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Monitoring of the Federal Legislation dated 31.03.2006

Federal Law No. 28-FZ of February 28, 2006 on the Amendments to Chapter 21 of Part 2 of the Tax Code of the Russian Federation and Article 3 of the Federal Law on the Amendments to Chapter 21 of Part 2 of the Tax Code of the Russian Federation and on Invalidation of Individual Provisions of the Acts of Legislation of the Russian Federation on Taxes and Fees

Removes inaccuracy occurred from the moment of introduction of amendments to the Tax Code pursuant to adoption of the Federal Law on the special economic zones of the Russian Federation. According to the amendments, from January 1, 2006, the list of documents necessary for the confirmation of the reasons of application of the 0% VAT rate must be extended to include those confirming the fact of supplies of commodities to the resident of the special economic zone. This list includes, in particular, the contract with the resident of the special economic zone, payment documents for the commodities, copy of the certificate of registration of the entity as a resident of the special economic zone and other. The presence of such provision did not permit taxpayers to apply the VAT exemption.

The Federal Law specifies that the mentioned documents must be presented only if placing the commodities under the customs regime of the free customs zone.

Besides, the Law refines the procedure of application of the VAT exemption for capital construction for objects where construction began before January 1, 2006. The given rectification provides for opportunity of application of the mentioned exemption only in case of an actual payment of the value added tax, preventing from unmotivated reimbursement of VAT amounts in 2006.

The Federal Law is entered into force no sooner than one month after the day of publication and no sooner than the 1st of the subsequent tax period for the value added tax. The mentioned amendments apply to legal relations emerging from January 1, 2006.

Decision of the Government of the Russian Federation No. 106 of February 26, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 1027 of December 30, 2000

Employees of individual bodies of the federal bodies of executive power in the sphere of defence, law enforcement activities and state security shall get monthly monetary reward in the amount of 1 salary for the occupied position.

When endorsing the labour remuneration funds for the given employees, in excess of resources allocated to pay out the salaries for the occupied position resources are envisaged to pay out the monthly monetary reward in the amount of 12 salaries for the occupied position (per year).

The Decision applies to legal relations emerging from January 1, 2006.

Decision of the Government of the Russian Federation No. 105 of February 26, 2006 on the Medical Aid, Sanatorium and Resort Support and Individual Payments to Persons Dismissed from the Federal Bodies of the Tax Police Entitled for the Pension with the Length of Service of 20 Years and More (Including the Grace Period), As Well As the Members of Their Families

In 2006, employees after dismissal from service in the federal bodies of the tax police entitled for the pension with the length of service of 20 years and more (including the grace period) may get underpaid monetary compensation for the leaves for the years 2003-2005 in the amount of Rbl 600 per pensioner, for the years 2003-2004 - Rbl 150 per spouse and each of the underage child, for the year 2005 - Rbl 300 per spouse and each of the underage child. The mentioned payments shall be made at the place where these persons get their pensions.

Appropriate changes on the payments to persons dismissed from the federal bodies of the tax police are introduced in the Decision of the Government of the Russian Federation No. 911 of December 31, 2004 on the procedure of rendering medical aid, providing sanatorium and resort support and making individual payments to some categories of servicemen, employees of law enforcement bodies and members of their families.

Decision of the Government of the Russian Federation No. 101 of February 22, 2006 on the Measures to Implement the Federal Law on the Federal Budget for the Year 2006

Accepts for execution the federal budget for the year 2006. The federal bodies of executive power and budget organisations get orders to execute the federal budget for the year 2006.

Chief administrators of resources of the federal budget must provide for the closing until December 31, 2006 of accounts opened for the federal institutions supervised by them in institutions of the Central Bank and credit organisations for operations with resources received for temporary use of the federal institutions, and the Federal Treasury - provide for the opening for them in its territorial bodies of personal accounts for resources received for temporary use. The federal institutions are ordered to submit estimates of incomes and expenses for resources obtained from entrepreneurial and other profitable activities endorsed according to established procedure to appropriate territorial body of the Federal Treasury.

The Federal Treasury is also ordered to carry out an experiment in 3 subjects of the Russian Federation to carry out and register operations of use of subsidies and subventions allocated from the federal budget to the budget of the subject of the Russian Federation, as well as to use the resources of the budget of the subject of the Russian Federation allocated to institutions of the Ministry of Internal Affairs and the Ministry of Emergency Situations of Russia on the personal account of the budget of the subject of the Russian Federation.

The Ministry of Finance of Russia is entitled to buy out in coordination with the Central Bank the bonds of the state republican internal loan of the RSFSR of 1991 owned by the Central Bank at their nominal cost without interest.

Conciliation agreements between debtors in monetary obligations to the Russian Federation and agents of the Government of the Russian Federation, as well as the Federal Tax Service, shall be concluded on the basis of Decisions taken by the Ministry of Finance of Russia.

Amends a number of acts of the Government of the Russian Federation.

Letter of the Central Bank of Russia No. 28-T of February 22, 2006 on Application of Item 1.9.2 of the Instruction of the Bank of Russia No. 124-I of July 15, 2005 on the Amounts (Limits) of Open Currency Positions, Method of Their Estimation and Particulars of Enforcement of Their Observation by Credit Organisations

According to the explanation of the Central Bank of Russia, in the determination of the amount of claims and/or obligations under letters of credit in the estimate of the net position for guarantees and letters of credit, letters of credit are included in the estimate of the net position from the moment of occurrence of a professional judgment with the credit organisation of the possibility of risk of execution of the letter of credit by it at own expense.

Letter of the Central Bank of Russia No. 24-T of February 20, 2006 on the Registration of Amounts of Foreign Currencies Where the Rouble Rate Is Not Officially Established by the Bank of Russia

If the rate of the foreign currency to the rouble is officially established by the central (national) bank of the issuer state of this currency, it is necessary to use the rate of the mentioned national currency.

If such rate is not established by the national bank, it is necessary to use cross-rates. When choosing the cross-rate to recalculate monetary resources, it is preferable to use the rates officially established by the central (national) bank of the issuer state of the currency where the rate to the rouble is not/has not been established officially by the Bank of Russia, as well as information systems Reuters and Bloomberg, sites of central (national) banks, newspaper Financial Times.

Decision of the Constitutional Court of the Russian Federation No. 1-P of February 20, 2006 on the Case of Constitutionality of the Provision of Article 336 of the Code of Civil Procedures of the Russian Federation Pursuant to Appeals of Citizens K.A.Ineshin, N.S.Nikonov and the Open-Type Joint-Stock Company Nizhnekamskneftekhim

According to the applicants, the challenged provision permits the courts to refuse to accept cassation appeals to persons other than participants in the case whose rights and legal interests were violated by a court ruling if the persons participating in the case did not appeal against it in the second instance court.

The Constitutional Court of the Russian Federation recognised that the person other than participating in the case whose rights are affected by the passed court ruling in any case must have efficient means to restore his violated rights. Otherwise, the level of implementation of their right for protection in court is impaired for such people, and the goal of justice may not be fulfilled. Such approach is implied in the practice of the European Court of Human Rights and meets the principles of a law-governed state. The Constitutional Court recognised that provision of Article 336 of the Code of Civil Procedures of the Russian Federation does not exclude for the persons not being participants of the case, whose rights and duties were affected by the court of the first instance, opportunities of use of mechanisms of appealing by cassation against the court ruling adopted without their participation, even if the case participants did not use their right to appeal. The challenged provisions of Article 336 of the C ode of Civil Procedures of the Russian Federation are recognised as not contradicting the Constitution of the Russian Federation.

The Decision is entered into force immediately after annunciation.

Decision of the Government of the Russian Federation No. 110 of February 28, 2006 on the Procedure and Amounts of Reimbursement of Expenses Suffered by Citizens Attracted for Participation in a Parliamentary Investigation

Defines the procedure and amount of reimbursement of expenses to citizens for the travel to the place of the session of the parliamentary commission and lodging, postal expenses and compensation for the actual loss of time because of being attracted to participation in a parliamentary investigation.

Reimbursement of the lodging expenses of citizens is arranged against a written request of citizens according to the procedure and in the amount specified for reimbursement of expenses pertaining to business trips on the territory of the Russian Federation to employees of organisations financed at the expense of resources of the federal budget.

The actual loss of time because of participation in a parliamentary investigation shall be reimbursed in the amount specified by the decision of the parliamentary commission proceeding from the spent time and 5 minimum amounts of labour remuneration.

Decision of the Government of the Russian Federation No. 108 of February 27, 2006 on the Amendments to the List of Codes of the Types of Foodstuffs According to the All-Russia Classifier of Products Subject to the Value Added Tax at the Rate of 10% at Sale Endorsed by the Decision of the Government of the Russian Federation No. 908 of December 31, 2004

Amends the list of codes of the types of foodstuffs according to the all-Russia classifier of products subject to the VAT rate of 10% at sale endorsed by the Decision of the Government of the Russian Federation No. 908 of December 31, 2004.

In particular, the list includes corn and wheat fodders, canned diabetes fruits and vegetables, juices of vegetable and fruits for infant foods.

The Decision is entered into force one month after the day of its official publication, however, no sooner than the 1st of the subsequent tax period for the value added tax.

Direction of the Central Bank of Russia No. 1658-U of February 10, 2006 on the Opening for the Bodies of Local Government or Bodies Providing Cash Services for the Execution of Local Budgets, Including the Bodies of the Federal Treasury, of Accounts for Resources from Entrepreneurial and Other Profitable Activities Obtained by Institutions Supervised by the Bodies of Local Government in Institutions of the Bank of Russia or Credit Organisations (Branches)

Personal accounts for the bodies of local government or bodies providing cash services for the execution of local budgets, including the bodies of the Federal Treasury, for resources from entrepreneurial and other profitable activities obtained by institutions supervised by the bodies of local government shall be opened in the institutions of the Bank of Russia or credit organisations (branches) on the basis of the bank account contract while presenting all necessary documents. An obligatory prerequisite is presenting a certified copy of the decision (order etc.) of the bodies of local government on operations with resources from the mentioned activities obtained by subordinate institutions on the accounts in institutions of the Bank of Russia or credit organisations (branches) opened for them or the bodies providing cash services for the execution of local budgets.

Payments and cash services on the mentioned accounts shall be arranged in compliance with the procedure specified in the Regulation of the Central Bank of Russia and the Ministry of Finance of Russia No. 257-P/46n of May 20, 2004.

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 February 28, 2006. Reg. No. 7546.

Order of the Ministry of Finance of the Russian Federation and the Federal Tax Service Nos. 26n, SAE-3-07/87@ of February 13, 2006 on the Procedure of Purchase, Registration and Storage of Special Stamps for Labelling Tobacco and Tobacco Items Produced on the Territory of the Russian Federation

Endorses the specimens of the special stamps for labelling tobacco and tobacco items produced in the Russian Federation and provides the rules of their placing on the mentioned products.

Also endorses the specimen of the ledger of received special stamps and the specimen of the ledger of destruction of unused, damaged special stamps and those failing to comply with specified requirements.

Special stamps shall be purchased by the organisation producing tobacco and tobacco items on the territory of the Russian Federation in the departments of the Federal Tax Service of Russia in the subject of the Russian Federation, Interregional Inspection of the Federal Tax Service of Russia for Major Taxpayers at the place of location of the organisation or is separate division.

Registered in the Ministry of Justice of the Russian Federation on February 26, 2006. Reg. No. 7537.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 105 of February 20, 2006 on Some Issues Pertaining to the Entry into Force of the Federal Law No. 137-FZ of November 4, 2005 on the Amendments to Some of the Legislative Acts of the Russian Federation and on Invalidation of Some of Provisions of the Legislative Acts Pertaining to Measures of Improvement of Administrative Procedures of Regulation of Disputes

Works out recommendations on the procedure of application by arbitration courts of the Federal Law No. 137-FZ of November 4, 2005 granting the right from January 1, 2006 to tax bodies and bodies of the Pension Fund to collect independently without applying to court tax sanctions from organisations and independent entrepreneurs.

