Monitoring of the Federal Legislation dated 30.11.2005

Decision of the Government of the Russian Federation No. 650 of October 29, 2005 on the Amendments to the Regulation on the Granting of Parts of the Forestry Fund for Free Use

The contract for gratuitous use of the part of the forestry fund permits the organisation of the body of executive power of the subject of the Russian Federation in charge of forest management to grant to the user of forests a part of the forestry fund for gratuitous use for up to 99 years (earlier, up to 49 years) for one or several types of use of the forestry fund.

The volumes of use of the forestry fund necessary to satisfy own needs in wood and other forest resources of agricultural organisations having obtained the right of gratuitous use for the part of the forestry fund shall be specified by the federal body of executive power or the body of executive power of the subject of the Russian Federation. Own needs of agricultural organisations shall include the demand for wood for construction and all kinds of repair works of permanent and temporary production, dwelling, public and other buildings and structures available in their property, as well as for their heating.

Decision of the Government of the Russian Federation No. 649 of October 29, 2005 on the Amendment to the Decision of the Government of the Russian Federation No. 942 of August 12, 1994

The length of service permitting to get the pension for the employees of the prosecutor staff dismissed form service shall include on beneficial terms the period of service in emergency situations and in armed conflicts.

Employees of the prosecutor staff shall also enjoy additional guarantees and compensations for the periods of actual execution of tasks on the territory where an emergency situation was introduced or in the locality qualified as an armed conflict zone.

Decision of the Government of the Russian Federation No. 645 of October 27, 2005 on the Quarterly Reports of Construction Parties of Activities Pertaining to Attraction of Monetary Resources of Participants of Shared Construction

Specifies the composition, forms and procedure of submission of the quarterly reports by construction parties of activities pertaining to attraction of monetary resources of participants of shared construction to build apartment houses and/or other objects of immovable property.

The reports shall include the ones drawn up to provided forms, certificates, as well as the quarterly accounting reports of the construction party (annual for the IV quarter).

The reports shall be submitted for the quarter where there was at least one contract of shared construction concluded by the construction party, or if there were unexecuted obligations under the contract.

The reports shall be submitted by the construction party to the Federal Service for Financial Markets of Russia no later than within 30 days after the end of the reporting quarter, except for the report for the IV quarter, which is submitted by the construction party no later than within 90 days after the end of the IV quarter.

For the first time, the mentioned reports shall be submitted by construction parties beginning with the results of activities of the I quarter of 2006.

Order of the Federal Tax Service No. SAE-3-24/503@ of October 11, 2005 on the Procedure of Registration of the Amounts of Obligatory Taxpayer Payments That the Bank Failed to Transfer to the Budget System of the Russian Federation

Provides the rules of registration of the monetary resources on the taxpayer settlement account where the payment orders were presented to the bank to pay the appropriate tax (fee) but were not written off by the bank, as well as resources written off from the taxpayer settlement account and entered on the Balance Account 47418 ("Resources Written off from Client Accounts but Not Posted in the Correspondent Account of the Credit Organisation because of Insufficiency of Resources") or another account wherefrom taxpayer resources were not received on the incomes accounts of budgets.

The mentioned resources shall be recorded using provided form in the logbook of amounts of taxpayer obligatory payments that were not transferred by the banks to the budget system of the Russian Federation. Amounts that were not transferred by the bank shall be registered by the tax body in the logbook on the basis of the decision (ruling) of the arbitration court having entered into legal force and containing in the resolution the provision recognising the taxpayer duty to pay the given amounts of obligatory payments fulfilled.

Federal Constitutional Law No. 7-FKZ of October 31, 2005 on the Amendments to Articles 10 and 11 of the Federal Constitutional Law on the Procedure of Adoption to the Russian Federation and Forming within It a New Subject of the Russian Federation

Suggestion of the subjects of the Russian Federation to form a new subject within the Russian Federation must be sent to the President of the Russian Federation in coordination with the legislative (representative) bodies of state power and higher officials of the interested subjects of the Russian Federation. The mentioned suggestion must also include a coordinated wording of the issue put forward for the referendum.

The issue of the forming of the new subject must be put forward for the referenda in the interested subjects of the Russian Federation after consultations with the President of the Russian Federation and getting his support of the appropriate initiative.

The Law defines the particulars of the referendum. Thus, the initiative to carry out such a referendum rests with the higher officials of the interested subjects of the Russian Federation. The higher officials and the deputies of the legislative bodies of the interested subjects of the Russian Federation may take part in agitation. It is permitted to arrange a repeated voting in the subjects where the referenda failed on condition that other interested subjects approved the forming of the new subject.

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

Order of the Ministry of Economic Development of the Russian Federation No. 220 of September 14, 2005 on the Regulation on the Ministry of Economic Development and Trade of the Russian Federation

Defines the general rules of organisation of activities of the Ministry of Economic Development of Russia in implementation of their authority in the specified sphere of reference, including the rules of internal activities and the rules of interaction with the Federal Customs Service of Russia, Federal Agency of Cadastre of Objects of Immovable Property, Federal Agency of Federal Property Management, Federal Agency for State Reserves, Federal Agency for the Management of the Special Economic Zones, as well as the Russian Federal Property Fund.

Also specifies the structure and payroll of the Ministry of Economic Development of Russia and its territorial bodies, authority of the heads. Defines the rules of working out of administrative regulations and standards of state services, preparation and adoption of the normative legal acts. Provides the main rules of organisation of document turnover, particulars of preparation and processing of draft acts, as well as the procedure of processing of appeals of citizens and organisations.

Registered in the Ministry of Justice of the Russian Federation on October 28, 2005. Reg. No. 7124.

Order of the Federal Service for Financial Markets No. 05-43/pz-n of September 29, 2005 on the Endorsement of the Method of Calculation of Own Resources of Professional Participants of the Securities Market

Defines the rules of calculation of own resources for brokers, dealers, trustees, depositaries, specialised depositaries and other professional participants of the securities market, except for credit organisations.

As compared to the earlier available method endorsed by the Decision of the Federal Commission for Securities Market of Russia No. 03-26/ps of May 21, 2003, reduces from 10% to 5% the share of participation of a professional participant in organisations and organisations in a professional participant permitting to exclude investments in the given organisations from assets. All figures taken into account in the method are being brought in compliance with the actual legislation of the Russian Federation.

The Order is entered into force from January 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on October 28, 2005. Reg. No. 7120.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 280 of October 19, 2005 on the Procedure for Qualifying Industrial Products As Products of High Degree of Processing

Organisation allocating credit resources for the export of products with a high degree of processing shall enjoy reimbursement within budget allocations of the part of expenses to pay the interest under the credits obtained in 2005 in Russian credit organisations. The products with a high degree of processing are those having undergone several stages of technological processes of processing, processing of initial materials, raw materials and semi-finished products. Industrial products with a high degree of processing include items that do not require further processing (medicines, clothing, shoes etc.) and the products of industrial consumption (ball and roller bearings, integrated circuits and micro assemblies etc.).

Registered in the Ministry of Justice of the Russian Federation on October 28, 2005. Reg. No. 7118.

Letter of the Central Bank of Russia No. 133-T of October 28, 2005 on the Opening of Accounts to the Territorial Bodies of the Federal Treasury in the Currency of the Russian Federation for Resources Received in Temporary Use of the Federal Institutions in the Institutions of the Bank of Russia or Credit Organisations (Branches)

To register resources in the Russian currency received for temporary use of the federal institutions, territorial bodies of the Federal Treasury shall open in the institutions of the Bank of Russia or credit organisations (branches) after conclusion of the bank account contract separate personal accounts with a distinguishing code of 1 as the fourteenth digit of the number of the personal account on the Balance Account 40302.

Letter of the Central Bank of Russia No. 132-T of October 27, 2005 on the Inclusion of Securities in the Lombard List of the Bank of Russia

The Lombard List of the Bank of Russia shall include now the bonds of the Samara Province with the state registration number of issue RU25002SAM0.

The Letter shall apply beginning with the day of its publication in the Herald of the Bank of Russia, however, no sooner than the day when the above bonds are permitted for circulation at the organised securities market for payments pertaining to state federal securities.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 617 of October 5, 2005 on the Procedure for Sending Citizens to the Place of Treatment in the Presence of Medical Indications by the Bodies of Executive Power of the Subjects of the Russian Federation in Charge of Public Health

The procedure applies to citizens entitled for the state social aid in the form of a set of social services including the treatment in medical institutions at the expense of the federal budget.

In the presence of medical indications with such citizens as shown in the statement of the medical commission of the medical treatment and prevention intuition, an excerpt from the patients history is sent to the body of executive power of the subject of the Russian Federation. Having confirmed the presence of medical indications with the citizen, the mentioned body shall send the excerpt not older than one month duration to the medical institution corresponding to the citizen's disease. They also send there the statement motivating the treatment in this particular institution and other accompanying documents. The citizens gets accommodation for the treatment and the filled Token 2 of specified type permitting to get free travel to the place of treatment and back if presented to executive bodies of the Social Insurance Fund.

