Monitoring of the Federal Legislation dated 28.04.2006

Federal Law No. 44 of March 31, 2006 on the Consumer Basket for the Whole of the Russian Federation

Specifies the composition and the volume of the consumer basket for the main socio-demographic groups of population (able-bodied population, pensioners, children) for the whole of the Russian Federation, which is determined at least once in five years. As compared to the Federal Law No. 201-FZ of November 20, 1999 on the consumer basket for the whole of the Russian Federation, a number of natural figures have changed. The average annual volume of consumption of meat and fish products has increased, which forms part of the consumer basket, as well as the volume of consumption of milk and fresh fruits at the expense of a certain reduction of the volume of consumption of cereals (bread, alimentary pastes, groats). Non-foodstuff products practically did not change.

For the first time, the consumer basket includes cultural services making 5% of the total volume of expenses for services a month. The volume of services consumed by pensioners includes 150 transport trips. The Federal Law shall apply to legal relations emerging from January 1, 2005.

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

Decision of the Government of the Russian Federation No. 175 of March 31, 2006 on the Endorsement of the Rules of Granting Subventions in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Implement the Authority in Possession, Use and Disposal of Forests Earlier Owned by Agricultural Organisations, Their Protection and Reproduction

Defines the procedure of granting subventions in 2006 from the Federal Fund of Compensations to the budgets of the subjects of the Russian Federation for the implementation by the bodies of state power of the subjects of the Russian Federation of the authority of possession, use and disposal of forests earlier owned by agricultural organisations, their protection and reproduction.

The subventions shall be granted within the limits of budget obligations envisaged in the summary list of the federal budget to the Federal Forestry Agency that transfers subventions on the quarterly basis in equal portions within the limits specified in Appendix 32 to the Federal Law on the federal budget for the year 2006 on the accounts for the resources of the budgets of the subjects of the Russian Federation opened for the territorial bodies of the Federal Treasury for cash services for the execution of the budgets of the subjects of the Russian Federation. The Decision defines the procedure of submission of reports of the use of subventions. Control over the use of subventions shall be vested in the Federal Forestry Agency, Federal Service of Financial and Budget Enforcement and the Federal Service of Enforcement in the Sphere of Use of Natural Resources.

Decision of the Government of the Russian Federation No. 174 of March 31, 2006 on the Endorsement of the Rules of Granting Subventions in 2006 from the Federal Budget to Finance the Measures of Development and Support of the Social, Engineering and Innovation Infrastructure of the City of Peterhof As a Scientific City of the Russian Federation

Defines the procedure for granting subventions in 2006 form the federal budget to finance measures of development and support of the social, engineering and innovation infrastructure available on the territory of the city of Peterhof as a scientific city of the Russian Federation allocated for these purposes to the budget of St.Petersburg.

If the subventions are used for other than designated purposes, appropriate resources are collected to the federal budget. Responsibility for the use of subventions for designated purposes and submission of true information to the Ministry of Finance rests with the Government of St.Petersburg.

Decision of the Government of the Russian Federation No. 171 of March 30, 2006 on the Endorsement of the Rules of Use of Criteria of Enough Processing and Issue of Appropriate Certificates for the Products of Processing of Commodities Imported under the Customs Regime of Free Customs Zone Applied in the Kaliningrad Province

Defines the procedure of use of criteria of enough processing specified in the Federal Law No. 16-FZ of January 10, 2006 on the special economic zone in the Kaliningrad Province and on the amendments to some of the legislative acts of the Russian Federation. Also defines the procedure of issue of certificates pertaining to products of processing of commodities imported under the customs regime of free customs zone applied in the Kaliningrad Province.

The certificate of origin of commodities having undergone enough processing on the territory of the special economic zone shall be drawn up and certified by the body having issued the certificate after filling and presentation of the written application by the sender requesting the certificate and the documents confirming information in the application including the copies of the customs declarations for commodities used during processing other than those originating on the customs territory of the Russian Federation, as well as the documentation on the commodity processing technology. The time limit of issue of the certificate or a motivated decision to refuse the issue of the certificate may not be greater than 5 working days from the date of submission of the necessary documents to the body issuing the certificate.

Organisations producing commodities of a permanent nomenclature may get the certificate for their produced items valid for up to 1 year.

Order of the Federal Service for Financial Markets No. 06-483/pz-n of March 7, 2006 on the Endorsement of the List of Professional Participants of the Securities Market Whose Information on the Financial Standing Must Be Sent Operatively to the Federal Service for Financial Markets of Russia for Control over System Risks at the Securities Market

Endorses a new list of professional participations of the securities market whose information on the financial standing must be sent operatively to the Federal Service for Financial Markets of Russia. The list includes professional participants of the securities market having committed in the IV quarter of 2005 the greatest total volume of transactions (targeted and market transactions) with emission securities at the stock exchanges and through trade organisers.

The earlier available list endorsed by the Order of the Federal Service for Financial Markets of Russia No. 05-110/pz-n of January 26, 2005 shall not apply from the date of entry into force of the Order.

The Order shall enter into force from the date of issue.

Letter of the Federal Customs Service No. 15-14/8524 of March 17, 2006 on the Customs Registration of Information Transmitted over the Internet

Provides a statement of the Legal Department of the Federal Customs Service of Russia on the appeal of the Central Customs Department on the issue of the customs registration of the software, mobile content and other information transmitted over the Internet via optical fibre communication or satellite communication systems.

The customs bodies provide for the customs registration of commodities and appropriate transport vehicles moved across the customs border of the Russian Federation. The commodities (Item 1 of Article 11 of the Customs Code of the Russian Federation, Item 26 of Article 2 of the Federal Law No. 164-FZ of December 8, 2003 on the fundamentals of the state regulation of foreign trade activities) are implied to be any movable property and transport vehicles moved across the customs border.

Information products are being a commodity if it does not contradict international treaties of the Russian Federation and its legislation. Information products (Article 2 of the Federal Law No. 85-FZ of July 4, 1996 on the participation in the international information exchange) shall include only documented information, i.e. available on a material medium with details permitting to identify it. The transfer of information products via electronic means of communication is not qualified as international information exchange, the import (export) to (from) the territory of the Russian Federation of information products being defined as the moving of information (documents) on a material medium.

The Foreign Trade Commodity Nomenclature and the Customs Tariff of the Russian Federation do not contain either classification codes or rates of customs duties for the software or any other information products. The actual legislation of the Russian Federation in the customs sphere does not envisage customs registration of information products moved across the customs border of the Russian Federation via electronic means of communication.

Thus, the customs registration applies to the commodity containing information and moved across the customs border, i.e. material medium (laser disk, diskette, cassette etc.) rather than information (computer program, mobile content) transmitted in the Internet via optical fibre communication or through the channels of satellite communication.

Decision of the Government of the Russian Federation No. 176 of March 31, 2006 on the Endorsement of the Rules of Transfer of Individual Land Plots out of Lands Allocated for the Needs of Defence and Security for Leasing or Free Use for a Limited Period of Time by Legal Entities and Citizens for Agricultural, Forestry and Other Purposes

Defines the terms of transfer, out of lands allocated for the needs of defence and security, of the federally owned land plots that are not used temporarily for these needs to legal entities and citizens for leasing or free use for a limited period of time for agricultural, forestry and other purposes other than construction (except for construction of temporary structures) without changing their destination.

The rules do not apply to land plots intended for the special-regime objects of the Russian Federation.

Federal bodies of executive power where the federal law envisages military service shall form according to established procedure out of lands allocated for the needs of defence and security that are not used temporarily by them the lists of land plots to be sent no later than May 1 with attached boundary proposals to the Federal Agency of Federal Property Management.

Within 2 weeks from the date of receiving of the lists, information on the mentioned land plots shall be placed in the printed media, as well as on the official site of the Federal Agency of Federal Property Management in the Internet.

Decision to grant or refuse to grant the land plot shall be taken by the Federal Agency of Federal Property Management within 2 weeks from the day of receiving of the appropriate application of the legal entity or citizen.

Decision of the Government of the Russian Federation No. 173 of March 30, 2006 on the Federal Aeronavigation Service

Specifies that the Federal Aeronavigation Service shall implement the authority vested in compliance with the legislation of the Russian Federation in the federal body of executive power in charge of transport, specially designated body in the sphere of civil aviation, designated body in the sphere of defence, management body of the joint system of air traffic control, state inspection bodies of civil aviation in the sphere of use of the air space of the Russian Federation, aeronavigation services of users of the air space of the Russian Federation and the air and outer space search and rescue.

Endorses the Regulation on the Federal Aeronavigation Service describing its sphere of reference. This is, in particular, the authority to adopt the federal aviation rules and other normative legal acts, issue flight permissions and certificate of the air personnel, carry out obligatory certification, specify the rates of fees for the aeronavigation services, provide remote radio navigation support.

The norm of the Regulation on the remote radio navigation support to be implemented by the Federal Aeronavigation Service shall enter into force from the day of entry into force of the act of the Government of the Russian Federation ordering the transfer in the sphere of reference of the service of institutions of the Ministry of Defence of the Russian Federation providing remote radio navigation support.

The Decision specifies the limiting number of employees of the central office and territorial bodies of the Federal Aeronavigation Service, endorses the labour remuneration fund for the mentioned employees, regulates the issues of financing of expenses for their maintenance. Employees of the Federal Aeronavigation Service fulfilling control and enforcement functions shall enjoy the rights and authority specified in the legislation for the federal state servants of the state inspection bodies of civil aviation and inspection services of the federal body of executive power in the sphere of defence.

Order of the Ministry of Internal Affairs of the Russian Federation, Ministry of Foreign Affairs of the Russian Federation, Federal Security Service of the Russian Federation, Ministry of Economic Development of the Russian Federation and the Ministry of Information Technologies and Communication of the Russian Federation No. 148/2562/98/62/25 of March 10, 2006 on the Keeping and Use of the Central Databank to Register Foreign Citizens and Stateless Persons Arriving Temporarily and Living Temporarily or Permanently in the Russian Federation

On the basis of the Federal Migration Service of Russia, creates a central databank to register foreign citizens and stateless persons arriving temporarily and living temporarily and permanently in the Russian Federation, which is an integral part of the federal interagency information system of control of migration in the Russian Federation.

Works out a procedure for keeping the databank, providing access to information and providing it to the bodies of local government and organisations other than databank users, as well as natural persons.

Information exchange with the central database of registration of foreign citizens and stateless persons shall be arranged within their sphere of reference by the Ministry of Internal Affairs, Federal Migration Service, Ministry of Foreign Affairs and the Federal Security Service of Russia using protected communication lines. Access to information will be provided at the federal and regional levels by way of requests transmitted for execution to the Federal Migration Service of Russia in the form of written requests drawn up in a free form on official letterheads, electronic media, by electronic mail, as well as by direct access over protected communication lines.

Information to the bodies of local government and organisations other than users, as well as natural persons, will be provided by the territorial bodies of the Federal Migration Service of Russia. Natural persons shall get information on them in full amount in affordable form. Restriction of access for citizens to information on them is permitted only on grounds envisaged in the federal laws.

Registered in the Ministry of Justice of the Russian Federation on March 31, 2006. Reg. No. 7652.

Direction of the Central Bank of Russia No. 1667-U of March 10, 2006 on the Amendment to the Direction of the Bank of Russia No. 1379-U of January 16, 2004 on the Assessment of the Bank's Financial Stability to Recognise It Sufficient for Participation in the Deposit Insurance System

Amends the procedure of calculation of the assets profitability figure (PD1) used among other figures specified in the Direction of the Bank of Russia No. 1379-U of January 16, 2004 for the determination of the bank's financial stability to recognise it sufficient for participation in the deposit insurance system.

To assess the figures of the group of figures of assessment of profitability, the Committee of Bank Enforcement of the Bank of Russia, on the basis of the request of the territorial institution of the Bank of Russia prepared after examination of the appropriate appeal of the bank, may take the decision to determine the financial result of the bank without taking account of: expenses (losses) stipulated by business development; expenses (losses) having become the reasons (one of the reasons) of the measures of financial rehabilitation of the bank.

To calculate the financial result of the bank, the losses of the previous year are reduced by the amount of monetary resources allocated to cover it at the decision of the general annual meeting of founders (participants) of the bank.

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 March 31, 2006. Reg. No. 7648.

Order of the Ministry of Economic Development of the Russian Federation No. 64 of March 10, 2006 on the Endorsement of the Typical Forms of Agreements on the Industrial Production and Technical Innovation Activities on the Territory of the Special Economic Zones

In the framework of implementation of the provisions of the Federal Law No. 116-FZ of July 22, 2005 on the special economic zones in the Russian Federation, endorses: the typical form of the agreement on the industrial production activities on the territory of the special economic zones and the typical form of the agreement on the technical innovation activities on the territory of the special economic zones.

According to the endorsed typical forms, one of the parties under each of the mentioned agreements must be the Federal Agency of Management of Special Economic Zones. The other party shall be referred to as the Resident in the agreement.

According to the typical forms, the Resident engaged in industrial production or technical innovation activities on the territory of the special economic zone is prohibited to have branches and representations outside this zone. Besides, he may not delegate his rights and duties stipulated by the agreement.

The forms of the agreements emphasise especially that if the Resident looses his status, and the agreement is terminated for reasons specified in the legislation of the Russian Federation, the contracts of lease for the land plot and immovable property within the limits of the territory of the special economic zone concluded by the Resident are terminated. In this case, expenses suffered by the Resident because of execution of the agreement are not reimbursed.

Registered in the Ministry of Justice of the Russian Federation on March 27, 2006. Reg. No. 7636.

Federal Law No. 46-FZ of April 3, 2006 on the Amendments to the Criminal Execution Code of the Russian Federation

Introduced amendments improve legal regulation of execution of punishment in the form of detention and make it more humane. The Law extends the rights of convicts for personal security. The chief of the institution or the body in charge of execution of the punishment bears responsibility for the measures of security of the convict being a participant in the criminal proceedings.

The Law does not restrict opportunities of serving the term in the preliminary investigation ward with the term specified for the convict. Such opportunities may be granted to convicts assigned to a common-regime corrective colony who did not serve the term earlier. The Law lifts restrictions for the convicts on the amount of resources available at their disposal from earnings, pensions, social allowances and monetary transfers that they may spend to purchase foodstuffs and first-necessity items. The Law excludes the norm introducing separate detention in residential-settlement colonies for the persons convicted for crimes of carelessness, convicted for the first time and those transferred from common-regime and strict-regime colonies because of positive conduct. All convicts without age restrictions may enjoy extramural studies in institutions of secondary and higher professional education.

Federal Law No. 45-FZ of March 31, 2006 on the Amendment to Article 13 of the Federal Law on the Quality and Safety of Foodstuffs

The list of the federal bodies of executive power in charge of the state enforcement and control in the sphere of quality and safety of foodstuffs specified in the text of the Federal Law now does not include the bodies of the State Cereals Inspection of the Government of the Russian Federation abolished by the Decision of the Government of the Russian Federation No. 708 of December 1, 2004.

Decision of the Government of the Russian Federation No. 186 of March 31, 2006 on the List of Commodities Prohibited from Placing under the Customs Regime of Free Customs Zone Applied in the Kaliningrad Province

Endorses the list of commodities prohibited for placing under the customs regime of free customs zone applied in the Kaliningrad Province. The list includes: live bovine animals other than purebred pedigree animals weighing not greater than 80 kg; live swine other than purebred pedigree animals weighing less than 50 kg; live poultry; meat of bovine animals, fresh or chilled, other than boneless; other foodstuffs; goods of industrial and household destination.

