Windfall tax for major companies to be introduced in Russia

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Monitoring of the Federal Legislation dated 12.01.2006

Federal Law No. 15-FZ of January 9, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on the Use of Migration Card of a Uniform Specimen

Ratifies the Agreement signed in Moscow on October 5, 2004. The Agreement provides for creation of the legal basis of organisation of appropriate registration of foreign citizens and stateless person entering the Russian Federation and/or the Republic of Belarus from the territory of a third country and control of their temporary stay on the territories of both states. According to the Agreement, the form of the migration card, procedure of its issue, filling out and application, as well as the procedure of processing and use of information available in the migration card are defined in a separate Protocol.

Federal Law No. 14-FZ of January 9, 2006 on the Ratification of the Treaty between the Russian Federation and the United Mexican States on the Handing over for Punishment of Persons Convicted for Imprisonment

Ratifies the Treaty signed in Mexico on June 7, 2004. The Treaty defines the procedure and terms of handing over of citizens of the Russian Federation convicted for imprisonment in the United Mexican States to serve the term in the Russian Federation and citizens of the United Mexican States convicted for imprisonment in the Russian Federation to serve the term in the United Mexican States.

Federal Law No. 13-FZ of January 9, 2006 on the Amendments to Articles 44, 54 and 402 of the Code of Criminal Procedures of the Russian Federation

The Code of Criminal Procedures of the Russian Federation is extended to include a new provision stating that a civil plaintiff, civil defendant or their representatives may appeal against a court ruling having entered in legal force in a civil lawsuit not only in courts of the first and second instances, but also in the court of enforcement instance.

Federal Law No. 12-FZ of January 9, 2006 on the Amendments to the Criminal Execution Code of the Russian Federation

The amendments are aimed at regulation of public relations in the sphere of execution of punishments other than detention. Individual provisions of the Criminal Execution Code of the Russian Federation are being brought in compliance with the Code of Criminal Procedures of the Russian Federation. In particular, execution of individual types of punishments is envisaged not only at the place of residence of the convict, but also at the place of his work.

The amendments also envisage the right of women serving the term in the form of obligatory works and detention to apply to court requesting a respite.

Decision of the Government of the Russian Federation No. 4 of January 9, 2006 on the Functions of Working out of Methodology Recommendations on the Calculation of Tariff Rates for Transportation and Storage of Arrested Transport Vehicles to Be Vested in the Federal Service for Tariff Rates

The Methodology Recommendations on the calculation of tariff rates for transportation and storage of arrested transport vehicles must be endorsed by the Federal Service for Tariff Rates of Russia within 3 months.

Decision of the Government of the Russian Federation No. 858 of December 31, 2005 on Submission of Declarations of the Volumes of Production, Circulation and Use of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

Declaring applies to the volumes of production and circulation of ethyl alcohol, alcoholic products, edible alcohol-containing products, non-edible alcohol-containing products with the content of ethyl alcohol greater than 40% of the volume of the finished product, as well as the volumes of use of ethyl alcohol for production of alcoholic and alcohol-containing products.

The declarations shall be submitted by organisations possessing licenses for production, storage and supplies of produced ethyl alcohol (including the denatured one), alcoholic and alcohol-containing edible and non-edible products. Besides, declarations shall be submitted by organisations buying ethyl alcohol, alcoholic and alcohol-containing products for use as a raw or auxiliary material in production of alcoholic, alcohol-containing and other products or for technical or other purposes.

The declarations shall be submitted to the territorial tax bodies on the quarterly basis (for the reported quarter) no later than the 10th of the month following the expired reporting period, and for the IV quarter - no later than the 20th of the month following the expired reporting period. Copies of declarations shall also be submitted to the Ministry of Agriculture of Russia.

