Monitoring of the Federal Legislation dated 30.06.2006

Decision of the Government of the Russian Federation No. 337 of May 30, 2006 on the Amendment to the Decision of the Government of the Russian Federation No. 8 of January 12, 2006

The rules of tenders (auction, contest) for the license for communication services are changed to prolong from 15 to 45 working days the time limit when the organiser of tenders must take the decision to organise the tenders for the license and define the form of the tenders.

Decision of the Government of the Russian Federation No. 336 of May 29, 2006 on the Additional Measures of Support by the Federal Bodies of Executive Power and the Higher Executive Bodies of State Power of the Subjects of the Russian Federation of the Administrative Reform in 2006

The Ministry of Economic Development of Russia is assigned the federal body of executive power in charge of the normative and legal and methodology support of the measures in the framework of the administrative reform. Budget resources are allocated for this purpose to the Ministry. The given resources are provided to only those federal bodies of executive power and higher executive bodies of state power of the subjects of the Russian Federation whose programs, plans of measures and projects of the administrative reform have passed the contest selection. Criteria of selection and its procedure shall be defined by the Ministry of Economic Development of Russia.

Resources to carry out the administrative reform shall be granted at the decision of the Government of the Russian Federation in 2 stages: 60% of resources envisaged for the implementation of the programs, plans and projects after the contest selection and 40% of resources as a result of the selection.

Decision of the Government of the Russian Federation No. 331 of May 29, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 814 of November 12, 2002

In view of the reformation of the bodies of state power, changes the structure of the bodies in charge of the working out and endorsement of the norms of natural losses. The list of commodities and services is refined for each of the ministries where such norms are accepted.

The Ministry of Public Health and Social Development of Russia, Ministry of the Industry and Power Supplies of Russia, Ministry of Regional Development of Russia, Ministry of Agriculture of Russia and the Ministry of Economic Development of Russia are ordered to endorse before January 1, 2007 the norms of natural losses of material and production reserves.

Decision of the Government of the Russian Federation No. 328 of May 29, 2006 on the Endorsement of the Rate of the Import Customs Duty for Natural Latex of Caoutchouc

The rate of the import customs duty for natural latex of caoutchouc, whether or not prevulcanised (code according to the Foreign Trade Commodity Nomenclature of the Russian Federation 4001 10 000 0), is fixed in the amount equal to zero (earlier, 5% of the customs cost).

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

Decision of the Government of the Russian Federation No. 327 of May 29, 2006 on the Endorsement of the Rate of the Import Customs Duty for Terephthalic Acid and Salts Thereof

The rate of the import customs duty for terephthalic acid and salts thereof (code according to the Foreign Trade Commodity Nomenclature of the Russian Federation 2917 36 000 0) is fixed in the amount equal to zero (earlier, 5% of the customs cost).

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

Decision of the Government of the Russian Federation No. 326 of May 29, 2006 on the Endorsement of the Rate of the Import Customs Duty for Industrial Fatty Alcohols

The rate of the import customs duty for industrial fatty alcohols (code according to the Foreign Trade Commodity Nomenclature 3823 70 000 0) is reduced from 15% to 5% of the customs cost.

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

Decision of the Government of the Russian Federation No. 312 of May 27, 2006 on the Certificates of the Points of Transfer across the State Border of the Russian Federation

Endorses 4 forms of certificates of points of transfer across the state border: certificate of the sea (river) point of transfer (sea (river) port open for international traffic and /or calls of foreign vessels), certificate of the air point of transfer (airport (air field) open for international flights), certificates of the railway and highway points of transfer.

Order of the Federal Agency for Construction and the Housing and Communal Complex No. 80 of March 29, 2006 on the Endorsement of the Procedure of Registration, Storage and Destruction of Blank State Housing Certificates Handed out to Citizens Participating in the Subprogram "Fulfilling State Obligations to Provide Dwelling Space to the Categories of Citizens Specified in the Federal Legislation" of the Federal Targeted Program "Housing" for the Years 2002-2010

Defines the rules of registration, storage and destruction of blank state housing certificates in the framework of implementation of subprogram "Fulfilling State Obligations to Provide Dwelling Space to the Categories of Citizens Specified in the Federal Legislation". The housing certificate is a personal certificate certifying the citizen's right for the subsidy (housing subsidy) at the expense of resources of the federal budget for the purchase of dwelling space. The certificate is not a valuable paper. Blank certificates are issued by the Federal Agency for Construction and the Housing and Communal Complex. Conveying the blank certificates to the federal bodies of executive power or the bodies of executive power of the subject of the Russian Federation handing them out is vested in the federal state institution United Directorate under way-bills if they are received by representatives of the bodies of executive power, or according to the register if conveyed through the messenger service.

Registered in the Ministry of Justice of the Russian Federation on May 30, 2006. Reg. No. 7886.

Order of the Ministry of the Industry and Power Supplies of the Russian Federation No. 100 of May 6, 2006 on the Endorsement of the Instruction on the Procedure of Registration and Use of Resources Obtained by the Federal Agency of the Industry from the Sale of Products of Utilisation of Armaments, Military and Special Equipment and Destruction of Chemical Weapons

Obtained monetary resources, after paying the taxes, fees and other obligatory payments and reimbursement of expenses pertaining to utilisation, are transferred to the personal account for operations with resources from entrepreneurial and other profitable activities. The mentioned monetary resources are directed for additional financing of expenses of utilisation of armaments, military and special equipment and destruction of chemical weapons in the framework of the federal targeted program "Industrial Utilisation of Armaments and Military Equipment (Years 2005-2010)" and "Destruction of Stockpiles of Chemical Weapons in the Russian Federation" in excess of the main figures of the state defence order for the appropriate year. Also endorses the forms of the schedule of distribution of monetary resources and the report of their use.

Registered in the Ministry of Justice of the Russian Federation on May 30, 2006. Reg. No. 7884.

Decision of the Government of the Russian Federation No. 330 of May 29, 2006 on the Amendments to Some of the Acts of the Government of the Russian Federation on the Authority of the Federal Body of Executive Power in Charge of the State Regulation of Prices (Tariff Rates)

Amends individual acts of the Government of the Russian Federation pertaining to the sphere of reference of the federal body of executive power in charge of state regulation of prices (tariff rates).

According to the amendments to the Regulation on the Federal Service for Tariff Rates of Russia, the sphere of reference of the Federal Service shall include additionally the authority to endorse:

" rules of application of prices (tariff rates) for the commodities (works, services) of subjects of natural monopolies;
" payment for the technological connection to electric networks included in the joint national (all-Russia) power-supply network;
" limiting minimum and/or maximum levels of tariff rates for thermal power produced by power-supply stations working in combined electric and thermal power-supply regimes;
" tariff rates for the user line provided to user for permanent use regardless of its type;
" tariff rates for the regional telephone connections to the user of a network of fixed telephone communication to transfer voice information, fax messages and data;
" tariff rates (prices) for the services of use of the infrastructure of internal water ways;
" limiting indices of the maximum (minimum) possible change of specified tariff rates for commodities and services of organisations of the communal complex taking into account the mark-ups to tariff rates for commodities and services of organisations of the communal complex on the average for the subjects of the Russian Federation;
" limiting indices of change of the amount of payment for the dwelling space for citizens and the limiting indices of change of the amount of payment for the communal services for citizens by the subjects of the Russian Federation.

The Federal Service for Tariff Rates of Russia shall control, respectively, application of tariff rates and mark-ups of organisations of the communal complex, and, from January 1, 2007, shall provide pre-trial regulation of disputes and differences between the subjects of natural monopolies, consumers of services of natural monopolies and the bodies of executive power of the subjects of the Russian Federation pertaining to the fixing and application of regulated prices (tariff rates) in compliance with the legislation on natural monopolies.

The amendments to the Decision of the Government of the Russian Federation No. 109 of February 26, 2004 on the price forming for electric and thermal power in the Russian Federation changed the time limits for the endorsement by the Federal Service for Tariff Rates of Russia the limiting minimum and/or maximum levels of tariff rates for subsequent year. They must be specified before the introduction of the given draft federal law to the State Duma of the Federal Assembly of the Russian Federation, rather than the moment of adoption of the federal law on the federal budget for the subsequent year in the first reading.

The fixing of the payment for the technological connection to the regional distribution eclectic networks is included in the sphere of reference of the body of executive power of the subject of the Russian Federation in charge of the state regulation of tariff rates.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/429 of May 10, 2006

If the equipment - means of communication received as a contribution in the registered capital - is in compliance with specified requirements as confirmed outside the territory of the Russian Federation by its producer or seller, and there is not need to confirm it in the Russian Federation in compliance with international treaties, expenses of the organisation receiving it for additional certification of the given equipment are not taken into account for profit taxation purposes.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/404 of April 27, 2006

Lists the documents that may be used to confirm car parking expenses. Such documents may include a slip for car parking endorsed by the Letter of the Ministry of Finance of Russia No. 16-38 of February 24, 1994. If the car parking uses cash registers for cash payments, the cash slip may serve as a document of confirmation.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/112 of April 20, 2006

Explains in detail using examples the procedure of determination of the taxable base for the profit tax for the cases of claims rights cession under credits obtained as a result of the claims rights cession.

According to the Ministry of Finance, in cases of claims right cession under the credit, the income is considered to be the difference between the cost of property due to the taxpayer taking into account the interest accrued before the moment of transfer of claims rights under the credit and the cost of sale. The cost of sale must include all bank expenses suffered at the purchase of the claims right, as well as all subsequent expenses suffered by the bank during the period of possession of the claims right, including the interest accrued in this period. Bank expenses taken into account in cases of claims right cession under credit contracts shall include also amounts of accrued, but not received interest from the borrower.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/111 of April 20, 2006

Explains a number of issues pertaining to taxation of incomes of founders of management obtained in the framework of the contract of trust control of property when the property is united in a single property complex - common bank management fund.

Common bank management funds form a property complex consisting of property handed over in trust control by various persons and united as a common property, as well as purchased by the trustee in the course of trust control. Relations emerging in this case are covered by the provisions of the Civil and Tax Codes on activities of simple partnership.

It is emphasised, in particular, that if, as a result of the reporting (tax) period, there is a profit from activities of the common bank management fund, with incomes and expenses determined as a sum total, it is registered with each participant of the common bank management fund in appropriate portion as non-sales incomes and is subject to taxation according to the commonly accepted rate of 24% regardless of the fact that in the framework of the common bank management fund incomes may be obtained in the form of dividends and interest from state securities of the Russian Federation and municipal securities subject to lower rates.

The Letter also specifies the particulars of taxation procedure if the terms of the common bank management fund envisage intermediate payments of incomes (profit) at the end of any period in the amount equal to the surplus of the cost of share, and when such payments are not envisaged.

The trustee in charge of the trust control of securities in the framework of the common bank management fund shall present to the founders only information on the cost (surplus of cost) of the shares.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/120 of April 25, 2006

Explanation on the issue of recognising as desperate for collection for profit taxation purposes the debt under the credit granted to a natural person by the bank says that the debt in loan failing to meet the requirements of Article 266 of the Tax Code (namely, the period of limitation specified in the Civil Code is not over, the act of the state body of the impossibility of collection of the debt or information on the liquidation of the debtor organisation are not available) may not be recognised as desperate for taxation purposes.