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

Decision of the Government of the Russian Federation No. 185 of March 31, 2006 on the Endorsement of the List of Excisable Goods Prohibited from Production under Investment Projects Implemented by a Resident of the Special Economic Zone in the Kaliningrad Province

Endorses the list of excisable goods production of which may not be included in investment projects implemented by residents of the special economic zone in the Kaliningrad Province. The list includes: ethyl alcohol of all types of raw materials; alcohol-containing products (solutions, emulsions, suspensions and other types of product in liquid form) with ethyl alcohol content by volume greater than 9%; alcoholic products (drinking alcohol, vodka, liqueurs, cognacs, wine and other edible products with ethyl alcohol content by volume greater than 1.5% other than wine materials); beer; tobacco items; gasoline; diesel fuel; motor oils for diesel and carburettor (injection) engines; straight-run gasoline.

Decision of the Government of the Russian Federation No. 184 of March 31, 2006 on the Endorsement of the List of Simple Assembly and Other Operations Failing to Change Significantly the Commodity and Failing to Meet the Criteria of Enough Processing of Commodities Originating in the Special Economic Zone in the Kaliningrad Province

Endorses the list of simple assembly and other operations failing to change significantly the condition of the commodity and failing to meet the criteria of enough processing of commodities originating in the special economic zone in the Kaliningrad Province. Proposals to introduce changes in the given list shall be submitted by the Ministry of Economic Development of Russia.

Decision of the Government of the Russian Federation No. 183 of March 31, 2006 on the Criteria of Enough Processing of Meat

Specifies that in the determination of the country of origin of the products of processing of meat of raw materials classified in Headings 0201, 0202, 0203, 0204, 0205 and 0207 of the Foreign Trade Commodity Nomenclature of Russia and imported to the customs territory of the Russian Federation, including the territories of special economic zones, the following operations do not meet the criteria of enough processing: operations of mixing of meat, including the poultry meat of mechanical boning, with spices and/or vegetable proteins and/or salt; other operations failing to change significantly the condition of the commodity, including the salting by pumping, cutting of meat with bone in and mechanical boning of poultry meat.

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

Order of the Federal Service of Enforcement in the Sphere of Education and Science No. 887 of March 30, 2006 on the Uniform State Examination on the Territory of Moscow in 2006

The uniform state examination on the territory of Moscow in 2006 shall be carried out: at the stage of the state (final) certification of graduates of institutions of general education (in May-June) in the subjects of general education: Russian language, mathematics, physics, literature, chemistry, biology, geography, history of Russia, public management, English language; at the stage of entrance testing in institutions of secondary and higher professional education in the subject of general education: history of Russia.

Regulation of the Central Bank of Russia No. 284-P of March 29, 2006 on the Procedure of Issue of the Bonds of the Bank of Russia

The issue shall be arranged on the basis of the decision to place the bonds adopted by the Board of Directors of the Bank of Russia and the decision on the issue (additional issue) of the bonds endorsed by the Board of Directors.

The volume of each issue of the bonds shall be determined taking into account the estimated limiting amount of the total nominal cost of the bonds of the Bank of Russia of all issues unredeemed as of the date of adoption of the decision by the Bank of Russia to endorse the appropriate decision to issue the bonds.

The Bank of Russia shall assign an identification number to the issue according to the procedure specified by the federal body of executive power in charge of the securities market. The issue of the bonds is supplies with a certificate of the bonds.

The placing of the bonds may be arranged in separate portions (tranches). It begins no sooner than 3 days after the day of disclosing of information by the Bank of Russia available in the decision on the issue of the bonds by publishing it on the page of the Bank of Russia in the Internet.

The Regulation specifies the procedure and time limits for the placing of information on the adopted decision to place the bonds, on the issues of the bonds, on execution of obligations under the bonds.

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

Procedure of Keeping of the Register of Banks (Endorsed by the Decision of the Management Board of the State Corporation "Agency of Insurance of Deposits" of February 19, 2004 (Protocol 5) (with Amendments Introduced by the Decisions of the Management Board of the Agency of Insurance of Deposits of September 9, 2004 (Protocol 35), of April 13, 2005 (Protocol 26) and of March 23, 2006 (Protocol 16)

The endorsed procedure specifies the composition of information included in the register, defines the procedure of inclusion of banks in the register and exclusion of banks from the register, as well as of providing information included in the register to third parties.

The bank is included in the register on the basis of the notification of the Bank of Russia on the issue of the license to the bank to attract in deposits monetary resources of natural persons and to open and keep bank accounts of natural persons. The Agency shall take the decision to include the bank in the register on the day of receiving of the given notification of the Bank of Russia. The date of inclusion of the bank in the register is considered to be the date of issue of the mentioned license to it.

The bank possessing the license for attraction of monetary resources of natural persons in deposits and for the opening and keeping of bank accounts of natural persons shall be included in the register of banks on the basis of the notification of the Bank of Russia of the adoption of the positive statement of the bank's compliance with the requirements of participation in the deposit insurance system specified in the Federal Law on the insurance of deposits of natural persons in the banks of the Russian Federation. The Agency shall take the decision to include the bank in the register no later than the next working day after the day of receiving of the mentioned notification of the Bank of Russia.

The grounds to exclude the bank from the register shall include: revocation (abatement) of the license of the Bank of Russia and termination by the Agency of the procedure of paying out of reimbursement on deposits; termination of the right of attraction of monetary resources of natural persons in deposits and of opening and keeping of accounts of natural persons because of replacement of the license of the Bank of Russia and execution by the bank of its obligations to depositors; termination of the bank's activities because of reorganisation.

The register is maintained in the electronic form and is placed on the official site of the Agency in the Internet.

Decision of the Government of the Russian Federation No. 189 of April 3, 2006 on the Endorsement of the Rates of the Export Customs Duties for Commodities of Oil 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 propane, butanes, ethylene, propylene, butylene, butadiene, other liquefied gases, xylenes, light and medium distillates, gas oils, benzene and toluene is increased from USD 120.7 to USD 137.9 per ton. The rate of the export customs duty for lubricants, liquid fuels, spent oil products, petrolatum, paraffin, wax, bitumen and coke is increased form USD 65 to USD 74.3 per ton.

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

Letter of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 0100/3267-06-23 of March 25, 2006 on the Import and Sale of Alcoholic Products

Reports major violations of the requirements of the state sanitary and epidemiological rules and normatives of safety of alcoholic products and wine materials received from Georgia and Moldavia. According to the Federal Service of Veterinary and Phytosanitary Enforcement, the mentioned countries use pesticides, including those of class 2 and 3 hazards, in production of grapes used for making wine and wine materials. However, when these wines are sold in Russia, there is no information that must presented by its producers (supplier) on the pesticides used in their production.

Since these facts show a high degree of danger to the life and health of consumers of the above products, the sanitary and epidemiological statements for Georgian and Moldavian wines and wine materials are suspended from March 27 of 2006.

Letter of the Central Bank of Russia No. 25-T of February 20, 2006 on the Application of Chapter 4 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 Calculation and Particulars of Enforcement of Their Observation by Credit Organisations

Explains the terms to demand information on the amounts (limits) of open currency positions for individual foreign currencies and individual precious metals as of the intra-month date (dates). Territorial institutions of the Bank of Russia may demand from the credit organisation to present reports as of the intra-month date, if the limits of open currency positions for individual currencies and individual precious metals are violated by the credit organisation on any of the reporting dates, if the results of analysis of the financial standing of the credit organisation show that there are reasons to apply measures of prevention of insolvency (bankruptcy) to it, when the bank's financial stability is recognised insufficient for participation in the deposit insurance system, or the credit organisation may not be recognised as financially stable according to the method of assessment of financial stability of credit organisations defined by the Bank of Russia.

In other cases, the demand to present information on the limits of open currency positions as of the intra-month date to the credit organisation may be considered by the Bank of Russia on the basis of the request of the territorial institution of the Bank of Russia.

Decision of the Government of the Russian Federation No. 193 of April 3, 2006 on the Paying out in 2006 to Individual Categories of Citizens of the Russian Federation of the Preliminary Compensation (Compensation) on the Deposits (Contributions) in Organisations of State Insurance (Open-Type Joint-Stock Company Russian State Insurance Company and Rosgosstrakh System Companies)

Endorses the rules defining the procedure of paying out in 2006 to individual categories of citizens of the Russian Federation of the preliminary compensation (compensation) on the deposits (contributions) in the organisations of state insurance (OAO Russian State Insurance Company and Rosgosstrakh system companies) as of January 1, 1992 being guaranteed savings under the Federal Law on restoration and protection of savings of citizens of the Russian Federation.

The preliminary compensation on the deposits (contributions) shall be paid out in the amount of up to Rbl 1,000 to the categories of citizens (including the first priority heirs): citizens born until 1953 inclusive; group II invalids; parents whose sons appeared to be draft servicemen and were killed (died) during their service in peacetime. The first priority heirs included in the mentioned categories of citizens shall get the preliminary compensation on the deposits (contributions) regardless of the age of the deceased holder of deposits (contributions).

For citizens born until 1942 inclusive, group I invalids or persons possessing 3rd degree disability, parents and trustees of invalid children and invalids from childhood, as well as for targeted deposits (contributions) opened for children and deposits (contributions) for orphan children and children having found themselves without parental support (including the heirs), the compensation will be paid out in the amount of the residue of the deposits (contributions) as of January 1, 1992 (proceeding from the nominal cost as of January 1, 1991). In this case, the compensation for the deposits (contributions) shall be paid out regardless of the age of the deceased holder of the deposits and (contributions).

The Decision specifies the procedure of determination of the amount of compensations and the cases of paying out of the additional compensation.

Defines the amounts of compensations for the ritual service in the cases of death in 2001-2006 or in 1998-2000 of the holder of deposits (contributions) or the person insured under targeted deposits (contributions) for children being a citizen of the Russian Federation as of the day of death.

The Decision provides the list of documents permitting to get the compensations.

Decision of the Government of the Russian Federation No. 192 of April 3, 2006 on the Paying out in 2006 to Individual Categories of Citizens of the Russian Federation of the Preliminary Compensation (Compensation) on the Deposits in the Savings Bank of the Russian Federation

Endorses the rules of paying out in 2006 to individual categories of citizens of the Russian Federation of the preliminary compensation (compensation) on the deposits in the Savings Bank of the Russian Federation defining the procedure of paying out of the preliminary compensation on the deposits as of June 20, 1991.

The preliminary compensation on the deposits shall be paid out in the amount of up to Rbl 1,000 to citizens born until 1953 inclusive, group II invalids, parents whose sons appeared to be draft servicemen and were killed (died) during their service in peacetime.

The preliminary compensation on the deposits applies to Rbl 1,000 (proceeding from the nominal cost in 1991) for the deposit exceeding this amount or the whole of the deposit if its amount is not greater than Rbl 1,000.

For citizens of the Russian Federation born until 1942 inclusive, group I invalids or persons possessing 3rd degree disability, parents of invalid children, as well as for the targeted deposits for children, the compensation shall be paid out in the amount of the residue of the deposits as of June 20, 1991 and is reduced by the amount of the earlier received preliminary compensation. In this case, the amount of the compensation paid to the heirs included in the mentioned categories of citizens is not reduced by the amount of the earlier received compensation for the ritual services in the amount of Rbl 6,000.

Decision of the Government of the Russian Federation No. 187 of April 1, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 687 of November 18, 2005

Changes the specimens of the cover of the blank passport of the citizen of the Russian Federation, diplomatic passport of the citizen of the Russian Federation and the service passport of the citizens of the Russian Federation identifying the citizens outside the territory of the Russian Federation and containing electronic media.

Order of the Ministry of Finance of the Russian Federation No. 31n of February 27, 2006 on the Endorsement of the Procedure of Submission to the Tax Bodies of the Report of Use of Denatured Ethyl Alcohol by Organisations Possessing Certificates of Registration of the Organisation Carrying out Operations with Denatured Ethyl Alcohol

Defines the rules of submission to the tax bodies of the report of use of denatured ethyl alcohol by organisations possessing the certificate of registration of the organisation carrying out operations with denatured ethyl alcohol, as well as regulates the requirements to the content of the report and its filling terms.

The mentioned rules shall apply to organisations producing denatured ethyl alcohol and possessing a certificate for production of denatured ethyl alcohol and to organisations producing non-alcohol-containing products using denatured ethyl alcohol as a raw material and possessing a certificate for production of non-alcohol-containing products.

The report shall be submitted to the tax body having issued the certificate for the reporting month no later than the 25th of the month following the reported one.

The report shall be submitted by the organisation directly to the tax body or shall be sent by mail with a notification and a list of enclosure. Accepted reports shall be stored by the tax body in the taxpayer registration folder. The forms of reports are specified.

Registered in the Ministry of Justice of the Russian Federation on April 5, 2006. Reg. No. 7665.

Order of the Federal Tax Service No. SAE-3-21/108@ of February 26, 2006 on the Endorsement of the Form of Information on the Issued Licenses (Permissions) for the Use of Objects of Fauna, Amounts and Time Limits of Payment of Fees for the Use of Objects of Fauna

The endorsed form shall include information on the licenses issued to legal entities and entrepreneurs, on the licenses issued to natural persons not being independent entrepreneurs, as well as information on the natural persons themselves.

Information drawn up to the form shall be submitted to the tax body at the place of their registration by the bodies issuing the license (permission) for the use of objects of fauna. The time limit for submission of information - no later than the 5th of each month.

The Order also provides: guide of codes of names of the objects of fauna, guide of codes of use of objects of fauna, list of codes of types of the identification documents of the natural person paying the fee for the use of objects of fauna, list of codes of names of subjects of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on April 5, 2006. Reg. No. 7656.

Direction of the Central Bank of Russia No. 1670-U of March 16, 2006 on the Amendments to the Direction of the Bank of Russia No. 1459-U of June 28, 2004 on the Opening to the Bodies of State Power of the Subjects of the Russian Federation or the Bodies Providing Cash Services for the Execution of the Budgets of the Subjects of the Russian Federation, Including the Bodies of the Federal Treasury of the Ministry of Finance of the Russian Federation, of Accounts for Resources from Entrepreneurial and Other Profitable Activities Obtained by Institutions Supervised by the Bodies of State Power of the Subjects of the Russian Federation in Institutions of the Bank of Russia or Credit Organisations (Branches)

Adjusts the procedure of opening of personal accounts to the bodies of state power of the subjects of the Russian Federation and the bodies providing cash services for the execution of the budgets of the subjects of the Russian Federation, including the bodies of the Federal Treasury, in institutions of the Bank of Russia and credit organisations for resources from entrepreneurial activities.

The bodies of the Federal Treasury for the mentioned purposes shall open personal accounts in the Bank of Russia and in other credit organisations with the sign "1" in the fourteenth digit of the account number on the balance account 40603 "Accounts of State- (Other Than Federally-) Owned Organisations. Non-Commercial Organisations". Thus, resources of all institutions supervised by the bodies of state power of the subjects of the Russian Federation obtained from entrepreneurial activities shall be registered on the same balance account, while earlier, the Bank of Russia registered incomes of state-owned enterprises, and other credit organisations - incomes of appropriate organisations.

