Monitoring of the Federal Legislation dated 28.11.2005

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.