Monitoring of the Federal Legislation dated 26.12.2005

Federal Law No. 182-FZ of December 23, 2005 on the Amendment to Article 15 of the Federal Law on Gas Supplies in the Russian Federation

According to the amendments, the total share of ordinary stocks of the organisation owning the Joint Gas Supply System owned by the Russian Federation and joint-stock companies, more than 50% of stocks belonging to the Russian Federation, may not be lower than 50% of the total amount of ordinary stocks of this organisation plus one stock. According to the earlier available procedure, the share of stocks of the mentioned company owned by foreign citizens and organisations must not be greater than 20%, with the federal property being at least 35% of the total amount of ordinary stocks of the organisation owning the Joint Gas Supply System. Thus, the changes are aimed at liberalisation of the market of OAO Gazprom stocks by removing the restriction of the share of stocks belonging to foreign citizens and organisations.

Federal Law No. 181-FZ of December 22, 2005 on the Amendment to Article 15 of the Federal Law on the State Allowances to Citizens with Children

From January 1, 2006, the amount of the monthly allowance for the period of the child-care leave before the age of one year and six months is increased from Rbl 500 to Rbl 700.

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

Federal Law No. 180-FZ of December 22, 2005 on Individual Issues of Calculation and Payment of the Temporary Disability, Maternity Allowances and Amounts of Insurance Support under Obligatory Social Insurance against Industrial Accidents and Occupational Diseases in 2006

Provisions that were earlier included in the annual laws on the budget of the Social Insurance Fund have been transferred to a separate legislative act. The maximum amount of the temporary disability and maternity allowances in 2006 is increased from Rbl 12,480 to Rbl 15,000. As before, the temporary disability allowance because of the disease or injury (other than industrial accidents or occupational diseases) is paid out to the citizen for the first two days of the temporary disability at the expense of the employer, and for the rest of the period beginning with the third day of the temporary disability, at the expense of the Social Insurance Fund.

The Law defines the procedure of financing and payment of the temporary disability and maternity allowances to the insured where special tax regimes apply. The maximum amount of the lumpsum insurance payment under obligatory social insurance against industrial accidents and occupational diseases calculated depending on the degree of loss of professional abilities makes Rbl 46,900 (earlier, Rbl 43,200).

Resources of obligatory social insurance against industrial accidents and occupational diseases are used to cover expenses for outside special medical care for the insured in the amount of Rbl 900 a month and expenses of outside household services for the insured in the amount of Rbl 225 a month.

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

Federal Law No. 179-FZ of December 22, 2005 on the Insurance Tariff Rates for Obligatory Social Insurance against Industrial Accidents and Occupational Diseases for the Year 2006

Extends from 22 to 32 classes the list of professional risk, as well as changes significantly the amounts of insurance tariff rates. The changes will permit to draw the amounts of insurance tariff rates closer to the adequate losses of insurants for insurance support of employees having become victims of industrial accidents.

The exemption for the payment of insurance contributions for obligatory social insurance against industrial accidents and occupational diseases is preserved in 2006.

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

Federal Law No. 178-FZ of December 22, 2005 on the Amendment to Article 12 of the Federal Law on the State Allowances to Citizens with Children

From January 1, 2006, the amount of the lumpsum allowance for the child birth is increased from Rbl 6,000 to Rbl 8,000.

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

Federal Law No. 177-FZ of December 22, 2005 on the Amendment to Article 3 of the Law of the Russian Federation on the Minimum Amount of Labour Remuneration

From January 1, 2006, increases the amount of stipends to students of the federal state institutions of the primary and secondary professional education of intramural studies and getting stipends at the expense of the federal budget from Rbl 140 to Rbl 210 a month.

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

Federal Law No. 175-FZ of December 22, 2005 on the Amendments to the Federal Law on the Budget of the Pension Fund of the Russian Federation for the Year 2005

The Federal Law on the budget of the Pension Fund of the Russian Federation for the year 2005 is being brought in compliance with a number of normative legal acts introducing additional measures of social protection of individual categories of citizens.

In particular, the earlier budget of the Pension Fund did not envisage expenses for additional monthly material support to some categories of citizens dedicated to the 60th Anniversary of the Victory in the Great Patriotic War of 1941-1945 and for such support to invalids because of the combat injury. The Law refines expenses of the Pension Fund in view of the increase from March 1, 2005 of the amount of the basic part of the labour pension and the state pension support pensions.