The same procedure is specified for the opening of accounts directly to the bodies of state power of the subjects of the Russian Federation for incomes from entrepreneurial activities of their supervised institutions. The bodies of state power shall open personal accounts in institutions of the Bank of Russia and credit organisations with the sign "3" in the fourteenth digit of the personal account number on the balance account 40603 "Accounts of State- (Other Than Federally-) Owned Organisations. Non-Commercial Organisations".

Abandons the rule whereby the opening of accounts to the bodies of the Federal Treasury was stipulated by the presence of copies of agreements certified by the bodies of the Federal Treasury of the bodies of state power of the subjects of the Russian Federation with the bodies of the Federal Treasury on cash services for the execution of the budgets of the subjects of the Russian Federation.

Finally, the amendments adjust the name of the bodies of the Federal Treasury, since the latter acquires the status of the body of state power subordinate to the Ministry of Finance of Russia.

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

Decision of the Government of the Russian Federation No. 194 of April 3, 2006 on the Procedure for Granting to the Subjects of the Russian Federation and Distribution among Them of Subsidies from the Federal Fund of Regional Development in 2006

The subsidies form the Federal Fund of Regional Development are allocated for shared financing of development of the public infrastructure of regional and municipal significance and support of the funds of municipal development created by the subjects of the Russian Federation.

Selection of subjects of the Russian Federation to get the Fund's resources is arranged on the basis of the figures of the estimated budget security of the subject after distribution of grants from the Federal Fund of Financial Support of the Subjects of the Russian Federation and availability of objects of social and engineering infrastructure in the subject and per capita investments in fixed assets.

The subject of the Russian Federation may get Fund's resources if the level of estimated budget security of the subject of the Russian Federation is not greater than the average one for the Russian Federation by more than 10%; as well as if the level of availability of objects of social and engineering infrastructure and per capita investments in fixed assets in the subject of the Russian Federation is lower than the average one for Russia by 60% and more.

The rules define the procedure of calculation of the share of the subject of the Russian Federation in the total volume of the Fund's resources and specify that such calculation is provided by the Ministry of Finance of Russia. For this, the subjects of the Russian Federation shall submit before April 1, 2006 to the Ministry of Finance of Russia information on the volume of resources of the consolidated budget of the subject determined taking into account the level of co-financing of development of the public infrastructure of regional and municipal significance at the expense of resources of the federal budget, as well as expenses pertaining to the subsidising of the part of the interest rate (not higher than the rate of refinancing of the Central Bank of Russia) for the credits of Russian credit organisations attracted to finance development of the public infrastructure of regional and municipal significance. The subjects of the Russian Federation having failed to present necessary information in the mentio ned time shall be deprived of the right to receive the Fund's resources.

The Fund's resources shall be granted in accordance with the summary budget list of the federal budget for the year 2006 within the limits of budget obligations endorsed for the Ministry of Finance of Russia. Resources shall be transferred to the budgets of the subjects of the Russian Federation on the accounts of the territorial bodies of the Federal Treasury opened for cash services for the execution of the budgets of the subjects of the Russian Federation. The Fund's resources shall be granted on the monthly basis after submission of reports by the subjects of the Russian Federation until the 10th of the month following the reported one to the Ministry of Finance of Russia on the use of the Fund's resources allocated to finance development of the public infrastructure of regional and municipal significance or on the allocation of the Fund's resources to support the funds of municipal development created by the subjects.

Responsibility for submission of true information to the Ministry of Finance of Russia and for the use of Fund's resources for designated purposes rests with the bodies of executive power of the subjects of the Russian Federation. If the Fund's resources are used for other than designated purposes, the mentioned resources will be recovered in favour of the federal budget.

Letter of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 0100/3835-06-23 of April 4, 2006 on the Import and Sale of Alcoholic Products

Reports that during the checks carried out by the territorial departments of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being in the subjects of the Russian Federation in the framework of the measures to enhance enforcement of circulation of alcoholic products, large volumes of alcoholic products from the Republics of Moldova and Georgia are revealed that fail to comply with the requirements of the state sanitary and epidemiological rules and normatives pertaining to safety of alcoholic products and wine materials. The failure to comply with specified requirements is revealed not only in wines and wine materials, but also in cognacs and sparkling wines made in the mentioned republics.

In a number of cases, the mentioned products are released for free circulation by the customs bodies and provided with sanitary and epidemiological statements issued by chief state sanitary physicians of institutions, structural divisions of the authorised federal bodies of executive power. An impermissible practice has been revealed to use hygienic statements issued by sanitary and epidemiological services of other states as a final document serving as grounds for the customs bodies to take the decision to import the products to the territory of the Russian Federation and draw up certificates of compliance on their basis.

In view of the above, the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being suspends from April 5, 2006 all issued sanitary and epidemiological statements for cognacs, wine (including sparkling wines) and wine materials imported to the territory of the Russian Federation from Moldova and Georgia if made on the territory of the mentioned republics.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-04/67 of March 16, 2006

Exempts from taxation, in particular, incomes obtained from joint-stock companies or other organisations by stock-holders of these companies or participants of other organisations as a result of reassessment of fixed assets (resources) in the form of their additionally received stocks (shares, contributions) distributed among stock-holders or participants of the organisation in proportion to their share and types of stocks or in the form of the difference between the new and the initial nominal cost of stocks or their proprietary share in the registered capital.

If the increase of the nominal cost of stocks is made at the expense of undistributed profit of past years, rather than as a result of reassessment of fixed assets (resources), the incomes in the form of the difference between the initial and the new nominal cost of stocks are subject to the incomes tax from natural persons on common grounds.

Ruling of the Constitutional Court of the Russian Federation No. 16-O of March 2, 2006 on the Appeal of Citizen V.P.Kornilov against Violation of His Constitutional Rights by Provisions of the Decree of the President of the Russian Federation No. 508 of March 15, 2000 on the Amount of the Temporary Disability Allowance, Rules of Calculation of Uninterrupted Length of Service of Workers and Office Personnel in Cases of Assigning State Social Insurance Allowances, Main Terms of Providing State Social Insurance Allowances and the Regulation on the Procedure of Providing State Social Insurance Allowances

The challenged norms, according to the applicant, introduce a dependence of the amount of the temporary disability allowance on the uninterrupted length of service rather than the length of insured length of service as of the day when the disability occurs, which is in violation of the Constitution of the Russian Federation.

The Constitutional Court emphasised that application of such legal regulation is not in line with the principles of obligatory insurance of working citizens for the cases of temporary disability. In fact, insurance support intended to reimburse temporarily lost earnings to the employee is made dependent on the availability and length of intervals in employment, which attaches to obligatory social insurance the functions that are not specific to it. It reduces significantly the volume of insurance support as compared to the one applied in cases of temporary disability to employees with the same average earnings and length of (insured) service in other circumstances of labour activities, which is in violation of the equality of rights and freedoms of man and citizen. Therefore, the courts, other bodies and officials may not apply normative provisions contained in Item 1 of the rules of calculation of uninterrupted length of service of workers and office personnel in cases of assigning state social insurance all owances, Items 25-27 of the main terms of providing state social insurance allowances and Item 30 of the Regulation on the procedure of providing state social insurance allowances.

However, the loss of legal force of the given norms would create a gap in the regulation of temporary disability allowances for the insured, which would impair implementation of their right for social support in cases of illnesses.

In this connection, the Constitutional Court of the Russian Federation recognised the mentioned provisions gearing the right for the temporary disability allowance and its amount to the uninterrupted length of service as inapplicable from January 1, 2007.

The federal legislator is ordered to provide, no later than the mentioned time limit, regulation of the procedure and terms of implementation of the constitutional right of everyone for social support in cases of illnesses.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-08/67 of March 23, 2006

The documents serving as grounds to accept for exemption VAT amounts paid when importing commodities to the customs territory of the Russian Federation include the customs declaration for the imported commodities registered for the customs regimes of release for internal consumption or temporary import and the payment documents confirming the actual payment of VAT amounts to the customs body.

If the value added tax is paid to the customs bodies by the commissioner, the tax is accepted for exemption with the consignor after registration of the purchased commodities on the basis of the documents confirming the payment of the tax by the commissioner, as well as the customs declaration (its copy) for the imported commodities received from the commissioner, rather than the invoice.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-04/66 of March 15, 2006

The legislation does not contain provisions permitting to avoid taxation of property handed over to a natural person according to donation procedure simultaneously with the tax on the property transferred according to inheritance or donation procedure and the tax on the incomes of natural persons.

The property handed over to a natural person under a donation contract certified with a notary in 2005, where the transfer of the property right is registered in 2006, may, in individual cases, be subject to both the tax on the property transferred according to inheritance or donation procedure and the tax on the incomes of natural persons. According to the Ministry of Finance, the given problem requires legislative regulation.

Decision of the Constitutional Court of the Russian Federation No. 3-P of April 6, 2006 on the Case of Constitutionality of Individual Provisions of the Federal Constitutional Law on the Military Courts of the Russian Federation, Federal Laws on the Jurymen of the Federal Courts of General Jurisdiction in the Russian Federation, on the Entry into Force of the Code of Criminal Procedures of the Russian Federation and the Code of Criminal Procedures of the Russian Federation Pursuant to the Request of the President of the Chechen Republic, Appeal of Citizen K.G.Tuburova and Request of the North Caucasian District Military Court

The Constitutional Court checked the constitutionality of the provisions of the legislation regulating the procedure of processing with participation of the jury of criminal cases of specially heavy crimes against life committed by servicemen on the territory of the Chechen Republic.

The court came to the conclusion that the norm of the Federal Law on the entry into force of the Code of Criminal Procedures of the Russian Federation specifying the time limits for introduction of the jury in the Chechen Republic (from January 1, 2007) does not contradict the Constitution of the Russian Federation. Such restriction of the constitutional right for participation in the jurisdiction for citizens living in the Chechen Republic is of temporary nature an is stipulated by circumstances of organisational, material and technical nature and the need to create conditions providing for unbiased and objective case processing with participation of the jury. The cases of specially heavy crimes against life envisaging a death sentence must be processed by another court - without the jury - taking into account the prohibition to apply the exclusive measure.

Besides, the Constitutional Court expressed their position pertaining to opportunities of attracting to cases of crimes committed by servicemen on the territory of the Chechen Republic of jurymen from other subjects of the Russian Federation. The actual legislation does not envisage opportunities of processing of criminal cases of specially heavy crimes against life by the district military court with the jury consisting of persons other than those living permanently on the territory of the subject of the Russian Federation where the crime has been committed.

The board of jurymen must be formed of citizens permanently living on the territory of the subject of the Russian Federation where the crime has been committed on the basis of the general and the reserve list of candidates. If it is impossible to form the board of jurymen on such basis, appropriate criminal cases must be processed by the district military court of another composition specified in the law without participation of the jury, taking into account that the death sentence is not permitted. However, according to the Constitutional Court, the federal legislator, while defining the jurisdiction of cases with the military courts, may introduce other rules of forming of lists of candidates of the jury.

Decision of the Government of the Russian Federation No. 201 of April 10, 2006 on the Procedure of Keeping of the Joint Register of Issued Compliance Certificates, Providing Information from the Mentioned Register and Payment for the Provided Information

The Joint Register of Issued Compliance Certificates is a federal information resource and is federally owned. The functions of keeping of the register are vested in the Federal Agency of Technical Regulation and Metrology and its territorial bodies.

The keeping of the Joint Register includes collection of information on compliance certificates, entry of information on compliance certificates in the Joint Register, its storage, systematisation, actualisation and amendments. The grounds to enter information on compliance certificates in the Joint Register is the decision on the issue of the certificate, suspension or termination of it adopted according to established procedure.

Information on compliance certificates available in the Joint Register shall be provided at cost to requests of natural persons, as well as legal entities other than the bodies of state power and the bodies of local government. The bodies of state power and the bodies of local government shall get information on compliance certificates available in the Joint Register free of charge.

The Regulation is entered into force from September 1, 2006.

Decision of the Government of the Russian Federation No. 199 of April 10, 2006 on the Endorsement of the Rules of Granting Subsidies from the Federal Fund of Co-Financing of Social Expenses for Partial Reimbursement of Expenses of the Budgets of the Subjects of the Russian Federation to Grant Subsidies to Citizens to Pay for the Dwelling Space and Communal Services

Defines the procedure of granting subsidies from the Federal Fund of Co-Financing of Social Expenses for partial reimbursement of expenses of the budgets of the subjects of the Russian Federation pertaining to subsidies for the payment for the dwelling space and communal services to citizens including specialists of public health, education and agriculture permanently living in rural localities, as well as the procedure of calculation of the amount of the given subsidies.

The subsidies to the budgets of the subjects of the Russian Federation shall be allocated by the chief administrator of resources of the federal budget on the quarterly basis according to the summary budget list of the federal budget within the limits of the budget obligations for these purposes. The amount of the subsidy allocated to the budget of each subject of the Russian Federation is calculated using the specified formula. The calculation takes account of the coefficients of correspondence with the federal standards of the average regional level of payments of citizens for the maintenance and repair of the dwelling space and provided communal services (K1) and the regional standard of the maximum permissible share of own expenses of citizens of the payment for the dwelling space and communal services in the aggregate family incomes (K2).

The Decision specifies the values of the mentioned coefficients for each subject of the Russian Federation.

Also defines the levels of reimbursement of expenses to the budgets of the subjects of the Russian Federation for the subsidies provided to citizens to pay for the dwelling space and communal services taken into account in the estimate.

Specifies the forms and time limits for submission of information by the bodies of executive power of the subject of the Russian Federation to the Ministry of Finance of the Russian Federation on the level of payments of citizens for the maintenance and repair of dwelling space and provided communal services, regional standard of the maximum permissible share of own expenses of citizens to pay for the dwelling space and communal services in the aggregate family incomes, regional standard of the cost of the housing and communal services proceeding from the family size, as well as information on the amount of resources provided form the regional budget to pay for the subsidies to citizens.

Direction of the Central Bank of Russia No. 1678-U of April 7, 2006

From April 10, 2006, introduces a fixed interest rate for the deposit operations of the Bank of Russia carried out with credit organisations in the currency of the Russian Federation using the Reuters dealing system and the system of electronic tenders of the Moscow Interbank Currency Exchange on standard terms "tom next", "spot next", "on demand", in the amount of 1.5% annual and on standard terms "one week", "spot week", in the amount of 2% annual. From March 6, 2006, the similar rates amounted to 1% and 1.5% annual respectively.

Order of the Central Bank of Russia No. OD-164 of April 5, 2006 on the Adjustment Coefficients of the Bank of Russia

Introduces adjustment coefficients used to correct the market cost of the bonds of the Agency of Mortgage Housing Crediting, OAO Megafon and commercial bank Moscow Mortgage Agency accepted as a security for the credits of the Bank of Russia.

Letter of the Central Bank of Russia No. 47-T of April 4, 2006 on the Rouble Equivalents for the Figures Envisaged in the Direction of the Bank of Russia No. 1346-U of December 1, 2003

In the II quarter of 2006, the rouble equivalent of the registered capital for created banks as of the day of submission of the documents must make at least Rbl 167.367 million (in the I quarter of 2006 - at least Rbl 170.8685 million). The same amount is envisaged for the operating credit organisations requesting the general license and for non-bank credit organisations requesting the status of a bank.

For created non-bank credit organisations, the rouble equivalent of the registered capital makes 10 times less the amount.

