Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 11.01.2005

Federal Law No. 220-FZ of December 31, 2004 on the Amendments to Articles 231 and 232 of the Federal Law on Insolvency (Bankruptcy)

The time limit for the entry into force of Paragraph 6 "Bankruptcy of the Subjects of Natural Monopolies" of Chapter IX of the Federal Law No. 127-FZ of October 26, 2002 is shifted from January 1, 2005 to July 1, 2009.

The Federal Law No. 122-FZ of June 24, 1999 on the particulars of insolvency (bankruptcy) of the subjects of natural monopolies of the fuel and power-supply complex is invalidated from July 1, 2009, not from January 1, 2005 as was specified earlier.

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

Federal Law No. 219-FZ of December 30, 2004 on the Amendments to Some of the Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on the Credits Histories

The amendments introduce the right of the Bank of Russia to apply from September 1, 2005 as an enforcement measure to credit organisations sanctions for the failure to present information to credit history bureaus.

Article 857 of the Civil Code is extended to include the provision stating that information comprising the bank secret may be presented to only the clients or their representatives, as well as to the credit history bureaus for the reasons and according to the procedure envisaged in the law. The state bodies and their officials may get such information exclusively in cases and according to the procedure envisaged in the Federal Law on the credit histories.

The Code of Administrative Violations is extended to include a number of provisions on the responsibility for the violation of the procedure of creation and functioning of the credit history bureaus.

The Federal Law is entered into force from June 1, 2005 except for a number of provisions where other time limits are envisaged for the entry into force.

Federal Law No. 218-FZ of December 30, 2004 on the Credit Histories

Defines the notion and composition of the credit history, the grounds, procedure of building, keeping and use of credit histories, regulates activities of the credit history bureaus associated with it, specifies the particulars of creation, liquidation and reorganisation of the credit history bureaus, as well as the principles of their interaction with the sources of creation of the credit history, borrowers, bodies of state power, bodies of local government and the Bank of Russia.

Specifies the legal and organisational fundamentals of generation, processing, storage and disclosing by the credit history bureaus of information characterising the timely execution by the borrowers of their obligations under the loan (credit) contracts, improvement of creditor and borrower protection at the expense of the general reduction of credit risks, improvement of efficiency of work of credit organisations. The main goal of the credit history bureaus is accumulation of the certain list of information characterising the payment discipline of the borrower in execution of the loan (credit) contracts and comprising in aggregate the credit histories of legal entities and natural persons.

Credit organisations must bring their activities within nine months in compliance with the requirements to credit organisations being the sources of generation of credit histories. The sources of generation of credit histories must present to the credit history bureaus information on the earlier concluded loan (credit) contracts in the presence of the written direction (consent) of the appropriate subject of credit histories for the transfer of the mentioned information.

The Federal Law is entered into force from June 1, 2005 except for the provision on the duty of submission by credit organisations of information envisaged in the Federal Law on all borrowers having agreed for its submission to at least one of the credit history bureaus included in the State Register of Credit History Bureaus. The given provision is entered into force from September 1, 2005.

Federal Law No. 217-FZ of December 30, 2004 on the Amendments to Article 223 of Part 1 of the Civil Code of the Russian Federation and the Federal Law on the State Registration of the Rights for Immovable Property and Transactions with It

The amendments enhance the rights of the bona fide purchasers of property including the immovable one, as well as introduce the system of financial responsibility of the Russian Federation for the loss of the property right for the dwelling space. Immovable property is recognised to be possessed by the bona fide purchaser on the proprietary basis from the moment of the state registration, except for the cases envisaged in Article 302 of the Civil Code when the owner may recover such property from the bona fide purchaser. Earlier, there were situations when the owners were considered to be as such only formally, i.e. possession and use of the property were in the hands of the bona fide purchaser, with the right of disposal, although being with the owner, could not be implemented. Meanwhile, the bona fide purchaser had difficulties committing transactions with such property.

The owner of the dwelling space who cannot recover it from the bona fide purchaser, as well as the bona fide purchaser having lost the dwelling space, is entitled for a once-only compensation at the expense of the Russian Federation. The amount of the given compensation is calculated proceeding form the amount of the actual damage, however, may not be greater than Rbl 1 million. The mentioned provisions apply only if the state registration of the proprietary right of the bona fide purchaser for the dwelling space occurred after January 1, 2005.