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

Decision of the Government of the Russian Federation No. 857 of December 31, 2005 on the Endorsement of the Regulation on Submission of Notifications by Organisations Confirming the Purchase (Including the One for Own Needs), Supplies of Ethyl Alcohol (Including the Denatured One) and Non-Packed Alcohol-Containing Products with the Content of Ethyl Alcohol Greater Than 60% of the Volume of Finished Product and the Forms of Notifications

Endorses the forms of notifications confirming the purchase (including the one for own needs) and supplies of ethyl alcohol (including the denatured one) and non-packed alcohol-containing products with the content of ethyl alcohol greater than 60% of the volume of finished product. The notifications shall be submitted to the tax body at the place of location before the purchase or supply for each type of purchased (supplied) products separately (indicating the volume). Organisation possessing separate divisions indicated in the license for production and circulation of ethyl alcohol, alcoholic and alcohol-containing products shall submit the notification to the department of the Federal Tax Service in the subject of the Russian Federation at the place of location of the separate division.

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

Decision of the Government of the Russian Federation No. 854 of December 30, 2005 on the Procedure of Granting Financial Aid in 2006 to the Budgets of the Subjects of the Russian Federation in the Form of Subsidies to Pay out the Remuneration for the Form-Master Functions to Pedagogical Workers of State Schools of General Education of the Subjects of the Russian Federation and Municipal Schools of General Education

The subsidies shall be granted to the budgets of the subjects of the Russian Federation having adopted the laws or other normative legal acts introducing expenditure obligations to pay out the remuneration. The volume of the subsidy is determined within the amounts allocated in the federal budget for the year 2006 proceeding from Rbl 1,000 for a form of 25 persons for urban areas and 14 persons in rural areas.

In the I quarter of 2006, the subsidies shall be granted to the budgets of the subjects of the Russian Federation in the amount of 50% of the annul volume of resources envisaged in the federal budget. From the II quarter of 2006, the subsidies shall be granted by way of a partial compensation of cash expenses of the budgets of the subjects of the Russian Federation to pay out the remuneration.

Decision of the Government of the Russian Federation No. 852 of December 30, 2005 on the Procedure of Financing in 2006 of Expenses Pertaining to Payment for the Medical Aid Services of State and Municipal Public Health Institutions Rendered to Women during Pregnancy and/or Delivery

In 2006, the Social Insurance Fund shall implement the financing of the mentioned expenses in the amount of Rbl 10.5 billion. The transfer of the monetary resources shall be arranged on the monthly basis no later than the 25th in the amount of 1/12 of the amount of resources envisaged in the budget of the Fund of Obligatory Medical Insurance for the year 2006 to pay for the medical aid services of state and municipal public health institutions rendered to women during pregnancy and/or delivery. The Social Insurance Fund shall distribute resources among its regional divisions on the basis of the requests submitted on the monthly basis. The regional divisions of the Social Insurance Fund shall pay for the services proceeding from Rbl 2,000 to institutions rendering medical aid to women during pregnancy per woman enjoying such services and Rbl 5,000 to institutions rendering medical aid to women during delivery per woman enjoying such services. The payment for the services shall be arranged using birth certifica te tokens.

The Decision provides the form of the typical contract between the regional division of the Social Insurance Fund and the state (municipal) public health institution to pay for the medical aid services rendered to women during pregnancy and/or delivery.

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

Decision of the Government of the Russian Federation No. 851 of December 30, 2005 on the Procedure of Financial Support of Expenses and Registration of Resources for the Fulfilment in 2006 by Public Health Institutions of Municipal Formations Rendering Initial Medical and Sanitary Aid (in Their Absence, by Appropriate Public Health Institutions of the Subject of the Russian Federation) of the State Order to Render Additional Medical Aid

Specifies the procedure of financial support of expenses made at the expense of resources of the Fund of Obligatory Medical Insurance for the fulfilment by public health institutions rendering initial medical and sanitary aid of the state order to render additional medical aid in the framework of the program of state guarantees of free medical aid to the citizens of the Russian Federation in 2006 rendered by district physicians, paediatricians, general practitioners (family doctors), medical nurses. The subventions are granted by the Fund of Obligatory Medical Insurance to its territorial funds in the amount determined from the number of medical workers in the appropriate subject of the Russian Federation included in the Federal Register of Medical Workers proceeding from Rbl 10,000 per month per doctor and Rbl 5,000 per month per medical nurse taking into account the coefficients and percent mark-ups to the earnings, deductions for the uniform social tax, insurance contributions for obligatory pension insura nce and obligatory social insurance against industrial accidents and occupational diseases.