Letter of the Ministry of Finance of the Russian Federation No. 03-03-02/74 of March 30, 2006

When the taxpayer hands over securities in payment for the initially placed shares of the closed-type shared investment fund, there appears to be no profit (loss) with the taxpayer for taxation purposes. The cost of the shares of the closed-type investment fund for taxation purposes is recognised to be equal to the cost of transferred securities determined from information of the tax records as of the date of transfer of the property right for the mentioned securities.

Amendment to the Regulation on the Committee of Bank Enforcement of the Bank of Russia (Endorsed by the Decision of the Board of Directors of the Central Bank of Russia of March 27, 2006 (Protocol of Session 5)

The Committee of Bank Enforcement of the Bank of Russia is empowered with the right to investigate proposals of interested structural divisions of the Bank of Russia to determine economic essence, principles of acknowledgement, assessment and the financial result of bank operations and other transactions of credit organisations, as well as to take recommendations on these issues and submit them for endorsement to the Board of Directors of the Bank of Russia.

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

Decision of the Management Board of the State Corporation Deposit Insurance Agency of March 30, 2006 (Protocol 18) on the Amendments to the Procedure of Payment of Insurance Contributions Endorsed by the Decision of the Management Board of the State Corporation Deposit Insurance Agency of February 5, 2004 (Protocol 2)

The amendments specify the procedure of payment of insurance contributions in cases of termination of bank activities because of reorganisation.

The duty to pay insurance contributions (penalties) for the reorganised bank, as well as the rights of use of excessively paid insurance contributions (penalties) by it shall transfer to the successor (successors) of the reorganised bank under an act of transfer or separation balance sheet. The Decision provides particulars of calculation of insurance contributions and registration of received amounts of payments.

Decision of the Government of the Russian Federation No. 203 of April 10, 2006 on the Currency Operation Carried out by the Ministry of Defence of the Russian Federation

The Ministry of Defence of Russia (foreign intelligence body of the Ministry of Defence of Russia) is entitled to carry out without restrictions any types of currency operations regulated by the Federal Law on currency regulation and currency control.

Order of the Business Management Department of the President of the Russian Federation No. 49 of March 31, 2006 on the Endorsement of the Rules of Granting Subsidies in 2006 at the Expense of Resources of the Federal Budget to the Federal State Unitary Enterprises Maintaining and Operating Federal Immovable Property outside the Russian Federation

Specifies the procedure and terms of granting subsidies at the expense of resources of the federal budget to the federal state unitary enterprises maintaining and operating federal immovable property located outside the Russian Federation and used to house representations of the Russian Federation and state bodies of the Russian Federation, as well as searching and protecting the federal immovable property located outside the Russian Federation.

The subsidies are provided within the limits of budget allocations and limits of budget obligations envisaged for the Business Management Department of the President of the Russian Federation on contractual basis on the terms of co-financing of expenses to the federal state unitary enterprise. They are allocated for current and capital expenses pertaining to the maintenance, operation, search and protection of the federal immovable property located outside the Russian Federation.

Recipients of subsidies must submit to the Business Management Department of the President a report of the use of subsidies in accordance with the concluded contract.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-03-04/32 of February 14, 2006

The Ministry of Finance of Russia thinks that the payment of the state duty for the cases of appeals to courts of foreign legal entities (foreign citizens) that do not have a permanent representation (representative) and rouble accounts on the territory of the Russian Federation through authorised representatives in Russia who have rouble and foreign currency accounts is in contradiction of the provisions of the Tax Code.

Federal Constitutional Law No. 1-FKZ of April 12, 2006 on the Amendments to Article 6 of the Federal Constitutional Law on the Forming, within the Russian Federation, of the New Subject of the Russian Federation As a Result of the Merger of the Perm Province and the Komi-Permyatsky Autonomous District

Adjusts the date of election of deputies of the Legislative Assembly of the Perm Territory of the first convocation. It must occur on December 3, 2006.

The Legislative Assembly of the Perm Territory of the first convocation will be elected for five years. It will consist of 60 deputies, 30 ones of them being elected in single-mandate electorate districts formed on the territories of the Term Territory and the Komi-Permyatsky Autonomous District, and 30 in the single territorial electoral district in proportion to the number of votes in favour of the lists of candidates of political parties.

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

Decision of the Government of the Russian Federation No. 208 of April 11, 2006 on the Endorsement of the Form of the Document Confirming the Presence of the License

Provides the form of the document confirming the presence of the license. Blank licenses are strict-reporting documents and are included in security-printing items. From July 1, 2006, the licenses shall be provided (redrawn) according to the provided form, except for the types of activities where the licensing is stopped from January 1, 2007.

Decision of the Government of the Russian Federation No. 200 of April 10, 2006 on the Endorsement of the State Program "Security of the Victims, Witnesses and Other Participants of Criminal Proceedings for the Years 2006-2008"

To implement the Federal Law on the state protection of the victims, witnesses and other participants of criminal proceedings, endorses the state program "Security of Victims, Witnesses and Other Participants of the Criminal Proceedings for the Years 2006-2008".

Participants of the program are the Ministry of Internal Affairs, Federal Security Service, Ministry of Defence, Federal Service for Control of Circulation of Narcotics, Federal Service of Execution of Punishments, Federal Customs Service and the Ministry of Public Health and Social Development. Program coordinator is the Ministry of Internal Affairs of Russia. Report of implementation of the program must be submitted by the Ministry of Internal Affairs of Russia to the Government of the Russian Federation, Ministry of Economic Development and the Ministry of Finance no later than May 1, 2009.

The program is scheduled for 3 years: from 2006 through 2008. Financial expenses for the implementation of the program are expected to make Rbl 948.72 mn. The volume of resources necessary to provide dwelling space to the protected if resettled to another place of permanent living will be determined by the Ministry of Economic Development and Trade on the annual basis at the presentation of participants of the program. The total amount of these resources must not be greater than Rbl 50 mn a year.

It is expected that in the course of implementation of the program, the measures of state protection will be applied to more than 60,000 participants of criminal proceedings. Together with it, the mechanism of implementation of the mentioned law with be created and tested, normative legal documents defining the procedure of interagency interaction of the program participants, as well as regulating application of particular measures of state protection by them, will be worked out. On the basis of analysis of the judicial practice, proposals will be prepared to improve the measures of state protection and proposals pertaining to cooperation with foreign states.

Order of the Federal Service of the Russian Federation for Control over Circulation of Narcotics No. 75 of March 9, 2006 on the Implementation of the Order of the Prosecutor General of the Russian Federation, Ministry of Internal Affairs of Russia, Ministry of Emergency Situations of Russia, Ministry of Justice of Russia, Federal Security Service of Russia, Ministry of Economic Development of Russia, Federal Service for Control over Circulation of Narcotics of Russia No. 39/1070/1021/253/780/353/399 of December 29, 2005 on the Joint Register of Crimes

Endorses the Instruction on the procedure of acceptance, registration and checking in the bodies of control of circulation of narcotic drugs and psychotropic substances of reports of crimes. The Instruction specifies a uniform procedure of work with reports of crimes in the bodies of control of narcotics.

Reports of crimes, regardless of the place and time of committing, shall be accepted on the round-the-clock basis. The round-the-clock reception of crimes and their appropriate registration shall be provided by: in the Federal Service of Control over Circulation of Narcotics of Russia - senior operative officer on duty of the on-duty service of the Federal Service for Control over Circulation of Narcotics of Russia; in the territorial body of the Federal Service for Control over Circulation of Narcotics of Russia - by the responsible officer on duty of the on-duty unit of the inspection division. Besides, reports of crimes must be accepted by the chiefs of the bodies of narcotic control and their deputies during personal reception hours.

When accepting reports of crimes, the applicant is identified and is warned of the criminal responsibility for reporting information known to be false. The official of the body of narcotic control having accepted the report of a crime must issue to the applicant against the signature on the slip of application the notification of acceptance of the report. When accepting the report, it should be registered immediately in the logbook of reports of crimes.

The chief of the body of narcotic control and his deputies shall provide for the checking of reports of crimes. These officials must control permanently observation of the procedure of acceptance, registration and checking of reports of crimes.

Registered in the Ministry of Justice of the Russian Federation on April 11, 2006. Reg. No. 7682.

Order of the Federal Service for Financial Markets No. 06-21/pz-n of February 28, 2006 on the Endorsement of the Procedure of Keeping of the Register of Emission Securities

Specifies the rules of keeping by the Federal Service for Financial Markets of Russia and its regional divisions of the Register of Emission Securities and providing of information contained in it.

The Register of Emission Securities must contain information on the registered issues of emission securities, as well as of revoked individual numbers of additional issues of emission securities and issues of emission securities other than those subject to the state registration. The keeping of the register must be accompanied by the electronic database, while providing for opportunities of building of documents on paper.

The structure of the Register of Emission Securities includes two sections (A and B). Section A shows issuer information, and Section B - information on issues and additional issues of securities of the given issuer. The Order defines the grounds to enter records in the register and the time limits to enter them.

Information contained in the register is open and available to any interested party. Access to it is provided through the Internet site of the Federal Service for Financial Markets of Russia. The information may also be provided in the form of an excerpt from the register according to specified form or certificate of absence of requested information.

Introduced rules of the Register of Emission Securities do not apply to the state and municipal securities, as well as the bonds of the Bank of Russia and emission securities of other credit organisations.

Registered in the Ministry of Justice of the Russian Federation on April 11, 2006. Reg. No. 7680.

Order of the Ministry of Economic Development of the Russian Federation No. 84 of March 31, 2006 on the Endorsement of the Form of the Certificate of Registration of the Person As a Resident of the Special Economic Zone

Endorses the form of the certificate of registration of the person as a resident of the special economic zone and description of the blank certificate. The endorsed certificate is entered into force from April 25, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 10, 2006. Reg. No. 7672.

Order of the Ministry of Economic Development of the Russian Federation No. 75 of March 23, 2006 on the Endorsement of the Forms of Business Plans Submitted to Conclude (Change) the Agreements on Industrial Production (Technical Innovation) Activities, Criteria of Selection of Banks and Other Credit Organisations to Prepare Statements on Business Plans, Criteria of Assessment of Business Plans Carried out by the Expert Council for the Technical Innovation Special Economic Zones

To provide for the expert evaluation of business plans submitted by persons wishing to obtain the status of a resident of the special economic zone in the Russian Federation, or by residents of the special economic zone wishing to change the terms of the agreement on industrial production (technical innovation) activities, endorses the forms of business plans to conclude (change) the agreements on industrial production or technical innovation activities.

Also endorses the criteria of selection of banks and other credit organisations to prepare statements on business plans submitted by persons wishing to obtain the status of a resident of the industrial production special economic zone or by residents of the industrial production special economic zone wishing to change the terms of the agreement on the industrial production activities. The criteria include the following qualification requirements to banks: availability of the special permission (license) for bank operations issued in compliance with the legislation of the Russian Federation or foreign state where the credit organisation is registered; availability of the positive audit statement as a result of the check of the work of the credit organisation for the previous year and reports drawn up according to international standards; amount of own capital at least Rbl 3 bn (for foreign banks - at least Rbl 3 bn equivalent in the national currency at the rate of the Central Bank of the Russian Federation as of January 1 current year); length of work of the credit organisation at least 5 years; availability of the international credit rating; positive financial results of activities for the previous reporting year; absence of overdue debts in taxes and fees to the budgets of all levels.

Finally, the Order endorses the criteria of assessment of business plans for the Expert Council on Technical Innovation Special Economic Zones. The assessment is arranged in a number of directions, including: for compliance of the suggested draft business plan with the directions of the technical innovation activities and resources of the special economic zone; characteristics of crested products; characteristics of the applicant itself (business reputation, presence of appropriate experience, availability of personnel etc.); degree of investigation of the market; financial security of the project.

Expert evaluation for criteria characterising each direction of assessment shall be carried out by the members of the Expert Council for the Technical Innovation Special Economic Zones separately using a scale of points. The aggregate assessment for each direction will be calculated by multiplying a weighted coefficient of the direction by the sum of points obtained for each criteria of the direction. The resulting assessment of the business plan is calculated by adding aggregate assessments for each direction. The business plan is recognised to be complying with criteria specified by the Ministry of Economic Development of Russia if its resulting value equals at least 150 points.

Registered in the Ministry of Justice of the Russian Federation on April 10, 2006. Reg. No. 7671.

Decision of the Government of the Russian Federation No. 209 of April 11, 2006 on Some Issues Pertaining to Classification of Highways in the Russian Federation

Changes the classification of highways located on the territory of the Russian Federation. If earlier, the highways were subdivided by affiliation (public-use, agency and private), according to the amendments, all highways are classified according to public-use principle, including the highways of federal significance, regional, local significance, highways of residential settlements and non-public-use ones (highways in possession or use of legal entities or natural persons and used by them for own, technological or private needs).

The list of public-use highways of federal significance, as well as the highways of defence or special significance, is endorsed by the Government of the Russian Federation. The lists of non-public-use highways qualified as the property of the Russian Federation are endorsed by the authorised federal bodies of executive power.

Appropriate amendments are introduced in the Regulation on the Federal Highway Agency.

Decision of the Government of the Russian Federation No. 206 of April 11, 2006 on the Amendments to Some of the Acts of the Government of the Russian Federation Pertaining to Improvement of the State Cadastral Assessment of Lands

In view of the improvement of the state cadastral assessment of lands and redistribution of authority of the bodies of state power in this sphere, amends individual acts of the Government of the Russian Federation regulating appropriate issues.

Thus, corrections are introduced in the rules of carrying out of the state cadastral assessment of lands endorsed by the Decision of the Government of the Russian Federation No. 316 of April 8, 2000. The functions of cadastral assessment are assumed by the specially formed Federal Agency of Cadastre of Objects of Immovable Property instead of the State Committee of the Russian Federation for the Land Policy. The agency is deprived of the right to endorse the results of the carried out cadastral assessment. The state cadastral assessment of lands shall be carried out at least once in 5 years but no sooner than once in 3 years.

A rule is also introduced stating that in cadastral registration of the newly formed land plots, as well as the current changes pertaining to changes in the category of lands, type of permitted use or refinement of the area of the land plots, determination of their cadastral cost is carried out on the basis of the results of the state cadastral assessment of lands.

The Ministry of Economic Development of Russia shall assume the duty to work out methodology recommendations and normative and technical documents on the state cadastral assessment of lands.

Appropriate changes are also introduced in the Decision of the Government of the Russian Federation No. 202 of April 8, 2004 "Issues of the Federal Agency of Cadastre of Objects of Immovable Property", Regulation on the Federal Agency of Cadastre of Objects of Immovable Property endorsed by the Decision of the Government of the Russian Federation No. 418 of August 19, 2004, as well as the Regulation on the Ministry of Economic Development and Trade of the Russian Federation endorsed by the Decision of the Government of the Russian Federation No. 443 of August 27, 2004.

