Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 10.05.2006

Message of the President of the Russian Federation to the Federal Assembly of the Russian Federation of May 10, 2006

In his next annual message to the Federal Assembly, the President described approaches to defining the place of Russia in the world division of labour, in modern international relations. The President analysed in detail the demographic issue and development of the Armed Forces.

The task of rouble convertibility put forward since 2003 must be expedited by revocation of remaining restrictions from July 1 of the current year. To make the rouble a more universal means of international payments, it is suggested to arrange on the territory of Russia exchange trade for oil, gas, other commodities with payments made in roubles.

To facilitate introduction of home-made products to international markets, the issue of a more rational participation in international division of labour was raised and the issue of obtaining full benefits from integration in the world economy. To this end, negotiations are continued to join WTO on conditions that would take account of economic interest of Russia.

Having characterised the situation in the demographic sphere as critical, the President suggested a program of stimulation of birth rate, namely, the measures of support of young families, support of women making up their minds to have a child that include an increase of the child care allowance paid out until 1.5 years of age: from Rbl 700 to Rbl 1,500, and up to Rbl 3,000 for the second child on the monthly basis. Introduction of compensation of expenses for child pre-school education up to 70% of the average amount of payment for the pre-school institutions. Increase up to Rbl 2,500 of earnings for adoptive parents. Increase of the cost of birth certificates - in pre-natal centres from Rbl 2,000 to Rbl 3,000, and in the maternity hospital, from Rbl 5,000 to Rbl 7,000. A measure of material support is suggested to women having born a second child - at least Rbl 250,000 with an annual indexing.

The President also emphasised especially the issue of modernisation of the Russian Army, manning compliance with the goal of creation of a professional and mobile army to bring it to 1 million persons. The reduction is expected to occur at the expense of the reduction of the bureaucratic apparatus. Combat units will not be reduced.

It is expected to make the Army a professional one for more than two thirds by 2008, reduce the period of draft service to 12 months. General-purpose forces by 2011 will include 600 units of permanent readiness. Their number will be significantly increased in the fighter plane units, army aviation, air defence forces, communication units, radio electronic reconnaissance and warfare units.

By 2010, it is expected to solve completely the issue of permanent dwelling space for servicemen, and by 2012, the issue of service dwelling space for servicemen.

Federal Law No. 68-FZ of May 9, 2006 on the Honorary Title of the Russian Federation "City of Military Glory"

In commemoration of warriors deceased while defending the Fatherland, introduces an honorary title "City of Military Glory" for the cities of the Russian Federation.

Specifies the general procedure of awarding this title to cities, defines the particulars of the legal status of the cities of military glory.

The title of the "City of Military Glory" is awarded to the cities of the Russian Federation on the territory of which or in the vicinity of which defenders of the Fatherland displayed courage, endurance and mass heroism in bitter fighting. The title, in particular, is awarded to the hero cities of the Russian Federation.

Proposals to award the title of the "City of Military Glory" may be introduced by the bodies of local government, citizens of the Russian Federation and public associations. The terms and procedure of awarding the title shall be defined by the President of the Russian Federation.

Federal Law No. 67-FZ of May 9, 2006 on the Amendments to the Federal Law on the Social Guarantees to the Heroes of Socialist Labour and Full Bearers of the Order of Labour Glory

Extends the list of benefits granted to the Heroes of Socialist Labour and full bearers of the Order of Labour Glory. The mentioned categories of citizens are entitled to choose between the mentioned benefits and the monthly monetary payment in the amount of Rbl 20,000. Part of the benefits is preserved if one chooses the monthly monetary payment. Besides, the given payment is made regardless of the monthly monetary payment assigned under other laws and other normative legal acts of the Russian Federation. The amount of the payment will be indexed similar to the basic part of the labour pension.

The payment may be assigned beginning with January 1 of the year following the year of submission of the appropriate application to the territorial body of the Pension Fund of the Russian Federation. The application for the subsequent calendar year is submitted until October 1 of the current year. The application to assign the payment for the period from July 1 to December 31, 2006 must be submitted until June 15, 2006.

Additional benefits are introduced for the burying and free use of halls of official figures and delegations of airports, air terminals, railway terminals and stations, sea terminals (ports) and river terminals, as well as the benefits to the widows of the Heroes of Socialist Labour and full bearers of the Order of Labour Glory enjoying priority services in medical treatment and prevention institutions, provision of medicines and accommodations.

Public charitable associations (organisations) created by the Heroes of Socialist Labour and full bearers of the Order of Labour Glory are entitled to get rooms at the expense of the federal budget outfitted with telephone communication enjoying exemptions from payment for the operation of the mentioned rooms and communal services.

The Federal Law is entered into force from the day of its official publication except for individual provisions entering into force from July 1, 2006.

Federal Law No. 66-FZ of May 8, 2006 on the Amendments to Articles 15 and 24 of the Federal Law on the Status of Servicemen

According to introduced amendments, the accumulated mortgage system of housing support for servicemen shall apply to servicemen having concluded the first contract for the military service from January 1, 2005. Citizen servicemen having concluded contracts for the military service before January 1, 2005 may become participants of the mortgage system if they wish.

The Law specifies the state guarantees for the housing support for servicemen by providing dwelling space or monetary resources to purchase dwelling space through the accumulate mortgage system.

Federal Law No. 65-FZ of May 8, 2006 on the Amendments to the Code of Administrative Violations of the Russian Federation

The amendments pertain to the time limits and procedure of calling to account for the violation of the legislation of the Russian Federation on export control. In particular, amendments are introduced in Articles 3.5 and 4.5 of the Code of Administrative Violations to increase the period of limitation to sue for administrative responsibility for the violation of the legislation of the Russian Federation on export control from two months to one year, as well as the limiting amounts of administrative fines for the violations in the mentioned sphere. Article 19.4 of the Code of Administrative Violations is extended to include a new part introducing administrative responsibility for the failure to execute legal demands of the official authorised in the sphere of export control.

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