Amounts of the debt earlier written off at the expense of the reserve for possible losses in loans, debts in loans and similar debts not recognised as desperate for collection for taxation purposes must be restored in the tax records while increasing the taxable base for the profit tax. The losses from the writing off of the mentioned debt may not be included in non-sales expenses for taxation purposes before the moment when such debt is recognised as desperate for collection.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/1/361 of April 20, 2006

Expenses of advertising in the underground cars are included in expenses of advertising on transport vehicles accepted for profit taxation purposes as other expenses in the amount not greater than 1% of the receipts from sale.

Federal Law No. 76-FZ of June 3, 2006 on the Amendments to the Federal Law on the Special Economic Zones in the Russian Federation

Introduces a new type of special economic zones - tourist and recreational special economic zones with the goal of development and efficient use of tourist resources in the Russian Federation. Defines the particulars of creation, functioning and liquidation of special economic zones of the mentioned type, the terms of entrepreneurial activities on their territory, as well as the mechanisms of state regulation in the given sphere.

In particular, tourist and recreational special economic zones shall be created on one or several parts of the territory of the Russian Federation. They may cover the territory of several municipal formations or include completely the territory of an administrative and territorial formation.

The territory of the tourist and recreational special economic zone may be used for development of the deposits of mineral waters, medicinal muds and other natural recreational resources.

The Government of the Russian Federation is entitled to define the types of activities prohibited in the special economic zone. The Law also envisages opportunities of handing over of a number of functions of the management body of the special economic zones to a joint-stock company with one hundred percent of stocks belonging to the Russian Federation.

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

Water Code of the Russian Federation No. 74-FZ of June 3, 2006

Specifies the legal fundamentals of use and protection of water objects. Envisages preservation in the federal property of all natural water objects (rivers, lakes and so on), as well as of such man-made water objects as water storages and canals. Defines the sphere of reference of the Russian Federation, subjects of the Russian Federation and municipal formations in the sphere of use and protection of water objects. Regulates the issue of transfer of part of the authority to the bodies of executive power of the subjects of the Russian Federation at the expense of subventions from the federal budget.

Besides, the Water Code specifies the procedure of granting of water objects or parts thereof for use under the water use contracts or decisions. Under the contracts, water objects are granted for use at cost, and under decisions - free of charge.

Significant part of the Code is dedicated to issues of management in the sphere of use and protection of water objects. Such management is suggested on the basis of the basin principle. 20 basin districts are defined for this purpose, as well as the river basins, sub-basins and operational water portions. Special attention is paid to the planning of use and protection of water objects that must be implemented in each basin district according to the schemes of complex use and protection of water objects.

Federal Law No. 73-FZ of June 3, 2006 on the Entry into Force of the Water Code of the Russian Federation

According to the Law, the Water Code is entered into force from January 1, 2007. Water use licenses and contracts issued and concluded before January 1, 2007 are preserved until their expiry. Meanwhile, opportunities to redraw the mentioned documents at the desire of water users is envisaged for the water use contracts or decisions envisaged in the Water Code.

The Federal Law is entered into force from the day of its official publication except for Articles 12 and 19 envisaging a special procedure for entry into force.

Federal Law No. 72-FZ of June 3, 2006 on the Invalidation of Part 6 of Article 234 of the Code of Criminal Procedures of the Russian Federation

Part 6 of Article 234 of the Code of Criminal Procedures regulates the procedure of preliminary hearings in the first instance court, request of the defence to summon the witness to prove the alibi of the accused must be satisfied only if it was declared in the course of the preliminary investigation and was repelled by the investigator or prosecutor. The given request may be satisfied also if the availability of such witness becomes known after the end of the preliminary investigation. The Decision of the Constitutional Court of the Russian Federation No. 13-P of June 29, 2004 recognised the given norm as not complying with the Constitution of the Russian Federation.

Thus, decisions on the request of the defence to summon the witness to confirm the alibi of the accused are to be taken according to the common procedure specified for the requests for the summoning of new witnesses declared by the parties in the course of the preparation for the court session, which is in compliance with the principle of competition and equality of sides.

Federal Law No. 71-FZ of June 3, 2006 on the Amendment to Article 155 of the Family Code of the Russian Federation

According to the new wording of Article 155 of the Family Code, adoptive parents shall get monetary resources on the monthly basis for each child according to the procedure and in the amount specified by the laws of the subjects of the Russian Federation. Earlier, the given procedure and amount must have been defined by the Government of the Russian Federation. Thus, the given norm is being brought in compliance with the Federal Law No. 184-FZ of October 6, 1999 on the general principles of organisation of legislative (representative) and executive bodies of state power of the subjects of the Russian Federation stating that social support of orphan children, children having found themselves without parental support (except for the children studying in the federal educational institutions) is included in the sphere of reference of the bodies of state power of the subjects of the Russian Federation.

Federal Law No. 70-FZ of June 3, 2006 on the Amendment to Article 20 of the Federal Law on Labour Pensions in the Russian Federation

According to the actual wording of Article 20 of the Federal Law on labour pensions in the Russian Federation, when the pensioner reaches 80 years of age, the basic part of the labour old-age pension is increased (to Rbl 1,800 a month). In this case, the mentioned category of citizens has to submit application for recalculation to the body in charge of the pension support. The amendments permit to make such recalculation without the application on the basis of information available with the body in charge of the pension support.

Federal Law No. 69-FZ of June 3, 2006 on the Ratification of the Agreement to Institute the Eurasia Bank of Development

Ratifies the Agreement signed in Astana on January 12, 2006. The Eurasia Bank of Development is founded to assist a stable development of the economy of the participating states of the Agreement, maintain high rates of their economic growth, development and expansion of the trade and other forms of economic links among them, promote direct investments.

Decision of the Government of the Russian Federation No. 351 of June 3, 2006 on the Procedure for Granting State Guarantees of the Russian Federation for the Borrowings to Provide Engineering Infrastructure for Land Plots and Modernise Communal Infrastructure for the Purpose of Housing Construction

The guarantee is provided to secure execution of obligations of the subject of the Russian Federation or municipal formation for the part making up to 50% of the amount of the main debt. Meanwhile, the guarantee does not provide for the execution of obligations of the principal to pay the interest for the use of the credit, other interest, commission, as well as the fines and penalties for the violation of obligations of the principal.

The Decision defines the terms, as well as the list of documents to be submitted to the Ministry of Finance of the Russian Federation to obtain a positive decision permitting to get the guarantee. A significant condition of the appropriate contract must be creditor obligation to cede in favour of the Russian Federation represented by the Ministry of Finance of the Russian Federation the creditor claims right under the credit contract, another security of execution of obligations of the principal under the credit contract before the Ministry of Finance of the Russian Federation executes obligations under the guarantee.

The period of guarantee is determined by the period of execution of obligations secured with the guarantee plus 70 calendar days. The credits secured with guarantees are targeted ones and are directed only for the implementation of the appropriate projects. Control over the use of the credits secured with guarantees for designated purposes is vested in the Federal Agency for Construction and the Housing and Communal Complex.

Decision of the Government of the Russian Federation No. 349 of June 3, 2006 on the State Control of the Process of Denaturing of (Adding of Denaturing Agents to) Ethyl Alcohol and Non-Edible Alcohol-Containing Products and the Content of Denaturing Agents in Them

The sphere of reference of the Federal Tax Service of Russia shall include in addition the authority of the state control of the process of denaturing of (adding of denaturing agents to) ethyl alcohol and non-edible alcohol-containing and the content of denaturing agents in them.

Organisations producing denatured ethyl alcohol and/or denatured non-edible alcohol-containing products and possessing licenses for production, storage and supplies of produced ethyl alcohol, including the denatured one, and/or for production, storage and supplies of produced non-edible alcohol-containing products must keep the logbook of denaturing of (adding of denaturing agents to) ethyl alcohol and non-edible alcohol-containing products and the content of denaturing agents in them.

Control is vested in the officials of the departments of the Federal Tax Service of Russia in the subjects of the Russian Federation and appropriate inspections of the Federal Tax Service of Russia to be carried out in the form of planned and extraordinary checks at the place of location of the organisation or its separate division indicated in the license.

When implementing control measures, the checking applies to: logbook of denaturing of (adding of denaturing agents to) ethyl alcohol and non-edible alcohol-containing products and the content of denaturing agents in them; produced denatured ethyl alcohol and/or denatured non-edible alcohol-containing products to reveal the presence and determine concentration in them of denaturing agents or mixtures thereof, the content being at least: kerosene or gasoline - 0.5% of the volume of ethyl alcohol; denatonium benzoate (bitrex) - 0.0015% of the weight of the ethyl alcohol; crotonic aldehyde - 0.2% of the volume of ethyl alcohol.

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

Decision of the Government of the Russian Federation No. 340 of June 2, 2006 on the Endorsement of the Rates of Export Customs Duties for Individual Types of Paper and Paperboard

The rates of the export customs duties for individual types of paper and paperboard are fixed in the amount of 0% of the customs cost.

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

Decision of the Government of the Russian Federation No. 333 of May 29, 2006 on the Reserve Training Exercises and Some Issues of Execution of the Military Duty

Endorses the Regulation on the reserve training exercises defining the types, procedure of determination of the beginning and end; functions of the Ministry of Defence of Russia, other federal bodies of executive power where the federal law envisages military service, their territorial bodies where they keep records for military purposes; procedure for calling up the citizens of the Russian Federation being in the reserve to the training exercises; procedure of organisation of the training exercises; procedure and amounts of material support for the citizens undergoing training exercises; rights and duties of officials of organisations and citizens pertaining to the training exercises.

The reserve training exercises are a complex of measures to prepare citizens for the military service carried out in the Armed Forces of the Russian Federation, other troops, military formations and bodies.

Preparation of citizens for the military service may be arranged in the course of: planned sessions, manoeuvres, training and practical work of servicing of armaments, military equipment and other material resources of the reserve stocks in the forces, military units (ships), organisations of the Armed Forces of the Russian Federation, other troops, military formations and bodies and military commissariats, checks of combat and mobilisation preparedness of the military units and military commissariats.

The training exercises are subdivided into: training exercises and exercises to check combat and mobilisation preparedness of the military units and military commissariats.

The calling up to the training exercises shall be arranged by the military commissariats in pursuance of the decrees of the President of the Russian Federation. Decision to call up the citizen to the training exercises is drawn up as an order of the military commissariat.

Federal Law No. 79-FZ of June 6, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Algerian People's Democratic Republic on the Trade, Economic and Financial Relations and on the Settlement of the Debt of the Algerian People's Democratic Republic to the Russian Federation in Earlier Provided Credits and the Protocol to It

Ratifies the Agreement on the trade, economic and financial relations and on the settlement of the debt of the Algerian People's Democratic Republic to the Russian Federation in earlier granted credits and the Protocol to it signed in Alger on March 10, 2006. The mentioned documents shall open the Algerian market for the Russian-made products of military destination, as well as create prerequisites for cooperation of the two countries in the credit sphere.

