Monitoring of the Federal Legislation dated 25.07.2005

Federal Law No. 115-FZ of July 21, 2005 on Concession Agreements

This Federal Law shall regulate the relations rising in connection with the preparation, making, execution and termination of concession agreements, shall establish guarantees of the rights and legitimate interests of the parties to a concession agreement. The Federal Law shall be aimed at the attraction of private investments into different units that are of socio-economic importance and that are in state or municipal ownership.

A concession agreement shall constitute a contract containing elements of different contracts. Under a concession agreement, the concessionaire shall be obliged at his own expense to create and (or) reconstruct the immovable property specified by this agreement that is or will be in the ownership of the concedent, that is, of the Russian Federation, a subject of the Russian Federation or a municipal formation, to exercise activities using (operating) the object of the concession agreement, while the concedent shall be obliged to grant to the concessionaire for the time period established by this agreement the right to possess and dispose of the object of the concession agreement for the exercise of the said activities. A concession agreement shall not provide for the transfer of ownership of the object of the concession agreement to the concessionaire. It shall not likewise be allowable to change the purpose of the object of a concession agreement under reconstruction. The Federal Law establishes an exhaust ive list of the immovable property that may constitute the object of a concession agreement. It establishes a competitive procedure for selection of applicants for the right of making concession agreements.

Federal Law No. 114-FZ of July 21, 2005 on Fees for the Issue of Licences for the Exercise of the Activities Connected with the Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

This Federal Law shall regulate the relations concerning a procedure for collection and rates of fees for issuing licences for the exercise of the kinds of activities connected with the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products. It provides for the increase of the rate of fees for the issue of the licences. Thus, for the production, storage and supply of produced ethyl alcohol and alcoholic products (except for wine) a fee in the amount of 3 million roubles shall be collected (it has been 500 times minimum labour wage before). Fees for the issue of the licences, for extension of the licences' duration and for the re-issue of the licences shall be remitted to the federal budget. Fees for the issue of new licences in connection with the necessity of bringing by the organisations, that have the licences as on January 1, 2006 (except for the licences for retail sale of alcoholic products), their activities into accord with the licence requirements shall be subject to t he reduction by the amount previously paid for the issue of the effective licence, if an organisation has worked under the licence within less than one year.

Federal Law No. 5-FZ of January 8, 1998 on Fees for the Issue of Licences for the Exercise of the Activities Connected with the Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol- Containing Products shall be declared invalidated.

The Federal Law shall enter into force as of January 1, 2006.

Federal Law No. 113-FZ of July 21, 2005 on Amending the Federal Law on Advertising and Article 14.3 of the Code of Administrative Offences of the Russian Federation

This Federal Law shall impose restrictions on advertising the activities of organisation and conduct of games of chance and (or) bets. Such advertising shall be allowed: 1) solely in radio and TV broadcasts from 10 p.m. till 7 a.m. of local time; 2) solely in the buildings, structures and constructions where games of chance and (or) bets are conducted, except for individual places where such advertising is entirely prohibited; 3) in advertising periodical prints, as well as in specialised periodical prints intended for employees of gambling establishments and persons participating in games of chance and (or) bets.

The specifics of such advertising is determined therein. Thus, it must not produce an impression that participation in games of chance is important for achieving much public or personal success or can assist solving material problems. Advertising must not produce an impression that there is a guarantee of winning or that the probability thereof is high, it must not hold back specific conditions or restrictions. It shall be prohibited to use in such advertising images of people or animals, as well as to address directly to children. With this, it is stressed that the said restrictions shall nor extend to advertising of stimulative lotteries (where the right of participation is not connected with making payments and the prise fund is formed at the expense of the organiser thereof) and to state lotteries.

The amendments made to the Code of Administrative Offences of the Russian Federation drastically increase the maximum amount of the fine imposed upon officials and legal entities for violations of the laws on advertising.

The Federal Law shall enter into force upon the expiry of six months as do the date of official publication thereof.

Federal Law No. 112-FZ of July 21, 2005 on Amending the Law of the Russian Federation on the Customs Tariff

This Federal Law shall establish the kinds of preferences under the Customs Tariff, specify a procedure for determining rates of customs duties, introduce the concept of 'tariff quota' in compliance with the requirements of the World Trade Organisation, as well as shall define the specifics of commodities serving as aground for their release from import customs duties or for a reduction of these duties.

Commodities shall be imported onto the customs territory of the Russian Federation within the framework of tariff quotas on the basis of a licence. A procedure and time for issuing such licences on a competitive basis (on the basis of the results of auctions) shall be established by the Government of the Russian Federation.

This Federal Law shall enter into force at the earliest upon the expiry of one month as of the date of its official publication.