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

Federal Law No. 216-FZ of December 30, 2004 on the Amendments to the Federal Law on the Hypothec (Immovable Property Mortgage)

Excludes the requirement of the notary certification of the mortgage contract. Specifies that the debtor under the mortgage-secured obligation, the mortgager and the legal holder of the mortgage deed may change the earlier specified terms of the deed. In the previous wording, the terms of the deed could only be changed in a number of cases. The state registration of the agreement on the change of the content of the deed must be carried out within one day from the moment when the applicant summons to the body in charge of the state registration of rights. The state registration of such agreement is carried out free of charge.

The borrower being a mortgager under the mortgage contract for the dwelling home or flat may insure the risk of the liability to the creditor for the failure to execute or improper execution of the obligation to return the credit. The insured amount under the contract of insurance of the borrower liability may not be greater than 20% of the cost of the mortgaged property.

As a general rule, the Law specifies the provision stating that in cases of the land plot mortgage, the right of pledge applies also to the available or constructed on the land plot building or structure of the mortgager (if otherwise is not envisaged in the contract).

The Law specifies the particulars of the mortgage of the land plot purchased with the credit resources of a bank or another credit organisation or resources of the tied loan, as well as the mortgage of the land plot housing the buildings or structures purchased or constructed using the mentioned resources.

Federal Law No. 215-FZ of December 30, 2004 on the Savings Housing Cooperatives

Defines the legal, economic and organisational fundaments of activities of the savings housing cooperatives in attraction and use of monetary resources of their member-citizens for the purchase or construction of the dwelling space to be handed over for use and, after the transfer of shares in full amount, in the property of the members of the savings housing cooperatives, as well as specifies the guarantees of protection of the rights and legal interests of citizens being members of the savings housing cooperatives. Specifies the legal status of the savings housing cooperatives, the rights and duties of their members, procedure of creation, reorganisation and liquidation of the savings housing cooperatives, as well as the procedure of their activities in attraction and use of the monetary resources of citizens for the purchase of the dwelling space.

The number of the members of the cooperative may not be less than 50 and greater than 5,000. The members of the cooperative assume the risk of losses associated with the activities of the cooperative within the limits of their accumulated shares.

The Law specifies the requirements to the financial stability of activities of the cooperative. In particular, the amount of the first contribution after which the right for the purchase or construction of the dwelling space by the cooperative occurs for its transfer for use to the cooperative member may not be less than 30% of the amount of the share of the cooperative member. The cost of purchase of the rights for the constructed as a shared participation dwelling space and the cost of the dwelling space constructed by the cooperative may not be greater than 20% of the cost of the cooperative property. The minimum time limit for the cooperative member to transfer the part of the share when the right for the purchase or construction of the cooperative dwelling space occurs is defined in the cooperative charter. Beginning with the second year of the activities of the cooperative in attraction and use of the monetary resources of citizens for the purchase of the dwelling space, the mentioned minimum time limit may not be less than two years. The Law provides the list of transactions permitted only after approval by the general meeting of the cooperative members.

Constituent documents of the earlier created cooperatives and other organisations and engaged in activities in attraction and use of the monetary resources of citizens for the purchase of dwelling space, except for the constituent documents of the housing and housing construction cooperatives, must be brought in compliance with the Federal Law within one year from its entry into force.

The Federal Law is entered into force 90 days after the day of its official publication except for a number of provisions where another time limit is specified for their entry into force.

Federal Law No. 214-FZ of December 30, 2004 on the Participation in the Shared Construction of the Multi-Apartment Homes and Other Objects of Immovable Property and on the Amendments to Some of the Legislative Acts of the Russian Federation

Regulates relations pertaining to attraction of monetary resources of citizens and legal entities for the shared constriction of multi-apartment homes and/or other objects of immovable property on the basis of the contract of participation in the shared construction and to the proprietary right for the objects of the shared construction emerging with its participants, as well as specifies the guarantees of protection of the rights, legal interests and property of participants of shared construction.