Order of the Federal Service for Financial Markets No. 06-23/pz-n of March 7, 2006 on the Amendments to the Order of the Federal Service for Financial Markets of Russia No. 05-53/pz-n of October 27, 2005 on the Endorsement of the Procedure of Committing Marginal Transactions by Professional Participants of the Securities Market Engaged in Broker Activities for a Certain Category of Clients

The date of entry into force of the procedure of committing marginal transactions by professional participants of the securities market engaged in broker activities for a certain category of clients is transferred from April 1 to May 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 11, 2006. Reg. No. 7681.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/297 of March 29, 2006

According to the provisions of Article 247 of the Tax Code of the Russian Federation, resources received in the bank cash department from employees or collected from employee earnings to pay the full cost of communication services in favour of employees are recognised as bank incomes for the purposes of the profit tax from organisations and are registered in the determination of the taxable base for the profit tax if the expenses of payment for the communication services were earlier taken into account in the determination of the taxable base for the given tax.

Federal Law No. 51-FZ of April 15, 2006 on the Amendments to the Federal Law on the Securities Market and the Federal Law on Investment Funds

To improve the state regulation of relations in the sphere of enforcement at the securities market and in the sphere of collective investments, amends the Federal Law on the securities market and the Federal Law on investment funds.

The amendments are expected to exclude excessive and duplicating functions in the sphere of activities of the Federal Service for Financial Markets of Russia. Thus, according to the Law, the following functions of the Federal Service for Financial Markets are abolished: specifying the normatives obligatory for observation by issuers of securities and rules of their application, regulation of activities of assessors of joint-stock and shared investment funds. Excessive functions are recognised to be the ones of issue of general licenses for the licensing of professional activities at the securities market.

The functions of the Federal Service for Financial Markets of certification of the heads and employees of professional participants of the securities market are abolished. However, the authority to specify qualification requirements, endorse the programs of qualification examinations for accreditation of citizens in the sphere of professional activities at the securities market are preserved. Besides, the Federal Service for Financial Markets is empowered with authority to accredit organisations entitled to accept qualification examinations and issue qualification certificates. Thus, an opportunity is provided to attract to certification higher educational institutions and self-regulating organisations. The Law clearly emphasises that the latter are free to provide education to citizens in the appropriate spheres of activities, and only after obtaining accreditation in the Federal Service for Financial Markets acquire the right to accept qualification examinations and issue qualification certificates.

The Federal Law is entered into force ten days after the day of its official publication with exceptions.

Federal Law No. 50-FZ of April 15, 2006 on the Amendments to Article 13 of the Federal Law on the Federal Security Service and to Articles 7 and 8 of the Federal Law on the Detention of Suspects and the Accused

Preliminary investigation isolation wards of the bodies of the Federal Security Service are handed over to the criminal execution system. The bodies of the Federal Security Service may not create and use isolation wards.

Federal Law No. 49-FZ of April 15, 2006 on the Amendments to the Law of the Russian Federation on Subsoil Resources

The bodies of state power of the subjects of the Russian Federation are entitled to carry out the state expert evaluation of the mineral reserves, geological, economic and ecological information on the parts of subsoil resources granted for use and containing deposits of commonly available mineral resources, parts of subsoil resources of local significance, as well as the parts of subsoil resources of local significance used for construction and operation of underground structures other than extraction of mineral resources.

The payment for the expert evaluation of the parts of the subsoil resources containing deposits of commonly available mineral resources, parts of local significance, as well as the parts used for construction and operation of underground structures other than extraction of mineral resources shall be transferred to the budgets of the subjects of the Russian Federation.

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

Federal Law No. 48-FZ of April 15, 2006 on the Amendment to Article 1 of the Federal Law on the Days of the Military Glory and Memorial Dates of Russia

Changes the name of the day of the military glory of Russia of February 23. In the new wording, the mentioned day of the military glory of Russia is called "February 23 - Day of Defender of the Fatherland". Earlier, the mentioned day of the military glory of Russia was called "February 23 - Day of the Victory of the Red Army over Kaiser Troops of Germany (1918) - Day of Defender of the Fatherland". The amendments are stipulated, in particular, by the need to fix a uniform name of the day of the military glory of Russia of February 23 and the appropriate non-working holiday of February 23 - Day of Defender of the Fatherland specified in the Labour Code.

Federal Law No. 47-FZ of April 15, 2006 on the Amendments to the Law of the Russian Federation on Commodity Exchanges and Exchange Trade and the Code of Administrative Violations of the Russian Federation

The legal terminology of the Law of the Russian Federation on commodity exchanges and exchange trade is being brought in compliance with the commonly used notions. Removes excessive wordings pertaining to listed organisational and legal forms of legal entities that may organise exchange trade. Now all legal entities engaged in such activities are called organisations. The notion of "higher bodies of state power" is replaced with the "state bodies ", and the "local bodies of state power and management" - with the "bodies of local government".

The body empowered with authority to issue licenses for exchange trade and control it is now called the federal body of executive power in the sphere of financial markets rather than the Commission for Commodity Exchanges. Therefore, appropriate changes are introduced in the Code of Administrative Violations of the Russian Federation pertaining to the name of the body of state power processing the cases of administrative violations in this sphere.

Order of the Federal Fund of Obligatory Medical Insurance No. 40 of March 29, 2006 on the Procedure of Granting Subsidies in 2006 from the Budget of the Federal Fund of Obligatory Medical Insurance to Territorial Funds of Obligatory Medical Insurance to Carry out Additional Periodical Medical Examinations of Citizens Working in the State and Municipal Institutions in the Sphere of Education, Public Health, Social Protection, Culture, Physical Culture and Sports and in Scientific Research Institutions

The subsidies are provided from resources of the fund of co-financing of the budget of the Fund of Obligatory Medical Insurance for the purpose of additional periodic medical examinations of the mentioned categories of citizens aged 35 to 55.

The measures of financing are implemented by the Commission of the Fund of Obligatory Medical Insurance for the Implementation of the Priority National Project in the Sphere of Public Health. Obligatory conditions for obtaining the subsidy are: availability with the territorial fund of the separate account in the division of the payment network of the Bank of Russia; conclusion by the territorial fund with public health institutions of the municipal formation rendering initial medical and sanitary aid of contracts of financing of expenses to carry out additional periodic medical examinations of working citizens according to the typical form endorsed by the Decision of the Government of the Russian Federation No. 868 of December 31, 2005.

The financing of expenses to carry out additional periodic medical examinations of working citizens in 2006 shall be carried out by granting subsidies to the budget of the territorial fund to carry out additional periodic medical examinations of working citizens on the basis of the request drawn up to specimen provided in the Order. Requests shall be sent to the Fund of Obligatory Medical Insurance until the 20th of each month and shall be handed over until the 25th by the Financial Department of the Fund of Obligatory Medical Insurance to the Commission for Implementation of the Priority National Project in the Sphere of Public Health to take the decision to allocate subsidies to the territorial funds of obligatory medical insurance to carry out the additional periodic medical examinations.

The amount of the subsidy for the subsequent month is determined proceeding from the number of working citizens than must be examined in 2006 and the normative of expenses for the additional periodic medial examinations per working citizen endorsed by the Ministry of Public Health and Social Development of Russia. The subsidies that were not spent in the reported period (month) shall be carried over for the territorial funds for subsequent financing and are considered to be an advance payment for the additional periodic medical examinations of working citizens in the subsequent reporting period within the year 2006.

Territorial funds of obligatory medical insurance must submit to the Fund of Obligatory Medical Insurance on the monthly basis until the 20th of the month following the reported one reports on the use of subsidies according to established procedure. If there are cases of use of the subsidy for other than specified purposes, the Fund of Obligatory Medical Insurance shall suspend the transfer of resources to the territorial fund and shall send a notification to the territorial fund according to established procedure to return the resources on the basis of the documents confirming the fact of use for other than specified purposes.

Registered in the Ministry of Justice of the Russian Federation on April 13, 2006. Reg. No. 7694.

Order of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 36 of February 26, 2006 on the State Registration of Dietary Supplements

To improve organisation and implementation of the state registration of dietary supplements, the sanitary and epidemiological expert evaluation for the state registration of dietary supplements is vested in the federal state institution of public health Federal Centre of Hygiene and Epidemiology and the federal state institution of public health Centre of Hygiene and Epidemiology in the city of Moscow. On the basis of statements of the mentioned institutions, the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being shall draw up certificates of state registration of the dietary supplements.

Control over the expert evaluations in the mentioned institutions and preparation of documents is vested in the Department of Organisation of Service, State Registration and Licensing of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being.

Registered in the Ministry of Justice of the Russian Federation on April 13, 2006. Reg. No. 7689.

Order of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 35 of February 26, 2006 on the State Registration of Dietary Supplements by the Territorial Bodies of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being

To improve the procedure of state registration of products, substances, preparations, the territorial bodies of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being shall fulfil from May 15, 2006 the functions of state registration of dietary supplements (including the complex, technological auxiliary substances, enrichment additives, flavouring agents (bases), starters). The sanitary and epidemiological expert evaluation of dietary supplements for the purposes of their state registration is vested in the centres of hygiene and epidemiology.

The Order introduces the procedure whereby the state registration of the products arriving for customs registration in the subject of the Russian Federation or produced on the territory of the subject of the Russian Federation shall be carried out by the appropriate territorial body of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being in the subject of the Russian Federation or directly by the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being.

Certificates of the state registration of products issued by the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being shall be valid on the whole territory of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on April 13, 2006. Reg. No. 7688.

Order of the Ministry of Internal Affairs of the Russian Federation No. 120 of February 28, 2006 on the Material Incentives for Servicemen of Internal Troops of the Ministry of Internal Affairs of Russia Searching and Destroying Explosive Items on Terrain

Envisages mark-ups for the special conditions of service for servicemen of internal troops of the Ministry of Internal Affairs of Russia searching and destroying explosive items. The amount of the mark-up for contract servicemen makes 25% of the monthly salary for the occupied military position, and for draft servicemen - 50%. The mark-up shall be paid out for only those months when the mentioned works have been carried out.

Besides, the Order specifies the rules of paying out of the monetary reward for the revealed or disposed (destroyed) explosive items on terrain and procedure of registration of the number of such explosive items. Specifies that the right for the monetary reward emerges with servicemen directly carrying works searching, collecting, removing from ground (water, objects) and loading explosive items, servicemen forming part of the group of destruction of explosive items, as well as the drivers and the persons in charge of the vehicles transporting explosive items.

The mentioned payments shall be made from December 5, 2005.

Registered in the Ministry of Justice of the Russian Federation on April 13, 2006. Reg. No. 7685.

Federal Law No. 53-FZ of April 17, 2006 on the Amendments to the Land Code of the Russian Federation, Federal Law on the Entry into Force of the Land Code of the Russian Federation, Federal Law on the State Registration of the Rights for Immovable Property and Transactions with It and on Invalidation of Individual Provisions of the Legislative Acts of the Russian Federation

The amendments pertain to issues of delimitation of state property for land. The Federal Law lists the land plots and lands included in the property of the Russian Federation, subjects of the Russian Federation and municipal formations. Specifies the procedure of state registration of the proprietary right for land plots in cases of delimitation of the state property for land.

The amendments envisage that disposal of the land plots included in the property of the Russian Federation, subjects of the Russian Federation and municipal formations is possible only after the state registration of the proprietary right for them. As to the land plots where there is not delimitation, they may be disposed of without the state registration of the proprietary rights.

Disposal of the land plots if there is no delimitation of state property rests with the bodies of local government of the municipal regions, urban districts, and in the residential settlements being administrative centres, capitals of the subjects of the Russian Federation - by the bodies of local government of the mentioned residential settlements if otherwise is not envisaged in the laws of appropriate subjects of the Russian Federation.

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

Decision of the Government of the Russian Federation No. 217 of April 17, 2006 on the Endorsement of the Rules of Financing in 2006 of Expenses for Social Programs of the Subjects of the Russian Federation, Including the Targeted Social Aid to Non-Working Pensioners, and for the Measures to Eliminate the Consequences of Emergency Situations and Natural Disasters Pertaining to Targeted Social Aid to Non-Working Pensioners at the Expense of Resources of the Pension Fund of the Russian Federation

Specifies the procedure of allocation, spending and control over the use for designated purposes of resources of the Pension Fund intended for financing in 2006 of social programs of subjects of the Russian Federation, including the targeted social aid to non-working pensioners and the measures to eliminate the consequences of emergency situations and natural disasters pertaining to the targeted social aid to non-working pensioners.

The Pension Fund shall finance social programs envisaging expenses to enhance the material and technical base of state and municipal stationary and out-patient institutions of social services for the population. The financing shall also apply to expenses of rendering of the targeted social aid to non-working pensioners, in particular, for the purchase of first-necessity items and subscription to periodicals, lump sum material aid, gasification of homes of non-working pensioners.

The Decision envisages a procedure requiring the bodies of executive power of the subjects of the Russian Federation to submit to the Pension Fund social programs with substantiation of expenses and terms of rendering of targeted social aid, as well as requests drawn up on their basis to finance appropriate expenses, coordinated with the territorial bodies of the Pension Fund. The mentioned social programs and requests shall be processed within 15 days from the date of receiving.

Financing of measures to eliminate the consequences of emergency situations and natural disasters pertaining to targeted social aid to non-working pensioners shall be arranged in compliance with decisions of the Government of the Russian Federation. Appropriate payments shall be made by the territorial bodies of the Pension Fund on the basis of the lists of victim non-working pensioners submitted by the bodies of executive power of the subjects of the Russian Federation.

Decision of the Government of the Russian Federation No. 214 of April 17, 2006 on the Endorsement of the Rate of the Import Customs Duty for Individual Types of Native and Modified Starches

Endorses a uniform amount of the rate of the import customs duty for individual types of native and modified starches with the codes according to the Foreign Trade Commodity Nomenclature 1108 11 000 0, 1108 12 000 0, 1108 13 000 0, 1108 14 000 0, 1108 19 900 0, 3505 10 100 0, 3505 10 500 0, 3505 10 900 0. The rate amount makes 20% of the customs cost for the given types of commodities, however, not less than EUR 0.06 per kg.

Earlier, such rate of the import customs duty was fixed for only modified starches with the codes 3505 10 100 0, 3505 10 500 0, 3505 10 900 0. The rate for the wheat, maize, potato, manioc starches made 10% of the customs cost.

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

Order of the Ministry of Finance of the Russian Federation No. 25n of February 10, 2006 on the Endorsement of the Instruction on Budget Accounting Work

Provides a new wording for the Instruction on the budget accounting work, including the chart and correspondence of accounts.

Specifies, in particular, that in the absence in the correspondence of budget accounts of operations to register activities of institutions, chief administrators of resources of the budget may define the necessary correspondence of accounts if it does not contradict the Instruction on the budget accounting work.

The Order introduces a new off-balance account 19 "Unidentified Receipts of the Budgets of Past Years". The account is intended for registration by the bodies providing for budget execution of unidentified receipts of the past reporting periods written off in the final turnovers as a financial result of past reporting periods in cash execution of the budget that must be clarified in the following fiscal year. Analytical work for the account is provided in the Sheet of Unidentified Receipts.

The Instruction is extended to include two new appendices: Table of Correspondence of the Budget Account Code with the Code of Classification of Incomes, Agency, Functional Classification of Expenses of Budgets, Classification of Sources of Financing of the Deficit of Budgets; and the Classification of Operations of the Sector of State Management.

The Order applies to relations emerging from January 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 11, 2006. Reg. No. 7674.

Direction of the Central Bank of Russia No. 1676-U of march 29, 2006 on the Amendment to the Instruction of the Bank of Russia No. 111-I of March 30, 2004 on the Obligatory Sale of Part of Currency Receipts at the Internal Currency Market of the Russian Federation

According to the amendments, the normative of obligatory sale of part of currency receipts is reduced from 10% to 0%.

