Monitoring of the Federal Legislation dated 30.06.2005

Decision of the Government of the Russian Federation No. 402 of June 27, 2005 on the Endorsement of the Rules of Reimbursement from the Federal Budget of the Part of Expenses to Pay Interest under Credits Obtained in 2005 by Organisations of the Coal Industry in Russian Credit Organisations to Implement Investment Projects

Specifies the procedure and terms of reimbursement from the federal budget of the part of expenses to pay interest under credits obtained by organisations of the coal industry in Russian banks in 2005 for up to three years. The subsidies are provided on the monthly basis by the Federal Agency for Power Supplies to organisations of the coal industry that obtained credits in banks to implement investment projects pertaining to technical modernisation, reconstruction and maintenance of production capacities of operating coal extracting organisations, purchase of equipment and instruments providing for the safety of mining works, safe operation of control and emergency warning systems. The subsidies are provided proceeding from 2/3 of the expenses made by organisations of the coal industry to pay the interest, however, not more than 2/3 of the rate of refinancing as of the date of obtaining the credit.

Information Letter of the Central Bank of Russia No. 32 of June 15, 2005 Summary of the Practice of Application of the Normative Acts of the Bank of Russia on Currency Regulation and Currency Control

Foreign currencies received from non-residents on currency accounts of lawyer structures being resident legal entities as labour remuneration of lawyers for the rendered legal services is not subject to obligatory sale at the internal currency market of the Russian Federation since they form lawyer personal incomes.

When currency operations are carried out between a lawyer structure being a resident legal entity and a non-resident to make payments for the legal service rendered by a resident lawyer, transaction certificate is not being drawn up.

Amendment to the Regulation on the Committee of Banking Enforcement of the Bank of Russia Endorsed by the Decision of the Board of Directors of the Bank of Russia of August 10, 2004 (Session Protocol No. 21) (Endorsed by the Decision of the Board of Directors of the Central Bank of Russia on June 14, 2005, Protocol No. 10)

Specifies that the Committee of Banking Enforcement shall provide for the analysis of activities of credit organisations (bank groups) to reveal situations jeopardising legal interests of their depositors and creditors and stability of the bank system of the Russian Federation. If such situations occur, the Committee is entitled to restrict individual operations carried out by credit organisations for up to six months, collect a fine in the amount of 0.1% of the minimum amount of the registered capital and demand to eliminate the revealed violations. Moreover, in such cases, the Committee may request the Board of Directors of the Bank of Russia to implement measures of financial rehabilitation of credit organisations.

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

Letter of the Federal Tax Service No. 22-3-11/1115 of June 20, 2005 on the Use of Cash Registers

When examining the issues of use (failure to use) of cash registers in payments under loans, advance payments, payments between commissioners and clients, agents and principals proceeding from the terms of their concluded contracts, one should determine in each particular case if the receipt of these amounts pertains to the sale of commodities, carrying out works or rendering services.

Thus, payments under loans (interest-free loans) not being trade operations or a variety of rendered services do not require the use of cash registers. A commissioner selling for cash commodities owned by the client is simultaneously a seller under a purchase and sale contract concluded with the buyer in his own name (including the contract of retail purchase and sale). Therefore, in such cases, he must use cash registers. If the cash is handed over to the client or settlor, such operations may be registered using a pay-in cash slip, since in the given case operations of sale of commodities, carrying out works or rendering services are not present.