Construction parties may attract monetary resources only after obtaining the permission for the construction, publication and/or placing of the design declaration and the state registration of the proprietary right or the lease right for the land plot provided for the construction (creation) of a multi-apartment home and/or other objects of immovable property involving objects of shared construction. If cases of attraction of monetary resources by the person failing to meet the mentioned conditions, the citizen may demand an immediate return of the monetary resources handed over to him, as well as the payment of interest envisaged in Article 395 of the Civil Code in double the amount for the amount of these resources and reimbursement of the damages incurred on the citizens in excess of the interest.

A contract of participation in the shared construction is concluded between the construction party and the participant of the shared construction. Relations emerging from the contract involving a citizen (concluding the contract exclusively for personal, family, household and other needs other than entrepreneurial activities) are covered by the legislation on the protection of consumer rights. The contracts of participation in the shared construction are subject to the state registration.

The construction party must hand over the object of the shared construction to the participant of the shared construction no later than the deadline envisaged in the contract. In case of a violation of this time limit, the construction party shall pay to the participant of the shared construction the forfeit (penalties) in the amount of 1/75 of the rate of refinancing of the Bank of Russia as of the day of execution of the obligation from the contract price for each overdue day.

The Code of Administrative Violations is extended to include the new Article 14.28 specifying administrative responsibility for the violation of the requirements of the legislation on participation in the shared construction of multi-apartment homes and/or other objects of immovable property.

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

Federal Law no. 213-FZ of December 30, 2004 on the Amendments to Part 1 of the Civil Code of the Russian Federation

Includes in immovable property objects of unfinished construction. The new rule states that the transfer of the proprietary right for the dwelling home or apartment to another person serves as grounds to terminate the right of use of the dwelling space by the family members of the previous owner. Excludes the norm requiring to obtain the permission of the body of trusteeship to alienate the dwelling space being the place of living of the underage, disabled or with restricted abilities owner family members. The requirement to obtain such consent applies only to alienation of the dwelling space being the place of living of the owner family members of the given dwelling space covered by trusteeship or the underage owner family members having found themselves without parental support (which is known to the body of trusteeship).

In cases of the mortgage contract for the land plot, the mortgage right applies to the available or constructed on this land plot mortgager buildings and structures if otherwise is not envisaged in the contract.

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

Federal Law No. 212-FZ of December 30, 2004 on the Amendments to Articles 212 and 217 of Part 2 of the Tax Code of the Russian Federation, As Well As on Invalidation of Article 3 of the Federal Law on the Amendments to Part 2 of the Tax Code of the Russian Federation, on the Amendment to Article 19 of the Law of the Russian Federation on the Fundamentals of the Tax System in the Russian Federation, As Well As on Invalidation of Individual Legislative Acts of the Russian Federation

Specifies that in the determination of the taxable base for the income tax from natural persons, the material benefit obtained from operations with credit cards during the interest-free period specified in the credit card contract is not included in the incomes obtained as a material gain from saving on the interest for the use of the borrowed (credit) resources obtained from organisations or independent entrepreneurs. The given rule applies to legal relations emerging from January 1, 2005.

The stocks obtained by stock-holders as a result of distribution or conversion during reorganisation do not generate any incomes subject to the income tax from natural persons. The given norm applies to legal relations emerging from January 1, 2004.

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

Federal Law No. 211-FZ of December 30, 2004 on the Amendments to Some of the Legislative Acts of the Russian Federation and Invalidation of Individual Provisions of the Legislative Acts of the Russian Federation Pursuant to the Adoption of the Federal Law on the Fundamentals of Regulation of Tariff Rates of Organisations of the Communal Complex

Refines the composition of Article 14.6 "Violation of the Pricing Procedure" of the Code of Administrative Violations. Administrative responsibility is also introduced for the violation of the specified procedure of regulation of prices (tariff rates). The amendments to the laws on the electric power industry, on the state regulation of tariff rates for electric and thermal power and on the general principles of organisation of the local government eliminate different approaches to the general principles of the state regulation of tariff rates.

The Federal Law is entered into force from January 2, 2005 except for individual norms where other time limits for the entry into force are envisaged.

Federal Law No. 210-FZ of December 30, 2004 on the Fundamentals of Regulation of Tariff Rates of Organisations of the Communal Complex

Specifies the fundamentals of regulation of tariff rates of organisations of the communal complex providing electric power, heat and water supplies, water disposal and purification of waste water, utilisation (storage) of solid household waste, as well as of mark-ups to the prices (tariff rates) for consumers and mark-ups to tariff rates for commodities and services of organisations of the communal complex. Defines the authority of the Government of the Russian Federation, bodies of state power of the subjects of the Russian Federation and the bodies of local government in the sphere of regulation of tariff rates and mark-ups.