When the mentioned bodies apply to collect taxes, insurance contributions for obligatory pension insurance and sanctions that must be collected independently to arbitration courts after December 31, 2005, such applications must be returned by the arbitration court. Applications submitted but not processed by the arbitration court before January 1, 2006 must be processed.

Arbitration courts are recommended to keep in mind that the absence of the form of the order to pay arrears in insurance contributions, penalties and fines and the form of the decision to collect arrears in insurance contributions endorsed by the Ministry of Finance of Russia may not serve as grounds for the territorial bodies of the Pension Fund to apply to court to collect arrears in insurance contributions, penalties and fines.

Appealing against the decision to call the taxpayer (another person) to account for a tax violation in the higher tax body (with the higher official) means appealing among other things against the decision to collect the tax sanction and implies an obligatory suspension of execution of the decision to collect the tax sanction.

Letter of the Ministry of Finance of the Russian Federation No. 03-04-15/40 of February 22, 2006

Explains the issue of a documentary confirmation of the legality of application of the 0% VAT rate after January 1, 2006.

The value added tax in the amount of 0% at sale applies to commodities imported in the customs regime of export, as well as commodities placed under the customs regime of free customs zone. The Letter describes which documents must be presented to the tax bodies to confirm the legality of application of the 0% VAT rate with each of these customs regimes.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-03/18 of February 17, 2006

Severance pay in the amount of the average monthly earnings, as well as secured average monthly earnings for the period until employment paid out at discontinuation of the labour contract because of liquidation of the organisation or staff cuts (Article 178 of the Labour Code of the Russian Federation), as well as the average earnings preserved with the employee for the period until employment if it is impossible to find an appropriate job (position) at the previous place of work after the end of his term in an elected position in a trade-union body (Article 375 of the Labour Code of the Russian Federation and Article 26 of the Federal Law No. 10-FZ of January 12, 1996 on trade-unions, their rights and guarantees of activities), being compensation payments pertaining to dismissal, are exempted from the income tax from natural persons.

Letter of the Ministry of Finance of the Russian Federation No. 03-11-02/41 of February 16, 2006

Organisations and independent entrepreneurs must not register as payers of the uniform imputed income tax for individual types of activities in the tax bodies where they are registered for other reasons.

Taxpayer engaged in entrepreneurial activities transferred to the uniform imputed income tax in various regions of the same urban district served by different tax bodies must register for taxation purposes at the place where he carries out the mentioned activities in one of the tax bodies.

Federal Law No. 34-FZ of March 4, 2006 on the Execution of the Budget of the Social Insurance Fund of the Russian Federation for the Year 2004

Endorses the report of execution of the budget of the Social Insurance Fund for the year 2004 with incomes amounting to Rbl 159,276.5 million and expenses amounting to Rbl 140,568.3 million, the surplus of incomes over expenses being Rbl 18,708.2 million.

The surplus of incomes over the planned figures occurred because of increased number of organisations having switched over in 2004 to special tax regimes.

Reduction of expenses occurred because of reduced number of cases of temporary disability, more accurate issue of disability sheets and expert evaluations of temporary disability.

Federal Law No. 33-FZ of March 3, 2006 on the Amendment to Article 131 of the Code of Criminal Procedures of the Russian Federation

Article 131 of the Code of Criminal Procedures of the Russian Federation is extended to include the provision stating that the procedure and amounts of reimbursement of procedural expenses (expenses reimbursed from the federal budget or at the expense of participants of criminal proceedings) shall be specified by the Government of the Russian Federation. The Government of the Russian Federation is ordered to specify the procedure and amounts of reimbursement of procedural expenses within 6 months from the day of entry into force of the Federal Law.

Federal Law No. 32-FZ of March 3, 2006 on the Amendment to Article 54 of the Federal Law on Communication

According to the amendments, the user must not pay for the telephone connection initiated by another user. The rule does not apply if the telephone connection is initiated: through an operator to be paid by the called party; using access codes assigned by the federal body of executive power in charge of communication; with a user being outside the territory of the subject of the Russian Federation indicated in the decision allocating the numbering resources to communication operator, including the number of the given user, if otherwise is not specified in the contract for communication services.

The payment for the local connections must be arranged using a user fee or time payment at the user choice.

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

Federal Law No. 31-FZ of March 3, 2006 on the Amendment to Article 5 of the Federal Law on the State Support of Cinematography in the Russian Federation

The amendments remove excessive state regulation in the sphere of cinematography and exclude the authority to keep the register of organisations of cinematography from the sphere of reference of the federal body of executive power in charge of the state support of cinematography.

Federal Law No. 30-FZ of March 3, 2006 on the Amendment to Article 28.3 of the Code of Administrative Violations of the Russian Federation

The amendments refine the list of officials authorised to draw up the protocols of administrative violations, remove inconsistency of provisions of Article 28.3 of the Code of Administrative Violations with provisions of Article 20.25 and Part 5 of Article 32.2 of the Code of Administrative Violations after being amended by the Federal Law No. 161-FZ of December 8, 2003 on the Code of Criminal Procedures of the Russian Federation and other legislative acts being brought in compliance with the Federal Law on the amendments to the Criminal Code of the Russian Federation.

Federal Law No. 29-FZ of March 3, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of India on the Mutual Trips of Holders of Diplomatic and Service (Official) Passports

Ratifies the Agreement signed in Delhi on December 3, 2004, the goal being creation of more favourable conditions for inter-state exchange, mutual contacts of official figures, development of bi-lateral Russian-Indian cooperation.

According to the Agreement, citizens of the Russian Federation and the Republic of India holding actual diplomatic or service (official passports) may, without drawing up the visa, enter, leave, travel in transit and stay on the territory of the state of the other contracting party within 90 days from the date of entry on the this territory. The parties reserve the right to refuse the entry or reduce the time of stay on its territory to any citizen of the other party being considered an undesirable person.

Letter of the Federal Tax Service No. MM-6-03/202@ of February 28, 2006 on the Application of Item 1 of Article 167 of the Tax Code of the Russian Federation in the Wording of the Federal Law No. 119-FZ of July 22, 2005

The date of dispatching (handing over) of commodities (works, services), proprietary rights for the purposes of Chapter 21 of the Tax Code "Value Added Tax" is recognised to be the date of the first in time drawing up of the initial document drawn up for their buyer (client), shipper (communication organisation). However, if the commodity is not dispatched and not transported, but the proprietary rights for this commodities are handed over, such transfer of proprietary rights is considered to be equal to dispatching. The date of dispatching of such commodity is considered to be the date of handing over of proprietary rights indicated in the document confirming the transfer of proprietary rights.

The payment, partial payment for the anticipated supplies by the consignor (mandator, principal) of commodities (carrying out works, rendering services), handing over of proprietary rights is recognised to be the payment, partial payment received from the buyer by the consignor (mandatory, principal) or his commissioner (agent, principal) both in the monetary and in another form.

Federal Law No. 35-FZ of March 6, 2006 on the Combating of Terrorism

Makes more specific legal regulation of activities in combating terrorism, as well as specifies the main directions in the sphere of prevention of terrorist acts and combating of terrorism. Defines anew the main principles, notions, organisational and coordination mechanisms of combating terrorism and its prevention.

Distributes clearly the authority in the sphere of combating terrorism among the federal bodies of executive power. Respectively, defines the persons in charge of each measure in the framework of the anti-terrorist action. The main subject in charge of the measures to stop terrorist activities is the Federal Security Service of Russia.

Describes the mechanism of attraction of the Armed Forces of the Russian Federation to anti-terrorist operations. To prevent terrorist acts in the air, the vessels failing to respond to radio commands and signals of interceptor fighters may be forced to land through the use of arms and destroyed in the case of refusal to land. Similar provisions apply to sea- and river-going vessels.

An anti-terrorist operation regime may be introduced on the territory where it is carried out. A number of special measures may be envisaged on the territory when introducing the given regime: checking of personal identification documents with the natural persons and delivering them to the bodies of internal affairs (other competent bodies) in case of their absence to identify the persons; control of telephone traffic and other information transmitted over telecommunication channels, suspension of communication services for natural persons and legal entities or restricted use of such communication; temporary relocation of natural persons in safe areas while providing stationary or temporary dwelling space etc.

To encourage the public to assist, payments are envisaged to persons rendering assistance in revealing, prevention, stopping, investigating the terrorist act, find and arrest persons preparing, committing or having committed such act, reward from the federal budget.

Makes significantly more stringent the procedure of informing of the public of the circumstances pertaining to the terrorist act.

Regulates clearly the issues of reimbursement of the damage to persons participating in anti-terrorist operations and persons having become victims as a result of a terrorist act.

The Federal Law is entered into force from the day of its official publication except for a number of articles entering into force from January 1, 2007.

Decision of the Government of the Russian Federation No. 118 of March 3, 2006 on the Endorsement of the Rates of Import Customs Duties for Fine Fabric (Veiling) of Glass Fibre

From April 24, 2006 introduces on the permanent basis the rates of the import customs duties for the fine fabric (veiling) of glass fibre. For the fabric greater than 300 cm in width (code according to the Foreign Trade Commodity Nomenclature 7019 32 000 1), the rate is fixed in the amount of 5% of the customs cost, for other (code according to the Foreign Trade Commodity Nomenclature 7019 32 000 9) - 15% of the customs cost.

Earlier, the Decision of the Government of the Russian Federation No. 306 of May 18, 2005 introduced the mentioned rates for 9 months.

Decision of the Government of the Russian Federation No. 117 of March 3, 2006 on the Federal Body of Executive Power Authorised to Keep the Register of State Contracts Concluded on Behalf of the Russian Federation As a Result of Placing of Orders

From January 1 to December 31, 2006 the keeping of the Register of State Orders concluded on behalf of the Russian Federation as a result of placing of orders is vested in the Ministry of Economic Development of Russia. From January 1, 2007 the functions of the federal body of executive power in charge of the keeping of the Register will be fulfilled by the Federal Treasury.

Decision of the Government of the Russian Federation No. 113 of March 2, 2006 on the Endorsement of the Regulation on the Measures to Prevent the Conflict of Interests Pertaining to Officials of the Federal Bodies of Executive Power Involved in the Regulation, Control and Enforcement in the Sphere of Obligatory Pension Insurance, Officials of the Pension Fund of the Russian Federation and Members of the Public Council in Investing of Resources of Accumulated Pensions

The mentioned measures are aimed at prevention of opportunities of obtaining of material or personal advantages by officials personally or through a legal or actual representative because of the availability with them or members of their families or close relatives of the rights providing such opportunities because of the use of service authority by them pertaining to investing of resources of accumulated pensions, as well as information on investing of resources of accumulated pensions having become known to them or available with them because of the work pertaining to the forming and investing of resources of accumulated pensions.

Decision of the Government of the Russian Federation No. 109 of February 28, 2006 on the Particulars of Application of Individual Provisions of the Highway Traffic Rules of the Russian Federation

Postpones until January 1, 2007 the entry into force of the new norm of the Highway Traffic Rules requiring to transport children up to 12 years of age in transport vehicles outfitted with safety belts using special child restraint devices or other means permitting to attach the child with safety belts. This does not apply to transportation of children on the front seat of the car, where it should be done only with the use of the special child restraint devices.

Makes less stringent the requirements to the lighting devices installed on the transport vehicles, in particular, revokes the earlier introduced requirements to the side lamps and retro-reflecting devices. Omits the earlier available requirement prohibiting operation of transport vehicles with red lamps installed in the rear.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 24 of February 9, 2006 on the Rules of Granting Subsidies to the Federal State-Run Enterprises

Provides the procedure of granting subsidies to the federal state-run enterprises at the expense of resources of the federal budget allocated by the Ministry of the Industry and Power Supplies in Section 02 "National Defence".

Operating and formed federal state-run enterprises shall get subsidies within the limits of budget allocations and limits of budget obligations endorsed by the Ministry of the Industry and Power Supplies of Russia for the appropriate fiscal year in Section 02 "National Defence", Subsection 08 "Other Issues of National Defence", tied Article 214 "Implementation of State Functions Pertaining to National Defence", type of expenses 252 "Measures in the Sphere of National Defence", Article 241 "Gratuitous and Unrepaid Transfers to State and Municipal Organisations".