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 April 17, 2006. Reg. No. 7716.

Order of the Ministry of Finance of the Russian Federation No. 43n of March 17, 2006 on the Endorsement of the Procedure of Filling of Declarations on the Volume of Production, Circulation and Use of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

Declaring of the volumes of production and circulation of ethyl alcohol, alcoholic and alcohol-containing edible products, alcohol-containing non-edible products with the content of ethyl alcohol greater than 40% of the volume of the finished products and the volumes of use of ethyl alcohol for production of alcoholic and alcohol-containing products shall be done by organisations using 7 forms of declarations envisaged in the Regulation on submission of declarations of the volumes of production, circulation and use of ethyl alcohol, alcoholic and alcohol-containing products endorsed by the Decision of the Government of the Russian Federation No. 858 of December 31, 2005.

The declarations shall show the volumes of produced items having undergone the whole cycle of technological processing including the products bottled in consumer containers and prepared for bottling and meeting the requirements indicated in the documents endorsed according to established procedure for the appropriate type of products.

Operations of handing over of ethyl alcohol or another raw material for further processing by one separate division of the organisation to another separate division of this organisation must be shown in the declaration of the first separate division. Reception of ethyl alcohol or another raw material by the separate division of the organisation from another separate division of the same organisation for further processing must be shown in the declaration of the first separate division.

The procedure shall apply to declarations submitted for the first reporting period of 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7713.

Order of the Ministry of Finance of the Russian Federation No. 47n of March 23, 2006 on the Endorsement of the Form "Information on Land Plots Located within the Boundaries of the Municipal Formation" and Its Filling Recommendations

Endorses the form "Information on Land Plots Located within the Boundaries of the Municipal Formation" (KND form 1114227) and its filling recommendations.

Information on the land plots located within the boundaries of the municipal formation shall be filled out by the bodies of municipal formations on the basis of the acts of allocation (granting) of the land plot. The mentioned bodies must report on the annual basis before February 1 of the year being the tax period to the tax bodies at the place of their location information on the land plots recognised as object of taxation as of January 1 of the year being the tax period.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7712.

Order of the Federal Service for Financial Markets No. 06-25/pz-n of March 7, 2006 on the Endorsement of the Regulation on the Criteria of Liquidity of Securities

Specifies the criteria of liquidity of securities to be used to accept securities as a collateral of client obligations in granted loans to commit marginal transactions, as a collateral of client obligations in calculation of the level of margin, as well as to sell them as a result of unsecured transactions with securities committed by the broker. The valuable paper must be included in quotation list of at least one stock exchange, with the resulting specific weight of the valuable paper as a result of the tenders at the stock exchange for the most recent reporting quarter being greater than 10%.

The drawing up of the list of liquid securities by the trade organisers at the securities market is envisaged on the quarterly basis. The list of liquid securities becomes obligatory from the 15th working day following the reported quarter.

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

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7707.

Order of the Federal Service for Financial Markets No. 06-24/pz-n of March 7, 2006 on the Endorsement of the Rules of Brokerage Activities When Committing Transactions at the Securities Market Using Monetary Resources and/or Securities Handed over by the Broker to Client As a Loan (Marginal Transactions)

Introduces uniform requirements to brokerage activities for the cases of committing of transactions of purchase and sale of securities where the payments are made using monetary resources or securities provided by the broker to the client as a loan (marginal transactions) and in the cases of purchase and sale of securities (except for the futures transactions committed at the stock exchange) concluded on the terms of execution of obligations under transactions on the day of their committing if, at the moment of conclusion of transactions, amount of monetary resources registered on the internal account of payments with the client or the amount of securities, taking into account the claims rights and obligations to pay money and supply securities for the earlier concluded transactions, is not enough to execute obligations under such transaction (unsecured transactions).

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

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7706.

Order of the Federal Service of Tariff Rates No. 56-e/1 of March 21, 2006 on the Endorsement of the Methodology Directions to Calculate Tariff Rates for the Services of Transfer of Eclectic Power over the Joint National (All-Russia) Power-Supply Network

Provides Methodology Directions to calculate tariff rates for the services of transfer of electric power over the joint national (all-Russia) power-supply network endorsed by the Federal Service of Tariff Rates.

The Methodology Directions are used to calculate tariff rates specified by the Federal Service of Tariff Rates of Russia for the services of transfer of electric power rendered by the organisation rendering services of transfer of electric power over the joint national (all-Russia) power-supply network using objects of power-supply facilities forming part of the joint national (all-Russia) power-supply network and owned by it on the proprietary basis or using objects of power supply facilities forming part of the joint national (all-Russia) power-supply network and owned by other parties.

The mentioned tariff rates are specified for the subjects of the wholesale market, as well as for other parties possessing objects of power-supply industry on the proprietary basis or otherwise that are connected technologically to the joint national (all-Russia) power-supply network and used by the organisation to render services of transfer of electric power.

The Methodology Directions specify general rules of calculation of tariff rates for the services of transfer of electric power over the joint national (all-Russia) power-supply network, as well as define the procedure of calculation of expenses and profits included in the necessary gross receipts of the organisation for the maintenance of objects of power supply facilities forming the joint national (all-Russia) power-supply network.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7704.

Direction of the Central Bank of Russia No. 1675-U of March 29, 2006 on the Amendments to the Direction of the Bank of Russia No. 1577-U of May 6, 2005 on the Reservation Requirement When the Residents Make Transfers of Resources on Their Accounts (in Deposits) Opened in the Banks outside the Russian Federation

From May 1, 2006, reduces from 25% to 12.5% the normative of reservation when residents (natural person independent entrepreneurs and legal entities, including the currency exchanges), except for credit organisations, make transfers of resources on their accounts (in deposits) opened in the banks outside the territory of the Russian Federation from their accounts (deposits) in the authorised banks.

The Direction must be published officially in the Herald of the Bank of Russia and is entered into force from May 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7703.

Direction of the Central Bank of Russia No. 1674-U of March 29, 2006 on the Amendments to the Direction of the Bank of Russia No. 1465-U of June 29, 2004 on the Reservation Requirement When Transferring Monetary Resources on the Special Bank Accounts and When Writing off of Monetary Resources from the Special Bank Accounts

From May 1, 2006, reduces two times the normatives of reservation of resources introduced by the Bank of Russia for the cases of currency operations pertaining to the outgoing and incoming flow of capital.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7702.

Order of the Ministry of Finance of the Russian Federation No. 48n of March 23, 2006 on the Endorsement of the Form of the Tax Estimate for Advance Payments for the Transportation Tax and Its Filling Recommendations

Endorses a new form of the tax estimate for advance payments for the transportation tax (KND form 1152027) and its filling recommendations. The estimate shall be submitted by taxpayers during the tax period no later than the last of the month following the expired reported period. The estimate is submitted to the tax bodies where the taxpayers are registered at the place of location of transport vehicles.

The Order shall apply beginning with the estimates of advance payments for the transport tax for the I quarter of 2006.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7699.

Order of the Ministry of Agriculture of the Russian Federation No. 8 of January 25, 2006 on the Endorsement of the Method of Determination of the Planned Annual Volumes of Subsidies to the Subjects of the Russian Federation to Reimburse in 2006 Part of Expenses to Pay the Interest under Investment Credits Obtained by Agricultural Producers, Organisations of the Agroindustrial Complex of All Proprietary Forms and Peasant (Farmers') Enterprises in Russian Credit Organisations for up to 8 Years

The method of determination of the volumes of subsidies to cover the interest for the 8 year-long investment credits obtained by agricultural producers, organisations of the agroindustrial complex and peasant (farmers') enterprises in Russian credit organisations is endorsed in compliance with the schedule of implementation of the priority national project "Development of the Agroindustrial Complex".

The method shall apply in the determination of the planned annual volumes of subsidies to the subjects of the Russian Federation to reimburse part of expenses to pay the interest under investment credits obtained in 2006 in Russian credit organisations for development of animal breeding, in particular, construction, reconstruction and modernisation of animal breeding complexes (farms).

The volume of subsidies for the subject of the Russian Federation is determined proceeding from the volume of subsides for each object included by the Ministry of Agriculture of Russia at the presentation of the subject of the Russian Federation in the list of objects due for subsidising at the expense of the federal budget. Selection of such objects is vested in the expert group on the basis of criteria specified in the method, the priority directions being the objects of milk and meet animal breeding and swine breeding.

Information of the list of selected objects is used to determine the planned annual volumes of subsidies conveyed to the subjects of the Russian Federation according to established procedure. The Ministry of Agriculture of Russia is empowered with authority to redistribute on the quarterly basis allocated volumes by the subjects of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7698.

Order of the Ministry of Agriculture of the Russian Federation No. 94 of March 29, 2006 on the Endorsement of the Procedure of Granting Subsidies in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation for the State Support of Individual Sectors of Agricultural Production

Regulates the granting of subsidies in 2006 from the federal budget to the budgets of the subjects of the Russian Federation for the state support of individual sectors of agricultural production. Specifies the amounts (rates) of subsidies for the appropriate types of expenses for the year 2006.

The subsidies from the federal budget transferred to the budgets of the subjects of the Russian Federation shall be granted to legal entities of any organisational and legal form, as well as to peasant (farmers') enterprises. The subsidies shall be granted to support pedigree animal breeding, support elite seed production, production of flax and hemp, support of delivery of seeds to northern and mountainous regions of the country, support of perennial plantations.

Recipients of subsidies shall submit on the quarterly basis to the body designated by the body of executive power of the subject of the Russian Federation to interact with the Ministry of Agriculture of Russia estimate certificates on the due subsidies, as well as the copies of documents certified according to established procedure serving as grounds to get the subsides. The Ministry of Agriculture of Russia shall determine the actual volume of subsidies on the quarterly basis on the basis of summary estimate certificates of the due subsidies presented by the subjects of the Russian Federation. The granting of subsidies to recipients shall be arranged through the authorised body of executive power of the subject of the Russian Federation.

Registered in the Ministry of Justice of the Russian Federation on April 17, 2006. Reg. No. 7697.

Letter of the Federal Tax Service No. ShT-6-03/417@ of April 19, 2006 on the Procedure of Drawing up of the Certificate of Payables and Receivables Determined in Accordance with Item 1 of Article 2 of the Federal Law No. 119-FZ of July 22, 2005

When VAT payers draw up the certificate of creditor indebtness one should take into account that if the buyer taxpayers fail to receive until December 31, 2005 inclusive invoices for commodities (works, services) accepted for registration until January 1, 2006 but not paid until this date, including the fixed assets non-material assets, proprietary rights, it is recommended to register such invoices as soon as they are received in the form of appendices to the certificate and send the given appendices to the tax body simultaneously with submission of the tax declaration for the tax period when the mentioned invoices were received. The taxpayers having defined earlier the moment of determination of the taxable base as the day of dispatching that apply tax exemptions may present for exemption VAT amounts for commodities (works, services) accepted for registration until January 1, 2006 but not covered until this date indicated in invoices received in the first six months of 2006 in equal portions during the tax periods until the end of the first six months of 2006, i.e. until July 1, 2006.

For the contracts concluded in foreign currencies (conditional monetary units) where the payment for commodities (works, services), proprietary rights is made in roubles in the amount equivalent to the amount of foreign currency (or conditional monetary units), Columns 4 and 5 of the certificate of receivables (payables) are used to enter amounts of indebtness accrued according to accounting information. When the mentioned receivables (payables) are redeemed by taxpayers having defined earlier the moment of determination of the taxable base as the day of payment, the taxable base for such taxpayers is determined taking into account the changes increasing or reducing the taxable base as of the date of redemption of the indebtness, with tax exemptions applied proceeding from amounts of actual payment in the presence of appropriate invoices.

Federal Law No. 56-FZ of April 20, 2006 on the Ratification of the Convention of the Council of Europe on Prevention of Terrorism

Ratifies the Convention of the Council of Europe on prevention of terrorism of May 16, 2005, the goal being inspiring efforts of states to prevent terrorism through measures adopted on the national level and in the framework of international cooperation. To provide for the implementation of the goal, the Convention, in particular, specifies the duties of the participating states to prevent terrorism and introduce criminal responsibility for persons backing terrorists or directing their activities.

The main new feature of the Convention is attaching criminal status to public instigation of terrorist crimes, recruiting and training persons for terrorist crimes. Measures are envisaged to exclude access to public tribune, mass media and the Internet for terrorists and their sponsors. Russian legislation does not have a similar legal norm.

The ratification is accompanied by the declaration of the Russian Federation stating that it has legal force for actions recognised as criminal according to Articles 5-7 and 9 of the Convention in cases envisaged in Items 1 and 2 of Article 14 of the Convention. There is also a declaration of inadmissibility to abuse the provisions of the Convention permitting to refuse extradition and legal aid.

Federal Law No. 55-FZ of April 20, 2006 on the Amendments to Article 33 of the Law of the Russian Federation on the State Border of the Russian Federation and to Article 2 of the Federal Law on the Federal Messenger Service

In pursuance of the changes in the organisation and territorial structure of internal troops pertaining to the reorganisation of districts of internal troops into operative territorial units of internal troops, appropriate changes are introduced in the Law of the Russian Federation No. 4730-I of April 1, 1993 on the state border of the Russian Federation and the Federal Law No. 67-FZ of December 17, 1994 on the Federal Messenger Service.

Federal Law No. 54-FZ of March 31, 2006 on the Amendment to Article 6 of the Federal Law on the Particulars of Functioning of Electric Power Industry in the Transient Period and on Amendments to Some of the Legislative Acts of the Russian Federation and Invalidation of Some of the Legislation Acts of the Russian Federation Pursuant to Adoption of the Federal Law on Electric Power Industry

The amendments permit to combine activities of transfer of electric power and operative dispatcher control in electric power industry with activities of production and purchase-and-sale of electric power for economic subjects engaged in the given types of activities using objects of electric facilities owned by them and directly interconnected physically and/or connected to power accepting devices owned by these subjects primarily for own production needs.

The Law permits to provide reliable power supplies to major industrial consumers possessing generation units and objects of electric facilities intended for organisation of supplies of various types of power resources (including electric power).

The Law introduces a procedure vesting control over observation by economic subjects of the prohibition to combine activities of transfer of electric power and operative dispatcher control with activities of production and purchase-and-sale of electric power in the federal body of executive power authorised by the Government of the Russian Federation.

Decision of the State Duma of the Federal Assembly of the Russian Federation No. 3043-IV GD of April 19, 2006 on the Amnesty Dedicated to the 100th Anniversary of Institution of the State Duma in Russia

In commemoration of the 100th anniversary of the institution of the State Duma in Russia, the State Duma adopted the Decision to release from criminal punishments individual categories of persons.

The amnesty applies, in particular, to persons convicted for crimes committed under 18 years of age, as well as pregnant women and women with underage children convicted for medium-degree crimes who did not serve the term earlier in corrective institutions, women older than 55 and men older than 60 years of age. Also released from punishment are those convicted for punishments other than imprisonment and women with delayed punishment.

The cases are terminated for medium-degree crimes committed before the day of entry into force of the amnesty, for suspects and accused of crimes committed before coming of age, women with underage children, pregnant women, women older than 55 years of age and men older than 60 years of age.