Federal Law No. 78-FZ of June 3, 2006 on the Amendments to the Code of Administrative Violations of the Russian Federation

Individual provisions of the Code of Administrative Violations of the Russian Federation are being brought in compliance with the Federal Law on the bailiffs. The amendments introduce administrative responsibility for prevention of legal activities of the bailiff while on duty implementing established procedure of work of the courts. Part 1 of Article 27.3 of the Code of Administrative Violations of the Russian Federation is extended to include Item 10 empowering the given category of bailiffs with the right to apply administrative arrest.

Federal Law No. 77-FZ of June 3, 2006 on the Amendments to Article 28 of the Federal Law on Labour Pensions in the Russian Federation

According to Subitem 1 of Item 1 of Article 28 of the Federal Law on labour pensions in the Russian Federation, the pension on beneficial terms (upon reaching 50 years of age with the total insured length of service of at least 15 years) is assigned among other cases to mothers of invalids from childhood having brought them up to 8 years of age. Thus, at present, if the invalid child was brought up in an incomplete family without the mother (in case of her death and in other cases), the other parent (trustee) having brought up such child actually does not enjoy the right for an early labour old-age pension.

The amendments envisage such right for one of the parents of invalids from childhood having brought them up until the age of 8 years (men - upon reaching 55 years of age, women - 50 years in the presence of insured length of service at least 20 and 15 years respectively), as well as for trustees having brought up the invalid child until 8 years of age.

Federal Law No. 75-FZ of June 3, 2006 on the Amendments to Part 2 of the Tax Code of the Russian Federation and Article 1 of the Federal Law on Foreign Investments in the Russian Federation

The amendments are stipulated by introduction of the new type of special economic zones - the tourist and recreational ones.

Tax exemptions are introduced for resident organisations of the tourist and recreational special economic zones. Besides, these zones are covered by the legislation on foreign investments envisaged for other types of special economic zones.

The Federal Law is entered into force one month after the day of its official publication, except for individual provisions where there is a special procedure of entry into force.

Order of the Government of the Russian Federation No. 793-r of June 1, 2006

Endorses the strategy of development of the financial market of the Russian Federation for the years 2006-2008 and the plan of measures to implement it. The strategy implies key directions of activities of state bodies in the sphere of regulation of the financial market for the nearest years. Its goal is making the financial market one of the main mechanisms of implementation of investment programs of the corporate sector while creating conditions for efficient investing of private savings and resources of obligatory saving systems.

To reach it, the task is set to reduce significantly transactional expenses of attraction of capital by developing competitive institutes of the infrastructure of the stock market, reduce the level of non-market investment risk by ensuring protection of rights and legal interests of investors, promote Russian retail investors by developing collective forms of savings, reform legal regulation of financing to eliminate economically unreasonable regulatory obstacles and create conditions for the interests of professional participants of the market, investors and issuers to form the policy of regulation of the financial market.

The measures envisaged in the strategy are expected to permit to ensure conditions for an accelerated development of the financial market as compared to the rates of growth of the gross domestic product. As a result of the year 2008, the cost of net assets of investment funds, accumulated pensions and reserves are expected to double as compared to the gross domestic product to make 6%; the cost of corporate bonds is also expected to double (from 2.2% in 2005 to 4.5% in 2008); the correlation of insurance premiums and the gross domestic product is expected to increase (from 3% in 2005 to 5% in 2008); capitalisation of the stock market must reach 70% by the beginning of 2009, with the share of operations with Russian stocks in Russia making at least 70% in 2008.

In 2008, attraction of financial resources through placing of stocks and bonds by Russian companies at the internal financial market will make at least 20% of investments in the main capital of large and medium-size enterprises. Taking into account attraction of credits and loans, this figure will reach 35%-40% with Russian banks and at the international market of capital.

To improve efficiency of capital markets, it is suggested to introduce in the legislation regulating financial markets the notion of "skilled investor" to identify the person whose experience and skills permit him to adequately assess risks associated with investments in these or those exchange instruments and carry out operations with securities independently.

A special law is expected to be adopted on insider information and on manipulation of prices to combine the main legal norms regulating unfair trade pertaining to securities and other financial instruments at the financial market, as well as to introduce efficient measures of responsibility for officials of economic companies having permitted violations of the legislation while committing major transactions and transactions of interest.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 67 of May 24, 2006 on the Endorsement of the Procedure of Submission and Processing of Appeals of Communication Operators Pertaining to Prices for the Services of Connection and Traffic Transfer, As Well As Their Fixing Procedure

Proposal to fix the limiting prices is sent to the Federal Service of Enforcement in the Sphere of Communication by the major operator in a public-use communication network within 20 days from the date of receiving of the notification of his inclusion in the Register of Major Operators of a Public-Use Communication Network and is processed within 50 days. The communication operator may also apply with a proposal to fix new limiting prices in cases of putting in operation of new means of communication, introduction of new technological solutions in his network (if expenses per unit of service increase or decrease by more than 5%). The Order lists materials submitted to the Service.

In cases of a failure to present proposals on the initial limiting prices, the Service, within 90 days from the date of inclusion of such communication operator in the register, may take the decision to fix appropriate limiting prices for the mentioned communication operator.

A copy of the order fixing the limiting prices shall be sent to the communication operator within 10 days from the date of its adoption, as well as be published on the Service site of the information portal of the Ministry of Information Technologies and Communication in the Internet.

Registered in the Ministry of Justice of the Russian Federation on June 1, 2006. Reg. No. 7899.

Order of the Federal Fund of Obligatory Medical Insurance and the Social Insurance Fund of the Russian Federation No. 53/102 of May 5, 2006 on the Implementation of the Decision of the Government of the Russian Federation No. 876 of December 31, 2005 on the Procedure of Financing in 2006 of Expenses to Pay for the Services of Additional Periodic Medical Examinations of Working Citizens and Initial Medical and Sanitary Aid Rendered to Them at the Expense of Resources Transferred from the Budget of the Federal Fund of Obligatory Medical Insurance to the Social Insurance Fund of the Russian Federation

To finance in 2006 expenses to cover the services of additional periodic medical examinations of working citizens and initial medical and sanitary aid rendered to them, endorses the procedure of keeping of register of bills for the additional periodic medical examinations and the register of bills for the initial medical and sanitary aid rendered to working citizens, as well as the forms of these registers.

The services of additional periodic medical examinations and initial medical and sanitary aid to working citizens are covered at the expense of resources transferred from the budget of the Federal Fund of Obligatory Medical Insurance to the Social Insurance Fund of the Russian Federation. Territorial Funds of Obligatory Medical Insurance shall send information to the regional divisions of the Social Insurance Fund according to the specified format on the working citizens having undergone additional periodic medical examinations and having received initial medical and sanitary aid indicating amounts of payment. Organisations rendering medical services must submit on the monthly basis no later than the 15th of the month following the reported one a report drawn up to provided form to the Social Insurance Fund of the Russian Federation on the use of received resources for the coverage of services of additional periodic medical examinations and initial medical and sanitary aid.

Registered in the Ministry of Justice of the Russian Federation on June 1, 2006. Reg. No. 7893.

Decision of the Government of the Russian Federation No. 355 of June 6, 2006 on the Particulars of Functioning of Economic Subjects Engaged in Activities in the Sphere of Electric Power Supplies Primarily for Own Production Needs

Defines the terms permitting to exempt from the requirements of Article 6 of the Federal Law on the particulars of functioning of electric power industry in the transient period and on the amendments to some of the legislative acts of the Russian Federation and on invalidation of some of the legislative acts of the Russian Federation pursuant to the adoption of the Federal Law on the electric power industry economic subjects engaged in activities of production, transfer and purchase and sale of electric power using power supply stations and other objects of electric power industry owned by them on the proprietary basis or on other legal grounds and directly connected with each other and/or with power consuming devices owned by these subjects primarily for own production needs.

Control over observation by economic subjects of the requirements of Article 6 of the mentioned Federal Law is vested in the Federal Antimonopoly Service.

Direction of the Central Bank of Russia No. 1681-U of May 10, 2006 on the Amendments to the Instruction of the Bank of Russia No. 109-I of January 14, 2004 on the Procedure of Adoption of the Decision of the State Registration of Credit Organisations by the Bank of Russia and Issue of Licenses for Bank Operations

According to the amendments, a division of the credit organisation must be located in a building (room) finished after construction and possessed by the credit organisation on the propriety basis (lease, sublease, gratuitous use). Location of a structural division of the credit organisation is also permitted in a building finished after construction, put in operation but not yet entered in the Joint State Register of Rights for Immovable Property and Transactions with It.

In this connection, when an internal structural division of the credit organisation is opened, the Bank of Russia must receive copies of documents certified appropriately and confirming the right of ownership (lease, sublease, gratuitous use) of the credit organisation for such building (room) or copies of the permission to put the building (room) in operation and the documents certifying opportunities to locate the internal structural division of the credit organisation in the mentioned building (room).

The time limit permitting to locate the structural division in a building not entered in the Joint State Register of Rights for Immovable Property and Transactions with It may not be greater than one year from the moment of entry of information of the opening (change of the place of location) of the internal structural division in the Book of State Registration of Credit Organisations. During this period, the territorial institution of the Bank of Russia must get certified copies of documents confirming the right of ownership (lease, sublease, gratuitous use) of the credit organisation for the building (room).

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 June 2, 2006. Reg. No. 7910.

Order of the Federal Service for Financial Markets No. 06-45/pz-n of May 11, 2006 on the Endorsement of the Forms of Applications for the Issue and Redrawing of Licenses, As Well As the Notifications, Orders, Excerpts from Registers of Licenses and Other Documents Used by the Federal Service for Financial Markets in the Course of the Licensing in Compliance with the Federal Law on the Licensing of Individual Types of Activities

Pursuant to the introduction from July 1, 2006 of the new blank licenses, endorses the forms of the applications for the issue and redrawing of licenses, as well as the notifications, orders, excerpts from registers of licenses and warnings used in the course of licensing of activities of investment funds, activities of management of investment funds, shared investment funds and non-state pension funds, activities of specialised depositaries of investment funds, shared investment funds and non-state pension funds and activities of non-state pension funds in pension support and pension insurance.

Registered in the Ministry of Justice of the Russian Federation on June 2, 2006. Reg. No. 7909.

Order of the Federal Antimonopoly Service No. 54 of March 16, 2006 on the Endorsement of the Rules of Processing by the Federal Antimonopoly Service and Its Territorial Bodies of Requests and Notifications Submitted in Compliance with Requirements of Article 7 of the Federal Law on Natural Monopolies

Defines the procedure of submission to the Federal Antimonopoly Service of Russia and its territorial bodies of requests for permissions to commit any transactions permitting the subject of natural monopoly to acquire the right of ownership or use of fixed assets other than those intended for production with the balance cost greater than 10% of the cost of own capital of the subject of natural monopoly, requests for investments in production exempted from regulation in compliance with the Law on natural monopolies making more than 10% of the cost of own capital of the subject of natural monopoly.

Specifies the procedure of submission of notifications for the cases of purchase at the market of stocks in the registered capital of the subject of natural monopoly or other transactions (including the contracts of agency, trust control, pledge) of purchase of more than 10% of the total number of votes falling on all stocks making the registered capital of the subject of natural monopoly, as well as in all cases of change of the number of votes belonging to them, and in case of purchase by the subject of natural monopoly of stocks in the registered capital of another economic subject providing more than 10% of the total number of votes falling on all stocks.