Financial needs of the organisation of the communal complex necessary for the implementation of its operational program are satisfied at the expense of resources received from the sale of commodities (rendering of services) of the given organisation at the specified tariff rates for commodities and services. The cutting of expenses of the given organisation may not serve as grounds for an early (in advance of the date of the end of the effective period of tariff rates) revision of tariff rates for commodities and services of the given organisation.

Three methods of regulation of tariff rates are specified: introduction of fixed tariff rates for the subsequent period, introduction of the limiting tariff rates and the indexing of tariff rates.

The Law provides the procedure of determination of payment for the connection to the engineering support networks for the parties carrying out construction and/or reconstruction of the building, structure, other object if the given reconstruction will cause an increased consumption for the mentioned objects. Specifies the rules of use of tariff rates and mark-ups, as well as the reasons for their early revision.

Until January 1, 2010, in the absence of programs of complex development of the systems of communal infrastructure of municipal formations, technical orders for the development of investment programs of organisations of the communal complex shall be endorsed by the representative bodies of municipal formations. The payment for the communal services for the dweller citizens and owners of the dwelling space is fixed in compliance with the housing legislation of the Russian Federation taking into account the mark-ups to the prices (tariff rates) for consumers specified in the present Federal Law.

The Federal Law is entered into force from January 1, 2006 except for individual norms where another time limit for the entry into force is envisaged.

Federal Law No. 208-FZ of December 29, 2004 on the Amendment to Article 346.27 of Part 2 of the Tax Code of the Russian Federation

The amendment refines the wording of the shop floor (client service floor) area used for the purposes of Chapter 26.3 "Taxation System in the Form of the Uniform Imputed Income Tax for Individual Types of Activities" of the Tax Code. The Law specifies that the mentioned area does not include ancillary, administrative rooms, as well as the rooms used for acceptance, storage of commodities and their preparation for sale where the visitors are not served.

The Federal Law is entered into force one month 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.

Federal Law No. 207-FZ of December 29, 2004 on the Insurance Tariff Rates for the Obligatory Social Insurance against Industrial Accidents and Occupational Diseases for the Year 2005

In 2005, preserves the terms and amounts of fixing of insurance tariff rates that were in effect in 2001 and prolonged by appropriate federal laws for the years 2002-2004. Preserves 22 insurance tariff rates (from 0.2% to 8.5% of the labour remuneration fund) differentiated depending on the occupational risk class.

The exemption for the payment of insurance contributions for obligatory social insurance against industrial accidents and occupational diseases introduced in 2001 and prolonged for the years 2002-2004 also preserves in 2005. However, the exemption applies to organisations of any organisational and legal forms, not only those forming part of the public all-Russia organisations of invalids. The given organisations shall pay insurance contributions in the amount of 60% of the specified amounts of insurance tariff rates pertaining to those accrued on all grounds regardless of the sources of financing payments in the monetary form and/or in kind (including rewards under the civil contracts in appropriate cases) in favour of the insured being Group I, II and III invalids.

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

Federal Law No. 206-FZ of December 29, 2004 on the Amendment to Article 12 of the Federal Law on the State Allowances to the Citizens with Children

The amount of the lumpsum allowance paid out at the birth (adoption) of the child is increased from Rbl 4,500 to Rbl 6,000.

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

Federal Law No. 205-FZ of December 29, 2004 on the Amendments to Article 346.13 of Part 2 of the Tax Code of the Russian Federation

The amendments refine the procedure and terms of beginning and termination of use of the simplified system of taxation for the newly created organisations and newly registered independent entrepreneurs. The mentioned entities may apply the simplified system of taxation from the moment of creation of the organisation or from the moment of registration of the natural person as an independent entrepreneur, not only in the current calendar year as was specified earlier.

The termination of use of the simplified system of taxation for organisations with the share of direct participation of other organisations being greater than 25%, as well as for organisations and independent entrepreneurs with the average number of employees greater than 100, is carried out according to the same procedure as in the cases when the taxpayer income is greater than Rbl 15 million or the residual cost of the fixed assets and non-material assets is greater than Rbl 100 million.