Decision to accept the citizen for treatment must be taken by the medical institution within 14 days from receiving the excerpt, and in case of a patient personal visit - on the day of receiving of the statement of the results of the examination. The taken decision and the date of acceptance to the medical institution is reported to the body of executive power.

After the end of the treatment, the medical institution shall hand out an excerpt to the citizens with a detailed description of the treatment and fills out necessary registration documents for sending to the body of executive power of the subject of the Russian Federation in charge of public health.

The heads of the bodies of executive power of the subjects of the Russian Federation and the heads of medical institutions are recommended to create commissions in charge of selection of citizens for treatment and endorse appropriate regulations on them.

Registered in the Ministry of Justice of the Russian Federation on October 27, 2005. Reg. No. 7115.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 281 of October 20, 2005 on the Organisation of Work to Reimburse from the Federal Budget to Russian Exporters of Industrial Products of Part of Expenses to Pay the Interest under Credits Obtained in 2005 in Russian Credit Organisations

Creates a commission for the reimbursement from the federal budget to Russian exporters of industrial products of part of expenses to pay the interest under credits obtained in 2005 in Russian credit organisations.

The goal of the commission is processing applications of Russian exporters and preparation of proposals to reimburse or refuse to reimburse the mentioned expenses.

The commission shall include authorised representatives of the Ministry of the Industry and Power Supplies of Russia, Ministry of Economic Development and Trade of Russia and the Ministry of Finance of Russia.

The Order endorses the regulation on the commission and the procedure of organisation of work in the Ministry of the Industry and Power Supplies of Russia to reimburse the mentioned expenses from the federal budget.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-01-02/31 of October 3, 2005

The bank may endorse an accounting policy permitting to build expenses for the purchase, construction and creation of property, including the payment of taxes, in compliance with the legislation of the Russian Federation on taxes and fees. In this case, it is necessary to keep in mind that according to Item 5 of Article 170 of the Tax Code of the Russian Federation, the banks carrying out operations both subject to the value added tax and exempted from it may include VAT amounts paid at the purchase of commodities (works, services) in expenses accepted for exemption in the calculation of the profit tax from organisations. Thus, the banks using the mentioned procedure to calculate the value added tax shall not include the tax paid at the purchase of fixed assets in their cost.

Federal Law No. 137-FZ of November 4, 2005 on the Amendments to Some of the Legislative Acts of the Russian Federation and Invalidation of Certain Provisions of the Legislative Acts of the Russian Federation in View of Implementation of the Measures of Improvement of Administrative Procedures of Regulation of Disputes

Amendments introduced to the Tax Code and the Federal Law on obligatory pension insurance in the Russian Federation are known as revoking from January 1, 2006 presumption of innocence of taxpayers. The tax bodies shall get the right of direct debiting of minor fines (up to Rbl 5,000 from independent entrepreneurs, Rbl 50,000 from organisations) from debtor accounts without the court ruling.

The mentioned changes will permit to lift the load from and optimise the work of the judicial system of the Russian Federation owing to partial abandoning of procedures and rules whereby the bodies of public power could implement much of their authority only through the court, while administrative procedures could be used to implement it.

The earlier submitted and not processed by the arbitration court as of the day of entry into force of the Federal Law requests for collection of obligatory payments and amounts of fines falling under the Federal Law must be processed in compliance with the Code of Administrative Procedures of the Russian Federation.

The Federal Law is entered into force from January 1, 2006, however, no sooner than one month after the day of its official publication.

Federal Law No. 136-FZ of November 3, 2005 on the Ratification of the Consular Convention between the Russian Federation and Romania

Ratifies the Consular Convention singed in Moscow on July 4, 2003. The Convention specifies general provisions pertaining to consular relations between the two countries, defines the priorities, privileges and immunities of the consular institutions, staff consular officials and other employees of the consular institution, as well as the regime applied to honoured consular officials and the consular institutions headed by them.

Federal Law No. 135-FZ of November 3, 2005 on the Ratification of the Consular Convention between the Russian Federation and the Kingdom of Belgium

Ratifies the Consular Convention signed in Moscow on December 22, 2004. The convention specifies the procedure of opening of a consular institution, appointment of consular officials, defines their rights, privileges and immunities, consular functions and other issues of bilateral consular relations.

Federal Law No. 134-FZ of November 3, 2005 on the Ratification of the Consular Convention between the Russian Federation and the Republic of Macedonia

Ratifies the Consular Convention signed in Moscow on January 14, 2003. The convention is aimed at enhancing the contractual and legal basis of bilateral consular relations.

Order of the Ministry of Finance of the Russian Federation No. 132-n of October 25, 2005 on the Creation of the Interagency Commission for the Combating of Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism

The Interagency Commission shall be a permanent coordinating body formed to provide for coordinated actions of interested federal bodies of executive power and the Bank of Russia in the sphere of combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism.

The Commission shall implement broad functions, in particular, prepare information, analytic, methodology materials and forecasts for the purpose of current monitoring of efficiency of countermeasures against legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism.

The Chairman of the Commission ex officio is the head of the Federal Service for Financial Monitoring. Authority of the Chairman of the Commission, Executive Secretary and members of the Commission is defined.

Registered in the Ministry of Justice of the Russian Federation on November 2, 2005. Reg. No. 7136.

Direction of the Central Bank of Russia No. 1624-U of October 4, 2005 on the Amendments to the Instruction of the Bank of Russia No. 109-I of January 14, 2004 on the Procedure of Adoption of the Decision of the State Registration of Credit Organisations by the Bank of Russia and Issue of Licenses for Bank Operations

Refines the list of documents submitted by the credit organisation for its state registration and obtaining the license for bank operations pertaining to guards, fire safety and other alarm devices and the level of technical outfit of rooms for operations with values. Envisages submission of a number of additional documents if the cash of the credit organisation is insured for the amount of the minimum permissible residue of cash in the cash department. In the cases of such insurance of cash and coordination with the insurance organisation of the requirements to the technical strength of the rooms for operations with values, there is not need for the territorial institution of the Bank of Russia to control during their checks compliance of the technical strength of such rooms with the requirements specified in Appendix 1 to the Regulation of the Bank of Russia No. 199-P.

Credit and cash offices may carry out individual types of operations with foreign currencies in cash and checks as specified for exchange offices.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on November 1, 2005. Reg. No. 7127.

Federal Law No. 141-FZ of November 4, 2005 on the Amendments to the Federal Law on the Federal Budget for the Year 2005

The amendments are intended to adjust the main characteristics of the federal budget as a result of its execution in the first six months of 2005. Parameters of the Federal Law are based on the figures of preliminary assessment of execution of the federal budget as of September 1, 2005 and the forecast of its execution until the end of the current year and includes all changes having occurred in January - August 2005 as reflected in the summary budget list of the federal budget for the mentioned period. An increase in incomes of the federal budget is stipulated by the growth of prices for oil at the world market, as well as additional receipts form activities of the tax bodies.

The volume of incomes in 2005 is forecasted in the amount of Rbl 4,979,756.6 million (a surplus of Rbl 1,653,715.4 million or 47.9% of the endorsed figures), expenses - Rbl 3,539,450.6 million (a surplus of Rbl 491,521.2 million or 16.1% of the endorsed figures), with a surplus of incomes over expenses making Rbl 1,440,306.9 million. The forecasted GDP volume makes Rbl 21,000 billon, the level of inflation - 10-11%.

The Law defines distribution of additional resources. The volume of deductions to the Stabilisation Fund of the Russian Federation is planned in the amount of Rbl 1,240.2 billion (Rbl 852.4 billion or 3.2 times greater than specified), out of them: Rbl 346.6 billion from the tax on extraction of mineral resources; Rbl 505.8 billion from the export customs duties for oil.

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

Federal Law No. 140-FZ of November 4, 2005 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Tajikistan on the Composition and Organisational and Staff Structure of the Russian Military Base on the Territory of the Republic of Tajikistan

Ratifies the Agreement singed in Dushanbe on October 16, 2004. The Agreement specifies the composition of the Russian military base deployed on the territory of the Republic of Tajikistan, defines the legal basis for the forming of the organisational and staff structure of the Russian military units and divisions located on this territory.

Federal Law No. 139-FZ of November 4, 2005 on the Ratification of the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management

Ratifies the Joint Convention signed in Vienna on January 27, 1999 defining the duties of the contracting parties in the sphere of safe handling of spent fuel generated as a result of operation of nuclear plants used for peaceful purposes and the safe handling of radio active waste when it is generated in the course of civil activities.

Federal Law No. 138-FZ of November 4, 2005 on the Amendment to Article 12 of the Federal Law on the Prosecutor Office of the Russian Federation

Specifies that Prosecutor General of the Russian Federation shall present personally to the Council of the Federation at the chamber session the annual report on law enforcement and legal order in the Russian Federation and on the work to strengthen them.