The territorial body of the Federal Antimonopoly Service shall examine the notifications and requests permitting transactions (investments) in the service sphere of transport terminals, ports and airports with the cost of assets according to the most recent balance report not greater than 20 million minimum amounts of labour remuneration, services of transfer of electric and thermal power, gas transportation, services of non-public-use railway transportation, as well as the services of public tele- and postal communication. In other cases, requests and notification are submitted to the Federal Antimonopoly Service of Russia.

Registered in the Ministry of Justice of the Russian Federation on June 1, 2006. Reg. No. 7902.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 66 of May 24, 2006 on the Endorsement of the Method of Calculation of the Economically Substantiated Expenses and the Normative Profit for the Services of Connection and Services of Traffic Transfer and for Multiple Communication Services

Endorses the method defining the procedure of calculation of economically substantiated expenses and the normative profit for the services of connection and services of traffic transfer and for multiple communication services on the basis of accounting information. The method is applied by major operators of a public-use communication network and multiple-service operators.

Registered in the Ministry of Justice of the Russian Federation on June 1, 2006. Reg. No. 7898.

Decision of the Presidium of the Higher Arbitration Court No. 16058/05 of May 16, 2006

The essence of the dispute is whether the penalties may be collected for untimely payment of the income tax from natural persons at the expense of resources of the tax agent.

According to the Presidium of the Higher Arbitration Court of the Russian Federation, since the penalties is a way of ensuring execution of obligations to pay the taxes and fees, and pursuant to Article 226 of the Tax Code of the Russian Federation the duty to pay the income tax from natural persons to the budget rests with tax agents, then the penalties are a way to ensure execution of the duties of payment of this tax by the tax agent. Besides, the penalties are a law reinstatement measure of state enforcement of compensatory nature for the untimely payment of the tax to the budget. Therefore, they must be collected from the subject of tax relations assuming this duty. The duty to pay the incomes tax from natural persons according to the common rule emerges with the tax agent sooner than the similar duty with the taxpayer. Hence, collection of penalties from the taxpayer rather than the tax agent (if the tax is not collected from him by the tax agent) would not ensure in full amount reimbursement of the dam age to the state from untimely and incomplete payment of the tax.

In this connection, the Presidium did not agree with the lower instances that, citing Item 9 of Article 229 of the Tax Code of the Russian Federation, recognised that the payment of the tax at the expense of the tax agents is not permitted. Reference to the mentioned norm may not be recognised as reasonable, since it envisages impermissibility of payment of the tax by the tax agent at his own expense. And the controversial issue pertains to the forced collection of penalties rather than the payment of the tax by the tax agent. Thus, the penalties for the untimely payment of the income tax from natural persons that was not collected from the taxpayer may be collected from the tax agent at the expense of his monetary resources and other property.

Letter of the Ministry of Finance of the Russian Federation No. 02-14-10a/1354 of May 25, 2006

Explains the procedure of transfer of non-financial assets obtained by institutions on a gratuitous basis from legal entities and natural persons from non-budget activities to the budget ones where these assets are used. Decision to transfer non-financial assets from non-budget activities to the budget one is taken by the chief administrator of the budget resources enjoying the mentioned authority in compliance with the Decree of the President of the Russian Federation No. 314 of March 9, 2004 in the presence of endorsed volumes of financing necessary for the maintenance of the given assets. The Letter describes accounting work used to register operations of transfer of non-financial assets.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/134 of May 6, 2006

Expenses to draw up and get the single, triple and annual visas for the cases when business trips did not occur may not be taken into account in expenses for the purpose of profit taxation. The cost of the visas intended for business trips abroad and covered by the organisation to employees is exempted from the income tax from natural persons and the uniform social tax. Abandoning the trips does not change the qualification of the given type of payments to natural persons exempted from the income tax from natural persons and the uniform social tax.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-05-01-04/111 of May 4, 2006

On the issue of taxation of operations with interest-free bank bills with the income tax from natural persons, emphasises that if the bill is interest-free, there appears to be no income with the first natural person bill holder. And there appears no tax agent duties with the bank redeeming the own bill.

When the bank redeems an own bill from the natural person not being the first holder, there appears to be no tax agent duties either. With the natural person getting payment under the bill, there emerges the income equal to the whole bill amount, making the natural person obliged to submit the declaration independently to the tax body and accrue the tax.

Federal Law No. 83-FZ of June 9, 2006 on the Ratification of the Treaty between the Russian Federation and the Chinese People's Republic on the Transfer of Convicts

Ratifies the Treaty signed in Peking on December 2, 2002. The Treaty is prepared taking into account the contractual practice of the Russian Federation and international standards in the given sphere, including the UN model agreement on the transfer of foreign convicts (1985).

Federal Law No. 82-FZ of June 9, 2006 on the Ratification of the Convention between the Russian Federation and the French Republic on the Transfer of Persons Convicted for Imprisonment

Ratifies the Convention signed in Paris on February 11, 2003. The Convention is prepared taking into account the contractual practice of the Russian Federation and international standards in the given sphere, including the UN model agreement on the transfer of foreign convicts (1985).

Federal Law No. 81-FZ of June 9, 2006 on the Ratification of the Agreement on Cooperation of the Member-States of the Commonwealth of Independent States on the Return of the Underage to the Countries of Their Permanent Residence

Ratifies the Agreement signed in Kishinev on October 7, 2002. The Agreement contains provisions defining the legal and organisational mechanisms to find and return to the countries of permanent residence of the underage having found themselves without support, as well as specifying the list of transit institutions providing interstate transportation of the underage returned to the places of their permanent residence.

Federal Law No. 80-FZ of June 8, 2006 on the Amendment to Article 31 of the Law of the Russian Federation on the Militia

The subjects of the Russian Federation are empowered with the right to define the procedure of providing priority accommodations in institutions of general education and pre-school institutions and in summer rehabilitation camps regardless of the forms of ownership to children of militia personnel killed (deceased) because of execution of service duties or deceased within one year after dismissal from service because of the wounds (contusion), disease obtained during service, as well as to children of militia employees having obtained injuries because of execution of service duties that do not permit to continue the service.

Decision of the Government of the Russian Federation No. 356 of June 9, 2006 on the Procedure of Granting Subsidies in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Make Monetary Payments to the Medical Personnel of the Feldsher and Obstetrician Stations, Doctors, Feldshers and Medical Nurses of the Emergency Medical Aid

The subsidies are provided to the budgets of only those subjects of the Russian Federation that adopted laws or other normative legal acts defining expenditure obligations of the subjects in monetary payments to medical personnel of the feldsher and obstetrician stations (chiefs of feldsher and obstetrician stations, feldshers, obstetricians, medical nurses, including the visiting nurses) and the doctors, feldshers (obstetricians), medical nurses of the emergency medical aid.

The volume of provided subsidies is determined within the following limits: Rbl 5,000 a month for a doctor, Rbl 3,500 a month for a feldsher (obstetrician) and Rbl 2,500 a month for the medical nurse.

The subsidies are provided in the III quarter of 2006 in the amount of 50% of the envisaged volume of resources and in the IV quarter of 2006 by partial compensation of cash expenses of the budgets of the subjects of the Russian Federation for the mentioned payments.

Decision of the Higher Arbitration Court of the Russian Federation No. 3027/06 of May 5, 2006 on the Refusal to Satisfy the Application Requesting Invalidation of the Order of the State Customs Committee of the Russian Federation No. 607 of May 25, 2004 on the Endorsement of the List of Documents and the Form of the Application

The challenged Order defines the documents necessary to obtain the decision to return (offset) customs duties, taxes and return advance payments, as well as endorses the form of the appropriate application. According to the applicant, since Article 63 of the Customs Code defines the authority of the federal ministry in the fixing of the list of documents necessary for the customs registration, and Article 355 of the Customs Code does not contain the norm on similar authority to return excessively paid customs payments, therefore, the State Customs Committee of the Russian Federation did not have the authority to issue the challenged Order thus empowering it with the duty not envisaged in the mentioned Code.

The Higher Arbitration Court came to the conclusion that since calculation and collection of customs payments in the cases envisaged in the legislation are an obligatory condition of the customs registration and, therefore, are qualified as the customs operations category, the return of excessively paid amounts as an action directly associated with the customs registration should also be recognised as a customs operation subject, in pursuance of Article 58 of the Customs Code, to provisions of Item 2 of Article 63 of the Code. Thus, the State Customs Committee of the Russian Federation had the authority to specify the list of the documents necessary for decision taking on the return (offsetting) of the customs duties, taxes and return of advance payments, as well as endorse the form of the application for the return (offsetting) of the monetary resources. In this connection, the challenged Order is recognised as complying with Articles 63 and 355 of the Customs Code.

Federal Law No. 87-FZ of June 12, 2006 on the Amendments to the Federal Law on the Budget of the Federal Fund of Obligatory Medical Insurance for the Year 2005

The amendments reduce expenses for medicines provided to individual categories of citizens. The reduction of financing of these expenses is stipulated by the fact that medicines provided to individual categories of citizens required lower amount as compared to what was envisaged earlier (Rbl 50.8 bn was allocated, but only Rbl 20 bn spent). Part of the resources (Rbl 2.5 bn) was handed over to pay for sanatorium and resort treatment and travel of individual categories of citizens to the place of treatment in the federal specialised medical institutions.

Reduction of resources of the federal budget for the measures of social support of individual categories of citizens pertaining to provided medicines was earlier found in the federal budget for the year 2005.

Federal Law No. 86-FZ of June 12, 2006 on the Amendments to the Federal Law on the Budget of the Social Insurance Fund of the Russian Federation for the Year 2005

The amendments envisage an increase of expenses for the measures of social support of individual categories of citizens pertaining to sanatorium and resort treatment and coverage of travel to the place of treatment and back in 2005 by Rbl 2,500,043.9 thousand.

Federal Law No. 85-FZ of June 12, 2006 on the Amendment to Article 4 of the Federal Law on the Central Bank of the Russian Federation (Bank of Russia)

According to the amendment, the Bank of Russia is empowered with authority to endorse the graphic depiction of the rouble as a special sign.

Federal Law No. 84-FZ of June 12, 2006 on the Amendments to the Federal Law on the State Regulation in the Sphere of Production and Use of Coal, on the Particulars of Social Protection of Employees of Organisations of the Coal Industry

Extends the list of employees of the coal industry entitled for the social support and amends the notion of "social obligations".

For individual categories of dismissed employees of the coal industry and members of their families, envisages one more measure of social support - free rations of coal in cases of sale of the federally owned stocks of organisations producing (processing) coal (slates) if these organisations are not liquidated.

Item 2 of Article 21 omits the mention of collective contracts (agreements) pertaining to free rations of coal. The Government of the Russian Federation is offered to fix the minimum volume of social guarantees.

Order of the Government of the Russian Federation No. 839-r of June 7, 2006

Works out the concept of the federal targeted program "Development of the Criminal Execution System (Years 2007-2016)" intended to provide for a further development of the criminal execution system, observation of the rights and legal interests of detained suspects and the accused, as well as create conditions for implementation of provisions of international standards of treating of those under investigation and the convicts.