The Decision does not apply to convicts violating the order of imprisonment, persons convicted for new premeditated crimes committed in imprisonment, persons committed specially hazardous reported crimes, as well as the persons convicted for premeditated murder, robbery, brigandage, terrorism, extremism, capture of hostages and other heavy and specially heavy crimes.

The Decision is entered into force from the day of its official publication and must be executed within six months.

Decision of the State Duma of the Federal Assembly No. 3046-IV GD of April 19, 2006 on the Procedure of Application of the Decision of the State Duma of the Federal Assembly of the Russian Federation on the Amnesty Dedicated to the 100th Anniversary of Institution of the State Duma in Russia

The State Duma defines the procedure of release of individual categories of persons from the places of imprisonment and procedure of termination of criminal cases for the given persons because of the amnesty dedicated to the 100th anniversary of institution of the State Duma.

The Decision specifies that the amnesty applies to persons having committed crimes before the entry of the amnesty into force and convicts serving the term on the territory of the Russian Federation. The amnesty applies to a restricted category of citizens, including: underage; grownups having committed crimes before 18 years of age; pregnant women and women with underage children; women older than 55 years of age and men older than 60 years of age. The Decision refines the procedure of qualifying the convicts, suspects and the accused in the mentioned categories.

The amnesty may not apply to persons convicted for premeditated murder, robbery, brigandage, terrorism, capture of hostages and other heavy and specially heavy crimes, as well as to certain persons being repeated violators of the imprisonment regime and persons having committed crimes in the places of imprisonment.

Decision on the amnesty for each particular person is taken individually. In the absence of necessary information on this person, the issue of application of the act of amnesty is postponed until additional documents are received.

The project distributes the duties of implementation of the amnesty vested in: corrective institutions and preliminary investigation isolation wards - for detained convicts where the sentence has entered in legal force; bodies of preliminary investigation - for suspects and the accused whose cases are processed by these bodies; the courts; criminal execution inspections - for the persons engaged in obligatory works, corrective labour, deprived of the right to occupy certain positions or engage in certain activities.

The Decision defines the particulars of application of the amnesty to individual groups of convicts, accused and suspects.

Implementation of the amnesty is expected to take 6 months.

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

Decision of the Government of the Russian Federation No. 212 of April 15, 2006 on the Measures to Implement Individual Provisions of the Federal Laws Regulating Activities of Non-Commercial Organisations

Pursuant to introduction of changes to the Federal Law on public associations and to the Federal Law on non-commercial organisations, the Government of the Russian Federation endorses: forms of documents necessary for the state registration of a non-commercial organisation; list and forms of documents necessary for the entry of changes in the information on the non-commercial organisation other than constituent documents; forms of documents containing a report of activities of the non-commercial organisation, information on the personal composition of its leading bodies, as well as the documents containing information on the spending of monetary resources and use of other property, including those received form international and foreign organisations, foreign citizens and stateless persons; forms of documents containing information on the volume of monetary resources and other property received by the public association from international and foreign organisations, foreign citizens and stateless persons, goal s of their spending and use, as well as of their actual spending or use; forms of documents containing information on the volume of monetary resources and other property received by the structural division of a foreign non-commercial non-governmental organisation, their distribution, goals of spending or use, actual spending or use, spending of the mentioned monetary resources provided to natural persons and legal entities and use of other property provided to them, as well as on the programs expected for implementation on the territory of the Russian Federation.

The Decision defines which documents and within what time limits must be submitted on the annual basis by the non-commercial organisation, public association and structural division of a foreign non-commercial non-governmental organisation to the bodies in charge of registration to control their activities and introduce necessary changes in the registration information.

The Decision endorses the rules of transfer of information on non-commercial organisations that have been registered before the entry into force of the Federal Law No. 18-FZ of January 10, 2006 on the amendments to some of the legislative acts of the Russian Federation. The Federal Tax Service of Russia and the Federal Registration Service are ordered to provide for the transfer and acceptance of registration information on the mentioned non-commercial organisations before January 1, 2008.

In view of the inclusion in the Federal Law on non-commercial organisations of provisions on the procedure of endorsement of the forms of documents necessary for the state registration of public associations, political parties, religious organisations subject to the special procedure of registration, appropriate changes are introduced also in the Decision of the Government of the Russian Federation No. 439 of June 19, 2002 on the endorsement of the forms and requirements to the drawing up of documents used for the state registration of legal entities, as well as natural persons as independent entrepreneurs.

Also invalidated is the Decision of the Government of the Russian Federation No. 442 of June 19, 2002 on the procedure of interaction of the federal body of justice and the federal body of executive power in charge of the state registration of legal entities.

Decision of the Government of the Russian Federation No. 229 of April 21, 2006 on the Procedure of Management of Resources of the Stabilisation Fund of the Russian Federation

Introduces a new procedure of management of resources of the Stabilisation Fund of the Russian Federation envisaging two methods: purchase of foreign currencies (US dollar, euro, British pound sterling) and their placing on the accounts in the Bank of Russia; purchase of liabilities of foreign states.

For the use of monetary resources on the accounts of the Stabilisation Fund, the Bank of Russia will pay interest specified in the bank account contract. This is not envisaged in the rules of management of the Stabilisation Fund available at the moment and endorsed by the Decision of the Government of the Russian Federation No. 508 of September 30, 2004. According to these rules, the management of resources of the Stabilisation Fund is carried out through transactions committed by the Bank of Russia at the international financial market with foreign currencies and liabilities included in the investment portfolio formed at the Order of the Ministry of Finance of Russia.

The Decision refines the requirements to liabilities of foreign states to place the resources of the Stabilisation Fund. The list of foreign states whose liabilities may be used to place the fund's resources has not changed. Securities of the following governments may be purchased: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal, Spain, Great Britain and the USA.

Invalidates the Decision of the Government of the Russian Federation No. 508 of September 30, 2004 on the procedure of management of resources of the Stabilisation Fund of the Russian Federation.

Decision of the Government of the Russian Federation No. 226 of April 20, 2006 on the Endorsement of the Rates of Import Customs Duties for Certain Types of Glasses

Introduces on the permanent basis the rates of import customs duties for certain types of glasses, the cost being determined on the franco border terms of the country of import. The rate of the import customs duty for glasses with the price not greater than USD 2 a piece makes EUR 0.6, with the price greater than USD 2 - 5% of the customs cost. Earlier, these rates were endorsed by the Decision of the Government of the Russian Federation No. 305 of May 18, 2005 on the amendments to the Customs Tariff of the Russian Federation for certain types of glasses for 9 months.

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

Decision of the Government of the Russian Federation No. 221 of April 17, 2006 on the Endorsement of the Rules of Granting Subsidies from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Reimburse Part of Expenses to Pay the Interest under Credits Obtained in Russian Credit Organisations to Provide Communal Infrastructure for the Land Plots Allocated for Housing Construction

Specifies the terms and procedure of granting subsidies from the federal budget to the budgets of the subjects of the Russian Federation being participants of the subprogram "Providing Communal Infrastructure for the Land Plots for Housing Construction" of the federal targeted program "Housing" for the years 2002-2010. The subsidies are granted to reimburse part of expenses to pay the interest under the credits obtained by the bodies of local government, organisations of the communal complex or construction parities to implement investment projects to provide communal infrastructure for the land plots for housing construction.

Reimbursement of the part of expenses to pay the interest shall apply to the credits obtained by borrowers in 2006-2008 for up to three years and in 2009 with the time limit of redemption of the credit no later than December 31, 2010. The reimbursement shall apply to the whole period of the credit proceeding from the maximum reimbursed expenses. In particular, for credits handed out in 2006, the budget may reimburse up to 80% of expenses to pay the interest.

To get the resources to reimburse the interest, the borrower, after concluding the credit contract with the bank, has to submit application to the body of local government while presenting a copy of the credit contract, excerpt from the loan account of the received credit, schedule of redemption of the credit and the payment of interest under it, as well as an estimate of the amount of resources for the reimbursement of the part of expenses to pay the interest under the credit according to the form endorsed by the Federal Agency for Construction and the Housing and Communal Complex.

Then, 30 calendar days after the payment of the interest under the credit, the following must be submitted: copies of documents confirming the timely execution of current obligations under the credit certified by the bank; excerpt from the loan account confirming the credit received by the borrower; documents confirming the use of the received credit for designated purposes certified by the borrower and the bank; certificate of the tax body of the absence with the organisation of the communal complex or construction party of overdue debts in taxes and other obligatory payments; estimate of the amount of resources to reimburse part of expenses to pay the interest.

Decision of the Plenum of the Supreme Court of the Russian Federation No. 8 of April 20, 2006 on the Application of the Legislation by the Courts When Processing the Cases of Adoption of Children

Pursuant to the entry into force from February 1, 2003 of the Code of Civil Procedures of the Russian Federation, as well as introduction of changes to the family legislations, the Supreme Court of the Russian Federation provides explanations on the most complicated issues emerging with the courts when processing the cases of adoption.

Taking into account the specific nature of the cases of this category, the courts, when adopting appropriate declaration, must check its compliance not only with Article 131 of the Code of Civil Procedures of the Russian Federation, but also with the requirements of Article 270 of the Code of Civil Procedures of the Russian Federation. Such declaration is exempted from the state duty, since according to the tax legislation, adoptive parents are exempted from it in cases of the given category.

As defined in the Code of Civil Procedures of the Russian Federation, the child having reached fourteen years of age whose case of adoption is processed must participate in the court hearings on the obligatory basis. However, if, because of the health condition, as well as if before the submission of the application of adoption, the child lived in the family of the adoptive parent and considers him his parent, such hearing is permitted without his participation. The health condition of the adopted child must be confirmed with the medical statement of the expert medical commission of the public health management body of the subject of the Russian Federation, rather than the certificate of the medical institution or a doctor.

The parent's consent for adoption given in court must be recorded in the protocol of the court session and signed personally, as well as recorded in the decision. It is necessary to take into account that proceeding from the parents' priority rights for the bringing up of the child, any of them may revoke, before the court ruling, his earlier consent for adoption regardless of the motives behind it. Meanwhile, refusal of the trustee, adoptive parents, in contrast to the parents' refusal, may not prevent taking a positive decision of adoption by the court, if this is in the interests of the child.

Adoption of the child being a citizen of the Russian Federation by foreign citizens is permitted only if there is no opportunity to hand him over to a family of citizens of the Russian Federation.

Besides, the Family Code of the Russian Federation, in contrast to the Matrimonial Code of the RSFSR, does not envisage any grounds to invalidate the adoption. Therefore, an adoption with violations after the entry into force of the Family Code of the Russian Federation but before the entry into force of the procedure of adoption in court (i.e. from March 1 through September 26, 1996) may be recognised invalid by the court if only it is in the interests of the child. If the violations were made in the court adoption, they may serve as grounds to revoke the court ruling of adoption and refuse to satisfy the application of adoption, but not to invalidate the adoption.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 14231/05 of March 14, 2006

The essence of the dispute is whether the taxpayer expenses to buy out the land where the privatised enterprise is located are taken into account in the estimate of the profit tax.

As specified by the Presidium of the Higher Arbitration Court of the Russian Federation, compliance of taxpayer expenses pertaining to the purchase of land plots with criteria specified in Article 252 of the Tax Code of the Russian Federation may not serve as the only grounds for their inclusion in expenses taken into account in the calculation of the profit tax without comparing the suffered expenses with other norms of Chapter 25 of the Tax Code of the Russian Federation.

For objects of fixed assets, inclusion of suffered expenses of their purchase in expenses pertaining to production and sale is envisaged only through amortisation. Since land is not included in objects subject to amortisation, its cost is not included in the products made by the organisation. Therefore, the absence in Chapter 25 of the Tax Code of the Russian Federation of the norms of inclusion of the cost of purchase of land plots in expenses by accruing amortisation does not permit the taxpayer to reduce the taxable base for the profit tax by appropriate amounts.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 106 of March 14, 2006

The Presidium of the Higher Arbitration Court of the Russian Federation summarised the practice of examination of disputes pertaining to collection of the uniform social tax.

The subject matter of the recommendations are disputes pertaining to collection of the uniform social tax for compensation payments accrued with the employee in compliance with the Labour Code of the Russian Federation; payments made by the employer for employee studies; daily allowances and other.

The payments made in pursuance of Item 2 of Article 64 of the Federal Law on joint-stock companies in favour of the members of the board of directors of the joint-stock company, i.e. the payments pertaining to execution of their managerial functions, form object of taxation for the uniform social tax. When processing the cases of correctness of determination of the taxable base for the uniform social tax, it is necessary to keep in mind that Item 3 of Article 236 of the Tax Code of the Russian Federation does not permit the taxpayer to choose the tax (uniform social tax or the profit tax) to reduce the taxable base by amounts of appropriate payments.

Legislation of the Russian Federation does not specify responsibility for the failure to submit or untimely submission of the declaration for insurance contributions for obligatory pension insurance. This is because the responsibility envisaged in Item 3 of Article 37 of the Law on pension insurance is specified for the illegal failure to report information that must be reported by this person to the Pension Fund of the Russian Federation according to this Law. Meanwhile, the declaration for insurance contributions in compliance with Item 6 of Article 24 of the Law on pension insurance is submitted to the tax body rather than the body of the Pension Fund of the Russian Federation.

Decision of the Government of the Russian Federation No. 233 of April 21, 2006 on the Requirements to the Amount of Own Monetary Resources of the Construction Party, Procedure of Calculation of the Amount of These Resources, As Well As the Normatives of Assessment of Financial Stability of Activities of the Construction Party

Assessment of the financial stability of activities of the construction party is made using three normatives: normative of security of obligations, normative of use of resources for designated purposes and the normative of absence of losses. A general procedure of calculation of these normatives is specified.

The minimum amount of own monetary resources of the construction party attracting monetary resources of participants of shared construction must make 7% of resources attracted on the basis of contracts of participation in the shared construction.

Calculation of the amount of own monetary resources and the normatives of assessment of financial stability of the construction party is made by the construction party itself according to the Instruction endorsed by the Federal Service for Financial Markets of Russia in coordination with the Ministry of Finance of Russia. Assessment of financial stability of activities of the construction party according to the normative of absence of losses shall be made on the annual basis, for other normative - on the quarterly basis. Calculation of the amount of own monetary resources of the construction party shall be made also on the quarterly basis.

The construction party bears responsibility for the failure to observe the requirements to the amount of own monetary resources, as well as specified normatives of assessment of financial stability of its activities. In particular, activities of the construction party attracting monetary resources of participants of shared construction may be suspended if the amount of own resources of the construction party is lower than the specified minimum values.

The mentioned normatives and the minimum amount of own monetary resources are entered into force from January 1, 2007.

Direction of the Central Bank of Russia No. 1671-U of March 20, 2006 on the Amendments to the Regulation of the Bank of Russia No. 254-P of March 26, 2004 on the Procedure of Forming Reserves for Possible Losses by Credit Organisations for Loans, Debts in Loans and Similar Debts

Increases five times the amount of loans recognised insignificant for the purposes of the Regulation of the Bank of Russia No. 254-P of March 26, 2004 where credit organisations might form a reserve for the portfolio of similar loans. The signs of insignificance of the amounts of loans are still determined by the credit organisation independently within the limits of up to 0.5% (earlier, up to 0.1%) of the amount of own resources (capital).