Working-Time Calendar for the Year 2006

The working-time calendar provides the norm of working time per months, quarters and the year of 2006 on the whole for the cases of 40-hour, 36-hour and 24-hour working weeks, as well as the number of working days and days-off for the case of five-day working week with two days-off.

Order of the Ministry of Finance of the Russian Federation No. 123n of October 23, 2005 on the Endorsement of the Forms of Registers of Budget Accounting Records

Endorses the forms of registers of budget accounting records for the bodies of state power of the Russian Federation and the federal state institutions. Provides recommendations on their application. The Order applies also to institutions and organisations created by Russian academies of sciences with the state status.

Registers of budget accounting records are intended for systematisation and accumulation of information contained in initial accounting documents. The forms of registers of budget accounting records are uniform documents and contain the names of requisites and figures and their appropriate codes according to all-Russia classifiers necessary for automatic information processing. The formats of the registers are of recommended nature and may be changes if necessary.

According to the Statement of the Ministry of Justice of the Russian Federation No. 01/8025-VYa of October 19, 2005, the Order does not need the state registration.

Order of the Judicial Department of the Supreme Court of the Russian Federation No. 94 of August 23, 2005 on the Endorsement of the Forms of the Service Contract and the Labour Contract

Endorses the forms of the application, service contract and the labour contract for the service in the federal court of general jurisdiction, Judicial Department and the section of the judicial department of the subject of the Russian Federation.

Distributes the authority in conclusion of service contracts and labour contacts among officials of the judicial system.

The Order is entered into force simultaneously with the entry into force of the normative legal act on the endorsement of the Register of Positions of the Federal State Civil Service.

Letter of the Federal Tax Service No. MM-6-22/916@ of October 31, 2005 on the Notification of the Change of the Procedure of Payment of the Profit Tax from Organisations

From January 1, 2006, the taxpayer may abstain from distributing the profit for each separate division available on the territory of one subject of the Russian Federation, having chosen one separate division out of them to be used to pay the tax to the budget of this subject of the Russian Federation.

The taxpayer may also decide to pay the profit tax from organisations to the budget of the subject of the Russian Federation for all separate divisions registered for taxation purposes in the same subject of the Russian Federation. The taxpayer must notify of the taken decision the tax body at the place of location of the separate division in charge according to the form attached to the Letter. Besides, the taxpayer must notify the tax bodies at the place of location of the separate divisions where the profit tax will not be paid. The notifications shall be sent to the tax bodies at the place of registration of the separate divisions before the beginning of the subsequent tax period.

The declarations for the profit tax from organisations at the place of location of the separate divisions where the profit tax to the budget of the subject of the Russian Federation will not paid shall not be submitted.

Letter of the Central Bank of Russia No. 135-T of October 31, 2005 on the Application of the Norms of the Regulation of the Bank of Russia No. 255-P of March 29, 2004 on the Obligatory Reserves of Credit Organisations

Credit organisations may reduce their deductions to the Fund of Obligatory Reservation by the amount investments in the bonds of the Bank of Russia.

Letter of the Central Bank of Russia, Federal Treasury No. 134-T, No. 42-7.1-01/5.2-299 of October 28, 2005

From January 1, 2006, if the bodies of the Federal Treasury open accounts for the resources of the budgets of the subjects of the Russian Federation and local budgets, there is not need to submit to institutions of the Bank of Russia and credit organisations (branches) appropriate agreements concluded by the bodies of the Federal Treasury with the bodies of executive power of the subjects of the Russian Federation or the bodies of local government.

Federal Law No. 144-FZ of November 8, 2005 on the Amendments to the Law of the Russian Federation on the Customs Tariff

In the Russian Customs Tariff, the main type of rates are ad valorem ones calculated in percent of the customs cots of the pertinent commodities. Besides, the customs cost is the main part of the taxable base for the VAT collection at import of commodities to the customs territory of the Russian Federation. However, in international practice, the use of various national methods of determination of the customs cost of imported commodities is regarded as a non-tariff barrier. Therefore, the Law of the Russian Federation on the Customs Tariff is being brought in compliance with the Agreement on the application of Article VII of the General Agreement on Tariffs and Trade of 1994, which is one of the prerequisites for the entry of the Russian Federation in the World Trade Organisation.

The set of notions of the Law introduces such terms as "identical goods", "congeneric goods", "goods of the same class or type", as well as the "commonly accepted principles of accounting work". The Law also changes the methods of determination of the customs cost of imported and exported commodities.

The Federal Law is entered into force from July 1, 2006.

Decision of the Government of the Russian Federation No. 659 of November 7, 2005 on the Endorsement of the Norms of Material Support for Orphan Children and Children Having Found Themselves without Parental Support, Persons out of Orphan Children and Children Having Found Themselves without Parental Support Undergoing Studies and Being Brought up in the Federal State Educational Institutions, Underage Undergoing Studies and Being Brought up in the Federal State Educational Institutions - Special Professional Schools of Open and Closed Type and the Federal State Institution Sergiyev Posad Children's Home of the Deaf and Blind of the Federal Agency of Public Health and Social Development

Endorses the norms of supplies of foodstuffs, clothing, shoes and other items and software utensils for the listed children.

Order of the Ministry of Economic Development of the Russian Federation No. 263 of October 18, 2005 on the Procedure of the Customs Registration of White Sugar and Sugar-Containing Foodstuffs Imported to the Territory of the Russian Federation from the Republic of Belarus

The place of declaring of white sugar and sugar-containing commodities imported from Belarus is the Customs Registration and Customs Control Department No. 2 of the Troyekurovo Customs Station of the Western Moscow Customs Office (code 10122112).

The declaring for the mentioned commodities is arranged according to a simplified procedure by submission of the customs declaration in the form of a written application drawn up in a free form indicating information on the declaring party, shipper and recipient of commodities as shown in the transportation documents, and on the name, quantity of commodities in the main unit of measurement, as well as the cost of commodities according to the invoice.

The Order is entered into force 90 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2005. Reg. No. 7142.

Order of the Ministry of Economic Development of the Russian Federation No. 264 of October 18, 2005 on the Endorsement of the Form of the Notification

Endorses the form of the notification of the refusal to apply the simplified procedure of declaring specified in Article 138 of the Customs Code. The customs body shall notify the declaring party of the refusal to apply the simplified procedure of declaring of the Russian-made commodities while indicating the conditions that must be fulfilled to apply such procedure.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2005. Reg. No. 7140.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-247 of September 28, 2005

The Tax Code and the Federal Law on the banks and banking activities specifies the duty of the banks to hand out to tax bodies certificates of operations and accounts of organisations and citizens engaged in entrepreneurial activities without the forming of the legal entity within five days of the receiving of the motivated request of the tax body.

The Letter explains that the Tax Code does not contain a prohibition for the tax bodies to demand from the bank copies of payment documents of their client for the period covered by the tax check.

Federal Law No. 143-FZ of November 8, 2005 on the Ratification of the Protocol between the Government of the Russian Federation and the Government of the Republic of Bulgaria to the Treaty between the Government of the Russian Federation and the Government of the Republic of Bulgaria on the Promotion and Mutual Protection of Capital Investments of June 8, 1993

Ratifies the Protocol signed in Sofia on March 2, 2003 refining and supplementing individual provisions of the Treaty between the Government of the Russian Federation and the Government of the Republic of Bulgaria on the promotion and mutual protection of capital investments of June 8, 1993.

Federal Law No. 142-FZ of November 8, 2005 on the Ratification of the Treaty between the Government of the Russian Federation and the Government of the Republic of Bulgaria on the Promotion and Mutual Protection of Capital Investments

Ratifies the Treaty signed in Sofia on June 8, 1993. The Treaty is aimed at creation and maintaining of favourable conditions for capital investments of investors of participating countries. Capital investments may not be expropriated or nationalised except for the cases when such measures are taken in the public interests according to the procedure specified in the law, are not discriminatory and imply the paying out of a fast, adequate and efficient compensation.

Decision of the Government of the Russian Federation No. 666 of November 8, 2005 on the Authorised Federal Bodies of Executive Power in Charge of the Normative and Legal Regulation and State Control (Enforcement) in the Sphere of Relations Pertaining to Generation, Investing and Use of Savings of the Housing Support for Servicemen Participating in the Accumulated Mortgage System

The Ministry of Defence of Russia shall fulfil the functions of normative and legal regulation and state control (enforcement) in the sphere of relations pertaining to generation and use of savings of the housing support for the servicemen participating in the accumulated mortgage system, the Federal Service for Financial Markets of Russia - in the sphere of relations pertaining to investing of the savings of the housing support for the mentioned servicemen.

Decision of the Government of the Russian Federation No. 664 of November 8, 2005 on the Amendments to the Decision of the Government of the Russian Federation No. 699 of October 1, 2001

Changes the procedure and terms of the restructuring of the debts in insurance contributions to the state social extra-budgetary funds, accrued penalties and fines available with organisations as of January 1, 2001. The mentioned restructuring is carried out using information of the tax bodies as of the date of adoption of the decision on the restructuring.