Federal Law No. 111-FZ of July 21, 2005 on Amending the Land Code of the Russian Federation, the Forest Code of the Russian Federation, the Federal Law on the Transfer of Lands and Land Plots from One Category to Another One and the Federal Law on Putting into Operation the Town-Planning Code of the Russian Federation

There are more exactly defined the specifics of transferring agricultural lands, lands of settlements and the forestry into other categories. The amendments shall concern the issues of using agricultural lands and land plots within the composition of such lands allotted for the period of constructing roads, power transmission lines, communication lines, oil pipelines and other line facilities. A procedure for carrying out in the forestry of the works that are not connected with managing the forestry and forest exploration is specified.

The time for putting into operation Part 4 of Article 9 of the Town-Planning Code of the Russian Federation shall be moved from January 1, 2006 to January 1, 2008, under which the adoption by state power bodies and local self-government bodies of decisions on reservation of lands, on seizure, including by way of redemption, of land plots to meet state or municipal needs, on transfer of lands from one category to another one in the absence of territorial planning documents, except for the instances provided for by the federal laws, shall not be allowed.

Federal Law No. 110-FZ of July 21, 2005 on Amending the Federal Law on Credit Histories

The conceptual instruments of the Law is supplemented by the concept of 'credit history record' meaning the information within the credit history describing a borrower's discharge of the obligations assumed by it under one contract of loan (credit). There is likewise introduced the concept of 'the code of the subject of credit history' meaning a combination of digital and literal symbols to be used by the user of a credit history when directing to the Central Catalogue of Credit Histories an inquiry concerning the bureau of credit histories where the credit history is formed. The rules for using this code are given. The contents of a credit history, as regards putting down data from the passports of Russian and foreign citizens, are specified.

Federal Law No. 109-FZ of July 21, 2005 on Amending Article 181 of Part One of the Civil Code of the Russian Federation

The amendments provide for reduction of the limitation period in respect of a claim for applying the effects of invalidity of a null and void transaction from ten to three years. This measure is aimed at impeding the application of the provisions of the Civil Code of the Russian Federation on invalid transactions for property redistribution, at making civil circulation more stable and at improving the investment climate in the country.

The Federal Law shall enter into force as of the date of its official publication. The new limitation period shall likewise apply to the claims for which previously established limitation period are not expired before to the date of this Federal Law's entry into force.

Federal Law No. 108-FZ of July 21, 2005 on the All-Russia Agricultural Census

This Federal Law shall regulate the relations rising between legal entities, natural persons, state power bodies of the Russian Federation, state power bodies of the subjects of the Russian Federation and local self-government bodies in respect of organisation and conduct of the All -Russia Agricultural Census and publication of the results thereof. The data gained in the course of the All-Russia Agricultural Census shall be only used for the purpose of forming federal informational resources on the basic characteristics and structure of agriculture and may not be used for other purposes. Special attention shall be paid to the issues related to the confidentiality of presented data and liability of officials for their unauthorised use or application for wrong purposes. The All-Russia Agricultural Census shall be conducted at least once every ten years.

As the objects of the All-Russia Agricultural Census shall be deemed the legal entities and natural persons being owners, users, possessors or lessees of the land plots intended or used for making agricultural products or those having an agricultural livestock. Participation in an agricultural census and submission of data for inclusion into questionnaires shall be obligatory for legal entities being objects of the agricultural census. For natural persons such participation shall be a public duty thereof. A list of the data on the natural persons being objects of an agricultural census is established and a procedure for their collection is established as well.

Federal Law No. 107-FZ of July 21, 2005 on Amending Part Two of the Tax Code of the Russian Federation and on Declaring Invalidated Some Provisions of Legislative Acts of the Russian Federation

This Federal Law shall make a number of amendments to Chapter 22 'Excise Taxes' of the Tax Code of the Russian Federation. The treatment of tax warehouse in respect of alcoholic products shall be repealed and excise warehouses of wholesale organisations shall be excluded from the number of excise tax payers.

A procedure for registration of the persons making operations with excisable commodities is be specified; especially, the necessity of obtaining the certificate of registration for the person making petrochemical products with the use of straight-run petrol as a raw material, as well as making operations with denaturated alcohol, is established. With this, the obtainment (entry) of denaturated ethyl alcohol by an organisation that has the licence for making products not containing alcohol shall be excisable. A number of other amendments specifying the procedure for paying excise taxes in respect of excisable commodities is made.

The wholesale organisations, that establish excise warehouses prior to January 1, 2006 and sell as of the said date alcoholic products with a volume share of ethyl alcohol over 9% received at the excise warehouses of these organisations prior to January 1, 2006 and (or) shipped to their address before the said date, shall be deemed excise tax payers. The time for filing tax declarations and the time for paying excise taxes for such organisations are established.