Suggests termination of implementation within the first 3 years of the program of construction and reconstruction of objects of preliminary investigation isolation wards began in the framework of the federal targeted program "Reformation of the Criminal Execution System for the Years 2002-2006", as well as the projects of 8 preliminary investigation isolation wards with detention conditions meeting international standards.

In subsequent years, reconstruction of 97 preliminary investigation isolation wards is planned to provide detention conditions for those under investigation in compliance with the legislation of the Russian Federation, as well as design works for 18 preliminary investigation isolation wards and construction of 26 preliminary investigation isolation wards with detention conditions meeting international standards.

On the whole, the program of construction and reconstruction of corrective institutions suggests designing, reconstruction and construction of 575 objects of corrective institutions.

The planned volume of financing of the program for the ten-year period makes Rbl 54,588.2 million.

Decision of the Government of the Russian Federation No. 363 of June 9, 2006 on Information Support of City Planning Activities

Defines the structure, procedure of forming and keeping of the information system of city planning activities, as well as the procedure of providing information available in the given system.

The information system is a collection of documented information on the land plots both built-up and expecting construction classified according to the cadastral division of the territory of the Russian Federation. The information system shall be maintained by the bodies of local government of the city district or municipal region. Information available in the information system shall be open and available to the public (except for the one with restricted access) and may be provided to requests of the bodies of state power and local government, natural persons and legal entities. The amount of payment for the information provided from the information system is defined by the bodies of local government and may not be greater than the maximum level specified by the Government of the Russian Federation. The Regulation also envisages the cases of providing of information free of charge.

The Regulation on the information support of city planning activities is entered into force from July 1, 2006, invalidating simultaneously the Decision of the Government of the Russian Federation No. 271 of March 11, 1999 having defined the procedure of keeping of the State City Planning Cadastre and monitoring of the objects of city planning activities in the Russian Federation.

Order of the Federal Service of Financial and Budget Enforcement No. 266 of December 7, 2005 on the Procedure of Publication and Entry into Force of the Acts of the Federal Service of Financial and Budget Enforcement Recognised by the Ministry of Justice of the Russian Federation As Not Needing the State Registration

The acts of the Federal Service of Financial and Budget Enforcement recognised by the Ministry of Justice of the Russian Federation as not needing the state registration must be published in the journal Financial Herald: Finance, Taxes, Insurance, Accounting and are entered into force from the day of their signing (endorsement) if other time limits and procedure of entry into force are not specified in these acts.

Registered in the Ministry of Justice of the Russian Federation on June 8, 2006. Reg. No. 7926.

Direction of the Central Bank of Russia No. 1688-U of May 29, 2006 on the Abandoning of the Requirement of Obligatory Use of Special Accounts for Currency Operations and on Invalidation of Individual Normative Acts of the Bank of Russia

From July 1, 2006 abandons the requirement of the obligatory use of special accounts (special bank accounts, special sections of custody accounts, special sections of personal accounts of non-residents in the system of keeping of the Register of Holders of Securities, special broker accounts) for individual types of currency operations specified in the Instructions of the Bank of Russia No. 115-I and No. 116-I of June 7, 2004.

Opportunities to open and use special accounts by participants of the business turnovers together with accounts that do not have the status of special ones is preserved for the period from July 1, 2006 to January 1, 2007.

Registered in the Ministry of Justice of the Russian Federation on June 7, 2006. Reg. No. 7924.

Direction of the Central Bank of Russia No. 1689-U of May 29, 2006 on the Invalidation of Individual Normative Acts of the Bank of Russia

From July 1, 2006 abandons the reservation requirements for individual types of currency operations introduced by the Bank of Russia and specified in the Directions of the Bank of Russia No. 1465-U of June 29, 2004 and No. 1577-U of May 6, 2005. This serves as grounds for an early return of resources earlier reserved by participants of currency operations.

Registered in the Ministry of Justice of the Russian Federation on June 7, 2006. Reg. No. 7923.

Decision of the Government of the Russian Federation No. 373 of June 13, 2006 on the Procedure to Fix the Normatives of Gas Consumption for Population in the Absence of Recording Instruments

Provides the minimum permissible norms of gas consumption for the population in the absence of recording instruments by the subjects of the Russian Federation. The given norms shall include the norms of gas consumption for preparation of meals and water heating using gas installations (in cubic meters per person), as well as the average annual norms of gas consumption for the heating of dwelling space using gas installations in the absence of gas counters (in cubic meters per square meter).

Order of the Federal Service of Enforcement in the Sphere of Public Health and Social Development No. 1382-Pr/06 of June 9, 2006 on the Amendments to the Order No. 1014-Pr/06 of April 28, 2006

From July 1, 2006, fixes the limiting release producer prices for the names of medicines used in additional free medical aid to individual categories of citizens entitled for the social aid in the form a set of social services.

To provide uninterrupted supplies of medicines for the mentioned category of citizens, the list is extended to include part of foreign-made medicines to replace those Russian-made and foreign-made excluded from the list.

Order of the Central Bank of Russia No. OD-284 of June 9, 2006 on the Adjustment Coefficients of the Bank of Russia

To correct the market value of securities accepted as a backing for the credits of the Bank of Russia, specifies adjustment coefficients for individual issues of the bonds of the Administration of the Yamalo-Nenets Autonomous District, the bonds of the Moscow Province internal loans, the bonds of the OAO Russian Railways, Moscow International Bank, bank Russky Standart, Gazprombank and the Russian Agricultural Bank.

Letter of the Central Bank of Russia No. 82-T of June 9, 2006 on the Information Provided by Authorised Banks to Natural Persons on the Rates of Foreign Currencies Used in Operations with Foreign Currencies in Cash and Checks

The Bank of Russia recommends to include information on the volumes of purchased or sold foreign currencies using the mentioned rates to provide objective information to natural persons on the terms of operations with foreign currencies in cash and checks carried out by the exchange office of the authorised bank (branch of the authorised bank) using various rates of foreign currencies for various volumes of purchased or sold foreign currencies in addition to information on the mentioned rates placed outside the room of the exchange office (which must correspond to the information placed on the stand in the room of the exchange office).

Letter of the Central Bank of Russia No. 81-T of June 7, 2006 on the Normative Act of the US Financial Crimes Enforcement Network (FinCEN) Specifying the Requirements to the Opening and Keeping by Financial Institutions of the USA of Correspondent Accounts, Accounts of Foreign Citizens and Accounts of Influential Political Figures

Cites the text of the normative act of the US FinCEN specifying the requirements to the opening and keeping by financial institutions of the USA of correspondent accounts, accounts of foreign citizens and accounts of influential political figures. The given document may appear useful when establishing and maintaining correspondent relations with the banks of the USA for the purposes of internal control in the sphere of combating legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism.

Letter of the Central Bank of Russia No. 80-T of June 7, 2006 on the Registration of Resources of the Housing Subsidy Provided to Citizens in the Framework of Implementation of Subprogram "Fulfilling State Obligations to Provide Dwelling Space to the Categories of Citizens Specified in the Legislation" of the Federal Targeted Program "Housing" for the Years 2002-2010

Credit organisations participating in the implementation of the mentioned subprogram shall keep records of resources of housing subsidies provided to citizens from the federal budget in the framework of implementation of the mentioned subprogram on the personal account opened to each holder of the state housing certificate on the Balance Account 40817 "Natural Persons". Accepted state housing certificates and copies of state housing certificates are registered by credit organisations on the Off-Balance Account 91202 "Various Values and Documents".

Letter of the Central Bank of Russia No. 79-T of June 6, 2006 on the Measures to Implement Article 215.1 of the Budget Code of the Russian Federation

Since cash execution of the budgets of the subjects of the Russian Federation and local budgets was transferred to the bodies of the Federal Treasury, financial bodies executing the mentioned budgets shall close the accounts opened earlier in the institutions of the Bank of Russia or credit organisations, except for the accounts opened to financial bodies to hand out cash to budget recipients. In this case, it is necessary to arrange the work to amend the earlier concluded bank account contracts with financial bodies taking into account that the mentioned accounts of financial bodies may be used to hand out cash only.

Decision of the Government of the Russian Federation No. 374 of June 13, 2006 on the Lists of Documents Necessary for Decision Taking to Transfer Property from the Federal Property in the Property of the Subject of the Russian Federation or Municipal Property, from the Property of the Subject of the Russian Federation in the Federal Property or Municipal Property, from the Municipal Property in the Federal Property or the Property of the Subject of the Russian Federation

For delimitation of authority between the federal centre and the subjects of the Russian Federation, as well as in the framework of the reform of the local government now underway, defines the lists of documents necessary for taking the decisions to hand over the federal property in the property of the subject of the Russian Federation or municipal property, form the property of the subject of the Russian Federation in the federal or municipal property, from the municipal property in the property of the subject of the Russian Federation or the federal property. Also defines the documents necessary for taking the decision to hand over state-run (municipal) enterprises and institutions as property complexes.

The proprietary right for the handed over property emerges from the moment of endorsement of the act of transfer.

Letter of the Federal Service for Financial Markets No. 06-OV-02-3/8946 of June 15, 2006 on the Procedure for Writing off from Custody Accounts of Securities of Liquidated Issuers

Explains the procedure for writing off by professional participants of the securities market engaged in depositary activities of securities of liquidated issuers from the custody accounts.

The depository may write off from custody accounts securities of the liquidated issuer according to the procedure defined in the terms of depositary activities after confirmation of information of the liquidation of the issuer legal entity by the body of executive power in charge of the keeping of the Joint State Register of Legal Entities.

Information Letter of the Federal Service for Financial Markets No. 06-OV-02/7220 of May 16, 2006 on the Procedure of Application of the Requirements 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 the Client in Loan (Marginal Transactions) Endorsed by the Order of the Federal Service for Financial Markets of Russia No. 06-24/pz-n of March 7, 2006

In brokerage activities, when committing transactions at the securities market using monetary resources and/or securities handed over by the broker to the client in loan (marginal transactions), determination of sufficiency of monetary resources on internal account of monetary payments with the client or the quantity of securities on the internal account of payments with the client pertaining to securities, futures contracts and options necessary for conclusion of the transaction shall include the claims rights and obligations in monetary payments and securities in earlier concluded but not executed ones that must be terminated during the day when it was concluded.

In the case of separate records for marginal transactions and unsecured ones for each client committed by the broker, separate record keeping for marginal transactions in contrast to unsecured transactions is not necessary.

Brokers committing marginal and unsecured transactions without being participants of tenders are recommended to envisage a mechanism of transfer of the report to the trade organiser.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-01-04/101 of May 15, 2006

Objects of fixed assets handed over to the borrower for temporary gratuitous use and transferred under conservation at the decision of the organisation for over three months or being under reconstruction or modernisation at the decision of the management of the organisation for over 12 months may not be written off from the records of the balance holder organisation. They are regarded as object of taxation for the property tax from organisations with this organisation. Not regarded as object of taxation for the property tax from organisations are fixed assets registered on off-balance accounts of the organisation according to established procedure of accounting work.

Decision of the Government of the Russian Federation No. 380 of June 19, 2006 on the Registration of the Volumes of Production and Circulation (Except for Retail Trade) of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products

Endorses the Regulation on the registration of the volumes of production and circulation (except for retail trade) of ethyl alcohol, alcoholic and alcohol-containing products.