The Decision requires a monthly reporting of the use of the subvention in the previous month. Provides a typical form of the contract to fulfil the state order for additional medical aid fulfilled by the public health institutions rendering initial medical and sanitary aid.

Decision of the Government of the Russian Federation No. 840 of December 29, 2005 on the Form of the Development Plan of the Land Plot

The development plan of the land plot must show the boundaries of the land plot, boundaries of public easements, minimum spaces from the boundaries of the land plot prohibiting construction of buildings, structures, information on the city development regulation, information on the permitted use of the land plot, requirements to the destination, parameters and location of objects of capital construction on the mentioned land plot, information on objects of capital construction located within the boundaries of the land plot and other information in accordance with Article 44 of the City Planning Code.

The development plan of the land plot may include information on the possibility or impossibility of its separation into several land plots.

Preparation of development plans of the land plots applies to built-up land plots or those intended for construction, reconstruction of objects of capital construction.

Order of the Federal Service for Financial Markets No. 05-60/pz-n of November 1, 2005 on the Endorsement of the Regulation on the Activities of Specialised Depositaries of Mortgage Coverage and the Rules of Keeping of the Register of Mortgage Coverage

Specifies the requirements to the registration and storage of property forming the mortgage coverage by the specialised depositary, requirements to control of the use of the mentioned property, as well as other activities of the specialised depositary of mortgage coverage. Defines the requirements to the documents that the specialised depositary must adopt and preserve, rules of registration and storage of the property, including the mortgage deeds and state securities forming the mortgage coverage, requirements that the mentioned depositary must control and its pertinent actions, as well as the procedure of replacement of the depositary.

Defines the list of ledgers to be kept by the specialised depositary. Specifies the requirements to the keeping of such ledgers, requirements to issuer (mortgage coverage manager) questionnaire submitted to the depositary to conclude the contract for the keeping of the register of mortgage coverage, information to be contained in such register, as well as the requirements to the procedure of inclusion of the property in the mortgage coverage and its exclusion, requirements to the procedure of amending of information contained in the register on the property forming the mortgage coverage, procedure of providing information from the register, procedure of handing over of the register to another depositary.

Registered in the Ministry of Justice of the Russian Federation on December 29, 2005. Reg. No. 7329.

Regulation of the Ministry of Finance of the Russian Federation and the Central Bank of Russia Nos. 159n and 280-P of December 26, 2005 on the Amendment to the Regulation of the Ministry of Finance of the Russian Federation and the Central Bank of the Russian Federation No. 127n/276-P of September 30, 2005 on the Procedure of Termination of Operations on the Accounts of the Federal Budget of 2005 Opened in the Divisions of the Payment Network of the Bank of Russia and Credit Organisations (Branches)

Provides a new wording for Section III of the Regulation defining the procedure of termination of operations on the accounts of resources of the federal budget in foreign currencies. The amendments are aimed at providing uninterrupted fulfilment of schedules of payments to serve and redeem the state debt.

Registered in the Ministry of Justice of the Russian Federation on December 28, 2005. Reg. No. 7323.

Direction of the Central Bank of Russia No. 1639-U of December 6, 2005 on Amendments to the Regulation of the Bank of Russia No. 225-P of May 6, 2003 on the Guide of Bank Identification Codes of Participants of Payments in the Payment Network of the Central Bank of the Russian Federation (Bank of Russia)

Entry in the BIK Guide of Russia of information used for preliminary notification of participants of payments of the anticipated termination of payment operations and anticipated change of BIK and account number particulars shall be arranged at the initiative of the credit organisation (branch).

Exclusion of information on the branch of the credit organisation may occur not only because of the closing of the branch, but also because of the closing of the correspondent subaccount of the branch in the division of the payment network of the Bank of Russia.

For preliminary notification of participants of payments of the intention to change the BIK and account number details because of the transfer to another division of the payment network of the Bank of Russia, the credit organisation (branch) shall send to the territorial institution of the Bank of Russia a written note drawn up in a free form requesting to enter appropriate information in the BIK Guide of Russia.

The free form of the note is also envisaged for the preliminary notification of participants of payments of the anticipated reorganisation of the credit organisation.

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 December 28, 2005. Reg. No. 7322.

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