The decision on the restructuring of the debts shall be taken on the basis of the additional application of the organisation involved in the restructuring process pertaining to the amount not greater than the amount of debts in penalties and fines, including those acknowledged by the organisation for collection, as of the date of submission of the mentioned application.

Decision of the Government of the Russian Federation No. 663 of November 8, 2005 on the Amendments to the Decisions of the Government of the Russian Federation No. 48 of January 23, 2003 and No. 880 of December 30, 2004

Amount of quota for the import of fresh, chilled or frozen poultry meat and edible offal is increased to 1,090 thousand tons (earlier, the quota reached the level of 2004 and made 1,050 thousand tons). In particular, the amount of the quota for the USA is increased from 771.9 to 811.9 thousand tons.

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

Decision of the Government of the Russian Federation No. 655 of November 7, 2005 on the Procedure of Functioning of the Accumulated Mortgage System of Housing Support for Servicemen

Lists the elements necessary for the normal functioning of the accumulated mortgage system of housing support for servicemen. Defines the rules of keeping of the personal savings accounts of participants of the mentioned system, rules of providing information on the management companies, on the specialised depositary, as well as on the condition of the personal savings accounts, as well as the rules of generation of the savings for the housing support and their registration on the personal savings accounts.

The personal savings account is a form of analytical records including the multitude of information on the savings generated at the expense of the resources of the federal budget, other receipts, incomes from investing of these resources, debts and obligations of the participant of the accumulated mortgage system to the authorised federal body secured with pledging, as well as information on this participant.

Order of the Ministry of Justice of the Russian Federation No. 189 of October 14, 2005 on the Endorsement of Internal Rules of Preliminary Investigation Isolation Wards of the Criminal Execution System

Specifies the procedure and conditions of detention of suspects and the accused. The detention regime must provide for the observation of the rights of suspects and the accused, execution of their duties, their isolation, as well as solving the tasks envisaged in the Code of Criminal Procedures of the Russian Federation.

Observation of the regime, maintaining internal rules is vested in the administration of the preliminary investigation isolation wards and their personnel.

The Order regulates the procedure of acceptance and accommodation of detainees, personal investigation, material and medical provisions. Envisages opportunities of execution of religious rites by suspects and the accused, participation in family and legal relations, civil transactions, providing paid telephone communication.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2005. Reg. No. 7139.

Decision of the Government of the Russian Federation No. 673 of November 10, 2005 on the Endorsement of the Rate of the Import Customs Duty for Synthetic Organic Products Used As Optical Bleaching Agents

The rate of the import customs duty for synthetic organic products used as optical bleaching agents (code according to the Foreign Trade Commodity Nomenclature of the Russian Federation 3204 20 000 0) is fixed in the amount of 10%, however, not less than EUR 0.2 per kg and shall remain in force on the unlimited basis. Earlier, the mentioned rate was endorsed by the Decision of the Government of the Russian Federation No. 24 of January 18, 2005 for 9 months.

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

Decision of the Government of the Russian Federation No. 667 of November 9, 2005 on the Amendments to the Rules of Reimbursement from the Federal Budget of the Part of Expenses to Pay the Interest under the Credits Obtained by Organisations of the Light and Textile Industries in Russian Credit Organisations Endorsed by the Decision of the Government of the Russian Federation No. 616 of August 22, 2001

Specifies that reimbursement of the part of expenses to pay the interest under credits is arranged through granting of subventions on the quarterly basis within the limits of resources of the federal budget envisaged in section "National Economy" of the functional classification of expenses of the budgets of the Russian Federation in the amount of ? of the bank rate of the Bank of Russia. If the interest rate for the credit is lower than the bank rate, reimbursement applies to ? of the expenses of the organisation made to pay the interest under the credit. The Decision enlarges the list of the documents submitted to the Federal Agency for the Industry to get the reimbursement.

Decision of the Government of the Russian Federation No. 656 of November 7, 2005 on the Endorsement of the Regulation on the Measures to Prevent Conflict of Interests in the Sphere of Accumulated Mortgage System of Housing Support for Servicemen

The conflict of interests may occur if the officials and members of the Council for Investing of Savings of Housing Support for Servicemen of opportunity of obtaining material and/or personal benefits because of the availability with them or their relatives of the rights providing such opportunities as a result of abuse of the service position by them pertaining to invested savings, as well as information on the investing of the savings having become known to them or available at their disposal.

The Decision defines the measures to reveal and prevent such conflicts.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-4714/02 of November 10, 2005 on the Prices for Design and Survey Works in Construction for the IV Quarter of 2005

The following indices of change of cost are specified for the IV quarter of 2005: for design works in construction in the amount of 1.93 to the level of basic prices as of January 1, 2001 and 14.89 to the level of basic prices as of January 1, 1995; for survey works in construction in the amount of 1.99 to the level of basic prices as of January 1, 2001 and 22.64 to the basic prices calculated using the basic prices guides and the Selection of Prices for Survey Works in Capital Construction as of January 1, 1991.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-4713/02 of November 10, 2005 on the Indices of Change of the Estimated Cost for the IV Quarter of 2005

Provides indices of change of the estimated cost for the whole of construction and installation works and by items of expenses for the IV quarter of 2005 for the subjects of the Russian Federation for objects financed using resources of the federal budget. The indices are intended for gross estimates of the cost of construction using the basic indices method, preparation of tender documentation and general economic estimates in the investment sphere.

The indices are determined taking into account overhead expenses and estimated profit. Overhead expenses include a reduction coefficient of 0.94 taking account of the reduction from January 1, 2005 of the rate of the uniform social tax. The mentioned coefficient does not apply to overhead expenses in the basic level of prices.

Decision of the Government of the Russian Federation No. 679 of November 11, 2005 on the Procedure for Working out and Endorsement of the Administrative Regulations for the Execution of State Functions and Administrative Regulations for Providing State Services

Defines general requirements to the working out and endorsement by the federal bodies of executive power of the mentioned administrative regulations, as well as the time limits and the sequence of actions (administrative procedures) for the federal body of executive power, procedure of interaction between its structural divisions and officials, as well as its interaction with other federal bodies of executive power and organisations.

When working out administrative regulations, excessive administrative procedures should be removed, periods of execution of actions and administrative procedures should be reduced and, if possible, personal responsibility of officials should be introduced for the observation of the requirements of administrative regulations.

Decision of the Government of the Russian Federation No. 676 of November 11, 2005 on the Amendments to the Decisions of the Government of the Russian Federation on the Issues of Participation in the Regulated Sector of the Wholesale Market of Electric Power in the Transient Period

The amendments define the mechanism and terms of participation in the regulated sector of the wholesale market of electric power for organisations included before November 1, 2005 in the list of commercial organisations being the subjects of the federal (all-Russia) wholesale market of electric power where tariff rates for electric power (amount of payment for the services) is specified by the federal body of executive power in charge of regulation of tariff rates.

Decisions granting the right of participation in the regulated sector of the wholesale market of electric power of the transient period to suppliers and buyers of electric power and refusing such right to suppliers and buyers of electric power shall be taken by the Federal Service for Tariff Rates of Russia.

The Decision is entered into force from November 15, 2005.

Order of the Federal Service for Financial Markets No. 05-41/pz-n of September 27, 2005 on the Endorsement of the Qualification Minimum for the Specialised Qualification Examination for the Specialist of the Financial Market for the Management of Investment Funds, Shared Investment Funds and Non-State Pension Funds (Fifth Series Examination)

Defines the minimum level of knowledge necessary for the passing of the specialised examination for the heads, controllers and specialists of specialised depositaries of investment funds, shared investment funds and non-state pension funds. The passing of the qualification examination of the Federal Service for Financial Markets of Russia is a necessary prerequisite for obtaining the qualification "specialist of the financial market" and obtaining the qualification certificate of the Federal Service for Financial Markets of Russia.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/89 of October 27, 2005

The interest accrued for the up-front sum paid by the contractor to the bank as a collateral for the execution of obligations under a futures transaction shall be taken into account in the determination of the taxable base for the profit tax in expenses in the form of interest in obligations (Item 2 of Article 265 of the Tax Code) according to the procedure specified in Article 269 of the Tax Code.

Decision of the Government of the Russian Federation No. 677 of November 11, 2005 on the Method of Distribution among the Subjects of the Russian Federation of Subventions from the Federal Fund of Compensations to Implement Some of the Authority Handed over by the Russian Federation to the Bodies of State Power of the Subjects of the Russian Federation

The subventions are distributed to provide for the financing of expenses to implement the authority in a number of social payments handed over by the Russian Federation to the bodies of state power of the subjects of the Russian Federation. Procedure of calculation of the amount of allocated subventions is provided.