The subsidies shall be granted to enterprises on a gratuitous and unrepaid basis to cover tied expenses and expenses to create federal state-run enterprises.

The volumes of subsidies for each enterprises shall be endorsed by the Minister on the basis of the draft distribution of subsides. Such draft distribution shall be formed by the Commission for Proposals on the Volumes and Directions of Spending of Subsidies granted to the federal state-run enterprises against requests of operating and newly formed enterprises. Operating enterprises shall prepare requests upon expiry of the reporting fiscal period, and the newly formed - according to the endorsed separation balance report and/or transfer act, as well as the plan of measures to settle creditor debts. The rules specifies the list of documents to be submitted by enterprises to the Commission to investigate the requests.

Department of the Budget Policy and Finances shall transfer the resources according to established procedure on the basis of the distribution of resources by enterprises endorsed by the Minister from the personal account of the Ministry of the Industry and Power Supplies of Russia in the territorial body of the Federal Treasury to settlement accounts of enterprises. The Department shall also control the use for designated purposes of resources of the federal budget allocated to grant the mentioned subsidies.

Enterprises, in turn, shall submit according to established procedure quarterly and annual reports of the actual use of subsidies.

Registered in the Ministry of Justice of the Russian Federation on March 2, 2006. Reg. No. 7554.

Direction of the Ministry of Defence of the Russian Federation No. 205/2/35 of February 18, 2006

According to the direction, it is necessary to distinguish clearly personal discipline of commanders (chiefs) and the condition of the military (labour) discipline of the subordinate personnel. The cases of calling to account commanders (chiefs) should be excluded for the crimes, incidents and misdemeanours of subordinate personnel not being a direct result of their activities or failure to take measures to prevent them.

The need to take other measures is also emphasised to provide for the objective assessment of the work of commanders (chiefs) in the Armed Forces of the Russian Federation to enhance the military (labour) discipline.

Decree of the President of the Russian Federation No. 175 of March 3, 2006 on the Amendments to the Decree of the President of the Russian Federation No. 611 of May 12, 2004 on the Measures to Ensure Information Security of the Russian Federation in the Sphere of International Information Exchange

Abandons the earlier introduced prohibition to install hardware connected to public information systems, networks and communication networks, including the Internet, used in international information exchange in rooms for negotiations where issues containing information compromising the state secret are discussed.

According to introduced amendments, deployment of the mentioned hardware is permitted in the presence of the special certificate permitting its operation in rooms for negotiations on issues containing secret information. Expenses pertaining to the deployment of hardware in the mentioned rooms of the federal bodies of state power shall be allocated within the limits of resources of the federal budget envisaged for their maintenance.

Besides, Administration of the President of the Russian Federation, office of the Council of the Federation, office of the State Duma, office of the Government of the Russian Federation, offices of the Constitutional Court of the Russian Federation, Supreme Court of the Russian Federation, Higher Arbitration Court of the Russian Federation and the Prosecutor General of the Russian Federation are permitted in exclusive cases upon coordination with the Federal Guard Service of the Russian Federation to connect to Internet and submit information through Internet segments and technological server sites maintained by: federal bodies of executive power, their subordinate institutions and organisations; Russian Academy of Sciences, scientific academies and other scientific organisations with the state status; state institutions of higher professional education.

Earlier, the mentioned structures could maintain interaction with the Internet only through the segment designed for the federal bodies of state power and the bodies of state power of the subjects of the Russian Federation and supervised by the Federal Guard Service of the Russian Federation.

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

Direction of the Central Bank of Russia No. 1663-U of March 3, 2006

From March 6, 2006, increases the interest rates for the instruments of attraction of monetary resources with credit organisations: deposits on standard terms "tom next", "spot next" and "on demand" to 1% annual, "1 week", "spot week" to 1.5% annual.

Letter of the Central Bank of Russia No. 33-T of March 2, 2006 on the Use of Software

The use of quality software of outgoing control of dispatched messages to the authorised body (both own and purchased at the market) envisaged in the Federal Law on the combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism reduces significantly the share of rejected correspondence.

Letter of the Central Bank of Russia No. 32-T of March 1, 2006 on the Filling of Individual Fields of Payment Orders to Transfer to the Budget System of the Russian Federation Individual Types of Incomes Administered by the Bank of Russia

Explains the procedure of filling of payment orders to transfer to the budget system of the Russian Federation the following incomes administered by the Bank of Russia in compliance with the Order of the Ministry of Finance of the Russian Federation No. 106n of November 24, 2004: the state duty for the state registration of entities, for the licensing, for the state registration of issues (additional issues) of emission securities, as well as monetary penalties (fines) for the violation of the legislation on banks and banking activities.

Letter of the Central Bank of Russia No. 31-T of February 27, 2006 on 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 city loans of Moscow with the state registration number of issue RU31047MOS0.

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 market of securities in the sector of payments for the state federal securities.

Decision of the Constitutional Court of the Russian Federation No. 2-P of February 28, 2006 on the Case of Constitutionality of Individual Provisions of the Federal Law on Communication Pursuant to the Request of the Duma of the Koryak Autonomous District

The Constitutional Court of the Russian Federation recognised as unconstitutional individual provisions of Articles 59 and 60 of the Federal Law on communication specifying the duty of communication operators to make deductions to the multiple services reserve. This reserve is created to provide for reimbursement to multiple services operators of losses occurring through the rendering of such services, its resources being formed and spent according to the procedure defined by the Government of the Russian Federation. The given provision is recognised as not complying with the Constitution of the Russian Federation, since it does not define significant elements of non-tax fiscal payments (fee) - the object and base, the maximum amount of the rate or its criteria that must be defined in the Law directly.

The legislator is ordered to introduce necessary amendments to the Federal Law on communication, and the Government of the Russian Federation - to bring their normative legal acts in compliance with such amendments within the time limits necessary to take them into account in the federal budget for the year 2007. In any case, these provisions shall lose their force no later than January 1, 2007.

Other challenged provisions of the Law on communication are recognised as complying with the Constitution of the Russian Federation.

The Decision is entered into force immediately after annunciation.

Order of the Government of the Russian Federation No. 266-r of February 28, 2006 <br>

Approves the concept of development of the national system of standardisation representing a system of views on the problems of development of the national system of standardisation in the Russian Federation until the year 2010 and containing motivated goals, tasks and directions of development of the national system of standardisation.

As the goals of development of the national system of standardisation, the concept distinguishes: improvement of quality and competitive potential of the Russian-made products, works and services sold at the internal and external markets; ensuring scientific and technical progress; ensuring defence potential, economic, ecological, scientific-and-technical and technological security of the Russian Federation; ensuring uniform measurements; ensuring rational use of resources; ensuring technical, information compatibility and interchangeability of products and other.

The measures envisaged in the concept will be implemented by the federal bodies of executive power on the basis of the interagency plan of measures. The tasks of the concept will be solved in the framework of the federal and agency tied programs.

The national body in charge of standardisation shall work out the mechanisms of participation of the interested parties in the forming of the common policy in the sphere of standardisation and provide for coordination of activities of developers of standards in the Russian Federation. The Government of the Russian Federation must assist creation of conditions for development and application of the national standards aimed at ensuring national interests of the Russian Federation, fulfilling its international obligations, implementation of activities of the bodies of state power in the sphere of standardisation. Federal bodies of executive power should use national standards and expand their application, participate in organisation of development of national standards.

Provisions of the concept of development of the national system of standardisation must be applied by the federal bodies of executive power in the works in the sphere of technical regulation.

Letter of the Federal Tax Service No. GV-6-21/189 of February 22, 2006

For inherited property where the certificates for the right of inheritance are issued before January 1, 2006, the tax from the property handed over according to the inheritance or donation procedure is collected, and for inherited property where the certificates for the right of inheritance are issued beginning with January 1, 2006, the tax from the property handed over according to the inheritance or donation procedure is not collected.

Federal Law No. 37-FZ of March 11, 2006 on the Amendments to the Federal Law on the Military Duty and Military Service <br>

The amendments are stipulated by the adoption of the Federal Law No. 159-FZ of December 11, 2004 where it pertains to the authority of the higher official (head of the higher executive body) of the subject of the Russian Federation.

According to the amendments, higher officials of the subjects of the Russian Federation (heads of the higher executive bodies of state power of the subjects of the Russian Federation) are excluded from the categories of citizens enjoying the right of respite for the draft military service. The mentioned persons, because of their age, cannot be participants of legal relations pertaining to military duty in the form of the draft military service. Besides, the mentioned persons are excluded from the categories of citizens to be dismissed from the draft military service because of acquiring of the status of a higher official of the subject of the Russian Federation (head of the higher executive body of state power of the subject of the Russian Federation).

Federal Law No. 36-FZ of March 11, 2006 on the Amendment to Article 4 of the Federal Law on the Justices of the Peace in the Russian Federation <br>

Changes the procedure of creation of court districts pursuant to introduction of another criteria of calculation of the number of population in the court district - from 15,000 to 23,000 persons. Earlier, the specified criteria of calculation of the number of population in a single court district made 15,000 to 30,000 persons, which did not meet the real requirements of development of the court system in the Russian Federation.

The Federal Law is entered into force from January 1, 2007.

Decision of the Government of the Russian Federation No. 126 of March 10, 2006 on the Amendments to the Instruction on the Procedure of Keeping of the Personal (Personified) Records of Information on the Insured for the Purposes of Obligatory Pension Insurance Endorsed by the Decision of the Government of the Russian Federation No. 318 of March 15, 1997 <br>

Changes the procedure of registration and use by the territorial bodies of the Pension Fund of the personal information on the insured. In particular, the mentioned bodies shall enter in the personal accounts the results of processing of applications of the insured to transfer to another pension fund before March 31 of the year following the year of submission of such applications by the insured, rather than December 31.

Information on the condition of the personal account, including its special part, and on the results of investing of resources of accumulated pensions shall be sent by the Pension Fund before September 1 to the insured who has or had the insurance contributions for the accumulated part of the labour pension paid. The insured who has insurance contributions paid for only the insured part of the labour pension shall get information on the condition of the personal account before December 31, (earlier, October 1).

Territorial bodies of the Pension Fund must send free of charge information to the insured on the condition of the special part of the personal account and on the results of investing of resources of accumulated pensions before September 1 (earlier, before July 1).

Federal Law No. 38-FZ of March 13, 2006 on Advertising

The Federal Law on advertising is provided in a new wording permitting to convey consecutively the general requirements to advertising, define the particulars of distribution of promotion materials, emphasise those pertaining to individual commodities, aspects of self-regulation of advertising, as well as of state control of observation of the legislation on advertising.

The list of notions used in the legislation on advertising shall include the notion of "object of advertising", "commodity", "social advertising", "antimonopoly body", "sponsor".

To restrict dissemination of hidden advertising of commodities prohibited or restricted for advertising, special requirements and restrictions for individual commodities apply also to advertising of the means of personification of such commodities, their producers and sellers.

Unfair advertising shall also include promotion of commodities where special requirements or restrictions are imposed if it is done as an advertising of another commodity.

The Federal Law contains a prohibition to use in advertising references of approval of the object of advertising by state or municipal bodies or their officials.

Introduces for the first time requirements to advertising of commodities using remote methods of sale, as well as advertising using incentive measures.

Changes the procedure of breaking and combining the radio and TV programs with advertising, as well as the requirements to the volume of advertising on the TV and radio. The total length of advertising in a TV program (including such advertising as TV shops), breaking of a TV program by advertising, overlapping of advertising and a TV program frames may not be greater than 15% of the time of broadcasting within an hour. The breaks for the advertising may not be greater than 4 minutes long. The previous wording of the Federal Law introduced a restriction specifying that advertising could not be greater than 20% of the air time (except for specialised programs).

