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 7.12.2004

Decision of the Government of the Russian Federation No. 739 of December 3, 2004 on the Authority of the Federal Bodies of Executive Power in Implementation of the Proprietary Rights for the Property of the Federal State Unitary Enterprise

Lists the authority of the federal bodes of executive power pertaining to federal state unitary enterprises that must be preserved in the federal property or included in the forecast of privatisation of the federal property if the stocks of the joint-stock companies created by their conversion are expected to be transferred to the registered capital of other joint-stock companies or be preserved in the federal property. Also lists the authority of the Federal Agency for Federal Property Management pertaining to the federal state unitary enterprises.

Decision on the creation, reorganisation in the from of separation, isolation of the federal state unitary enterprises on the basis of economic management and their conversion into the federal state institutions, as well as on the changing of the type of the mentioned enterprises for the federal government enterprises is taken by the Government of the Russian Federation. Reorganisation of the federal state unitary enterprises on the basis of economic management in the form of a merger and incorporation, as well as their liquidation, is implemented at the decision of the Federal Agency for Federal Property Management on the basis of the proposal of the federal body of executive power supervising the appropriate enterprise.

Decision of the Government of the Russian Federation No. 738 of December 3, 2004 on the Management of the Federally Owned Stocks of Open-Type Joint-Stock Companies and the Use of the Special Right of Participation of the Russian Federation in the Management of the Open-Type Joint-Stock Companies ("Golden Stock")

The rights of the stock-holder of the open-type joint-stock companies, where the stocks are owned by the Russian Federation, on behalf of the Russian Federation are implemented by the Federal Agency for Federal Property Management. The Decision defines the rules of expressing of the will of the stock-holder - Russian Federation, procedure of holding of the general meeting of stock holders, election of the board of directors, implementation of the interests of the Russian Federation in the board of directors. Provides the procedure of expressing of the position of the stock-holder - the Russian Federation - in the joint-stock companies forming the special list.

The Decision specifies the particulars of work of the audit commission of the joint-stock company where the Decision was taken to use the special right of participation of the Russian Federation in its management ("golden stock").

Federally owned stocks of joint-stock companies handed over for sale to the Russian Fund of Federal Property must be handed over to the Federal Agency for Federal Property Management within one month from the day of introduction of appropriate changes in the charter of the Russian Fund of Federal Property, except for the stocks that must be handed over to the buyers under the concluded sale and purchase contracts.

Decision of the Government of the Russian Federation No. 725 of December 2, 2004 on the Amendments to the Customs Tariff of the Russian Federation Pertaining to Palm Oil

Refines individual subitems of the Foreign-Trade Commodity Nomenclature of the Russian Federation pertaining to palm oil and endorses the new rates of the import customs duties for 9 months. The rate of the import customs duty for palm oil in boxes, kegs and cans with the net weight of 200 kg or less amounts to 15% of the customs cost, however, not less than EUR 0.12 per kg; for other items - 5% of the customs cost. Earlier, the rate of the import customs duty for palm oil and fractions thereof, whether or not refined, without changing the chemical composition in all cases amounted to 5% of the customs cost.

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

Decision of the Government of the Russian Federation No. 713 of December 1, 2004 on the Procedure of Rendering Assistance to Persons Having Received the Certificate of Registration of Their Request to Recognise Them As Unwilling Migration and to Provide for Their Travel and Luggage Transportation, As Well As to Pay out Appropriate Compensation to Low-Income Persons out of Them

The persons having received the certificate of registration of the request to recognise them as unwilling migration and their family members having arrived with them under 18 years of age are entitled for the assistance in travel and luggage transportation to the place of temporary residence (stay) on the territory of the Russian Federation. The low-income persons having received the certificate are entitled for the compensation of the travel and luggage transportation expenses.

Assistance to the mentioned persons is provided by the territorial body of the Federal Migration Service of Russia, where the person having applied for the assistance is registered, by handing out the order to buy tickets and luggage slips in a transportation organisation at the expense of own resources. The Decision lists the documents to be submitted to the Federal Migration Service of Russia to get the order. The order guarantees the purchase of travel documents in a transportation organisation to the mentioned person according to the priority procedure. The order is valid within 7 days from issue.

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

Decision of the Government of the Russian Federation No. 704 of December 1, 2004 on the Procedure of Compensation of Expenses of Organisations and Citizens of the Russian Federation Pertaining to the Execution of the Federal Law on the Military Duty and the Military Service

Defines the rules of compensation of expenses of organisations and citizens of the Russian Federation pertaining to the execution of the mentioned Federal Law.

Compensation applies to expenses pertaining to the training of citizens in the fundamentals of the military service in educational centres of organisations, to the payments and compensations to persons participating in the measures to provide for the execution of the military duty or contract military service, to the training of the citizens in the military specialities when ordered by the military commissariat and other.

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

Decision of the Government of the Russian Federation No. 703 of December 1, 2004 on the Federal Treasury

The Federal Treasury (Treasury of Russia) is a federal body of executive power (federal service) in charge of the judicial functions providing for the execution of the federal budget, cash services for the execution of the budgets of the budget system of the Russian Federation, preliminary and current control over operations with resources of the federal budget carried out by the chief administrators, administrators and recipients of the resources of the federal budget.

The Federal Treasury is supervised by the Ministry of Finance of Russia providing for coordination and control of its activities. The Federal Treasury controls the territorial bodies of the Federal Treasury of the Ministry of Finance of Russia.

The Decision invalidates the Decision of the Government of the Russian Federation No. 864 of August 27, 1993 on the Federal Treasury of the Russian Federation with amendments.

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

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