The Federal Law shall enter into force as of January 1, 2006 but at the earliest upon the expiry of one month as of the date of its official publication, apart from individual exceptions for which other time of entry into force is provided for.

Federal Law No. 106-FZ of July 21, 2005 on Amending Part Two of the Tax Code of the Russian Federation as Well as on Declaring Invalidated individual Provisions of Legislative Acts of the Russian Federation

A number of amendments is made to Chapter 25.3 'State Duty' of the Tax Code of the Russian Federation aimed at releasing from of a state duty, as well as at reducing the rate thereof, as regards some legal actions. Thus, a state duty shall not be payable when granting Russian citizenship to children being orphans and to children without parental custody, as well as when issuing to such children the passports of Russian citizens. A state duty shall not be payable when opening a bank branch.

The rate of the state duty payable by the federal state power bodies, state power bodies of the subjects of the Russian Federation and by local self-government bodies for committing legal actions related to registration of rights to immovable property is drastically reduced.

Furthermore, lower rates of the state duty for making legal actions, related to operation of individual types of sea ships, as well as of inland and mixed navigation ships, are established.

The Federal Law shall enter into force upon the expiry of one month as of the date of its official publication.

Federal Law No. 105-FZ of July 21, 2005 on Amending Article 20 of the Federal Law on Putting into Operation Part Two of the Tax Code of the Russian Federation and on Making Amendments to Some Legislative Acts of the Russian Federation on Taxes

The amendments are aimed at finishing the process of paying off arrears of enterprises and organisations in respect of dues to the Pension Fund of Russia, Social Insurance Fund and obligatory medical insurance funds that they have as on January 1, 2001, as well as in respect of penalties and fines charged. In compliance with the previously established procedure, charging of penalties and fines in connection with arrears was only suspended after taking by tax authorities a decision to grant organisations the right to re-structure their debts. In this connection, charging of penalties and fines went on in 2001 pending the date of rendering a decision of a debt restructuring. The amendments provide for the possibility of restructuring the arrears, as regards the penalties and fines charged in connection with said arrears on the basis of the records of tax authorities as on the date of rendering a decision on their restructuring.

The Federal Law shall enter into force upon the expiry of one month as of the date of official publication thereof.

Federal Law No. 104-FZ of July 21, 2005 on Amending the Law of the Russian Federation on Organisation of Insurance Business in the Russian Federation

A list of the data that must contain the denomination (firm's name) of the subjects of insurance business being legal entities is specified. In addition to indicating the type of activities, the denomination thereof must contain an indication of the organisational and legal form of a subject of insurance business, as well as a designation individualising the subject of insurance business. A legal entity being a subject of insurance business shall not be entitled to use in full the designation that individualises another subject of insurance business. Such use may serve as a ground for denying the issuance of the licence to the applicant for it. However, this provision shall not extend to branch and dependent companies.

Federal Law No. 103-FZ of July 21, 2005 on Amending the Federal Law on Obligatory Civil Liability Insurance of Transport Vehicles' Owners

The degree of protection of victims of road accidents is increased. The amendments not only provide for compensation payments from the guarantees' reserve for repair of damage caused to life and health of the victim but also for reimbursement of damage inflicted upon its property, in the instances when insurance money cannot be paid by the insurer as a result of the withdrawal of its licence for the exercise of insurance activities or initiation of bankruptcy proceedings in respect of it. Compensation payments are likewise provided for from the reserve of current compensation payments for repair of damage caused to life and health of the victim, if the person that has inflicted damage has no obligatory insurance contract.

Compensation payments shall be established for repair of damages caused to life and health of several victims in the amount of 240 thousand roubles at the most and of 160 thousand roubles at the most when damage is caused to life and health of one victim. Compensation payments shall be established for repair of damage caused to the property of several victims in the amount of 160 thousand roubles at the most and of 120 thousand roubles at the most when causing damage to the property of one victim.

Federal Law No. 102-FZ of July 21, 2005 on Amending the Federal Law on the State Regulation of the Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products and on Declaring Invalidated Individual Provisions of the Federal Law on Amending the Federal Law on the State Regulation of the Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol- Containing Products

The amendments exclude from the scope of operation of the Law the activity of making and circulating beer, as well as natural drinks containing at the most 6% of ethyl alcohol in finished products made from wine base that are produced without adding ethyl alcohol.