The Law refines the requirements to the advertising of arms, armaments and military equipment, financial services and securities, alcoholic drinks, beer, tobacco and tobacco items. Significantly expands the circle of requirements to advertising of medicines, medical equipment, items of medical destination and medical services. In particular, such advertising aimed at unrestricted circle of consumers must not contain depictions of medical workers providing recommendations on the use, create an impression of lack of need to apply to a doctor.

The Law differentiates responsibility of the advertiser and the advertisement distributor for the violation of the legislation on advertising.

The Federal Law is entered into force from July 1, 2006 except for individual provisions where another time limit is specified for the entry into force.

Order of the Federal Service for Financial Markets No. 06-17/pz-n of February 17, 2006 on the Endorsement of the Procedure of Submission by Housing Savings Cooperatives of Quarterly Reports on Observation of the Normatives of Assessment of Financial Stability

Defines the composition, time limits and procedure of submission of the quarterly reports on observation of the normative of assessment of financial stability by housing savings cooperatives, as well as other organisations attracting and using monetary resources of citizens - their members - for the purchase or construction of dwelling space other than the housing and housing construction cooperatives.

The quarterly report shall be submitted to the Federal Service for Financial Markets of Russia according to the attached forms and must contain general information on the housing savings cooperative, information on its members, on financial stability of the work of the cooperative and on the normatives of assessment of financial stability of the work of the cooperative. Besides, additional information to reports may also be submitted.

The quarterly reports shall be submitted beginning with the quarter when the cooperative was registered in the Joint State Register of Legal Entities no later than 45 days after the date of the end of the reporting quarter, except for the report for the IV quarter. The report for the IV quarter is submitted no later than April 15 of the year following the reported one.

The Order is entered into force from August 9, 2006.

Registered in the Ministry of Justice of the Russian Federation on March 6, 2006. Reg. No. 7562.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 97 of February 17, 2006 on the Procedure to Issue Prescriptions for Medicines to Individual Categories of Citizens Entitled for the State Social Aid in the Framework of Additional Medicinal Support

Issue of prescriptions for medicines included in the list of medicines sold to doctor (feldsher) prescriptions shall be done using international non-patent names, and, in their absence, using other names registered on the territory of the Russian Federation.

In a number of cases, it is permitted to issue prescriptions for medicines by the doctor (feldsher) using a trade name or another name upon coordination with the medical commission of the medical treatment institution.

Registered in the Ministry of Justice of the Russian Federation on March 6, 2006. Reg. No. 7561.

Order of the Federal Fund of Obligatory Medical Insurance No. 27 of February 27, 2006 on the Endorsement of the Tariff for Additional Medical Aid in the Framework of the State Order for 2006 of Institutions of Public Health of Municipal Formations Rendering Initial Medical and Sanitary Aid (in Their Absence, Appropriate Public Health Institutions of the Subject of the Russian Federation)

Endorses the tariff for additional medical aid in the framework of the state order for free medical aid for the year 2006 of public health institutions of municipal formations rendering initial medical and sanitary aid (in their absence, appropriate public health institutions of the subject of the Russian Federation). The tariff envisages, in particular, monetary payments to district physicians, district paediatricians, general practitioners (family doctors) in the amount of Rbl 10,000 a month, as well as the monetary payments to their nurses in the amount of Rbl 5,000 a month.

Registered in the Ministry of Justice of the Russian Federation on March 6, 2006. Reg. No. 7560.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 93 of February 15, 2006 on the Organisation of Work to Form the List of Medicines Sold to Doctor (Feldsher) Prescriptions in the Framework of Additional Free Medical Aid to Individual Categories of Citizens Entitled for the State Social Aid

Defines the procedure of forming of the list of medicines sold to doctor (feldsher) prescriptions in the framework of additional free medical aid to individual categories of citizens entitled for the state social aid. The list is formed taking into account the proposals of the subjects of circulation of medicines, public health management bodies of the subjects of the Russian Federation, scientists and specialists in the sphere of public health. The results of analysis of submitted information are used to take the decision permitting to include the medicine in the list (exclude it). The medicines are included in the list under appropriate international non-patent names. The draft list is submitted for examination to the Pharmacy Committee of the Ministry of Public Health and Social Development of Russia taking recommendations to include the medicines in the list (exclude them).

Registered in the Ministry of Justice of the Russian Federation on March 6, 2006. Reg. No. 7559.

Letter of the Federal Service for Financial Markets No. 06-OB-03/1900 of February 9, 2006 on the Changing of Codes of the Budget Classification Entered in the Payment Documents When Paying the State Duty for the Legally Significant Actions Envisaged in Item 1 of Article 333.33 of the Tax Code of the Russian Federation and Other Payments to the Budgets of the Russian Federation

Pursuant to the entry into force of the Directions on the procedure of application of the budget classification of the Russian Federation endorsed by the Order of the Ministry of Finance of Russia No. 152n of December 21, 2005, provides the changed codes of the budget classification to be entered in the payment documents to pay the state duty for the legally significant actions pertaining to individual functions of the Federal Service for Financial Markets of Russia.

Letter of the Federal Service for Financial Markets No. 06-OV-01-3/1897 of February 9, 2006 on the Procedure of Application of the Regulation on the Requirements to Activities of Participants of Financial Markets Using Electronic Documents Endorsed by the Order of the Federal Service for Financial Markets of Russia No. 05-77/pz-n of December 8, 2005

Particulars of processing and storage of electronic documents, including the entry of service notes in the documents, procedure of identification of the person having initiated the document, as well as other specified requirements, shall be defined by specialised depositaries in the regulation of the specialised depositary, and by the persons in charge of the keeping of the register of investment shares of the shared investment funds - in the rules of keeping of the register of holders of investment shares of the shared investment funds.

Specialised depositaries and recorders are recommended to introduce appropriate changes in the above documents, specify in them the procedure and time limits of notification of the beginning of use electronic documents, indicate the address of the Internet site publishing information on the procedure and terms of exchange of electronic documents and submit the documents for registration to the Federal Service for Financial Markets of Russia.

Federal Law No. 39-FZ of March 13, 2006 on the Amendments to Chapters 26.1 and 26.1 of Part 2 of the Tax Code of the Russian Federation and Article 2.1 of the Federal Law on the Amendments to Part 2 of the Tax Code of the Russian Federation and Some Other Acts of the Legislation of the Russian Federation on Taxes and Fees, As Well As on Invalidation of Individual Acts (Provisions of Acts) of the Legislation of the Russian Federation on Taxes and Fees <br>

The amendments support agricultural producers by creation of more favourable conditions for them in the sphere of taxation. Significantly change provisions of Chapter 26.1 "System of Taxation for Agricultural Producers (Uniform Agricultural Tax)" of the Tax Code of the Russian Federation. The amendments pertain to the procedure and terms of switch over to the uniform agricultural tax and termination of use of the system of taxation for agricultural producers, procedure of determination of the object of taxation and the taxable base, procedure of calculation and payment of the uniform agricultural tax. In particular, the amendments expand the list of expenses reducing the taxable base.

Agricultural producers that did not switch over to the uniform agricultural tax are exempted from the profit tax for the period until 2007. Besides, they will enjoy tax exemptions in the period from 2008 through 2011.

The Federal Law is entered into force one month after the day of its official publication except for individual provisions where other time limits for entry into force are envisaged.

Decision of the Government of the Russian Federation No. 128 of March 13, 2006 on the Implementation by the Federal Bodies of Executive Power of the Measures to Ensure the Safety of Citizens Living and Working Permanently or Predominantly in the Safety Zones of Objects of Storage of Chemical Weapons and Objects of Destruction of Chemical Weapons <br>

Defines the federal bodies of executive power empowered with authority to implement the measures to ensure the safety of citizens living and working in the safety zones of objects of storage of chemical weapons and objects of destruction of chemical weapons

The Ministry of Public Health and Social Development of Russia shall define the procedure and provide for the carrying out of the expert evaluation to establish the causal connection of diseases of citizens with the functioning of the mentioned objects.

The Federal Medical and Biological Agency shall provide for the rendering of the medical aid to citizens, including the expert evaluation to establish the causal connection of diseases; work out medical and biological criteria of assessment of the health condition of the mentioned citizens; arrange the medical and social-and-hygienic monitoring of the health of citizens; provide for stockpiling of antidotes necessary to render medical aid to citizens.

The Federal Agency of the Industry shall carry out the measures of development of the social infrastructure in the regions of location of the mentioned objects, as well as construction and outfitting of consulting and diagnostics centres for examination of citizens to be followed by subsequent handing over of these centres to the Federal Medical and Biological Agency; provide for creation of the necessary reserves of the means of individual protection of citizens; provide for creation of local warning systems.

Order of the Government of the Russian Federation No. 328-r of March 10, 2006 <br>

Approves the state program "Creation of Technoparks in the Hi-Tech Sphere in the Russian Federation", the goals being accelerated development of hi-tech industries and turning them into one of the main driving forces of economic growth of Russia. According to program creators, the most efficient mechanism for it is development of the network of technoparks in the hi-tech sphere.

According to the program, technoparks will provide for the territorial concentration of financial and intellectual resources; unite enterprises of hi-tech industries, including the nano-, bio-, information and other technologies. Activities of technoparks will attract scientific organisations and educational institutions providing intellectual and personnel potential.

Technoparks in the hi-tech sphere must provide a set of necessary services to enterprises located on their territories. This will permit enterprises to obtain significant savings of expenses and concentrate on their main activities. It is planned that technoparks will house organisations rendering legal, financial, information and technology, marketing and other services, as well as business incubators whose activities is aimed at implementation of venture projects in the hi-tech sphere.

Objects of infrastructure of technoparks must be formed including also resources of the budget of the Russian Federation. Decision to render state support in creation of technoparks in each particular case shall be taken on the basis of the act of the Government of the Russian Federation specifying the terms of use of the budget resources and the procedure of interaction of the federal bodies of executive power and the bodies of executive power of the subjects of the Russian Federation.

Technoparks in the hi-tech sphere in 2006-2010 are planned for creation on the territories of the Moscow, Novosibirsk, Nizhny Novgorod, Kaluga, Tyumen provinces, Republic of Tatarstan and the city of St.Petersburg. In 2006-2007, it is planned to create the management bodies of technoparks in the hi-tech sphere, carry out design works before the beginning of construction, prepare the basic infrastructure, build the objects, implement the marketing and other organisational measures. In 2008-2010, it is planned to develop the infrastructure of technoparks, attract the leading world hi-tech companies to place their production faculties in technoparks, implement the program to promote Russian hi-tech enterprises at the world market.

Letter of the Ministry of Finance of the Russian Federation No. 03-11-02/50 of March 6, 2006 <br>

Since buildings and structures are not recognised as stationary sales places, activities in their leasing may not be transferred to the system of taxation in the form of the uniform imputed income tax. The uniform imputed income tax does not apply also to handing over for temporary possession and/or use of stationary sales places in a stationary sales network possessing sales rooms (shops and pavilions).

Adjustment of tax obligations for the uniform imputed income tax because of excessively accrued and paid insurance contributions for obligatory pension insurance before introduction of appropriate changes in the Federal Law on obligatory pension insurance in the Russian Federation is not done. Offsetting (return) of excessively paid amounts of insurance contributions is not possible, since these insurance contributions do not meet the requirements of a tax and are not subject to the provisions of the Tax Code on offsetting or return of excessively paid amount of tax. Besides, the authorised body in charge of offsetting (return) of excessively paid amounts of insurance contributions and their procedures are not defined.

Decision of the Government of the Russian Federation No. 133 of March 14, 2006 on the Procedure of Assigning and Activities of Representatives of the State in the Management Committees Created under Product Sharing Agreements <br>

Specifies the procedure of assigning representatives of the state in the management committees created for coordination of activities to carry out the works envisaged in product sharing agreements, their authority, as well as the procedure of preparation and adoption of decisions by them on behalf of the state.

Representatives of the state shall be assigned by the Government of the Russian Federation at the presentation of the Ministry of the Industry and Power Supplies of Russia out of state civil servants of the Russian Federation and its subjects. The interested federal bodies of executive power and the bodies of executive power of the subjects of the Russian Federation shall send to the Ministry of the Industry and Power Supplies of Russia proposals on the candidates to be included in the management committee with attached information on the candidate.