Direction of the Central Bank of Russia No. 1626-U of October 7, 2005 on the Amendments to the Instruction of the Bank of Russia No. 113-I of April 28, 2004 on the Procedure of Opening, Closing, Organisation of Work of Exchange Offices and Procedure of Carrying out by the Authorised Banks of Individual Types of Bank Operations and Other Transactions with Foreign Currencies in Cash and the Currency of the Russian Federation, Checks (Including the Traveller's Checks) in Foreign Currencies Involving Natural Persons

Changes the list of the reasons of refusal to hand out a positive statement to the authorised bank (its branch) necessary for the opening of the exchange office. Specifies that the territorial institution of the Bank of Russia shall refuse to issue the mentioned statement in cases of a failure to execute the orders to eliminate violations of Instruction No. 113-I revealed in the work of internal structural divisions of the bank (its branch).

Refines the list of information and documents that must be present in the rooms of the exchange office on the stand or in another form available for reading to natural persons. Thus, if the exchange office does not carry out operations with foreign currencies in cash and checks using cross-rates, information on cross-rates must not be placed on the stand.

The number of documents forming the file of the exchange office is reduced through reduction of the documents pertaining to technical strength of the rooms for operations with values (including the fire warning and alarm devices).

The cash worker of the exchange office may hold only an internal pass with a photograph and appropriate signatures and the seal, or a service pass, instead of the personal identification or service identification document.

The bank (its branch) shall notify the territorial institution of the Bank of Russia at the place of location of the additional office, credit and cash office, operational cash department outside the cash centre and other internal structural divisions, except for exchange offices, of the beginning of operations with foreign cash and checks no later than ten working days after the day of the beginning of the mentioned operations.

The Direction introduces new requirements to the keeping of the register of operations with foreign currencies in cash and checks. The mentioned register must be preserved in the electronic form for one year after the date of its closing.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on November 11, 2005. Reg. No. 7158.

Order of the Ministry of Internal Affairs of the Russian Federation No. 825 of October 11, 2005 on the Amendments to the Order of the Ministry of Internal Affairs of Russia No. 1033 of December 26, 2003

Pursuant to the reorganisation of the central office of the Ministry of Internal Affairs of Russia, organisational and staff measures in the directorates of the Ministry of Internal Affairs of Russia in the federal districts, ministries of internal affairs, directorates of internal affairs, departments of internal affairs of the subjects of the Russian Federation, provides a new wording for the list of officials in the framework the Ministry of Internal Affairs of Russia enjoying the right of access to information comprising the tax secret.

Registered in the Ministry of Justice of the Russian Federation on November 11, 2005. Reg. No. 7154.

Order of the Federal Service for Financial Markets No. 05-47/pz-n of October 11, 2005 on the Endorsement of the Procedure of Keeping of the Register of Housing Cooperatives

Defines the procedure of entering records in the register, exclusion of the cooperative from the register and providing information available in the register. The register is built on the basis of information provided by the federal body of executive power in charge of the state registration of legal entities and information provided by cooperatives.

Registered in the Ministry of Justice of the Russian Federation on November 8, 2005. Reg. No. 7147.

Direction of the Central Bank of Russia No. 1630-U of November 9, 2005 on the Invalidation of Some of the Normative Acts of the Bank of Russia

Invalidates individual acts of the Bank of Russia regulating the procedure of issue in circulation in the Russian Federation of memorial coins and fixing release prices for the coins of precious metals. At present, the mentioned issues are regulated by the Instruction of the Bank of Russia No. 125-I of November 9, 2005 on the procedure of issue in circulation by the Bank of Russia of memorial and investment coins and their sale to credit organisations.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Order of the Central Bank of Russia No. OD-635 of November 8, 2005 on the Adjustment Coefficients of the Bank of Russia

Specifies adjustment coefficients applied for correction of the market cost of individual bonds of the European Bank of Reconstruction and Development, bank Russky Standart and the Russian Agricultural Bank, Gazprom, as well as the state bonds of the Samara Province accepted as a security for the credits of the Bank of Russia.

Order of the Central Bank of Russia No. OD-634 of November 8, 2005 on the Amendment to the Order of the Bank of Russia No. OD-682 of September 22, 2004 on the Calculation of the Cost of Backing for the Credits of the Bank of Russia

The amendments specify the particulars of determination of the market cots of the bonds of international financial organisations issued in compliance with the legislation of the Russian Federation. At present, such procedure is envisaged for the bonds of the subjects of the Russian Federation, mortgage agencies and credit organisations.

Letter of the Central Bank of Russia No. 137-T of November 8, 2005 on the Inclusion of Securities in the Lombard List of the Bank of Russia

The Lombard List of the Bank of Russia shall include now the bonds of Gazprom with the state registration number of issue 4-06-00028-А.

Decision of the Constitutional Court of the Russian Federation No. 10-P of November 14, 2005 on the Case of Constitutionality of Provisions of Item 5 of Article 48 and Article 58 of the Federal Law on the Main Guarantees of Electoral Rights and the Right to Participate in the Referendum of the Citizens of the Russian Federation, Item 7 of Article 63 and Article 66 of the Federal Law on the Elections of Deputies of the State Duma of the Federal Assembly of the Russian Federation Pursuant to the Appeal of the Human Right Commissioner in the Russian Federation

The Constitutional Court of the Russian Federation recognised the norm available in the interconnected provisions of the Federal Laws on the main guarantees of electoral rights and the right to participate in the referendum of the citizens of the Russian Federation and on the elections of the deputies of the State Duma of the Federal Assembly of the Russian Federation as implying a prohibition to carry out election agitation against all candidates at own expenses not complying with the Constitution of the Russian Federation.

In the absence in the electoral legislation of the formally defined procedure of implementation of the right for personal election agitation against all candidates at own expense by the citizens, the Constitutional Court of the Russian Federation also decided to take immediately measures to regulate the given procedure.

The Decision is entered into force immediately after annunciation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/349 of November 9, 2005 on the Registration of Customs Duties and Fees for the Purchased Fixed Assets for the Purpose of the Profit Tax

Customs duties paid for the purchased fixed assets are qualified as expenses directly associated with the purchase of fixed assets and are included in the initial cost of the purchased fixed assets subject to amortisation according to the procedure specified in the Tax Code of the Russian Federation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/344 of November 8, 2005

In the determination of the taxable base for the profit tax from organisations, labour remuneration expenses shall include the cost of free meals provided to employees only if such meals are envisaged in the labour contract.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-08/312 of November 7, 2005

Explains individual issues of recording in the tax declaration for the value added tax as tax exemptions of amounts of this tax transferred as advance payments for anticipated transportation services.

If the buyer changes the destination of advance payments subject to the zero VAT rate to qualify them for transportation services subject to the VAT rate of 18%, the organisation must present to the tax bodies refined tax declarations for the value added tax and the value added tax at the zero rate for the period where advance payments apply. Amounts of advance payments and the appropriate tax must be increased in the tax declaration for the value added tax and decreased in the tax declaration for the zero rate VAT. After the actual rendering of transportation services subject to the 18% tax rate, the mentioned amounts are recorded as exemptions in Section 2.1 "Calculation of the Total Amount of Tax" of the tax declaration for the value added tax.

Federal Law No. 145-FZ of November 16, 2005 on the Amendment to Article 2 of the Federal Law on the Combating Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism

The Federal Law on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism shall apply to all categories of natural persons present on the territory of the Russian Federation. Before introduction of the changes, the norms of the law did not apply to stateless persons living or staying temporarily on the territory of the Russian Federation.

Decision of the Government of the Russian Federation No. 680 of November 14, 2005 on the Interim Rates of Import Customs Duties for Individual Types of Technological Equipment for Wood-Processing Industry

Introduces for 9 months a uniform import customs duty in the amount of 0% of the customs cost for individual types of technological equipment for wood-processing industry (codes according to the Foreign Trade Commodity Nomenclature 8479 30 100 1 and 8479 30 100 1). Earlier, presses for making fibre board of medium density (MDF) with production capacity of 50 cu. m of finished product per hour were imported duty free, other - at the rate of 5% of the customs cost.

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

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 623 of October 7, 2005 on the Amendments to the Order of the Ministry of Public Health and Social Development of Russia No. 328 of December 29, 2004 on the Endorsement of the Procedure for Granting a Set of Social Services to Individual Categories of Citizens

The citizens having refused to get the set of social services (social service) for the following year may revoke their applications until October 1 of the current year.

The Order changes the procedure of handing out of prescriptions to citizens from other localities. Specifies the duty for the mentioned citizens to present an excerpt form the patient history indicating the insurance number of the personal account. The registers of prescriptions for medicines sold to citizens from other localities shall be submitted for repayment with the mark "non-residents" in the upper right corner.

Registered in the Ministry of Justice of the Russian Federation on November 14, 2005. Reg. No. 7163.

