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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 10.04.2006

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.

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