Representatives of the state shall form a consolidated opinion on the issues of the agenda of the session of the management committee requiring a decision, as well as on issues of other authority of the members of the management committee. They implement their authority on the basis of the written directives formed by the Ministry of the Industry and Power Supplies of Russia on the basis of proposals of representatives of the state and interested federal bodies of executive power.

The Ministry of the Industry and Power Supplies of Russia is ordered to submit to the Government of the Russian Federation on the annual basis a report of activities of the representatives in the management committees.

Order of the Ministry of Education and Science of the Russian Federation No. 44 of March 2, 2006 on the Endorsement of the Procedure and Criteria of Contest Selection of Institutions of Higher Professional Education Introducing Innovative Educational Programs <br>

Defines the procedure of carrying out and criteria of contest selection of institutions of higher professional education introducing innovative educational programs. The contest selection is arranged to provide state support to higher educational institutions by granting subsidies in the amount indicated in the contest announcement. The contest is an open one.

The winners of the contest shall be selected using the criteria of: quality and results of the presented innovative educational program of the higher educational institution; existing innovative potential of the higher educational institution.

The subsidies shall be allocated by the Federal Agency of Education to purchase laboratory equipment, develop and purchase software and methodology materials, modernise the material and technical base, improve qualification and professional training of the scientific, pedagogical and other personnel of the higher educational institution.

Registered in the Ministry of Justice of the Russian Federation on March 10, 2006. Reg. No. 7580.

Order of the Ministry of Finance of the Russian Federation and the Federal Treasury No. 36n/4n of March 3, 2006 on the Application of the Procedure of Opening and Keeping of the Personal Accounts for Operations with Resources from Entrepreneurial and Other Profitable Activities of Recipients of Resources of the Federal Budget <br>

Before adoption of appropriate normative legal acts of the Ministry of Finance of Russia and the Federal Treasury, one should be guided by the procedure of opening and keeping of the personal accounts for operations with resources from entrepreneurial and other profitable activities of recipients of resources of the federal budget endorsed by the Order of the Ministry of Finance of Russia No. 46n of June 21, 2001.

The Federal Treasury and the Department of the Budget Policy of the Ministry of Finance of Russia is ordered to work out appropriate draft normative legal acts before December 31, 2006.

Registered in the Ministry of Justice of the Russian Federation on March 7, 2006. Reg. No. 7577.

Order of the Central Bank of Russia No. OD-107 of March 7, 2006 on the Amendments to the Order of the Bank of Russia No. OD-682 of September 22, 2004 on the Estimate of the Cost of the Backing for the Credits of the Bank of Russia and on the Adjustment Coefficients of the Bank of Russia <br>

To use as a backing for the credits of the Bank of Russia the bonds of the state currency loan of 1999 issued under the Decision of the Government of the Russian Federation No. 1306 of November 29, 1999 on the notation of the bonds of series III internal state currency loan, specifies the procedure of estimation of the market cost of the mentioned securities.

According to the amendments, their cost is estimated the same way as the cost of the bonds of external loans of the Russian Federation. i.e. proceeding from the mean weighted price of the appropriate valuable paper calculated and published by the stock exchange at the end of the selling day preceding the day of the estimate of the market cost. If there were no appropriate transactions on the selling day preceding the day of the estimate of the market cost of the valuable paper, the market cost is calculated from information on the price of the valuable paper (MIRP) formed by the national stock exchange association (self-regulating non-commercial organisation) as a result of the previous day and published in the information system Bloomberg NSMA.

10 days after the day of publication of the Order in the Herald of the Bank of Russia, new adjustment coefficients will be used to correct the market price of securities accepted as a backing for the credits of the Bank of Russia. For the bonds of the state currency loan of 1999 with the state registration number of issue -00-139 (ISIN RU0001087983) - in the amount of 0.9; for the bonds of the Foreign Trade Bank with the state registration number of issue 40401000B and the bonds of the OAO Russian Railways with the state registration numbers of issues 4-04-65045-D, 4-06-65045-D and 4-07-65045-D - in the amount of 0.75.

Order of the Ministry of Finance of the Russian Federation No. 30n of February 27, 2006 on the Endorsement of the Form of the Declaration for Insurance Contributions for Obligatory Pension Insurance for the Persons Making Payments to Natural Persons and Its Filling Procedure

Endorses the form of the declaration for insurance contributions for obligatory pension insurance for the persons making payments to natural persons and the procedure of filling of the declaration.

The new form of the declaration has been prepared pursuant to the entry into force of the Federal Law No. 70-FZ of July 20, 2004 on the amendments to Chapter 24 of Part 2 of the Tax Code of the Russian Federation, Federal Law on obligatory pension insurance in the Russian Federation and on invalidation of some provisions of the legislative acts of the Russian Federation.

The declaration shall be submitted by insurants to the territorial bodies of the Federal Tax Service of Russia no later than March 30 of the year following the expired estimate period. Separate divisions of organisations possessing a separate balance, payment account and making payments and other remuneration to natural persons shall execute the duties of organisations to submit the declaration at the place of their location.

The Order of the Ministry of Finance of Russia No. 9n of January 24, 2005 on the endorsement of the form of the declaration for insurance contributions for obligatory pension insurance for the persons making payments to natural persons and its filling Instruction is invalidated.

Registered in the Ministry of Justice of the Russian Federation on March 15, 2006. Reg. No. 7583.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-02/53 of March 6, 2006

In the determination of the taxable base for the profit tax, incomes from sale of the share in the registered capital of the limited-liability company within the limits of the participant contribution is not taken into account. The losses in the form of the surplus of the cost of the contribution in the company registered capital over the incomes from its sale is not taken into account for taxation purposes. The surplus of incomes from sale over the amount of participant contribution in the company is taken into account as taxpayer incomes from sale. The mentioned surplus may be reduced by the amount of expenses directly associated with the sale of the share in the registered capital.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-15/52 of March 3, 2006

Operations of supplies (sale) of electric power in the framework of the power supply contracts do not form the object of taxation for the value added tax and, respectively, invoices for the electric power consumed by the lessee shall not be put forward by the lessor.

Under the contracts where the payment for the electric power is not included in the cost of the space rent services, tax exemptions do not apply to VAT amounts with the lessor for the electric power put forward by the power supply organisation where it pertains to electric power consumed by the lessee.

Since the lessee reimburses lessor expenses for electric power and does not have the invoice for the consumed electric power, the right for the VAT exemption transferred by the lessee to the lessor as a reimbursement does not occur with the lessee.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-7/2-10 of February 22, 2006

The Tax Code does not prevent from writing off of the amount of excessively paid tax where the period of limitation has expired on the basis of the decision of the head (deputy head) of the tax body. In this case, a number of conditions must be observed: the taxpayer must be notified of the mentioned amount; he did not submit application to return (offset) the mentioned amount of the excessively paid tax amount; did not carry out financial and economic activities and did not submit to the tax bodies accounting and tax reports permitting to offset the amount of the excessively paid tax as future payments.

The tax bodies may write off amounts of excessively paid tax on the basis of the court ruling having entered into legal power refusing the taxpayer to restore the period of limitation for the return of this amount of tax.

Federal Law No. 43-FZ of March 17, 2006 on the Ratification of the Agreement between the Russian Federation and the Republic of Tajikistan on Cooperation in Border Guard Issues

Ratifies the Agreement signed in Dushanbe on October 16, 2004 creating a legal basis for a long-term cooperation of the border guard agencies of the Russian Federation and the Republic of Tajikistan. The agreement was aimed at solving a number of issues pertaining to interaction for the purposes of safeguarding external borders of the CIS member-states with the states other than those forming the Commonwealth, improvement of the border guard function of the Republic of Tajikistan, combating illegal migration through the state borders of the Russian Federation and the Republic of Tajikistan, combating smuggling of arms, ammunition, explosives and poisonous substances, radio active materials, illegal trafficking of narcotic drugs and psychotropic substances through the state border of the Republic of Tajikistan.

Federal Law No. 42-FZ of March 16, 2006 on the Amendments to Article 19 of the Law of the Russian Federation on Education

Changes the procedure of quitting the general educational institution by students before they get the main education, as well as the procedure of taking the decision to expel from the general educational institution.

At present, an underage student having reached 15 years of age may quit the general educational institution before he gets the main education with consent of the parents (legal representatives) and the local body of management of education. The adopted Law envisages that such consent must be obtained also from the commission for the issues of the underage and protection of their rights.

Introduces the norm permitting to expel the student from the educational institution for repeated violations of its charter if educational measures did not produce any result and further presence of the student in the educational institution produces a negative influence on other students, violates their rights and the rights of the employees of the educational institution, as well as the normal functioning of the educational institution. Besides, to provide for opportunities of getting employment by the underage, the age permitting such expulsion is increased from 14 to 15 years. In the case of expulsion, the management body of the educational institutions must take into account the opinion of his parents (legal representatives) and obtain the consent of the commission for the issues of the underage and protection of their rights. Now, the decision of expulsion may be taken without such actions.

The commission for the issues of the underage and protection of their rights, the local management body of education and the parents of the underage having quitted the educational institution or expelled from it shall assume the duty to take measures within one month to ensure employment of this underage and/or continuation of his study.

Federal Law No. 41-FZ of March 16, 2006 on the Amendments to Chapter VI of the Law of the Russian Federation on the Grain, Federal Law on the State Control of Quality and Rational Use of Grain and Products of Its Processing and the Code of Administrative Violations of the Russian Federation

According to the amendments, the state supervision and control over the quality and safety of grain and products of its processing is vested in the federal bodies of executive power authorised by the Government of the Russian Federation. Earlier, control over the quality and rational use of grain and products of its processing was vested in the State Cereals Inspection of the Government of the Russian Federation abandoned by the Decision of the Government of the Russian Federation No. 708 of December 1, 2004.

The amendments to the Code of Administrative Violations define the officials entitled to examine the cases of administrative violations on behalf of the bodies in charge of the state supervision and control of the quality and safety of grain and products of its processing.

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

Federal Law No. 40-FZ of March 8, 2006 on the Ratification of the UN Convention against Corruption

Ratifies the Convention signed in Mexico on December 9, 2003. The Convention creates a complex legal base for a practical interaction of the law enforcement bodies of various states to reveal, prevent, stop, and investigate crimes of corruptive nature pertaining to jurisdiction and interests of two and more states, return resources obtained in a criminal way to the country of origin, as well as contains a number of standards on prevention of corruption and combating it.

The Convention regulates in detail procedures of mutual legal aid, extradition of persons having committed corruptive crimes, envisages international cooperation of law enforcement bodies including exchange of information and experience, joint investigations, training and professional development of personnel, interaction in material and technical support of the law enforcement activities.

By the moment of the ratification, the Convention has been signed by 120 states, ratified by 22, including Algeria, Belarus, Egypt, Hungary, Mexico, Peru, Romania, South Africa.

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

Decision of the Government of the Russian Federation No. 134 of March 15, 2006 on the Licensing of Individual Types of Activities on the Railway Transport

Endorses five regulations on the procedure of licensing of: transportation of passengers, cargo, luggage by the railway transport, as well as transportation of cargo (moving of cargo without concluding the contract) over the railway tracks of public use and loading and unloading of hazardous cargo on the railway transport.

A simplified procedure of licensing is envisaged for transportation by the railway transport of cargo, luggage, transportation of cargo over public-use tracks and loading and unloading of hazardous cargo. However, application of the given procedure is possible only after determination by the Government of the Russian Federation of significant terms of the contract of insurance of civil liabilities of the candidate or license holder. The license requirements and conditions are listed for each type of activities.

The licensing is vested in the Federal Service of Enforcement in the Sphere of Transportation. The license is issued for 5 years.