Letter of the Ministry of Finance of the Russian Federation No. 03-03-02/118 of October 26, 2005 on the Taxation of Securities in Foreign Currencies

Pursuant to introduction of changes to Part 2 of the Tax Code of the Russian Federation and some other legislative acts on taxes and fees envisaging that the current reassessment of securities in foreign currencies because of the change of the rates of foreign currencies according to the Central Bank of Russia shall not be done, prepares explanations on the procedure for determination of the taxable base for operations with securities unsold as of the date of entry into force of the given changes (July 15, 2005).

For securities sold before July 15, 2005, the taxable base shall not be recalculated. For securities unsold as of July 15, 2005, the taxable base shall not be recalculated either for the profit tax pertaining to payments of the interest (coupon) incomes from issuer made before this date that were earlier included in the taxable base for the profit tax.

Explains individual issues of reassessment of own debt securities of the organisation, particulars of application of the adopted provisions of the accounting policy, procedure of registration of expenses pertaining to purchase and sale of the security (including its cost), registration of interest (coupon) income due for the bonds, as well as other issues.

Decision of the Government of the Russian Federation No. 686 of November 17, 2005 on the Endorsement of the Rules of Paying out to Participants of the Accumulated Mortgage System of Housing Support for Servicemen and Members of Their Families of Monetary Resources in Addition to the Housing Support Savings

The paying out of additional resources applies to participants of the accumulated mortgage system with the total length of military service being 10 to 20 years and dismissed from service on specific grounds, as well as members of their families in cases of exclusion of participants form the military unit payroll because of the death or being killed, missing or assumed dead.

Additional resources shall be paid out at the last place of the military service once for the whole period of the military service. The Decision provides the procedure for calculation of the paid out additional resources. The paying out is vested in the interested federal body of executive power to occur within 3 months from the day of receiving of the application of the participant of the accumulated mortgage system or member of his family, as well as additional packet of documents.

Decision of the Government of the Russian Federation No. 685 of November 17, 2005 on the Procedure of Disposal of the Rights for the Results of Scientific and Technical Activities

Defines the procedure of appropriation of exclusive rights obtained at the expense of the federal budget for inventions, useful models, industrial prototypes, achievements of selection, layouts of integrated circuits, computer software, databases; rights for the results of scientific and technical activities being a commercial secret, including the patentworthy technical solutions and production secrets (know-how).

Appropriation of the rights for the results of scientific and technical activities is arranged under a state contract concluded with a state orderer, or a contract concluded by the chief administrator or administrator of the budget resources with a federal state institution. In cases of appropriation of the rights with executor, the person indicated by the state orderer may use these results on gratuitous basis to fulfil the works or make supplies of products for the federal state needs.

Decision of the Government of the Russian Federation No. 684 of November 17, 2005 on the Strategic Enterprises and Strategic Joint-Stock Companies Where Special Rules of Bankruptcy Apply

In implementation of the measures of prevention of bankruptcy, taking decision to apply to arbitration court to recognise bankrupt and arrange bankruptcy proceedings pertaining to strategic enterprises and joint-stock companies listed in the Decree of the President of the Russian Federation No. 1009 of August 4, 2004, the particulars shall apply envisaged in Paragraph 5 of Chapter IX of the Federal Law on insolvency (bankruptcy). Thus, a strategic enterprise and organisation are considered to be incapable of satisfying the demands of creditors in monetary obligations and/or execution of the duty to transfer obligatory payments if appropriate obligations and/or duties have not been fulfilled within six months from the date when they had to be fulfilled. To start bankruptcy proceedings for a strategic enterprise or organisation, the claims are accepted making in total at least Rbl 500,000.

Decision of the Government of the Russian Federation No. 683 of November 17, 2005 on the Endorsement of the Rates of Import Customs Duties for Individual Types of Cellulose

Paper pulp, semi-bleached or bleached of coniferous plants for production of filter paper (code according to the Foreign Trade Commodity Nomenclature 4703 21 000 1) shall be imported at the rate of 5% of the customs cost, other (code according to the Foreign Trade Commodity Nomenclature 4703 21 000 9), at the rate of 15% of the customs cost. Earlier, for commodities classified under code 4703 21 000, there was a uniform rate of 15% 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. 682 of November 17, 2005 on the Endorsement of the Rate of Export Customs Duty for Raw Oil and Raw Oil Products from Bituminous Materials Imported from the Territory of the Russian Federation Outside the Member-States of the Customs Union Agreements

From December 1, 2005, the rate of the export customs duty for raw oil and raw oil products from bituminous materials (code according to the Foreign Trade Commodity Nomenclature of Russia 2709 00) is fixed in the amount of USD 179.6 per ton (from October 1, 2005, the mentioned rate amounted to USD 179.9 per ton).

Order of the Ministry of Economic Development of the Russian Federation No. 277 of October 27, 2005 on the Fixing of the Deflator Coefficient K1 for the Year 2006

In 2006, the deflator coefficient K1 necessary for the calculation of the taxable base for the uniform imputed income tax in compliance with Chapter 26.3 of the Tax Code of the Russian Federation is fixed in the amount of 1.132. K1 is an adjustment factor of basic earning capacity taking account of the multitude of particulars of entrepreneurial activities in various municipal formations, particulars of the residential settlement or the place of location, as well as the place of location inside the residential settlement. The coefficient is defined as a ratio of cadastral cost of land at the place of taxpayer activities to the maximum cadastral cost of land specified in the State Land Cadastre for the given type of activities.

Registered in the Ministry of Justice of the Russian Federation on November 16, 2005. Reg. No. 7173.

Decision of the Government of the Russian Federation No. 678 of November 11, 2005 on the Endorsement of the Typical Contracts for the Purpose of Implementation of the Federal Law on the Accumulated Mortgage System of Housing Support for Servicemen

Endorses three forms of typical contracts defining the procedure of trust control of the savings of housing support for servicemen, rendering services by the special depositary to the federal body of executive power in charge of the accumulated mortgage system of housing support for servicemen, as well as the management company providing trust control of the savings of the housing support for servicemen.

Defines the subject of the contracts, rights and duties of the special depositaries and the authorised federal bodies, procedure and amount of payment for the services of the special depositary, as well as the responsibility of the parties.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/95 of October 31, 2005 on the Supplement to the Actual Earnings

The employer assumes the duty to cover the temporary disability allowance at the expense of the organisation for the first two days of employee disability. The mentioned amounts are registered by the employer for taxation purposes as other expenses pertaining to production and sale.

The issue of the amount of supplement to the actual earnings for the bank employees with the length of service less than three years must be solved by the bank itself proceeding from the terms of labour contracts concluded with employees.

Expenses of the employee earnings paid out in supplement to the actual employee earnings during employee temporary disability shall be registered as labour remuneration expenses.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/77 of October 11, 2005

Pursuant to Article 292 of the Tax Code of the Russian Federation, banks may create a reserve for possible losses in loans pertaining to loan and similar debts (including the debts of interbank credits and deposits). Amounts of deductions to the mentioned reserves are recognised as expenses and are taken into account in the determination of the taxable base except for the restrictions envisaged in the legislation (if the reserve has been formed for a standard debt or for promissory notes other than protested ones).

The building of the reserve for a third-party protested bill purchased by the bank under a contract of purchase and sale is considered legal.

Decision of the Constitutional Court of the Russian Federation No. 11-P of November 17, 2005 on the Case of Constitutionality of Part 3 of Article 292 of the Code of Arbitration Procedures of the Russian Federation Pursuant to Appeals of the State Institution of Culture "October Revolution House of Culture", Open-Type Joint-Stock Company Centroneftekhimremstroy, Citizen A.A.Lysogor and the Administration of the Tula Province

According to the challenged norm, application or proposal to revise a judicial act as an enforcement measure may be submitted to the Higher Arbitration Court of the Russian Federation within the time limit not greater than 3 months after the day of entry into force of the recent judicial act adopted on the given case if other opportunities to check the legality of the mentioned act are exhausted. Earlier, the Higher Arbitration Court of the Russian Federation returned applications suggesting a revision of judicial acts on their cases as an enforcement procedure because of expiry of the time limit envisaged in the law. It also refused to examine appeals to restore the mentioned time limit, since such opportunity is not envisaged in the Code of Arbitration Procedures of the Russian Federation.

The Constitutional Court emphasised that the time limit specified in Part 3 of Article 292 of the Code of Arbitration Procedures is in line with enforcement procedures in arbitration process, does not prevent interested parties from enjoying the right to challenge a judicial act to correct a judicial error and may not be regarded as violating constitutional rights and freedoms.

However, Part 3 of Article 292 of the Code of Arbitration Procedures (in the wording of July 24, 2002), as not permitting - according to available judicial practice - to restore the time limit to revise an act of the arbitration court, is recognised as not complying with the Constitution of the Russian Federation.

The Decision is entered into force immediately after annunciation.