The authority of the federal executive bodies in the area of control over the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products is extended. The scope of authority of the said bodies shall include running the comprehensive state automated informational system of registration of the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products when exercising the state control over the volume of production and circulation of such products. Ethyl alcohol, alcoholic and alcohol-containing products shall be subject to withdrawal from illegal circulation, if the sale of these products is not fixed in the said informational system.

Determination of a procedure for licencing retail sale of alcoholic products, issuance of appropriate licences, the exercise of control over observance of the terms provided for by these licences, introduction of declaring retail sale of alcoholic products are referred to the scope of authority of the state power bodies of the subjects of the Russian Federation. Requirements to the production and circulation of denatured ethyl alcohol and alcohol-containing inedible products impeding their use as food substances are determined.

State enterprises, as well as organisation with the paid-up authorised capital (authorised fund) amounting to at least 10 million roubles, shall be entitled to produce ethyl alcohol, while vodka may be produced by the said enterprises and organisations with such capital amounting to at least 50 million roubles. The requirements to the production and circulation of denatured ethyl alcohol and alcohol-containing inedible products making it possible to impede their use as food substances are established.

Procurement, storage and supply by organisations of alcohol-containing inedible products shall be subject to licencing as of July 1, 2006.

Organisations that have licences for the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products dated prior to July 1, 2006 shall be obliged to obtain new licences (except for licences for retail sale of alcoholic products).

This Federal Law shall enter into force as of January 1, 2006, apart from individual exceptions.

Federal Law No. 100-FZ of July 21, 2005 on Amending the Federal Law on the Duty to Undergo Military Service and on Military Service and Article 14 of the Law of the Russian Federation on Education

This Federal Law shall bring into accord the rules of the Federal law on the Duty to Undergo Military Service and on Military Service and the Law of the Russian Federation on Education, as regards the issues of obligatory and voluntary training of citizens for military service. It shall be established that at educational institutions of secondary (full) general education, educational institutions of primary vocational and secondary vocational education pupils in compliance with the state educational standards shall acquire elementary knowledge on defence of the State, on the citizens' duty to undergo military service and some skills in civil defence, while male pupils who have not undergone military service shall be trained in the basics of military service.

Federal Law No. 99-FZ of July 21, 2005 on Amending Article 55 of the Federal Law on the Duty to Go Military Service and on Military Service

There shall not be subject to periodical military training the citizens serving punishment in the form of compulsory works, correctional labour, limitation of liberty, arrest or deprivation of liberty; those with non-expunged or non-cancelled previous convictions for committing crimes, as well as citizens in respect of whom an inquiry or preliminary investigation is under way or in respect of whom criminal court proceedings are initiated.

The Federal Law shall enter into force as of September 1, 2005.

Federal Law No. 98-FZ of July 21, 2005 on Amending the Federal Law on Military Glory Days (Victory Days) of Russia

A list of memorial dates of Russia connected with the most important events in the life of the State and society is established. The following memorial dates are established by this Federal Law:

January 25 - the Day of Russian Students,

April 12 - the Day of Cosmonautics,

September 3 - the Day of Solidarity in Fighting against Terrorism,

November 7 - the Day of the October Revolution of 1917,

December 12 - the Day of the Constitution of the Russian Federation.

A procedure for conducting military glory days of Russia in the Armed Forces of the Russian Federation and in other troops and for holding events devoted to memorial dates of Russia, as well as a procedure for financial support to conducting military glory days and events devoted to memorial dates of Russia, are determined.

Federal Law No. 97-FZ of July 21, 2005 on the State Registration of Statutes of Municipal Formations

A procedure for the state registration of the statutes of municipal formations is established. This procedure shall likewise extend to the state registration of municipal legal acts on amending the statutes of municipal formations. Previously registered statutes of municipal formations shall be subject to inclusion into the state register of municipal formations.

Amendments shall be also made to Article 83 of Federal Law No. 131-FZ of October 6, 2003 on the General Principles of Organisation of Local Self-Government in the Russian Federation under which the provisions of Articles 28 and 44 of this Federal Law establishing the obligation to hold pubic hearings of the draft statutes of a municipal formation, of a draft municipal legal act on amending the statutes of a municipal formation, as well as defining the requirements with regard to the contents of the statutes of a municipal formation and to the state registration thereof, shall enter into force as of September 1, 2005.

The Federal Law shall enter into force as of September 1, 2005.

Federal Law No. 95-FZ of July 21, 2005 on Ratification of the Agreement between the Russian Federation and the Kirghiz Republic on the Status and Terms of Stay of the Russian Aviation Base on the Territory of the Kirghiz Republic

This Agreement signed in Moscow in September 22, 2003 is ratified. The Agreement establishes the legal basis for functioning of the Russian aviation base on the territory of the Kirghiz Republic.