Direction of the Central Bank of Russia No. 1660-U of February 17, 2006 on the Amendments to the Direction of the Bank of Russia No. 1376-U of January 16, 2004 on the List, Forms and Procedure of Drawing up and Submission of the Forms of Reports of Credit Organisations to the Central Bank of the Russian Federation

The main changes pertain to revocation of individual forms of reports of credit organisations in view of the liberalisation of the currency legislation and optimisation of flows of information, refinement of algorithms of generation of reported figures pursuant to the changing of the chart of accounts in credit organisations and refinement of the procedure of drawing up of a number of forms of reports by credit organisations.

Omits forms 0409702, 0409704 (daily), 0409311 (decade), 0409707 (monthly) and 0409253 (quarterly).

The Direction is entered into force from April 1, 2006 except for the provisions pertaining to the drawing up and submission of reports according to forms: 0409251 "Information on Client Accounts and Payments Transferred through the Credit Organisation (Its Branch), 0409601 "Report of Operations with Foreign Currency in Cash and Checks in Foreign Currencies", 0409665 "Report of Currency Operations Carried out with a Transaction Certificate". Reports to the mentioned forms shall be drawn up and submitted from July 1, 2006.

Order of the Ministry of Natural Resources of the Russian Federation No. 350 of December 27, 2005 on the Endorsement of the Sanitary Rules in the Forests of the Russian Federation

The sanitary rules in the forests of the Russian Federation shall specify the goals, types of forest protection measures, their procedure and sanitary requirements providing for biological stability of plantations in forestry measures and use of forests in the Russian Federation, as well as during works not pertaining to forestry and use of forests.

Forest protection measures shall form a complex of measures to reveal the foci of vermin and forest diseases, restrict their dissemination, localise their foci, prevent them, as well as prevent economic forestry losses. Forest protection measures shall apply to forests of all groups and categories of protection of forests of group one.

Protection of forests shall be arranged using ground and air methods by forestry farms of the federal body of executive power in charge of forests, forest protection air bases and other organisations of the Federal Forestry Agency or the body of executive power of the subject of the Russian Federation, as well as the Federal Service of Enforcement in the Sphere of Use of Natural Resources and its territorial bodies.

The Order specifies the rules of carrying out of forest pathology monitoring - surveys of the condition of the forestry fund and forests other than those included in the forestry fund, as well as of unfavourable factors affecting this condition. Specifies the list of sanitary and rehabilitation measures to be carried out by legal entities and natural persons engaged in forestry activities. Defines the procedure of sanitary felling. Defines sanitary requirements to the storage of wood in warehouses, loading points and in transportation.

The sanitary rules are obligatory for execution by all legal entities and natural persons. In parks, forest parks and memorial plantations, individual protection of trees is envisaged together with the general requirements of the present sanitary rules. The state control of observation of the rules is vested in the Federal Service of Enforcement in the Sphere of Use of Natural Resources and its territorial bodies.

Registered in the Ministry of Justice of the Russian Federation on March 16, 2006. Reg. No. 7592.

Order of the Ministry of Education and Science of the Russian Federation No. 46 of March 7, 2006 on the Endorsement of the Procedure and Criteria of Contest Selection of Institutions of General Education of the Subjects of the Russian Federation and Municipal Institutions of General Education Introducing Innovative Educational Programs

Defines the procedure of carrying out and criteria of contest selection of institutions of general education of the subjects of the Russian Federation and municipal institutions of general education introducing innovative educational programs.

Contest selection of institutions of general education introducing innovative educational programs shall be carried out to provide state support to them by granting subsidies allocated for the purchase of laboratory equipment, software and methodology materials, modernisation of the material and technical base, improvement of qualification and professional development of the teaching staff of institutions of general education.

The Order lists the categories of institutions that may become participants. Among the criteria of selection are, in particular: high quality of results of study; efficient use of modern educational technologies; affordability of quality education; positive attitude of parents, graduates and the local community to the institution.

The contest shall be arranged with participation of: association of trustees, graduates, experts and advisors on general education; councils of rectors of higher educational institutions, heads of institutions of the primary and secondary professional education; territorial trade-union organisation of workers of popular education and science; professional associations of employers, parents and other public organisations. The number of public organisations, as a rule, may not be less than five. On the basis of the results of contest selection, the contest commission shall generate the rating of institutions to form the list of winners of the contest.

Registered in the Ministry of Justice of the Russian Federation on March 16, 2006. Reg. No. 7590.

Order of the Federal Tax Service No. SAE-3-21/110@ of February 26, 2006 on the Endorsement of the Form of Information on Obtained Licenses (Permissions) for the Use of Objects of Aquatic Biological Resources, Amounts of Fees for the Use of Objects of Aquatic Biological Resources to Be Paid As a Lump Sum and Regular Contributions

Endorses the form of information on obtained licenses (permissions) for the use of aquatic biological resources, amounts of fees for the use of objects of aquatic biological resources to be paid as a single or regular contributions. The form has the following sections: "Information on the Amounts of Fees for the Use of Objects of Aquatic Biological Resources Due for Payment As a Single or Regular Contributions and the Time Limits for Their Payment"; "Information on Obtained Licenses (Permissions) for the Use of Objects of Aquatic Biologic Resources and Amounts of Fees for the Use of Objects of Aquatic Biological Resources to Be Paid As a Single or Regular Contributions". Together with the form itself, there are also its filling recommendations and the Guide of Codes of the Names of Objects of Aquatic Biological Resources.

Registered in the Ministry of Justice of the Russian Federation on March 16, 2006. Reg. No. 7588.

Order of the Federal Tax Service No. SAE-3-21/111@ of February 26, 2006 on the Endorsement of the Form of Information on the Issued Licenses (Permissions) for the Use of Objects of Aquatic Biological Resources, Amounts and Time Limits of Payment of the Fee for the Use of Objects of Aquatic Biological Resources

Endorses the form of information on the issued licenses (permissions) for the use of objects of aquatic biological resources, amounts and time limits of payment of fees for the use of objects of aquatic biological resources.

The form has sections providing information on the licenses issued to organisations and independent entrepreneurs and sections on the licenses issued to natural persons other than independent entrepreneurs.

The Order provides also recommendations on the filling of the form; Guide of Codes of Names of Objects of Aquatic Biological Resources; Guide of Codes of Uses of Objects of Aquatic Biological Resources; List of Codes of Types of Identification Documents of the Natural Person Paying the Fee for the Use of Aquatic Biological Resources; List of Codes of Names of the Subjects of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on March 16. 2006. Reg. No. 7587.

Order of the Federal Service for Financial Markets No. 06-2/pz-n of January 12, 2006 on the Endorsement of the Methodology Directions on the Filling of the Form of the Quarterly Reports of Construction Parties on Activities Pertaining to Attraction of Monetary Resources of Participants of Shared Construction

Defines the procedure of filling of the forms of quarterly reports of construction parties on activities pertaining to attraction of monetary resources of participants of shared construction.

The reports shall be drawn up on the basis of personal information of the construction party, information on the created objects of immovable property, as well as accounting and reporting information of the construction party. It should contain in full amount information envisaged in the reporting forms of the construction party.

When filling out the form of reports, it is not permitted: to change the sense of the figures indicated in the reporting forms; exclude or change the specified sequence of the reporting forms; show several figures in a single column of reports, thus breaking the logical structure of the reporting forms; change the reporting forms.

Registered in the Ministry of Justice of the Russian Federation on March 15, 2006. Reg. No. 7585.

Order of the Federal Service of the Russian Federation for Control over Circulation of Narcotics No. 47 of February 7, 2006 on the Amendments to the Order of the Federal Service of the Russian Federation for Control over Circulation of Narcotic Drugs and Psychotropic Substances No. 115 of April 13, 2004

The amendments are stipulated by the reorganisation of the Federal Service of the Russian Federation for Control over Circulation of Narcotic Drugs and Psychotropic Substances into the Federal Service of the Russian Federation for Control over Circulation of Narcotics.

The list of obligatory tests carried out before the certification of the citizen admitted to service shall include diagnostic tests for viral hepatitis B and C markers.

An additional reason of termination of the medical certification is a failure to report to the commission for the final certification (for more than 3 months).

The Order defines the minimum period for which medical documents characterising the health condition of the persons under certification are requested from medical institutions by personnel departments and military medical commissions of the Federal Service of Russia for Control over Circulation of Narcotics before the certification. The mentioned documents are requested for at least five most recent years.

Changes the procedure of certification of commanders if mutilations and diseases are revealed in the course of medical investigations and treatment, making these persons unfit for military service according to the Schedule of Diseases. The certification is assigned by the head of the division, chief of the territorial body, organisation of the Federal Service of Russia for Control over Circulation of Narcotics, rather than the chief of the medical institution.

Registered in the Ministry of Justice of the Russian Federation on March 15, 2006. Reg. No. 7584.

Decree of the President of the Russian Federation No. 211 of March 16, 2006 on the Amendments to the Decree of the President of the Russian Federation No. 1313 of October 13, 2004 "Issues of the Ministry of Justice of the Russian Federation" and to the Regulation Endorsed by This Decree

The Ministry of Justice of Russia is entitled to send to the federal bodies of executive power and other bodies a representation to revoke or change their adopted normative legal acts contradicting the Constitution and legislation of the Russian Federation. If inconsistency is revealed in the actual normative legal act or act containing legal norms and having failed to pass the state registration with the Constitution and legislation of the Russian Federation, the Ministry of Justice of Russia may present a proposal to the Government of the Russian Federation to revoke or suspend such act together with a motivation and appropriate draft order of the Government of the Russian Federation.

The sphere of reference of the Ministry of Justice of Russia shall also include the keeping of the State Register of Normative Legal Acts of the Federal Bodies of Executive Power and Other Bodies in cases envisaged in the legislation of the Russian Federation.

Besides, the Ministry of Justice of Russia is ordered to keep the State Register of Municipal Formations, define the procedure of keeping of the State Register of Charters of such formations, as well as carry out the state registration of agreements on international and foreign trade ties of the subjects of the Russian Federation concluded by the bodies of state power of such subjects.

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

Decision of the Government of the Russian Federation No. 142 of March 20, 2006 on the Endorsement of the Rate of the Export Customs Duty for Raw Oil and Raw Oil Products from Bituminous Materials Exported from the Territory of the Russian Federation outside the Member-States of the Customs Union Agreements

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 the Russian Federation 2709 00) is increased from USD 160.8 to USD 186.4 per ton.

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

Decision of the Government of the Russian Federation No. 138 of March 20, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 851 of December 30, 2005

Changes the rules of granting subventions in 2006 from the budget of the Federal Fund of Obligatory Medical Insurance to the territorial funds of obligatory medical insurance to finance execution by public health institutions of municipal formations rendering initial medical and sanitary aid of the state order to render additional medical aid.

Specifies, in particular, that the Federal Service of Enforcement in the Sphere of Public Health and Social Development shall keep the Federal Register of Medical Workers used to determine the amount of the subvention. Changes the formula of calculation of the subvention, now taking into account the coefficient specified in the decisions of the bodies of state power of the USSR or the federal bodies of state power for the work in the regions of the Far North and localities of similar status, mountainous, desert, waterless and other regions (localities) with harsh climatic conditions.

The Decision is entered into force from the day of its official publication and applies to legal relations emerging from January 1, 2006.

Letter of the Central Bank of Russia No. 38-T of March 16, 2006 on the List of Organisations

The list of organisations whose promissory notes (claims rights under credit contracts) may be accepted as a security for the credits of the Bank of Russia, as well as organisations than may act as guarantors for the promissory notes (claims rights under credit contracts) accepted as a security for the credits of the Bank of Russia shall include now the OAO Megafon.

The Letter shall apply beginning with the day of its publication.

Decision of the Government of the Russian Federation No. 151 of March 20, 2006 on the Licensing of Activities of Successors of Joint-Stock Companies of Power Supplies and Electrification and Other Subjects of Natural Monopolies in the Electric Power Industry

Successors created in the course of reorganisation of the Russian open-type joint stock company of power supplies and electrification Joint Power Supply System of Russia, its branches and dependent joint-stock companies, as well as other subjects of natural monopolies in electric power industry in the form of incorporation, separation or isolation shall enjoy the right of carrying out the licensed types of activities on the basis of the earlier issued licenses to the reorganised legal entities. The given right is granted not more than for six months from the day of the state registration of the newly emerging legal entities.