According to the mentioned Regulation, registration of the volume of production shall be arranged in organisations producing ethyl alcohol, alcoholic and alcohol-containing edible products, as well as non-edible alcohol-containing products with the content of ethyl alcohol greater than 40% of the volume of the finished product, using technical means of registration and transfer of information on the volume of production and circulation of the mentioned products to the Joint State Automatic Information System.

Registration of the volume of circulation shall be arranged in organisations where they have circulation of the mentioned products (except for retail trade) using the above technical means.

The Regulation defines the main figures of registration of the volumes of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products, their measuring and registration procedure.

The validity of registration of the volumes of production (circulation) of ethyl alcohol, alcoholic and alcohol-containing products is determined taking into account the losses in production (circulation) of the given products within the limits of natural losses.

Decision of the Presidium of the Higher Arbitration Court of the Russian Federation No. 15326/05 of May 16, 2006

The Presidium of the Higher Arbitration Court of the Russian Federation revoked available court rulings recognising the absence of reasons to accrue penalties for VAT payments with the taxpayer, since his right for the zero percent tax rate was confirmed by the tax body, which excludes arrears in tax payments.

It is explained that Item 9 of Article 165 of the Tax Code of the Russian Federation specifies that if 180 days after the date of release of commodities by the regional customs bodies under the export or transit customs regime, the taxpayer did not present documents envisaged in Article 165 of the Tax Code of the Russian Federation, operations of sale of commodities (carrying out works, rendering services) are subject to taxation at the rate of 10% or 18% respectively. Since the tax declaration for the value added tax at the rate of 0% and the documents mentioned in Item 1 of Article 165 of the Tax Code of the Russian Federation were submitted by the taxpayer with expired 180-day limit, there emerges the duty to pay the value added tax at the rate of 10%. The failure to fulfil this duty brought about the arrears in VAT payments, which serves as grounds to accrue penalties in pursuance of Article 75 of the Tax Code of the Russian Federation. Confirmation by the tax body of the reasons of application of the zer o percent rate by the taxpayer means that the penalties must be accrued beginning with the 181st day and to the day of submission of the tax declaration for the 0% rate together with the documents envisaged in Article 165 of the Tax Code of the Russian Federation.

Letter of the Department of Regulation, State Financial Control, Audit, Accounting and Reporting of the Ministry of Finance of the Russian Federation No. 07-05-06/138 of June 5, 2006

In cases of reorganisation under the decision (agreement) of the founders, assessment of property handed over in the course of the reorganisation at the current market value may be made by the reorganised organisation when drawing up the act of transfer.

In the final accounting reports of the incorporated organisation, the property is recorded in assessment proceeding from the rules specified in the appropriate provisions on accounting work.

Expenses of the newly created and reorganised organisations include the cost (residual cost) of property, proprietary rights that have monetary value and/or obligations received according to succession procedure in the course of reorganisation of legal entities that were purchased (created) by the reorganised organisations before the date of termination of the reorganisation. The cost of property, proprietary rights that have monetary value is determined according to information and documents of tax records of the transferring party as of the date of transfer of the right for the mentioned property, proprietary rights.

Expenses of the newly created and reorganised organisations shall also include expenses or losses made (suffered) by the reorganised organisations where they were not taken into account while building the taxable base. For taxation purposes, the mentioned expenses are taken into account by successor organisations according to the procedure and on conditions envisaged in Chapter 25 of the Tax Code of the Russian Federation, which does not envisage reassessment of property.

Thus, reassessment of property made in the course of the reorganisation in the form of incorporation is not taken into account for taxation purposes.

Decision of the Constitutional Court of the Russian Federation No. 7-P of June 16, 2006 on the Case of Constitutionality of a Number of Provisions of Articles 48, 51, 52, 54, 58 and 59 of the Federal Law on the Main Guarantees of Electoral Rights and the Right to Participate in the Referendum of the Citizens of the Russian Federation Pursuant to the Request of the State Duma of the Astrakhan Province

Challenges the constitutionality of provisions of the Federal Law on the main guarantees of electoral rights and the right to participate in the referendum of the citizens of the Russian Federation where they do not permit pre-election agitation in favour or against the candidate by citizens not being candidates, their representatives, representatives of the election association using the methods requiring financial expenses other than those of the election funds. According to the applicant, such legal regulation restricts excessively the freedom of thinking and speech and the right of citizens to disseminate information in any legal way.

The Constitutional Court of the Russian Federation explained that the federal legislator, while resolving the legal conflict of the right for free elections on the one hand and the freedom of speech and opinions on the other, must observe the balance of the mentioned values. The citizens of the Russian Federation, while possessing both the active and the passive electoral right, may not be regarded only as an object of disseminated information. Excluding opportunities of pre-election agitation for citizens or an absence of appropriate legislative guarantees of its implementation would imply actually a deprival of the right to really influence the election process that, in this case, would be restricted to voting only. Thus, the demand to citizens for pre-election agitation at the expense of election funds only is a restriction of the forms and methods of the pre-election agitation for these subjects of the election process aimed at ensuring equality of candidates and protection of rights and freedoms of othe r persons including the electorate. Moreover, a prohibition for the citizens of an independent, i.e. in addition to the election funds, financing of the pre-election agitation is stipulated also by the need to ensure transparency of financing of the election as a prerequisite of equality of candidates and free forming of the opinion of the electorate.

The court recognised as constitutional the challenged norms of the Law prohibiting pre-election agitation in favour or against the candidate for the citizens at the expense of own resources. Agitation against all candidates that was earlier permitted by the Constitutional Court of the Russian Federation does not form the subject matter of this case.

Decision of the Constitutional Court of the Russian Federation No. 6-P of June 15, 2006 on the Case of Constitutionality of Provisions of Subitem 1 of Item 2 of Article 2 of the Federal Law on the Entry into Force of the Housing Code of the Russian Federation and Part 1 of Article 4 of the Law of the Russian Federation on the Privatisation of the Dwelling Fund of the Russian Federation (in the Wording of Article 12 of the Federal Law on the Entry into Force of the Housing Code of the Russian Federation) Pursuant to the Request of the Supreme Court of the Russian Federation and the Appeal of Citizens M.S.Orlov, K.F.Orlov and Z.K.Orlova

The Constitutional Court of the Russian Federation recognised as unconstitutional the norm of the Federal Law on the entry into force of the Housing Code of the Russian Federation prohibiting a free privatisation of flats for those from the waiting list having received social dwelling space after March 1, 2005. The Decision was stipulated by the appeal of citizens who could not privatise the flat proceeding from the challenged provision of the law.

The federal legislator having introduced the prohibition for the privatisation of the dwelling space received under the social lease contract after March 1, 2005 actually put the appropriate category of citizens in an unequal position as compared to those having received the dwelling space before the mentioned date. Meanwhile, the difference in the terms of the social lease contract before and after this date is of formal nature, which may not serve as a basis for differentiation of the legal regulation of the mentioned relations. Thus, such a prohibition pertaining to the limits of the general period of the norms on free privatisation is in contradiction of the Constitution of the Russian Federation and violates equality of rights of citizens.

At the same time, legislative regulation implying termination of the process of free privatisation at a certain stage is in compliance with the goals of the social state, since it is aimed at preservation of the part of the dwelling fund in the state and municipal property, permitting to use it to fulfil social functions in the sphere of housing relations.

Federal Law No. 88-FZ of June 15, 2006 on the Amendments to Article 26 of the Federal Law on the Agency Guard Services

Introduced amendments extend the jurisdiction of the Federal Law on the agency guard services to paramilitary and guard divisions subordinate to the Ministry of Internal Affairs, in particular, the federal state unitary enterprise Okhrana subordinate to the Ministry of Internal Affairs of Russia.

The given Law attaches the legal status of employees of paramilitary and guard divisions to employees of the federal state unitary enterprise Okhrana, empowering them with the right to carry firearms permitting these divisions to fulfil their duties to guard the objects, as well as the property of natural persons and legal entities.

Decision of the Government of the Russian Federation No. 378 of June 16, 2006 on the Endorsement of the List of Heavy Chronic Diseases Preventing Flat Sharing for Citizens

Presence of a patient suffering a heavy form of chronic disease in a family, making it impossible to live with him in a single flat, is one of the reasons to recognise the citizens as needing dwelling space provided under social lease contracts. The list includes 11 forms of chronic diseases with the codes of the International Statistical Classification of Diseases and Related Health Problems (tenth revision).

Letter of the Federal Tax Service No. MM-6-21/607 of June 19, 2006 on the Calculation of the Tax Rate for the Tax on Extraction of Mineral Resources for May 2006

Provides information used in compliance with the Federal Law No. 126-FZ of August 8, 2001 for the calculation of the tax on extraction of mineral resources for oil for May 2006.

With the average level of prices for the Urals oil of USD 64.33 per barrel and the average US dollar rate to the rouble of 27.0579, the coefficient characterising the dynamics of world prices for oil (Kc) is determined as 5.7361. Taking into account the given coefficient, the tax rate is reduced as compared to the previous tax period by more than Rbl 82 to make Rbl 2403.4259 per ton (information used for the calculation of the tax on extraction of mineral resources for April 2006 is provided in the Letter of the Federal Tax Service of Russia No. MM-6-21/498 of May 16, 2006).

Letter of the Federal Service for Financial Markets No. 06-OV-02-3/8946 of June 15, 2006 on the Procedure for Writing off from Custody Accounts of Securities of Liquidated Issuers

Explains the procedure of writing off by professional participants of the securities market engaged in depositary activities of securities of liquidated issuers from custody accounts.

The depository may write off from custody accounts securities of the liquidated issuer according to the procedure defined in the terms of depositary activities after confirmation of information of the liquidation of the issuer legal entity by the body of executive power in charge of the keeping of the Joint State Register of Legal Entities.

Decision of the Government of the Russian Federation No. 384 of June 20, 2006 on the Endorsement of the Rules of Determination of the Boundaries of Protected Objects and Coordination of the City Planning Regulations for Such Zones

Specifies the procedure of determination of the boundaries of protected objects as one of the types of zones with special conditions of use of territories and coordination of city planning regulations for such zones. The goals of identification of the zones of protected objects is ensuring security of such objects.

According to the endorsed Rules, the size of the zone of protected objects and its boundaries are determined taking into account the size of the land plot housing protected objects, available construction on the land plot and around it, terrain relief, as well as other conditions affecting the security of protected objects. The distance from the boundaries of the land plot housing protected objects to the boundaries of the mentioned zone must not be greater than 1 km.

Direction of the Central Bank of Russia No. 1684-U of May 18, 2006 on the Amendment to the Direction of the Bank of Russia No. 1482-U of July 28, 2004 on the List of Securities Forming the Lombard List of the Bank of Russia

The Lombard List of securities of the Bank of Russia accepted as a collateral for the credits provided to credit organisations by the Central Bank of Russia is extended to include the bonds of the internal state currency loan of 1993 and 1996 issued in pursuance of the Decisions of the Government of the Russian Federation No. 222 of March 15, 1993 and No. 229 of March 4, 1996.