The Federal Law is entered into force one month after the day of its official publication, however, no sooner than the 1st of the subsequent tax period for the uniform tax of the simplified system of taxation.

Federal Law No. 204-FZ of December 29, 2004 on the Amendments to Part 2 of the Tax Code of the Russian Federation

Payments to the successors of the insured diseased in cases envisaged in the legislation on obligatory pension insurance are qualified as incomes from sources in the Russian Federation subject to the income tax from natural persons. The Law changes the procedure of determination of the taxable base for the income tax from natural persons and specifies the particulars of determination of the taxable base for the contracts of non-state pension support and the contracts of obligatory pension insurance concluded with non-state pension funds.

Also changes Chapter 25 "Profit Tax from Organisations" of the Tax Code. The list of incomes excluded from the taxable base includes property (works, services) obtained by medical originations carrying out medical activities in the framework of obligatory medical insurance from insurance organisations providing such insurance at the expense of the reserve of financing of preventive measures. The mentioned list also includes incomes from investing of resources of accumulated pensions intended for the financing of the accumulated part of the labour pension obtained by organisations acting as insurers under obligatory pension insurance. The given accumulated pensions, including the insurance contributions under obligatory pension insurance, are also exempted from the income tax from natural persons.

Other expenses pertaining to production and/or sale include employer payments (contributions) under the contracts of voluntary personal insurance, as well as expenses to pay out the temporary disability allowance because of the illness or injury (except for the industrial accidents and occupational diseases) for the first two days of the employee disability not covered by insurance payments to employees from insurance organisations.

The Law extends the list of expenses exempted from taxation. The mentioned list includes individual expenses pertaining to the investing of resources of accumulated pensions intended for the financing of the accumulated part of the labour pension. Defines the particulars of determination of incomes and expenses of insurance organisations providing obligatory medical insurance.

The Federal Law is entered into force one month after the day of its official publication and applies to legal relations emerging from January 1, 2005 except for the provisions where another procedure of entry into force is envisaged.

Federal Law No. 203-FZ of December 29, 2004 on the Amendments to Part 2 of the Tax Code of the Russian Federation

The amendments increase the amount of the standard tax exemption for children from Rbl 300 to Rbl 600 for each month of the tax period and increase from Rbl 20,000 to Rbl 40,000 the aggregate amount of incomes where this tax exemption applies.

Adoptive parents are included in the taxpayers entitled for the mentioned standard tax exemption.

The Federal Law is entered into force one month after the day of its official publication. The Federal Law applies to legal relations emerging from January 1, 2005.

Federal Law No. 202-FZ of December 29, 2004 on the Budget of the Social Insurance Fund of the Russian Federation for the Year 2005

Endorses the budget of the Social Insurance Fund for the year 2005 with incomes amounting to Rbl 185,514,656.5 thousand, Rbl 150,041,229.3 thousand out of which intended for the obligatory social insurance, and expenses amounting to Rbl 190,789,598.7 thousand, Rbl 155,680,972.9 thousand out of which intended for the obligatory social insurance.

In 2005, before the adoption of the special federal law, the temporary disability allowance because of the illness or injury (except for the industrial accidents and occupational diseases) is paid out to the insured for the first two days of the temporary disability at the expense of employer resources, and from the third day of the temporary disability - at the expense of resources of the Social Insurance Fund of Russia.

In 2005 the provision preserves stating that resources of the obligatory social insurance against industrial accidents and occupational diseases are used to pay for the expenses of the special outside medical care for the insured in the amount of Rbl 900 per month and expenses of the outside household care for the insured in the amount of Rbl 225 per month. The Law also preserves the procedure of calculation of the temporary disability and maternity allowances specified in 2004. Specifies that the maximum amount of the temporary disability and maternity allowances for the full calendar month may not be greater than Rbl 12,480.

In 2005, resources of the obligatory social insurance are allocated to pay fully or partially for the cost of accommodations for the children of the insured: to the children's sanatoria and rehabilitation camps of round-the-year service for 21-24 days proceeding from Rbl 400 per child per day; to the suburban stationary children's rehabilitation camps for up to 24 days during the school vacation according to the procedure defined by the Government of the Russian Federation.