The Decision defines the procedure and time limits of the notification of the licensing bodies of the reorganisation and emerged right of succession.

Decision of the Government of the Russian Federation No. 166 of March 24, 2006 on the Endorsement of the Coefficient of Indexing of the Estimated Pension Capital of the Insured

The coefficient of indexing of the estimated pension capital of the insured as of January 1, 2005 is endorsed in the amount of 1.127. The given coefficient will be used in the indexing of the insured part of the labour pension in 2006.

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

Decision of the Government of the Russian Federation No. 165 of March 24, 2006 on the Endorsement of the Coefficient of Indexing of the Basic Part of the Labour Pension from April 1, 2006 and the Coefficient of Additional Increase of the Amount of the Insured Part of the Labour Pension from April 1, 2006

Endorses the coefficient of indexing of the basic part of the labour pension from April 1, 2006 in the amount of 1.085. Earlier, from August 1, 2005, the appropriate coefficient in the amount of 1.06 was specified by the Decision of the Government of the Russian Federation No. 419 of July 11, 2005.

The coefficient of additional increase of the amount of the insured part of the labour pension from April 1, 2006 is fixed in the amount of 1.063 (from August 1, 2005, the mentioned coefficient was fixed in the amount of 1.048).

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

Decision of the Government of the Russian Federation No. 158 of March 24, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 830 of November 30, 2001 and No. 1364 of December 9, 1999 Pertaining to Individual Types of Untreated Timber

Adjusts the names and codes of subheadings of the Foreign Trade Commodity Nomenclature of the Russian Federation pertaining to firewood of birch-tree and coniferous trees. Differentiates the mentioned types of commodities depending on their dimensions (diameter and length). The rate of the import customs duty for the mentioned types of firewood is preserved at the previous level, making 15% of the customs cost.

The same principle is used to differentiate the names and codes pertaining to exported timber of birch-tree and coniferous trees, the rates having been specified in the Decision of the Government of the Russian Federation No. 1364 of December 9, 1999. The rates for the mentioned commodities have been adjusted. The rate of the export customs duty for timber of fir-tree and pine-tree makes 6.5% of the customs cost, however, not less than EUR 4 per cu. m (earlier, not less than EUR 2.5 per cu. m). For timber of birch-tree, the zero rate of the export customs duty is introduced, since a duty-free export for the given commodity was envisaged.

The Decision is entered into force 2 months after the day of its official publication.

Order of the Ministry of Education and Science of the Russian Federation No. 303 of December 8, 2005 on the Endorsement of the Regulation on the Interagency Commission for the Issues of Adoption and Other Forms of Accommodation of Children in Families for Bringing up

Regulates activities of the Interagency Commission for Issues of Adoption and Other Forms of Accommodation of Children in Families for Bringing up created by the Order of the Ministry of Education and Science of Russia No. 153 of May 27, 2005.

The Interagency Commission shall be formed out of representatives of the Ministry of Internal Affairs of Russia, Ministry of Foreign Affairs of Russia, Ministry of Justice of Russia, Ministry of Public Health and Social Development of Russia and the Federal Service of Enforcement in the Sphere of Public Health and Social Development and shall be a coordinating body created to ensure coordinated actions in implementation of the state policy in the sphere of adoption and other forms of accommodation of children in families for bringing up, ensure efficient protection of their rights and legal interests.

The main tasks of the Commission shall be: working out general principles of the state policy in the sphere of adoption and other forms of accommodation of children in families for bringing up; coordination of activities of the federal bodies of executive power and the bodies of executive power of the subjects of the Russian Federation pertaining to handing over for adoption to citizens of the Russian Federation, foreign citizens and stateless persons of children being citizens of the Russian Federation.

The Commission is entitled to request materials from the federal bodies of executive power, bodies of executive power of the subjects of the Russian Federation on issues in its sphere of reference.

Registered in the Ministry of Justice of the Russian Federation on March 23, 2006. Reg. No. 7621.

Order of the Federal Agency of the Railway Transport No. 101 of December 23, 2005 on the Endorsement of the Regulation on the Terms of Payment of Bonuses and Material Aid to the Federal State Servants of the Territorial Departments of the Federal Agency of the Railway Transport

Endorses the Regulation defining the terms and procedure of paying out of bonuses and rendering material aid to the federal state civil servants of the territorial departments of the Federal Agency of the Railway Transport.

Defines the main figures to pay bonuses to the heads and employees, procedure of calculation of bonuses.

Specific amounts of bonuses to employees shall be determined within the limits of the labour remuneration fund and do not have restrictions.

The bonuses shall be paid out on the basis of: for the heads of the territorial departments - order signed by the head of the Federal Agency of the Railway Transport or his deputy; for the employees - order of the head of the territorial department or his deputy.

Material aid to each worker shall be paid out once in a calendar year in the amount of two salaries for the occupied position within the limits of the labour remuneration fund, as a rule when the employee gets his annual paid leave.

Material aid may also be paid out to employees in cases of anniversaries, diseases, death of close relatives and for other justifiable reasons.

Decision to pay out the material aid is drawn up as an order of the head of the territorial department.

Registered in the Ministry of Justice of the Russian Federation on March 23, 206. Reg. No. 7615.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/3/126 of March 10, 2006

If the representative bodies of municipal regions and urban districts have not adopted before January 1, 2006 a normative legal act to introduce the system of taxation in the form of the uniform imputed income tax for individual types of activities on the appropriate territory, provisions of the law of the subject of the Russian Federation shall apply until January 1, 2007 specifying the procedure of entry into force of such system of taxation on the territory of this subject of the Russian Federation.

The given laws of the subjects of the Russian Federation shall apply from January 1, 2006 on the whole territory of the subject of the Russian Federation except for the territories of municipal regions and urban districts whose representative bodies have adopted and published officially the mentioned normative legal acts before December 1, 2005. Therefore, beginning with estimates for the I quarter of 2006, tax declarations must be submitted by the mentioned taxpayers according to the form endorsed by the Order of the Ministry of Finance of Russia No. 8n of January 17, 2006 for taxpayers transferred to the uniform imputed income tax in compliance with the normative legal acts of the representative bodies of municipal regions and urban districts.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-02/63 of March 7, 2006

Handing over of securities to a closed-type shared investment fund must be regarded for the purpose of the profit tax as other withdrawal of securities. When carrying out the mentioned operation, securities shall transfer to the common shared property of holders of investment shares.

The taxable base for securities in the given case must be determined as of the date of committing the transaction. In this case, if the valuable paper available at the organised market of securities is sold outside the organised market of securities, the date of committing the transaction is considered to be the date of determination of all significant terms of transfer of the valuable paper, i.e. the date of signing of the contract. Thus, taxpayer incomes from operations of transfer of securities to the shared investment fund shall show the market price of the withdrawn securities determined as of the date of inclusion in the contract of trust control of the shared investment fund.

When handing over securities other than those available at the organised market of securities, the market price of withdrawn securities included in the founder incomes shall be determined as of the date of transfer of securities in the common shared property of holders of investment shares.

Decree of the President of the Russian Federation No. 263 of March 27, 2006 on the Official Representatives of the Federal Service of the Russian Federation for Control of Circulation of Narcotics in Foreign States

The Federal Service of Russia for Control of Circulation of Narcotics is permitted to have its official representatives in foreign states and their deputies in the amount of 50 persons. Official representatives of the Federal Service of Russia for Control of Circulation of Narcotics in foreign states and their deputies shall be assigned to foreign states after coordination with the competent bodies of these states and the Ministry of Foreign Affairs of Russia and shall implement their functions in the framework of diplomatic representations of the Russian Federation.

The terms of material support of official representatives and their deputies shall be defined by the Government of the Russian Federation.

The Decree is entered into force from the day of its signing.

Decision of the Government of the Russian Federation No. 164 of March 24, 2006 on the Endorsement of the Regulation on the Ministry of Agriculture of the Russian Federation and on Invalidation of Some of the Decisions of the Government of the Russian Federation

Pursuant to the abolishment under the Decree of the President of the Russian Federation No. 1158 of October 3, 2005 of the Federal Agency of Agriculture and handing over of its functions to the Ministry of Agriculture of the Russian Federation, endorses a new Regulation on the Ministry of Agriculture of the Russian Federation.

The Regulation shall define the sphere of reference and the procedure of organisation of activities of the Ministry.

The Ministry of Agriculture of Russia shall be a federal body of executive power in charge of: working out of the state policy and normative and legal regulation in the sphere of the agroindustrial complex, including animal breeding, veterinary, plant growing, plant quarantine measures, land improvement, soil fertility, regulation of the market of agricultural raw materials and foodstuffs, foods and processing industries, production and circulation of ethyl alcohol from edible and non-edible raw materials, alcohol-containing, alcohol and tobacco items, stable development of rural territories, as well as the sphere of fishing, production on vessels of the fishing fleet and in sea fishing ports; protection, investigation, preservation, reproduction and use of objects of fauna included in the objects of hunting, aquatic biological resources, except for those in specially protected natural territories, as well as those included in the Red Book of the Russian Federation, and their habitat; rendering of state servi ces in the sphere of the agroindustrial complex, state property management in subordinate enterprises and institutions.

The Ministry shall coordinate and control activities of the Federal Service of Veterinary and Phytosanitary Enforcement and the Federal Agency of Fishing supervised by it.

The Decision invalidates the Decision of the Government of the Russian Federation No. 315 of June 28, 2004 on the endorsement of the Regulation on the Ministry of Agriculture of the Russian Federation.

Decision of the Government of the Russian Federation No. 160 of March 24, 2006 on the Endorsement of the Normatives of Frequency of Collection from Mail Boxes, Exchange, Transportation and Delivery of Written Correspondence, As Well As Control Time Limits of Dispatching of Written Correspondence

From July 1, 2006, introduces the normatives of the frequency of collection from mail boxes, exchange, transportation and delivery of written correspondence, as well as control time limits of dispatching of written correspondence. The periods of collection of written correspondence from mail boxes in the cities of federal significance and administrative centres of the subjects of the Russian Federation is 5 days a week and at least 2 times a day, in the rest of the 2 days - at least once a day. In administrative centres of municipal regions - at least 5 days a week and at least once a day, on the territory of other residential settlements - at least 3 days a week once a day.

Written correspondence must be delivered in the cities of federal significance and administrative centres of the subjects of the Russian Federation daily at least once a day, in administrative centres of municipal regions - at least 5 days a week once a day, and on the territory of other residential settlements - at least 3 times a week once a day.

The Decision also specifies the control time limits for dispatching written correspondence among the cites of federal significance, administrative centres of the subjects of the Russian Federation.

Order of the Federal Agency for Tourism No. 31 of February 10, 2006 on the Regulation on the Federal Agency for Tourism

The Regulation specifies the rules of organisation of work of the Federal Agency for Tourism in implementation of the functions and authority in the specified sphere of activities, including the general rules of organisation of interaction of the federal agency with other federal bodies of executive power.

The Federal Agency for Tourism is a federal body of executive power in charge of the state policy, normative and legal regulation, rendering of state services and state property management in the sphere of tourism.

Provisions of the Regulation shall define the structure of the Federal Agency for Tourism, authority of the head of the Federal Agency for Tourism and his deputies, procedure of planning and organisation of work, preparation and drawing up of the decisions of the federal agency, main rules of organisation of document turnover, execution of orders, preparation and adoption of the normative legal acts in the course of the normative regulation in the specified sphere of activities, as well as other issues of organisation of work.

Registered in the Ministry of Justice of the Russian Federation on March 23, 2006. Reg. No. 7628.

Order of the Ministry of Defence of the Russian Federation No. 77 of February 20, 2006 on the Endorsement of the Procedure of Organisation of Work in the Armed Forces of the Russian Federation to Pay out to Participants of the Accumulated Mortgage System of Housing Support for Servicemen or Members of Their Families Needing Improvement of Housing Conditions Monetary Resources in Addition to the Savings of the Housing Support

Specifies the procedure to make monetary payments in the Armed Forces of the Russian Federation in addition to the savings of the housing support.