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 June 20, 2006. Reg. No. 7944.

Order of the Ministry of Finance of the Russian Federation No. 76n of May 11, 2006 on the Procedure of Submission of Information on Insurance Brokerage Activities

Endorses the form "Information on Insurance Brokerage Activities during the Year" (Form 1-broker).

Insurance brokers having obtained the license for insurance brokerage activities must submit information according to the given form to the Federal Service of Insurance Enforcement on the annual basis no later than February 1 of the year following the reported one on paper and in the electronic form in compliance with the structure of files specified by the Ministry of Finance of Russia.

The Order is entered into force beginning with the information on insurance brokerage activities for the year 2006.

Registered in the Ministry of Justice of the Russian Federation on June 20, 2006. Reg. No. 7943.

Order of the Ministry of Finance of the Russian Federation No. 80n of May 17, 2006 on the Endorsement of the Blank Form of Strict Accountability "Slip of Received Insurance Premium (Contribution)"

According to the available legislation, organisations and independent entrepreneurs can make monetary payments in cash and/or payments using pay cards without cash registers when rendering services to the population if they hand out appropriate blank forms of strict accountability similar to cash slips. The forms are endorsed by the Ministry of Finance of Russia to appeals of interested bodies of state power, Bank of Russia and organisations uniting the subjects of entrepreneurial activities engaged in a certain sphere of services.

In this connection, the Ministry of Finance of the Russian Federation endorses the blank form of strict accountability to be used when rendering insurance services to the population - "Slip of Received Insurance Premium (Contribution)".

Registered in the Ministry of Justice of the Russian Federation on June 20, 2006. Reg. No. 7942.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 110 of May 30, 2006 on the Determination of the Country of Origin of Commodities Imported from the Participating States of the Agreement on the Creation of the Free Trade Zone

The Presidium of the Higher Arbitration Court of the Russian Federation explained some controversial issues emerging with the courts in the determination of the country of origin of commodities imported from the participating states of the Agreement on the creation of the free trade zone.

The country of origin of the commodity is considered to be the member-state of the Agreement where the commodity was produced completely or processed enough. Even when the commodity heading of the initial and produced commodity is different by one of the first four digits according to the Foreign Trade Commodity Nomenclature, but the produced commodity is obtained as a result of operations indicated in Item 5 of the Rules of determination of the country of origin of commodities endorsed by the Decision of the Council of the Heads of Governments of the CIS States of November 30, 2000, produced commodity does not meet the enough processing criteria.

The commodity is not considered to be originating in the given country until the documents and/or information confirming its origin are not present. The customs body of the country of import may take into account other information and documents available at its disposal to eliminate emerging doubts. If the available documents show that the country of origin of the commodity is defined in the certificate using other than specified requirements, tariff preferences may apply only if it is found that the country of origin is a member-state of the Agreement.

Order of the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being No. 147 of June 5, 2006 on the Drawing up of Licenses

The Decision of the Government of the Russian Federation No. 208 of April 11, 2006 endorsed the new form of license. In this connection, the Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being starts from July 1, 2006 to draw up the granted (redrawn) licenses of the new form in the specified sphere of activities. The earlier issued licenses shall preserve their force until expiry.

Also endorses the forms of documents pertaining to the licensing procedure: application to draw up (redraw) the license, notification of the granting of license, notification of the refusal to grant (redraw) the license, order for the license holder to eliminate revealed violations, excerpts form registers.

Registered in the Ministry of Justice of the Russian Federation on June 15, 2006. Reg. No. 7929.

Letter of the Central Bank of Russia No. 12-1-4/1241 of June 2, 2006 on the Documents Drawn up in the Purchase and Sale of Foreign Currencies

Explains that when natural persons commit operations of purchase and sale of foreign currencies in cash, the cash worker of the structural division of the authorised bank (branch of authorised bank) shall draw up the register of operations with foreign currencies in cash and checks. The natural person shall get the document confirming the operation drawn up to the form specified by the authorised bank (branch of the authorised bank) independently.

The mentioned document must contain on the obligatory basis information specifying the name, registration number and mailing address of the authorised bank, ordinal number, date and code of the type of committed operation, rate of the foreign currency, amount of accepted (handed out) currency. The full name of the natural person, as well as the name, series and number (if available) of the personal identification document presented by the natural person shall be entered by the cash worker in the issued document if requested by the natural person.

Information of the Central Bank of Russia of June 23, 2006

From June 26, 2006, the rate of refinancing is reduced by 0.5% to make 11.5% annual. In 2006, this is the first reduction of the bank rate of the Bank of Russia. The Direction of the Bank of Russia No. 1643-U of December 23, 2005 specified the mentioned rate in the amount of 12% annual.

Decision of the Plenum of the Supreme Court of the Russian Federation No. 15 of June 19, 2006 on the Issues Emerging with the Courts When Processing Civil Cases Pertaining to Application of the Legislation on the Copyright and Adjacent Rights <br />

The plenum of the Supreme Court of the Russian Federation explained some issues emerging in the cases pertaining to the legislation on the copyright and adjacent rights. Thus, it defined the procedure of application of legal sources regulating the mentioned relations, including the international treaties where the Russian Federation is a member.

As to the alternative jurisdiction, it is emphasised that in the context of Part 9 of Article 29 of the Code of Civil Procedures of the Russian Federation (stating that the lawsuits pertaining to contracts indicating the place of their execution may be presented to court also at the place of execution of such contract), examples of execution of contracts may be: submission of the manuscript to the editorial board, paying out of royalties, submission of author copies. The plaintiffs in the mentioned category of cases are the persons being defended under the civil case. In particular, the organisation managing proprietary rights on a collective basis is not a plaintiff when it applies to court, since it does not defend its own rights. The plaintiffs are the holders of the copyright and/or adjacent rights being defended by the organisation. Such organisation, when applying to court, may act without proxy.

According to Item 3 of Article 9 of the Law of the Russian Federation on the copyright and adjacent rights, when a piece of art is published anonymously or under a pen-name, the publisher indicated in it, in the absence of another proof, is considered to be the author's representative and may defend the author's rights in this quality. In this connection, the court may not leave the publisher's application without being processed using as a motive the absence of the real author name in the application and the failure to present the author's proxy. If the author of such piece of art does not disclose his personality or does not proclaim his authorship before the dispute is resolved, the decision satisfying the lawsuit is taken by the court in favour of the publisher.

The plenum, while defining the counterfeit copies of pieces of art and/or phonograms, emphasised that this a legal notion, and the issue may not be posed to an expert. The list of copyright objects available in Article 7 of the Law is not exhaustive, which obliges the courts to keep in mind that legal protection, as a copyright object, applies to the piece of art expressed in the objective form rather than the essence. The software programs should be qualified as literary pieces, and databases - as collections. The placing of the copyright objects and/or objects of adjacent rights in the telecommunication networks, the Internet, in particular, is a use of them, therefore, copies of the pieces of art or objects of adjacent rights created (obtained) as a result of such use in violation of the Law are counterfeits.

If the piece of art has been created while fulfilling a service order of the employer and at his expense, or while executing service duties envisaged in the labour contract, exclusive rights for the use of this piece of art, according to the Law, are handed over to the employer, with the personal non-proprietary rights not being alienated, they rest with author natural persons.

A special attention is paid to the procedure of application of provisional measures in the mentioned category of cases, calculation of the time limits of the copyright and/or adjacent rights, as well as the use of special methods of protection of violated rights envisaged in the Law on the copyright and adjacent rights.

Decision of the Plenum of the Supreme Court of the Russian Federation No. 14 of June 15, 2006 on the Judicial Practice in the Cases of Crimes Pertaining to Narcotic Drugs, Psychotropic, Potent and Poisonous Substances <br />

As a result of analysis of the judicial practice in the cases of crimes pertaining to narcotic drugs, psychotropic, potent and poisonous substances, the Plenum of the Supreme Court of the Russian Federation prepared explanations on individual issues causing difficulties.

First, the courts are recommended to take into account, besides appropriate provisions of the Russian legislation, also the decisions of the UN Commission on Narcotic Drugs qualifying new substances as narcotic drugs and psychotropic substances.

The Decision explains the procedure of expert evaluations to establish a large or specially large amounts of narcotic substances, psychotropic substance and their analogues.

Also examines the issues pertaining to legal assessment of actions of persons engaged in illegal purchase, storage, transportation, production, processing of narcotic drugs, psychotropic substances or their analogues for the purpose of sale, as well as the shipping or sale of the mentioned substances.

The issue of the presence of corpus delicti in the actions of persons - illegal trafficking for the purpose of sale - and of delimitation of it from illegal storage without sale of the narcotic drug or psychotropic substance or their analogous while travelling must be solved by the court in each particular case taking into account the goal of the intention, actual circumstances of transportation, quantity, amount, volume of narcotic drugs, psychotropic substances or their analogues, place of their location, as well as other circumstances of the case.

To qualify the actions under Part 1 of Article 228.1 of the Criminal Code of the Russian Federation (as pertaining to illegal production of narcotic drugs, psychotropic substances or their analogues) as a completed crime, the quantity of obtained substance is of no significance.

The actions of the persons selling any other drugs or substances for profit under the pretence of narcotic drugs, psychotropic substances or their analogues, potent or poisonous substances should be regarded as fraudulence.

A voluntary handing out of narcotic drugs, psychotropic substances or their analogues implies a handing out of such substances to representatives of authorities in the presence of real opportunities with the person to dispose of them in another way. The handing out of the given substances in the case of arrest of the person, as well as in the course of appropriate investigation, may not be regarded as a voluntary handing out.

The Decision invalidates the Decision of the Plenum of the Supreme Court of the Russian Federation No. 9 of May 27, 1998 earlier prepared for the given category of cases.

Decision of the Government of the Russian Federation No. 391 of June 23, 2006 on the Endorsement of the Method of Calculation of the Aggregate Tax Load As of the Day of the Beginning of Implementation by the Resident of the Special Economic Zone in the Kaliningrad Province of the Investment Project and the Procedure of Registration of the Fact of Increase of This Value <br />

The resident of the special economic zone in the Kaliningrad Province implementing an investment project, shall calculate independently the aggregate tax load according to the attached method for activities pertaining to the implementation of the investment project.

Decision of the Government of the Russian Federation No. 389 of June 22, 2006 on the Licensing of Activities in Expert Evaluation of Industrial Safety <br />

The earlier issued licenses shall preserve their force until expiry.

Defines the procedure of licensing of activities of legal entities in expert evaluation of design documentation for the development, construction, expansion, reconstruction, technical modernisation, conservation and liquidation of a hazardous industrial object; technical devices used in a hazardous industrial object; buildings and structures located on the territory of the hazardous industrial object; declarations of industrial safety; documents pertaining to operation of hazardous industrial objects.

The licensing of the mentioned activities is vested in the Federal Service of Ecological, Technological and Nuclear Enforcement. The license is issued for 5 years.

Decision of the Government of the Russian Federation No. 386 of June 22, 2006 on the Endorsement of the Rates of Import Customs Duties for Individual Types of Sports Commodities <br />

Prolongs on unlimited basis the rates of the import customs duties for individual types of sports commodities (snowboard shoes, ski auxiliaries, tennis rackets, roller and ice skates) introduced for 9 months by the Decision of the Government of the Russian Federation No. 613 of October 13, 2005. The rates were fixed in the amount of 5% of the customs cost.