Category I security includes a deposit (contribution) placed in the creditor credit organisation of the legal entity that has unfulfilled monetary obligations to the credit organisation or obligations having emerged (that may emerge) as a result of execution by the credit organisation of assumed conditional obligation of credit nature, as well as a deposit (contribution) placed in the creditor credit organisation of a legal entity that has obligations to the credit organisation under a trusteeship contract or because of the bank guarantee securing an appropriate execution of the main obligations while fulfilling simultaneously a number of conditions.

The Direction is entered into force from June 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 20, 2006. Reg. No. 7728.

Direction of the Central Bank of Russia No. 1669-U of March 10, 2006 on the Invalidation of Individual Normative Acts of the Bank of Russia

Pursuant to the adoption of the Instruction of the Bank of Russia No. 128-I of March 10, 2006 on the rules of issue and registration of securities by credit organisations on the territory of the Russian Federation, invalidates the Instruction of the Bank of Russia of the same name No. 102-I of July 22, 2002.

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 April 20, 2006. Reg. No. 7726.

Order of the Ministry of Justice of the Russian Federation and the Ministry of Education and Science of the Russian Federation No. 61/70 of March 27, 2006 on the Endorsement of the Regulation on the Organisation of Work to Provide the Main General and the Secondary (Full) General Education to Persons Serving the Term in the Form of Imprisonment in Corrective Colonies and Prisons of the Criminal Execution System

The right of convicts to get education is guaranteed by creation of evening (shift) institutions of general education (evening (shift) schools of general education, advice points) in corrective colonies and prisons of the criminal execution system. The schools are created, reorganised and liquidated by the bodies of executive power of the subjects of the Russian Federation in coordination with the Ministry of Justice of Russia.

The study is arranged on the basis of contracts concluded between schools and institutions of the criminal execution system. The institution shall keep records of convicts that must undergo studies on the obligatory basis, as well as those wishing to upgrade their educational level; provide for conditions for the educational process; allocate servicing personnel for the schools; arrange services for the students during the days of study, purchase of foodstuffs and first-necessity items for them; help school employees to muster the documents regulating activities of the institution; control observation by school employees of regime requirements available in the institution; ensure security of school employees when they are present on the territory of the institution.

The school, in turn, shall carry out together with the administration of the institution necessary work to ensure the rights of convicts for the main general and secondary (full) general education; organise educational process according to educational schedules and programs taking into account the particulars of the regime of detention of students, introduce modern pedagogical technologies; render aid to students - to prepare for the lessons, master methods of self-education; to the administration of the institution - in education of convicts, their social adaptation; petition to the administration of the institution to provide incentives to students for successful studies and discipline; make proposals to the administration of the institution to provide conditions for students; provide for observation by the teaching staff of regime requirements available in the institution.

Obligatory study pertains to convicts under 30 years of age that do not have the main general education. Convicts older than 30 and group I and II invalids may get the main general and secondary (full) general education if they desire. Those convicted for life-time imprisonment do not participate. Conditions for self-education may be created for them if these do not contradict the terms of punishment.

The procedure of admission of convicts to school, as well as individual issues of study and state certification are defined in the Regulation.

Registered in the Ministry of Justice of the Russian Federation on April 19, 2006. Reg. No. 7724.

Instruction of the Central Bank of Russia No. 128-I of March 10, 2006 on the Rules of Issue and Registration of Securities by Credit Organisations on the Territory of the Russian Federation

Specifies the new rules of issue and state registration of stocks, bonds and other emission securities by credit organisations on the territory of the Russian Federation.

As compared to the earlier available rules specified in Instruction of the Bank of Russia No. 102-I of July 22, 2002, the new Instruction has provisions reflecting the changes of the procedure of issue and registration of securities specified in the federal legislation. In particular, conditions for public placing of securities are created (IPO), provisions are introduced to pay the state duty for the actions pertaining to the state registration of issues of emission securities. The requirement of obligatory signing of the securities prospectus by the financial advisor is abandoned, and for residents, opportunities of payment for securities in foreign currencies are excluded (except for the payment for the stocks of the issuer credit organisation being an authorised bank by another authorised bank in its own name and at own expense).

The Instruction includes provisions defining the procedure of issue and registration of mortgage securities by issuer credit organisations according to the requirements of the Federal Law on mortgage securities.

Procedure of issue of securities and registration of issues of securities is made uniform in compliance with the normative acts of the Federal Service for Financial Markets.

The minimum volume of issues of securities subject to registration in the Department of Licensing of Activities and Financial Rehabilitation of Credit Organisations is increased to Rbl 1 bn from Rbl 700 mn for the issue of stocks and from Rbl 200 mn for the issue of bonds.

The Instruction 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 April 13, 2006. Reg. No. 7687.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 107 of April 11, 2006 on Some Issues of Application of Provisions of Article 28 of the Federal Law on Obligatory Pension Insurance in the Russian Federation

The Presidium of the Higher Arbitration Court of the Russian Federation explains the procedure of collection from independent entrepreneurs of insurance contributions for obligatory pension insurance. Thus, when collecting arrears through court, it is necessary to take into account the circumstances of exclusive nature that did not permit the entrepreneur to apply in due time for the state registration of termination of entrepreneurial activities. In the presence of such circumstances, arrears for the period when entrepreneurial activities were actually not available may be omitted.

Independent entrepreneurs born in 1966 and older must transfer as insurance contributions only part of the fixed payment, which is allocated to finance the insured part of the labour pension. Insurance contributions in the form of a fixed payment are not paid if entrepreneurial activities were not available in the periods that are not included in the insured length of service according to the Federal Law on labour pensions in the Russian Federation.

Decision of the Government of the Russian Federation No. 237 of April 25, 2006 on the Governmental Commission for Traffic Safety

The Governmental Commission shall be a coordinating body formed to ensure coordinated actions of the federal bodies of executive power in the sphere of traffic safety. Decisions of the Commission adopted in its sphere of reference are obligatory for the federal bodies of executive power represented in it.

The Commission shall assess the situation in the sphere of traffic safety, arrange investigation of the reasons of highway accidents, maintain interaction with mass media in elucidation of issues of traffic safety and provide for other functions.

Organisational and technical support of activities of the Commission is vested in the Ministry of Internal Affairs of Russia.

Regulation of the Central Bank of Russia No. 286-P of April 18, 2006 on the Fixing and Publication by the Central Bank of the Russian Federation of Official Rates of Foreign Currencies to the Rouble

Defines a new procedure of fixing and publication by the Bank of Russia of official rates of foreign currencies to the rouble. In contrast to the earlier available procedure, the provision is omitted that specified the duty of the Bank of Russia to fix the official rates for the main currencies used in the Russian Federation in foreign trade payments on each working day no later than 13 hours Moscow time.

The official rate of the US dollar to the rouble is calculated and fixed by the Bank of Russia only on the basis of quotations of the interbank internal currency market for USD/rouble operations. Earlier, the mentioned rate was fixed on the basis of quotations of the current working day of the exchange and non-exchange segments of the internal currency market.

The new rule implies that if the official rate of the foreign currency to the rouble is equal to or greater than Rbl 100 per unit of foreign currency, the digital value of the official rate of the foreign currency to the rouble may contain more than 6 significant digits, with four of them being decimals.

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

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-1524/02 of April 21, 2006 on the Prices for Design and Survey Works in Construction for the II Quarter of 2006

The indices of change of the cost of design works in construction for the II quarter of 2006 are fixed in the amount of 2.08 to the level of basic prices as of January 1, 2001 and 16.04 to the level of basic prices as of January 1, 1995.

The indices of change of the cost of survey works in construction for the II quarter of 2006 are fixed in the amount of 2.14 to the level of basic prices as of January 1, 2001 and 24.33 to the basic prices calculated as of January 1, 1991.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-1523/02 of April 21, 2006 on the Indices of Change of the Estimated Cost for the II Quarter of 2006

Provides the indices of change of the estimated cost for the whole of construction and installation works and by items of expenses for the II quarter of 2006 by the subjects of the Russian Federation for the objects financed while attracting resources of the federal budget.

The indices have been worked out on the basis of reporting information of the regional bodies of price forming in construction for the I quarter of 2006 taking into account the forecasted inflation for the II quarter of 2006. The indices for construction and installation works are determined taking into account overhead expenses and the profit estimate. Overhead expenses are assumed with a reducing coefficient of 0.94 taking account of the reduction from January 1, 2005 of the rate of the uniform social tax.

The Letter defines general issues of application of indices. Thus, in the estimate of the current cost of construction, provided indices should be used in the estimate cost of construction and installation works in the basic level determined without VAT. VAT is accrued for the resulting summary estimate.

When offsetting payments for the fulfilled works, it is recommended to use differentiated indices by the types of works worked out by the regional bodies of price forming in construction and endorsed by administrations of the subjects of the Russian Federation.

Regulation of the Central Bank of Russia No. 283-P of March 20, 2006 on the Procedure of Forming Reserves for Possible Losses by Credit Organisations

To determine the amount of the reserve, estimate values are grouped into five categories of quality (earlier, five categories of risks), amounts of estimated reserves determined in percent of the amount of elements of the estimate base have not changed. Estimate values are classified on the basis of professional judgement.

In cases of change of residues on appropriate accounts in foreign currencies because of their reassessment, regulation of the amount of the earlier formed reserve is made at least once a month as of the reporting date.

To exclude duplication of reporting forms submitted to the Bank of Russia, information on the reserves according to Form 0409155 "Information on the Reserves for Possible Losses" shall be submitted according to the form specified in the Direction of the Bank of Russia No. 1376-U of January 16, 2004. The Regulation also excludes the section pertaining to accounting work for the reserves for possible losses (this procedure is defined in the Regulation of the Bank of Russia No. 205-P of December 5, 2002).

The Regulation introduces a procedure of assessment of the credit risk for the portfolio of similar claims (conditional obligations of credit nature). Also defines the rules of writing off of debts desperate for collection.

The Regulation is entered into force from June 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 25, 2006. Reg. No. 7741.

Direction of the Central Bank of Russia No. 1672-U of March 20, 2006 on the Amendments to the Instruction of the Bank of Russia No. 110-I of January 16, 2004 on Obligatory Normatives of Banks

Pursuant to introduction of the new procedure of forming of reserves for possible losses by credit organisations endorsed by the Regulation of the Bank of Russia No. 283-P of March 20, 2006, appropriate changes are introduced in the set of notions of the Instruction of the Bank of Russia No. 110-I of January 16, 2004.

The Direction is entered into force from June 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 25, 2006. Reg. No. 7740.

Order of the Ministry of Finance of the Russian Federation No. 55n of April 7, 2006 on the Endorsement of the Form of the Tax Declaration for the Profit Tax from Organisations in Product-Sharing Agreements and Its Filling Procedure

Endorses the form of the tax declaration for the profit tax from organisations in product-sharing agreements (KND form 1151082) and its filling procedure. Declarations drawn up to the endorsed form shall be submitted beginning with the first reporting period of 2006.

Registered in the Ministry of Justice of the Russian Federation on April 25, 2006. Reg. No. 7733.

Order of the Federal Service for Tariff Rates No. 60-e/5 of March 21, 2006 on the Endorsement of the Procedure of Generation of the Summary Balance Forecast of Production and Supplies of Electric Power in the Framework of the Joint Power Supply System of Russia for the Subjects of the Russian Federation

The main tasks of the summary balance forecast of production and supplies of electric power are: satisfying the demand of consumers of electric power; providing reliable supplies of electric power to consumers; minimisation of expenses for production and supplies of electric and thermal power; the balance of the total cost of electric power supplied to the wholesale market of electric power and sold from it; quality of electric power.

The Order endorses the schedule of flow of documents to endorse the summary balance forecasts of production and supplies of electric power in the framework of the Joint Power Supply System of Russia for the subjects of the Russian Federation. The Federal Service for Tariff Rats shall form according to this schedule the balance forecast of production and supplies of electric power in the framework of the Joint Power Supply System of Russia for the subjects of the Russian Federation.

The basis for the drawing up of balance forecasts of electric power for the Joint Power Supply System of Russia on the whole are balance forecasts of electric power of each of the power supply (power sales) organisations - subjects of the wholesale market of electric power, balance proposals of power stations - subjects of the wholesale market of electric power and balance proposals of the buyers - subjects of the wholesale market of electric power, as well as the network companies pertaining to purchase of eclectic power for compensation of losses, including those from export and import operations.

Registered in the Ministry of Justice of the Russian Federation on April 25, 2006. Reg. No. 7729.

Decision of the Higher Arbitration Court of the Russian Federation No. 10539/04 of March 15, 2006

The applicant demands to invalidate Paragraph 7 of the Letter of the Ministry of Finance of Russia No. 03-02-05/2/35 of June 10, 2004 on the registration of leasing operations in the tax bodies, since this item prevents from proportional reduction of incomes from sale of leasing services by amounts of expenses (investments) of the lessor to purchase the object of leasing accepted by the lessee on the balance.

Earlier, proceedings for this case were terminated because the act challenged by the applicant is not a normative legal act, since it is issued in the form of a letter and is not published officially.

However, the Higher Arbitration Court of the Russian Federation explained that any act of the Ministry of Finance of Russia may be challenged in court, if it entails the right of the tax bodies to present claims to taxpayers.

Decision of the Government of the Russian Federation No. 245 of April 25, 2006 on the Increase of the Salaries for the Occupied Position to Members of Presidiums and Office Personnel of the Presidiums of the Russian Academy of Medical Sciences, Russian Academy of Agricultural Sciences, Russian Academy of Education, Russian Academy of Arts and the Russian Academy of Architecture and Construction Sciences

Salaries for the occupied position to the mentioned persons are increased from January 1, 2006 1.33 times (previously, the salaries were increased in November 2003 1.11 times).

Decision of the Government of the Russian Federation No. 242 of April 25, 2006 on the Amendment to the List of International, Foreign and Russian Awards for Outstanding Achievements in the Sphere of Science and Technology, Education, Culture, Literature and Arts Exempted from Taxation

The list of awards in the sphere science and technology exempted from taxation shall include also the award of the Government of the Russian Federation in the sphere of science and technology for young scientists.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/359 of April 19, 2006 on the Procedure of Determination of the Taxable Base for the Profit Tax from Organisations When Getting Property for Gratuitous Use

For profit taxation purposes, obtaining property for gratuitous use should be regarded as a gratuitous obtaining of proprietary rights. In this case, the granting of property for gratuitous use with the lender taxpayer does not form incomes included in the determination of the taxable base for the profit tax from organisations. Incomes in the form of gratuitously obtained proprietary rights must be included in non-sales incomes of the borrower. The taxpayer getting property for gratuitous use under a contract shall include in non-sales incomes gratuitously obtained right of use of property determined proceeding from market prices for the leasing of similar property.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-04-14/07 of April 19, 2006 on the Issue of Application of the Value Added Tax by Independent Entrepreneurs Having Switched over from the Simplified System of Taxation Using Incomes As Object of Taxation to the Common Regime

When an independent entrepreneur switches over form the simplified system of taxation using incomes as object of taxation to the common taxation regime, VAT amounts for commodities purchased and paid for during the use of the simplified system of taxation and used after the switchover to the common regime of taxation in operations recognised as objects of taxation for the value added tax must be accepted for exemption.

Such conclusion may be drawn up from the provisions of Subitem 1 of Item 2 of Article 171 of the Tax Code of the Russian Federation stating that VAT amounts put forward to the taxpayer at the purchase of commodities are subject to exemptions if these commodities were purchased for operations recognised as object of taxation for the value added tax.