Monetary resources in addition to the savings of the housing support shall be paid out to participants of the accumulated mortgage system of housing support for servicemen with the total length of military service from ten to twenty years dismissed from the military service. Monetary resources shall also be paid out to members of families of participants of the accumulated mortgage system in cases of exclusion of participants from the unit payroll because of being killed or dead, recognised as missing or dead according to established procedure, except for the case when a family member of the participant of the accumulated mortgage system assumes his obligations under the mortgage credit (loan).

To get the monetary resources, the mentioned persons must submit an application (report) and the documents, the list being defined in the Order. It contains: the grounds to recognise as needing improvement of housing conditions; information of non-acceptance by the family members of the participant of the accumulated mortgage system of his obligations under the mortgage credit (loan); recipient of the monetary resources and his payment details; obligation to use the additional monetary resources for designated purpose, release the occupied service dwelling space and present in due time information on the received additional monetary resources at the place where they were recognised as needing dwelling space.

Decision to pay out or refuse to pay out additional monetary resources shall be taken by the commander of the military unit, chief (head) of the organisation of the Armed Forces of the Russian Federation no later than within one month from the day of submission of the application (report). Additional monetary resources shall be paid out once for the whole period of the military service at the expense of resources of the Ministry of Defence of Russia allocated for the housing support for servicemen at the last place of service of the participant of the accumulated mortgage system.

Registered in the Ministry of Justice of the Russian Federation on March 23, 2006. Reg. No. 7620.

Information Letter of the Central Bank of Russia No. 34 of March 6, 2006 "Summary of the Practice of Application of the Normative Acts of the Bank of Russia on Currency Control"

Explains individual issues of application of the Instructions of the Central Bank of Russia No. 117-I of June 15, 2004 and No. 113-I of April 28, 2004. In particular, when a resident issuance company transfers an insurance compensation to a non-resident in an insured case, it is recommended to indicate in the certificate of currency operations code 70080 "Other Payments of Residents to Non-Residents in Non-Sales Operations".

Authorised bank may place on the stand of its exchange office together with the list of bank operations information that the given exchange office does (or does not) carry out operations with coins of foreign states (group of states).

Information Letter of the Central Bank of Russia No. 9 of March 6, 2006 "Summary of the Practice of Application of the Federal Law on the Combating of Legalisation (Laundering) of Incomes Obtained in a Criminal Way and Financing of Terrorism and Normative Acts of the Bank of Russia Adopted in Pursuance of Them"

Credit organisation must submit to the authorised body information on any transactions with immovable property (purchase and sale, leasing, pledging etc.) where the amount is equal to or greater than Rbl 3 million if the credit organisation is a part of the deal, or if committing such transaction becomes know to it from the documents submitted by the client.

Credit organisations must take motivated and affordable in available circumstances steps to identify the beneficiaries regardless of the civil and legal grounds of the committed operation with monetary resources or another property.

The Letter also explains a number of issues pertaining to qualification requirements to personnel engaged in combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism.

Letter of the Central Bank of Russia No. 41-T of March 21, 2006 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 individual bonds of the Agency of Mortgage Housing Crediting, the bonds of the city loan of Moscow, as well as the bonds of the OAO MegaFon.

Order of the Federal Tax Service No. SAE-3-21/109@ of February 26, 2006 on the Endorsement of the Form of Information on Obtained Licenses (Permissions) for the Use of Objects of Fauna, Amounts of Fees for the Use of Objects of Fauna Due for Payment and Amounts of Actually Paid Fees

Endorses the form of information on obtained licenses (permissions) for the use of objects of fauna, amounts of fees for the use of objects of fauna due for payment and amounts of actually paid fees. Provides the form itself and its filling recommendations.

Invalidates the Order of the Ministry of Natural Resources of Russia No. SAE-3-21/261@ of April 5, 2004 having endorsed the earlier available form.

Registered in the Ministry of Justice of the Russian Federation on March 27, 2006. Reg. No. 7640.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 21 of March 3, 2006 on the Endorsement of the Rules of Use of Power-Supply Equipment of the Means of Communication

To provide for the integrity, stable functioning and safety of the joint telecommunication network of the Russian Federation, defines the procedure of use of power-supply equipment of the means of communication used in power-supply plants of objects of communication stating that power-supply equipment of the means of communication used in a public-use communication network, technological networks and special-purpose communication networks, if they are connected to a public-use communication network, must confirm compliance on obligatory basis in the form of declaration.

The Order provides classification and composition of power-supply equipment of the means of communication. Specifies general requirements to the power-supply equipment of the means of communication and individual requirements to DC and AC power plants, rectifiers, converters, input, protection and switching devices, other types of applied equipment.

Registered in the Ministry of Justice of the Russian Federation on March 27, 2006. Reg. No. 7638.

Order of the Federal Guard Service of the Russian Federation No. 74 of March 6, 2006 on the Endorsement of the Instruction on Additional Monetary Payments to Servicemen of the Federal Bodies of the State Guard Service When Moving to a New Place of Service in Another Residential Settlement

Endorses the Instruction specifying the grounds, amounts and procedure of making additional monetary payments to servicemen of the federal bodies of the state guard service when they move to a new place of service in another residential settlement.

Contract servicemen of the federal bodies of the state guard service, when they move to a new place of service in another residential settlement, including to or from the territory of a foreign state, because of being assigned to a military position, admission to a military educational institution with the length of study greater than one year, or because of the relocation of the division of the federal bodies of the state guard service, shall get a dislocation allowance. The amount of the allowance shall make: two salaries of the monetary subsistence for the serviceman; one salary of the monetary subsistence for the spouse and half the salary of the monetary subsistence for the rest of the family members of the serviceman having moved to the new place of service or the nearest residential settlements to the mentioned place or other residential settlements (because of the lack of dwelling space).

The dislocation allowance shall be paid out upon arrival to the new place of service.

To get the allowance, the serviceman shall submit a report according to subordination procedure. The report shall have attached an excerpt from the order assigning to the new military position, certificate of the personnel department on the family composition and other documents if necessary.

The dislocation allowance shall be paid out by the financial service of the division of the federal bodies of the state guard service where the serviceman is assigned.

The Order specifies the grounds when the dislocation allowance is not paid out to the serviceman.

Registered in the Ministry of Justice of the Russian Federation on March 24, 2006. Reg. No. 7634.

Order of the Ministry of Finance of the Russian Federation No. 32n of February 28, 2006 on the Endorsement of the Form of the Certificate of the Failure on the Part of the Legal Entity to Submit Reporting Documents within the Most Recent 12 Months Envisaged in the Legislation of the Russian Federation on Taxes and Fees, and the Form of the Certificate of the Absence within the Most Recent 12 Months of the Flow of Monetary Resources on Bank Accounts or of Absence of Opened Bank Accounts with the Legal Entity

Endorses the form of the certificate confirming the failure on the part of the legal entity to submit within the most recent 12 months reporting documents envisaged in the legislation of the Russian Federation on taxes and fees. Also endorses the form of the certificate confirming absence within the most recent 12 months of the flow of monetary resources on bank accounts or confirming the absence of opened bank accounts with the legal entity.

Registered in the Ministry of Justice of the Russian Federation on March 24, 2006. Reg. No. 7632.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 44 of January 27, 2006 on the Aftertreatment (Rehabilitation) of Patients in a Sanatorium

Endorses the procedure defining the principles of organisation of joint work of the Social Insurance Fund and its regional divisions, bodies of public health management of the subjects of the Russian Federation and medical treatment and prevention institutions in aftertreatment (rehabilitation) of patients out of working insured persons directly after stationary treatment.

Aftertreatment (rehabilitation) in sanatoria shall be arranged by granting free sanatorium and resort accommodations to patients in the presence of medical indications for up to 24 days in sanatoria located on the territory of the Russian Federation.

Selection and assigning for the aftertreatment (rehabilitation) in specialised sanatoria (departments) shall be arranged by the medical treatment and prevention institution according to the recommendations on the medical selection of patients assigned for aftertreatment (rehabilitation) in sanatoria.

The medical treatment and prevention institution shall draw up requests for accommodations, the purchase being arranged by the regional division of the Social Insurance Fund.

The Order endorses recommendations on the medical selection of patients assigned for aftertreatment (rehabilitation) in specialised sanatoria (departments): after an acute miocardis infarction; after operations on the heart and arterial vessels; after an acute cerebrovascular accident; after operations of gastric ulcer, duodenal ulcer, removal of gallbladder; after operations pertaining to pancreatitis (pancreonecrosis), as well as after treating risk group pregnancies; unstable stenocardia; diabetes mellitus.

Registered in the Ministry of Justice of the Russian Federation on March 24, 2006. Reg. No. 7630.

Decree of the President of the Russian Federation No. 276 of March 29, 2006 on the Call up in April-June 2006 to the Military Service for the Citizens of the Russian Federation and Dismissal of Draft Servicemen from the Military Service

From April 1 to June 30, 2006, envisages the call up to the military service for the pertinent citizens of the Russian Federation aged 18 to 27 years other than those being in the reserve in the amount of 124,550 persons. In the previous year, the amount was expected to be 157,700 persons in this period.

Non-rated men, sergeants and sergeant-majors with expired length of draft service must be dismissed.

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

Decision of the Government of the Russian Federation No. 163 of March 24, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 292 of May 7, 2005 and No. 496 of August 9, 2005

The coefficient of indexing of compensations and other payments to citizens having been exposed to radiation because of the disaster at the Chernobyl Nuclear Power Station is fixed in the amount of 1.1 (earlier, 1.08).

The increased coefficient will be used in the monthly, annual and lump sum compensations and other payments specified in the Law of the Russian Federation on the social protection of citizens having been exposed to radiation because of the disaster at the Chernobyl Nuclear Power Station subject to indexing in 2005, as well as the monthly monetary payments in increased amounts of pensions and allowances to non-working pensioners and invalids, invalid children depending on the time of living on the territories having been exposed to radio active contamination because of the disaster at the Chernobyl Nuclear Power Station subject to indexing for the period from May 29 to December 31, 2004 and from January 1, 2005. The surplus of compensations and other payments having formed because of the increase of the coefficient of indexing will be paid out in 2006.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/82 of March 17, 2006 on the Determination of the Date of Recognition of Expenses Accepted for Exemption in the Form of the Sums of the Value Added Tax Paid by the Bank at Purchase of Collection Coins

From January 1, 2006, the moment of determination of the taxable base for the VAT purpose is the earliest of the dates of dispatching or payment. The banks may include in expenses accepted for exemption for the profit tax from organisations amounts of tax paid to suppliers for the purchased commodities (works, services). In this case, the whole of the tax obtained in operations subject to taxation must be paid to the budget.

Thus, when the bank endorses the mentioned procedure of calculation of tax in the accounting policy for the year 2006, the transfer of the tax to the budget for operations subject to taxation shall be made as soon as the payment is received. Amounts of tax paid for commodities (works, services) including the fixed assets and non-material assets purchased for the bank's main operational activities shall be included in expenses accepted for exemption in the calculation of the profit tax from organisations.

Expenses accepted for exemption in the calculation of the profit tax from organisations shall also include VAT amounts paid at the purchase of collection coins.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/207 of March 13, 2006 on the Procedure of Registration for Taxation Purposes of Author Remuneration to Employees for the Employer Intellectual Property Created in the Framework of Execution of Labour Duties

Expenses of organisation to pay out author remuneration to employees as a rights cession for the inventions created by them may reduce the taxable base for the profit tax in the labour remuneration expenses if the mentioned payments (remuneration) 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. 03-03-04/1/154 of March 2, 2006

Remuneration to piece and time workers for non-working holidays may be included in the labour remuneration expenses in the calculation of the profit tax if the amount of such payment is specified not only in the local normative act of the organisation, but also in the labour (collective) contracts.

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