Monitoring of the Federal Legislation dated 20.10.2005

Decision of the Government of the Russian Federation No. 620 of October 17, 2005 on the Amendments to the Decisions of the Government of the Russian Federation on the Sector of Deviations of the Wholesale Market of Electric Power of the Transient Period

The set of notions of the rules of the wholesale market of electric power of the transient period is extended to include the term "participant with regulated consumption". It implies a participant of the regulated sector who, because of the working regimes, affects the quality of electric power and reliability of work of the Joint Power Supply Systems of Russia and possesses at the wholesale market supply points associated with power consuming devices and/or generating objects where the participant cannot receive and execute dispatcher commands to change the volumes of consumption (production) of electric power. From January 20, 2006, suppliers and participants with a regulated consumption may conclude bi-lateral contracts of purchase and sale of electric power in the volumes corresponding to deviations, indicating their reasons and direction. The mentioned bi-lateral contracts must be registered with the administrator of the trade system in pursuance of the contract of connection to the trade system of the w holesale market.

The new wording describes the new rules of organisation of circulation of electric power in the deviations sector. Specifies that the choice in the deviations sector must be made taking account of the price-accepting requests for the increase or reduction of the volumes of production (consumption) of electric power. Operative requests shall be submitted to the system operator before the beginning of selection of requests in the deviations sector under the contract of connection to the trade system of the wholesale market. The given rule shall enter into force from December 20, 2005.

The cost of the earlier available deviations in the actual production (consumption) of electric power of participants of the wholesale market from the volumes of their planned production (consumption) is calculated according to the earlier available rules.

The Decision is entered into force from October 20, 2005.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/264 of October 10, 2005 on the Amortisation Procedure to Be Used by Taxpayer for the Upgraded Fixed Assets

The taxpayer upgrading the fixed assets after putting in operation who increased the initial cost of the upgraded fixed assets may leave unchanged the period of useful life. In this case, amortisation norm specified at putting in operation for these fixed assets is not recalculated.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-04/1/03 of October 4, 2005 on the Exemption from the Input Value Added Tax in Cash Payments

When buying commodities for cash, the grounds for accepting for exemption of the paid amounts of the tax is the invoice and the cash slip handed out to the buyer with the VAT amount indicated as a separate line regardless of the fact of presence of the pay-in slip.