.

Decision of the Government of the Russian Federation No. 689 of November 26, 2004 on the Fixing of the Cost of Living in Per Capita Figures and for the Main Socio-Demographic Groups of Population for the Whole of the Russian Federation for the III Quarter of 2004

The cost of living is specified for the whole of the Russian Federation for the III quarter of 2004 in the amount of Rbl 2,396 per capita, Rbl 2,629 for the able-bodies population, Rbl 1,816 for the pensioners, Rbl 2,336 for children.

Decision of the Government of the Russian Federation No. 688 of November 26, 2004 on the Amendments to the Regulation on the Duties for the Patenting of Inventions, Useful Models, Industrial Prototypes, Registration of Trade Marks, Service Marks, Names of the Places of Origin of Commodities, Rights of Use of the Names of the Places of Origin of Commodities

Specifies that the patent duties are collected for the patenting of secret inventions. Prolongation of the time of submission of the application for the invention, application for the useful model, application for the industrial prototype requesting conventional priority is charged with the duty in the amount of Rbl 150.

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

Decision of the Government of the Russian Federation No. 682 of November 25, 2004 on the Endorsement of the Procedure of Granting of Subventions from the Federal Budget to Finance Additional Expenses of Scientific Cities of the Russian Federation

The Ministry of Finance of Russia shall grant subventions to municipal formations possessing the status of scientific cities of the Russian Federation to finance the measures of development and support of the social, engineering and innovation infrastructure of the scientific cities.

Within 2 weeks of the adoption of the federal law on the federal budget, the body of local government of the scientific city shall submit the list of the mentioned measures for endorsement to the Ministry of Education and Science of Russia.

Decision of the Government of the Russian Federation No. 681 of November 25, 2004 on the Endorsement of the Procedure of Consideration of Suggestions to Assign the Status of the Scientific City of the Russian Federation to the Municipal Formation and Terminate This Status

Defines the procedure of examination of the documents for the assigning of the status of the scientific city of the Russian Federation to a municipal formation, as well as the procedure of termination of this status. Suggestion to assign the status of the scientific city to the municipal formation is submitted to the Ministry of Education and Science of Russia by the head of the municipal formation in coordination with the bodies of state power of the subject of the Russian Federation. If the directions of activities specified for the scientific city are excluded from the priority directions of development of science, technologies and equipment, or if there is a motivated request of the representative body of local government of the municipal formation, the Ministry of Education and Science of Russia prepares a suggestion for an early termination of the status of the scientific city.

Decision of the Government of the Russian Federation No. 678 of November 25, 2004 on the Amendments to the Decision of the Government of the Russian Federation No. 100 of February 12, 2001

Amends the procedure of recognising as desperate for collection and writing off of arrears and debts in penalties for the federal taxes and fees. The given procedure applies to the debts in insurance contributions to the state social extra-budgetary funds, accrued penalties and fines available with organisations as of January 1, 2001.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 85 of November 17, 2004

Provides the review of the practice of solving of disputes under the contract of commission. The review contains the issues of determination of the legal nature of the contract of commission, rights and duties of the parties, remuneration, execution of the order of commission and other.

Thus, the right of claim of the remuneration does not depend on the execution of the transaction concluded between the commission agent and the third party if otherwise is not implied in the obligation or agreement of the parties.

If the buyer pays for the commodity in instalments, the commission agent, in the absence of another agreement, may collect the commission in full amount from the first received amount.

In case of a refusal on the part of the commission agent to provide to the client information on transactions concluded in execution of the commission order of sale of commodities, the client may demand reimbursement of the full market cost of all handed over to the commission agent commodities without paying the remuneration.

Order of the Federal Service of Tariff Rates No. 142-e/1 of October 26, 2004 on the Amendments to the Decision of the Federal Power Supply Commission of the Russian Federation No. 88-e/1 of October 28, 2003 on the Endorsement of the Methodology Directions on the Regulation of Tariff Rates for the Services in Gas Transportation over Gas Distribution Networks

According to the amendments, tariff rates are endorsed for one year. Tariff rates may be revised during the year in case of a request of the subject of regulation or at the initiative of the body in charge of the regulation (Federal Service of Tariff Rates of Russia) if there are reasons resulting in the loss of profitability of the regulated type of activities for the subject of regulation, or if he gets an unexpected profit, or for other justifiable reasons. Gas distribution organisations where tariff rates for transportation were not revised shall apply from January 1, 2004 tariff rates for gas transportation to end users equal to the sum of the actual rates for the use of gas distribution networks and for the services of gas transportation taking into account their differentiation by the groups of end users endorsed before January 1, 2004.

The new wording is provided for the following appendices: "Coefficients of Specific Complexity of Servicing of the Gas Distribution System", "Calculation of Expenses of Gas Transportation over Gas Distribution Networks", "Calculation of Maintenance Expenses for the In-House Gas Equipment", "Description of Operating and Non-Sale Expenses", "Calculation of Profits Necessary for the Economic Activities" and "Information on the Main Production Funds Used in Gas Transportation in the Sphere of Responsibility".

Registered in the Ministry of Justice of the Russian Federation on November 23, 2004. Reg. No. 6135.

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