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

Federal Law No. 174-FZ of December 22, 2005 on the Budget of the Pension Fund of the Russian Federation for the Year 2006

Endorses the budget of the Pension Fund for the year 2006 with incomes amounting to Rbl 1,566,443.1 million, Rbl 1,463,252.6 million out of them not associated with the accumulated part of the labour pension, and expenses amounting to Rbl 1,489,468.0 million, Rbl 1,483,087.8 out of them not associated with the accumulated part of the labour pension.

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

Federal Law No. 173-FZ of December 22, 2005 on the Budget of the Social Insurance Fund of the Russian Federation for the Year 2006

Endorses the budget of the Social Insurance Fund for the year 2006 with incomes amounting to Rbl 207,037,205.6 thousand, Rbl 138,113,849.2 thousand out of them for obligatory social insurance, and expenses amounting to Rbl 212,987,313.2 thousand, Rbl 141,523,252.1 thousand out of them for obligatory social insurance.

In 2006, the Fund will spend budget resources, in particular, to pay out allowances for obligatory social insurance, pay for the services of additional medical examination of working citizens and first medical aid to these citizens, as well as to pay for the services of the state and municipal public health institutions rendering medical aid to women during pregnancy and delivery.

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

Federal Law No. 172-FZ of December 22, 2005 on the Execution of the Budget of the Federal Fund of Obligatory Medical Insurance for the Year 2004

Endorses the report of execution of the budget of the Federal Fund of Obligatory Medical Insurance for the year 2004 with incomes amounting to Rbl 6,812.8 million and expenses amounting to Rbl 6,761.4 million, the surplus of incomes over expenses being Rbl 51.4 million.

Federal Law No. 171-FZ of December 22, 2005 on the Budget of the Federal Fund of Obligatory Medical Insurance for the Year 2006

Endorses the budget of the Federal Fund of Obligatory Medical Insurance for the year 2006 with incomes amounting to Rbl 113,380,467.1 thousand and expenses amounting to Rbl 113,340,467.1 thousand. Defines the sources of financing of the deficit of the budget, introduces a normalised insurance reserve. Specifies the total volume of resources allocated by the Federal Fund of Obligatory Medical Insurance to the territorial funds of obligatory medical insurance to fulfil territorial programs of obligatory medical insurance, including supplies of necessary medicines to individual categories of citizens, implementation of the social program of support of non-working pensioners and obligatory medical insurance of non-working population (children).

A fund of compensations is endorsed within the budget, the resources being used to increase the labour remuneration of district therapists and district paediatricians, general practitioners (family doctors), nurses rendering additional medical aid in the framework of the 1st state order for the medical aid rendered by public health institutions of municipal formations.

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

Decision of the Government of the Russian Federation No. 786 of December 21, 2005 on Excise Duty Stamps for Labelling Alcoholic Products

Introduces new requirements to the specimens of excise duty stamps for labelling alcoholic products. The uniform price of excise duty stamps is Rbl 1,300 per 1,000 pieces without VAT. In 2006, excise duty stamps will be made by the organisation supervised by the Ministry of Finance of Russia according to prototypes, lists of requisites and security elements endorsed by the Ministry of Economic Development and Trade of the Russian Federation. Excise duty stamps must provide for opportunities of entering in them and reading of information on the labelled alcoholic products using technical means of the joint information system.

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

Direction of the Central Bank of Russia No. 1643-U of December 23, 2005

From December 26, 2005, the rate of refinancing of the Bank of Russia is fixed in the amount of 12% annual. The previous rate was fixed by the Direction of the Bank of Russia No. 1443-U of June 11, 2004 in the amount of 13% annual.

Letter of the Central Bank of Russia No. 161-T of December 26, 2005 on the Enhancing of Work to Prevent Doubtful Operations of Credit Organisations

Territorial institutions of the Bank of Russia are recommended to assess in their enforcement work not only the current financial standing of credit organisations but also their chances of legal risk and risk of loss of business reputation.

The Letter provides description of the main signs of doubtful operations found and systematised by the Bank of Russia in their enforcement work in the recent years, including the period when credit organisations were adopted in the system of insurance of deposits.

If there are signs of involvement of credit organisations in doubtful operations, territorial institutions of the Bank of Russia are recommended to arrange meetings with the management and owners of such credit organisations to rectify economic essence of doubtful operations, their circumstances, assessment of risks of the credit organisation and the bank system, work out a plan of actions to stop doubtful operations.