The amount of the lumpsum insurance payment under the obligatory social insurance against industrial accidents and occupational diseases is determined according to the loss of professional abilities of the insured proceeding from Rbl 43.2 thousand. In 2004, the mentioned amount was Rbl 30,000. The amount of the lumpsum insurance payment in case of death of the insured is also increased to Rbl 43.2 thousand. In 2005, the amount of the monthly insurance payment may not be greater than Rbl 33,000.

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

Federal Law No. 189-FZ of December 29, 2004 on the Entry into Force of the Housing Code of the Russian Federation

The new Housing Code is entered into force from March 1, 2005. The same date is used to invalidate the Housing Code of the RSFSR, the Laws on the fundamentals of the federal housing policy, on the partnerships of owners of dwelling space with amendments. The fundamentals of the housing legislation of the USSR and the union republics of June 24, 1981 are invalidated on the territory of the Russian Federation from March 1, 2005.

The laws and other normative legal acts being in effect on the territory of the Russian Federation before they are being brought in compliance with the Housing Code shall apply inasmuch as they do not contradict the Housing Code. The earlier issued normative legal acts of the Supreme Soviet of the RSFSR and the Russian Federation not being laws and the normative legal acts of the Presidium of the Supreme Soviet of the RSFSR, the President of the Russian Federation, the Government of the Russian Federation, as well as the normative legal acts of the Supreme Soviet of the USSR applied on the territory of the Russian Federation not being laws and normative legal acts of the Presidium of the Supreme Soviet of the USSR, the President of the USSR, the Government of the USSR on issues that can be regulated only by the federal laws according to the Housing Code shall remain in force till the entry into force of the appropriate federal laws.

The earlier emerging housing relations shall be covered by the Housing Code where it pertains to the rights and duties emerging after its entry into force except for a number of cases.

Citizens registered before March 1, 2005 to get the dwelling space under the social lease contracts preserve their right of registration until they get their dwelling space under the social lease contracts.

Before the amendments are introduced in the federal laws and other normative legal acts, the earlier specified procedure of granting benefits to citizens is preserved in the payment for the dwelling space and communal services.

The housing or the housing construction cooperatives where all members have paid out their shares in full amount for the dwelling space provided by this cooperative must be converted before January 1, 2007 into the partnerships of owners of dwelling space or liquidated. After this deadline, the cooperatives having failed to convert must be liquidated according to the court proceedings.

Housing Code of the Russian Federation No. 188-FZ of December 29, 2004

The new Housing Code of the Russian Federation shall replace the Housing Code of the RSFSR having been in effect for more than 20 years.

In the Code, special emphasis is placed on the delimitation of the authority among the bodies of state power of the Russian Federation, subjects of the Russian Federation and the bodies of local government in the sphere of housing relations. Four types of the dwelling fund are specified depending on its destination: dwelling fund of social use (under the social lease contracts), specialised dwelling fund (for individual categories of citizens), personal dwelling fund (for proprietors), dwelling fund of commercial use (for commutative use).

Significant changes are introduced in the provisions pertaining to the priority of granting of the dwelling space under the social lease contracts. Three categories of citizens are specified permitted to get the dwelling space under the social lease contracts according to the priority procedure:

- citizens whose dwelling space is recognised to be inadequate for living according to established procedure and is not scheduled for repair or reconstruction;

- orphan children and children having found themselves without parental support;

- citizens suffering from acute forms of chronic diseases.

All other citizens registered as needing dwelling space shall get the dwelling space according to the waiting list proceeding from the time of such registration.

The payment for the dwelling space and communal services shall be transferred as before on the monthly basis before the 10th of the month following the expired one if another deadline is not specified in the management contract of the multi-apartment home.

The amendments are also stipulated by the abolishment of the dwelling order granted under the social lease contract. The social lease contract serves as grounds to occupy the dwelling space. Temporary absence of the dweller under the social lease contract or any of his family members living together with him, or all of these citizens, does not imply a change of their rights and duties under the social lease contract.

Special chapters are introduced in the Housing Code for the first time dedicated to the regulation of the transfer of the dwelling space into non-dwelling one, and non-dwelling space into the dwelling one, respectively, rearrangement of the dwelling space, proprietary relations for the objects of common use of the multi-apartment home, creation, goals of organisation and activities of the partnership of owners of the dwelling space, legal status of the members of the partnership of owners of dwelling space.

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