Order of the Ministry of Finance of the Russian Federation No. 108n of August 26, 2005 on the Amendments to the Order of the Ministry of Finance of the Russian Federation No. 79n of August 21, 2003 on the Endorsement of the Typical Form of the Agreement on Mutual Certification of Signatures

The typical agreement on mutual certification of signatures endorsed by the Order of the Ministry of Finance of the Russian Federation No. 79n of August 21, 2003 is being brought in compliance with the latest changes in the legislation. According to the mentioned agreement, the Pension Fund orders the organisation to accept applications of the insured to transfer from one non-state pension fund to another such fund providing obligatory pension insurance. The agreement may be concluded with credit organisations, communication organisations, non-state pension funds engaged in activities in obligatory pension insurance that may certify the signatures of any natural persons applying to them, as well as with employer organisations that may certify the signatures of natural persons engaged in labour relations with them.

Registered in the Ministry of Justice of the Russian Federation on November 16, 2005. Reg. No. 7177.

Order of the Federal Treasury No. 13n of August 19, 2005 on the Measures to Implement the Decree of the President of the Russian Federation No. 528 of May 8, 2001 on Certain Measures to Enhance Legal Services of State Bodies

Lawyers or executives with a higher legal education occupying certain positions in the central office of the Federal Treasury shall get a monthly mark-up from September 1, 2005 in the amount of 70% of the salary for the occupied position.

Registered in the Ministry of Justice of the Russian Federation on November 16, 2005. Reg. No. 7167.

Decision of the Government of the Russian Federation No. 687 of November 18, 2005 on the Endorsement of the Specimens and Description of Blank Passports of Citizens of the Russian Federation, Diplomatic Passport of the Citizen of the Russian Federation and the Service Passport of the Citizen of the Russian Federation Identifying the Citizens of the Russian Federation Outside the Territory of the Russian Federation and Containing Electronic Media

Provides specimens and description of the new generation foreign passports containing biometric information. Blank passports have the size of 88x125 mm and consist of the jacket, flyleaves, plastic insert with in-built microchip and paper pages. The passports have a high degree of protection using special paper, watermarks, metal filament, laser engraving and laser perforation.

The plastic insert contains a microchip with antenna and personal information of the passport holder on the back consisting of two parts: the lower machine-readable quarter of the page consisting of a combination of characters containing the main information of this document; and the upper three quarters of the page - visual zone containing such details as passport number, full name, citizenship and other. Besides, the visual zone contains the photograph of the passport holder implanted by laser engraving. The microchip has a contact-free interface with the memory capacity of at least 64 kilobytes.

Order of the Ministry of Economic Development of the Russian Federation No. 284 of November 3, 2005 on the Fixing of the Deflator Coefficient for the Purposes of Chapter 26.2 of the Tax Code of the Russian Federation "Simplified System of Taxation" for the Year 2006

In 2006, the deflator coefficient necessary for the indexing of the maximum amount of incomes restricting opportunities of switching over to and/or application of the simplified system of taxation in compliance with Chapter 26.2 of the Tax Code of the Russian Federation is fixed in the amount of 1.132.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2005. Reg. No. 7181.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-263 of October 13, 2005 on the Penalties Accrued with the Bank Client for the Mistake Made by the Bank

If the payer submits a written application stating that the mistake in the payment document occurred through the fault of the bank, the tax body shall send a notification to the bank requesting the documents confirming or refuting the facts described in the application. If the received documents confirm the payer application, a recalculation of the penalties must be made.

If the tax bodies get documents confirming execution of the duty to pay taxes by the taxpayer according to adopted procedure and removal of the mistake made by the bank, there are no reasons to accrue penalties with the bank client.

Decision of the Government of the Russian Federation No. 694 of November 23, 2005 on the Investment Fund of the Russian Federation

Defines the procedure of generation of the Investment Fund, as well as the forms, mechanisms and terms of granting of state support at the expense of the Fund to implement national investment projects, the stages and procedure of their selection, main requirements to submitted documentation and monitoring of implementation of investment projects.

Provides the procedure of estimation of the limiting amount of the Investment Fund. The annual volume of the Fund for each year in a planned period may not be lower than the volume of budget obligations in implementation of investment projects for the appropriate year of the planned period.

The grounds for generation of the limit of expenditure obligations in implementation of investment projects is the order of the Government of the Russian Federation on the endorsement of the list of investment projects and their certificates.

State support may be granted in the form of co-financing of the investment project, allocation of resources in the registered capitals of legal entities, as well as in the form of providing state guarantees for investment projects. A prerequisite for getting state support in the form of co-financing and allocation of resource in the registered capitals is allocation of resources by commercial organisations participating in the implementation of the investment project in the amount of at least 25% of the estimated cost of the investment project.

Amount of state guarantees may be up to 60% of the resources actually provided by creditors for the implementation of the investment project. The state guarantees are provided for the period of obligations assumed by the person enjoying state guarantees, however, not more than for 5 years.

The Decision is entered into force from January 1, 2006.

Decision of the Government of the Russian Federation No. 690 of November 21, 2005 on the Endorsement of the Regulation on the Protection of Navigation Hydro Technical Structures and Navigation Equipment

Defines the main tasks, forms and procedure of protection of navigation hydro technical structures and navigation equipment by the federal bodies of executive power. The main task is protection against illegal offences.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 128 of November 10, 2005 on the Endorsement of the Form of the Act of the Check of Activities in the Communication Sphere

Endorses the form of the act of the check of activities in the communication sphere and its filling recommendations. The form is used in the implementation of the functions of state enforcement of activities in the communication sphere.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2005. Reg. No. 7190.

Order of the Ministry of Internal Affairs of the Russian Federation No. 834 of October 17, 2005 on the Endorsement of the Instruction on the Procedure of Execution by the Bodies of Internal Affairs of the Russian Federation of the Law of the Russian Federation on the Rehabilitation of the Victims of Political Repressions

Direct execution of the Law where it pertains to the bodies of internal affairs is vested in the departments (sections, groups) of rehabilitation of victims of political repressions of information centres of the Ministry of Internal Affairs, directorates of internal affairs, departments of internal affairs of the subjects of the Russian Federation.

Rehabilitation divisions shall keep records of processing and execution of received applications and submit to the Main Information and Analysis Centre of the Ministry of Internal Affairs of Russia semi-annual and annual reports. The Order provides the procedure of acceptance, processing and execution of applications of citizens and requests of public organisations on the rehabilitation, drawing up and issue of documents on the rehabilitation.

The Instruction is entered into force from January 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2005. Reg. No. 7186.

Order of the Federal Service for Financial Markets No. 05-51/pz-n of October 25, 2005 on the Amendments to the Order of the Federal Service for Financial Markets of Russia No. 05-15/pz-n of April 20, 2005 on the Delimitation of the Authority in the State Registration of Issues (Additional Issues) of Emission Securities between the Federal Service for Financial Markets and Its Territorial Bodies

According to the amendments, the minimum volume of issues (additional issues) of securities at the nominal cost placed through closed subscription with the state registration carried out by the Federal Service for Financial Markets of Russia is increased from Rbl 40 million to Rbl 100 million. The authority in the state registration of issues (additional issues) of securities of the Federal Service for Financial Markets of Russia does not include now the state registration of issues (additional issues) of the bonds of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2005. Reg. No. 7184.

Order of the Federal Antimonopoly Service No. 247 of October 25, 2005 on the Endorsement of the Procedure of Determination of the Dominating Position of Financial Organisations at the Market of Bank Services

Dominating position of the credit organisation at the market of bank services is determined on the basis of the share of the credit organisation within the boundaries of the market of bank services as defined in the constituent documents regardless of its place of location. Available dominating position of the credit organisation at the market of bank services is not a violation of the antimonopoly legislation.

Dominating position of the credit organisation at the market of bank services may not be regarded the one when its share at the federal market of bank services is lower than 10% or on the part of the territory of the Russian Federation - lower than 20%.

Registered in the Ministry of Justice of the Russian Federation on November 23, 2005. Reg. No. 7183.

Decision of the Government of the Russian Federation No. 699 of November 24, 2005 on the Material Incentives for Servicemen Engaged in Finding and/or Disposal (Demolition) of Explosive Objects

Contract servicemen shall get a monthly mark-up for the special service conditions in the amount of 25% of the monthly salary for the military position and 50% of the monthly salary for the military position to draft servicemen.

Up to 3% of the monthly salary for the military position of the infantry (tank) platoon leader will be paid out for each found and/or demolished explosive object, however, not more than 12 mentioned salaries per month.

Decision of the Government of the Russian Federation No. 696 of November 24, 2005 on the Invalidation of Subitem 5.2.15 of the Regulation on the Ministry of Agriculture of the Russian Federation <br>

The sphere of reference of the Ministry of Agriculture of Russia now does not include adoption of normative legal acts defining the total permissible catches in internal fresh-water bodies (lakes, rivers and water storages), as well as the volumes of commercial farming of fishes and other aquatic animals in ponds, lakes and fish farming enterprises of the Russian Federation.

Decision of the Government of the Russian Federation No. 693 of November 23, 2005 on the Amendments to the Regulation on the Federal Tax Service <br>

The amendments specify the authority of the Federal Tax Service of Russia to issue and keep records of the licenses in the gambling sphere. Thus, the Federal Tax Service of Russia shall issue licenses for the games of chance and/or pari mutuel, and for casino activities.

Main Directions of the Uniform State Monetary and Credit Policy for the Year 2006 (Approved by the Board of Directors of the Central Bank of Russia on November 14, 2005) <br>

In 2006, the main goal of the monetary and credit policy in the Russian Federation shall be reduction of inflation to the planned level: to 4%-4.5% in 2008, 7%-8.5% in 2006. (According to the Main Directions of Development of the Credit and Monetary Policy in 2005, the mentioned level of reduction of inflation was planned yet for the year 2005, in 2006, the reduction was planned to 6%-7.5%).

Depending on the combination of external and internal factors, 4 options of social economic development of Russia are suggested, proceeding form the level of prices for oil of USD 28, 40, 50 and 60 per barrel.

The first option suggests a significant impairment of the pricing situation for commodities of Russian export at the world markets. Accumulation of international reserve assets will continue, however, the gain will slow down significantly (2.9 times). Suggested reduction of importer incomes will restrict investment opportunities, with the rates of increase of investments in the main capital being lower than in 2005 and will make 5.7%. Monetary incomes of population will increase by 7.3%. The rates of economic growth on the whole will drop to 4.0%.

According to the second option, the prices for power agents at the world market in 2006 will reduce as compared to the previous year, but will stay at the relatively high level. In this case, the growth of currency reserves will be nearly USD 9 billion lower than in 2005. Monetary incomes of population will increase 8.9%. The rate of growth of investments in the main capital may reach 11.1%. In this case the gross domestic product will increase 5.8%.

The third options suggests that the prices at the world market of power agents in 2006 will remain at the level of 2005 approximately. The growth of currency reserves may be 1.3 times higher than in 2005. The volume of investments in the main capital may increase by 12.0%, real affordable monetary incomes of population - by 9.2%, in this case, the rates of GDP growth may be higher than in the previous year to make 6.0%.

The forth option suggests the growth of prices for power supply commodities at the world market. A significant increase in currency reserves may be expected - 1.7 times greater than in 2005. Incomes of population may be higher than the level of previous year by 9.3%, investments in the main capital - by 12.2%. GDP may grow by 6.1%.

The forecasts of the dollar rate for the year 2006 are not available. There is a remark that the Bank of Russia in 2006 will continue the monetary and credit policy in the framework of controlled floating rouble rate.

Decision of the Government of the Russian Federation No. 702 of November 26, 2005 on the Endorsement of the Rate of the Import Customs Duty for Tin Ores and Concentrates <br>

The rate of the import customs duty for tin ores and concentrates (code according to the Foreign Trade Commodity Nomenclature of Russia 2609 00 000 0) is fixed in the amount equal to zero. Earlier, the mentioned rate amounted to 5% of the customs cost, however, according to the Decision of the Government of the Russian Federation No. 709 of December 1, 2004, did not apply from January 7, 2005 through October 6, 2005 inclusive.

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

Decision of the Government of the Russian Federation No. 698 of November 24, 2005 on the Form of the Permission for Construction and the Form of the Permission to Put an Object in Operation <br>

Endorses the form of the document confirming compliance of design documentation with the city-planning requirements for the land plot and permitting the construction party construction, reconstruction of objects of capital construction, as well as their capital repair (permission for construction). The permission for construction is issued free of charge.

Also endorses the form of the document confirming fulfilment of construction, reconstruction, capital repair of object of capital repair in full amount in compliance with the permission for construction, compliance of the built, reconstructed, repaired object of capital construction with the city-planning documentation for the land plot and design documentation (permission to put the object in operation).

Decision of the Government of the Russian Federation No. 697 of November 24, 2005 on the Amendments to the Rules of Reimbursement at the Expense of the Federal Budget of the Part of Expenses of Organisations of the Sea, River and Air Transport to Pay the Interest under Credits Obtained in Russian Credit Organisations to Purchase Sea, River and Air Vessels Built in Russian Enterprises Endorsed by the Decision of the Government of the Russian Federation No. 278 of April 9, 2001 <br>

Specifies that chief administrators of resources of the federal budget allocated to pay out reimbursement of the part of expenses of organisations of the sea and river transport and organisations of the air transport shall be, respectively, the Federal Agency of the Sea and River Transport and the Federal Agency of the Air Transport (earlier, the Ministry of Transport of Russia ).

Letter of the Federal Tax Service No. GV-6-21/952@ of November 16, 2005 on the Calculation of the Rate of the Tax on Extraction of Mineral Resources for October of 2005 <br>

In the calculation of the tax on extraction of mineral resources for oil for October 2005, it is necessary to take into account that the average level of prices for the Urals oil at the Mediterranean and Rotterdam markets amounted to USD 54.81 per barrel, average US dollar rate to the Russian rouble for all days of the tax period was 28.5473, Kc factor - 5.0105, and the tax rate taking account of the Kc factor - Rbl 2099.3995 per ton.

Order of the Ministry of Transport of the Russian Federation No. 127 of October 18, 2005 on the Endorsement of the Regulation on the Particulars of the Working Time and Leisure Time Regime for Tramway and Trolleybus Drivers <br>

Defines the particulars of the working time and leisure time regime for the drivers working under a labour contract in tramways and trolleybuses owned by organisations regardless of organisational and legal forms and proprietary forms, agency affiliation, entrepreneurs engaged in passenger transportation on the territory of the Russian Federation. The endorsed Regulation shall be obligatory when working out working (shift) schedules for drivers. Tramway (trolleybus) time-tables should be prepared while taking account of the norms of the Regulation.

Registered in the Ministry of Justice of the Russian Federation on November 25, 2005. Reg. No. 7200.

Order of the Federal Tax Service No. SAE-3-09/591@ of November 16, 2005 on the Organisation of Work of the Tax Bodies to Exclude a Legal Entity Having Terminated Its Activities from the Joint State Register of Legal Entities <br>

The endorsed procedure shall regulate the work of the tax bodies excluding legal entities having terminated their activities from the Joint State Register of Legal Entities at the decision of the bodies in charge of registration. The cameral check department shall form a list of legal entity taxpayers on the quarterly basis having failed to submit reporting documents within the most recent twelve months. In the presence of information of accounts of these legal entities in the banks, requests shall be sent to the banks on operations on the mentioned accounts within the recent year. If there are no operations on the mentioned accounts, a certificate of the signs of inoperative legal entity is being drawn up for the mentioned legal entity. The mentioned certificate shall be drawn up also in cases of absence of information of the bank accounts of the legal entity with the tax body.

The certificate is sent to the structural division of the tax body at the place of location of the legal entity in charge of the state registration of legal entities.

The Order provides a procedure for taking the decision to exclude the legal entity from the Joint State Register of Legal Entities. If there are no applications within three months form the day of publication of the decision of anticipated exclusion from the inoperative legal entity, creditors and other parties whose rights and legal interests are affected by the exclusion of the inoperative legal entity from the Joint State Register of Legal Entities, the structural division of the tax body shall enter a record of exclusion in the register.

Letter of the Central Bank of Russia No. 141-T of November 24, 2005 on the Inclusion of Securities in the Lombard List of the Bank of Russia <br>

The Lombard List of the Bank of Russia shall include now individual issues of the bonds of the banks Russky Standart and International Moscow Bank.

Letter of the Central Bank of Russia No. 06-33-2/4176 of October 5, 2005 on the Notification of the Election (Dismissal) of Member of the Board of Directors (Supervisory Board) <br>

The Bank of Russia emphasised that any amendments to the Instruction No. 109-I on the procedure for taking the decision by the Bank of Russia on the state registration of credit organisations and issue the license for bank operations envisaging an increased time limit for the notification of the Bank of Russia of the election (dismissal) of the member of the board of directors (supervisory board) of the credit organisation are impossible. The three-day time limits mentioned in the Instruction is in compliance with the time limit specified in the Federal Law on the banks and banking activities. If the credit organisation failed to prepare within this time limit and submit the protocol of the general meeting of stock-holders together with the notification of the election (dismissal) of the member of the board of directors (supervisory board), this may be done later, however, within the time limits specified in the Federal Law on joint-stock companies.

Letter of the Department of Financial Monitoring and Currency Control of the Central Bank of Russia No. 12-1-5/2699 of October 26, 2005 on the Application of the Instruction No. 117-I <br>

Explains the procedure of drawing up of the transaction certificate in the payments in foreign currencies in transactions in the form of a claims cession. Specifies that currency operations between a resident and a non-resident including payments and transfers under a foreign-trade contract are covered by the procedure of drawing up of the transaction certificate specified in the Instruction of the Bank of Russia No. 117-I of June 15, 2004. According to this procedure, the transaction certificate for the contract is closed when the resident submits to the authorised bank where he has drawn up or redrawn the transaction certificate a written application of the closing of the transaction certificate because of the termination of obligations.