The Decision is entered into force from August 19, 2006.

Decision of the Government of the Russian Federation No. 385 of June 22, 2006 on the Interim Rates of Import Customs Duties for Technological Equipment for the Aircraft Industry <br />

Adjusts individual subheadings of the Foreign Trade Commodity Nomenclature pertaining to technological equipment for the aircraft industry (milling centres, carousel turning machine-tools, computer tomographs and other equipment).

Endorses for 9 months new differentiated rates of import customs duties (a number of commodities shall be imported duty free).

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

Order of the Government of the Russian Federation No. 898-r of June 22, 2006 <br />

Lists non-edible alcohol-containing products where the main technological equipment for their production does not require outfitting with automatic means of measuring and registration of concentration and volume of anhydrous alcohol in the finished products, the volume of finished products. The mentioned list includes 10 items, in particular, lacquers, paints, household chemistry items and perfumery.

Letter of the Central Bank of Russia No. 69-T of May 17, 2006 on the Measures of Intervention Applied to Credit Organisations for the Violation of the Requirements of the Federal Law on Credit Histories <br />

In view of the entry into force of the Federal Law on credit histories, the Bank of Russia (Directions No. 1610-U of August 31, 2005 and No. 1612-U of August 31, 2005) defined the procedure of obtaining by natural persons and legal entities (subjects of credit histories) of information on credit history bureaus keeping the subject's credit history. To get such information, the subject may send a request to any credit organisation indicating his personal code generated by the credit organisation-source of the credit history.

If violations on the part of credit organisations of the above procedure of providing information on the credit history bureaus are revealed after August 1, 2006, territorial institutions of the Bank of Russia are ordered to apply measures of intervention to credit organisations in the form of a fine of up to 0.1% of the minimum amount of the registered capital.

Letter of the Central Bank of Russia No. 29-5-1-4/2148 of May 15, 2006 "Description of the Banknote of the Bank of Russia of 1997 Specimen with the Nominal Value of Rbl 5,000" <br />

Pursuant to the adoption by the Board of Directors of the Bank of Russia of the decision to issue in circulation the banknote of the 1997 specimen with the nominal value of Rbl 5,000, reports information containing the description of the given banknote.

The banknote is of red and brown colour depicting the monument to N.N.Muravyov-Amursky in the city of Khabarovsk with the view of the Amur River in the background on the facing side. The background mesh on both sides in the upper and lower part of the banknote repeats figure 5,000 with an apparent relief.

The structure of the serial number: two-character series, seven-digit number. The height of the digits of the serial number printed in dark green is increased from left to right.

The paper of the banknote is white that does not glow in the ultraviolet light.

Information on the banknote format, means of protection against forgery is provided.

The coupon fields of the banknote have two local watermarks: a vertical figure 5,000 on the narrow coupon field in the light made of light, shaded digits; a half-tone depiction of the head of the monument to N.N.Muravyov-Amursky on the wide coupon field.

Decision of the Government of the Russian Federation No. 388 of June 22, 2006 on the Procedure of Granting Subsidies in 2006 from the Federal Budget to the Budgets of the Subjects of the Russian Federation to Implement the Measures of the Federal Targeted Program "Equalisation of Differences in the Socio-Economic Development of the Regions of the Russian Federation (Years 2002-2010 and Until 2015)" <br />

Changes the mechanism of implementation of the federal targeted program "Equalisation of Differences in the Socio-Economic Development of the Regions of the Russian Federation (Years 2002-2010 and Until 2015)". In particular, abandons the provision specifying that selection of the regions and projects for the state support for the subsequent fiscal year is vested in the Ministry of Economic Development of Russia together with the Ministry of Finance of Russia. Also abandons the norm specifying the financing of the program at the expense of resources of the federal budget exclusively.

According to the introduced rules of granting subsidies in 2006 from the federal budget to the budgets of the subjects of the Russian Federation to implement the measures of the mentioned program, the subsidies are provided on the terms of shared financing of construction projects and objects of the primary, general and secondary (special) education, public health, electric and thermal power, gas and water supplies available in the state property of the subjects of the Russian Federation and municipal property. Selection of objects intended for construction (reconstruction) while attracting the subsidies is vested in the bodies of state power of the subjects of the Russian Federation. The period of construction (reconstruction) of the object must not be greater than 3 years as a rule.

The rules provide the list of the documents submitted to get the subsidy and open object financing. The subsidies are transferred taking into account the levels of co-financing of objects. Calculation of the amount of subsidy may include also expenses of subsidising of the part of the interest rate (not higher than the rate of refinancing of the Central Bank of the Russian Federation) for the credits obtained by enterprises and organisations in 2006 in Russian credit organisations to finance the construction (reconstruction) of objects.

Order of the Ministry of Finance of the Russian Federation No. 86n of June 1, 2006 on the Amendments to the Order of the Ministry of Finance of the Russian Federation No. 112n of September 7, 2005 on the Endorsement of the Form "Information on the Land Plots, As Well As the Persons Holding the Right of Ownership, Right of Permanent (Unlimited) Use or the Right of Life-Time Inherited Possession" and Its Filling Recommendations <br />

To refine the mentioned form, provides a new wording of Sheet C "Information on the Holder of the Rights (Legal Entity) for the Land Plot" and Sheet D "Information on the Holder of the Rights (Natural Person) for the Land Plot".

Registered in the Ministry of Justice of the Russian Federation on June 22, 2006. Reg. No. 7968.

Order of the Federal Service of Insurance Enforcement No. 558 of May 22, 2006 on the Printing Body to Publish the Acts of the Federal Service of Insurance Enforcement <br />

The acts of the Federal Service of Insurance Enforcement restricting, suspending and renewing the licenses for insurance activities, as well as revoking the license for insurance activities shall be published in the Finansovaya Gazeta.

Registered in the Ministry of Justice of the Russian Federation on June 22, 2006. Reg. No. 7965.

Order of the Ministry of Economic Development of the Russian Federation No. 104 of April 21, 2006 on the Endorsement of the Method for the Federal Tax Service to Record and Analyse the Financial Standing and Paying Capacity of Strategic Enterprises and Organisations <br />

Specifies the procedure for the Federal Tax Service of Russia for the record keeping and analysis of the financial standing and solvency of enterprises and organisation included in strategic ones, as well as defines the set of information to be submitted by the Federal Tax Service of Russia to the federal bodies of executive power for the purpose of current analysis of the financial standing of strategic enterprises and organisations and their paying capacity.

Registered in the Ministry of Justice of the Russian Federation on June 21, 2006. Reg. No. 7953.

Order of the Ministry of Economic Development of the Russian Federation No. 121 of May 3, 2006 on the Declaring of Individual Types of Commodities <br />

Specifies the list of commodities that may be declared by submission of the tax declaration in the form of a written application. The list includes commodities intended for exhibitions, fairs, sports competitions and exercises, concerts, contests, festivals and other similar measures and declared for placing under the customs regime of temporary import or temporary export, spare parts and equipment intended for repair and technical maintenance of the temporarily imported transport vehicles and declared for placing under the customs regime of processing on the customs territory or temporary import, commodities declared for placing under the customs regime of free warehouse, commodities declared for placing under special customs regimes.

Declaring of commodities by submission of the customs declaration in the form of a written application is not permitted for declaring of currency values, the currency of the Russian Federation and internal securities in the documentary form, traveller's checks precious metals and precious stones, radio active materials, commodities moved over pipelines and electric power lines.

The Order provides the list of information that must be indicated in the customs declaration submitted in the form of a written application and the form of such application. The declaring party or the customs broker (representative) on his errand may also use this form of the application when declaring the commodities while submitting the cargo customs declaration instead of the additional sheets to the cargo customs declaration. The main sheet of the cargo customs declaration in this case is filled out with some particulars (provided in the Appendix).

The Order is entered into force 10 days after the day of its official publication.

Registered in the Ministry of Justice of the Russian Federation on June 20, 2006. Reg. No. 7952.

Order of the Federal Fund of Obligatory Medical Insurance No. 55 of May 10, 2006 on the Amendments to the Typical Rules of Obligatory Medical Insurance of Citizens <br />

According to the amendments, the territorial fund of obligatory medical insurance may not refuse a medical insurance organisation (its branch) to conclude the financing contract in the presence with the latter of concluded contracts of obligatory medical insurance with insurants for both working and non-working citizens (earlier, contracts for non-working citizens were necessary) and the contracts for the medical treatment and preventive aid (medical services) ensuring implementation of the territorial program of obligatory medical insurance in full amount. The previous wording of the rules also required the presence of concluded contracts with medical institutions and pharmacy organisations ensuring proper full and quality supplies of necessary medicines.

Registered in the Ministry of Justice of the Russian Federation on June 20, 2006. Reg. No. 7946.

Federal Law No. 89-FZ of June 15, 2006 on the Amendments to Article 9 of the Law of the Russian Federation on the State Border of the Russian Federation and Article 6 of the Federal Law on the Procedure for Exit from the Russian Federation and Entry in the Russian Federation <br />

The Federal Law empowers the border guard bodies with authority to permit, if necessary, Russian fishing vessels multiple crossing of the state border of the Russian Federation without the border guard, customs and other types of control according to the procedure defined by the Government of the Russian Federation. This permits to reduce significantly the time and expenses of catching aquatic biological resources in internal sea waters, territorial sea, exclusive economic zone and/or on the continental shelf of the Russian Federation.

Decision of the Government of the Russian Federation No. 392 of June 26, 2006 on the Licensing of Mining Survey Works <br />

Endorses a new Regulation on the licensing of mining survey works carried out by legal entities and independent entrepreneurs. The mining survey works are implied to be spatial geometry measurements of mining cites and underground structures, determination of their parameters, location correspondence with design documentation, monitoring of the condition of mining leases and substantiation of their boundaries, keeping of mining graphic documentation, recording and substantiation of the volume of mining development works, defining hazardous zones and measures of protection of mines, buildings, structures and natural objects against consequences of extraction of mineral resources. The licensing body is the Federal Service of Ecological, Technological and Nuclear Enforcement. Earlier, it was the abandoned State Mining and Industrial Supervision Agency of Russia.

The new Regulation contains a broader list of licensing requirements and terms of activities in mining survey works, as well as the documents for obtaining the license, specifies the list of major violations of the licensing requirements.

The license for mining survey works is issued for 5 years. The earlier issued licenses shall preserve their force until expiry.

Direction of the Central Bank of Russia No. 1696-U of June 23, 2006 <br />

From June 26, 2006, the rate of refinancing is reduced by 0.5% to make 11.5% annual. In 2006, this is the first reduction of the bank rate of the Bank of Russia. Earlier, the Direction of the Bank of Russia No. 1643-U of December 23, 2005 fixed the mentioned rate in the amount of 12% annual.

The text of the Direction has been published in the Herald of the Bank of Russia of June 28, 2006, No. 36.

Direction of the Central Bank of Russia No. 1695-U of June 23, 2006 <br />

From June 26, 2006, the interest rate to calculate the overnight credit is reduced by 0.5% to make 11.5% annual. Earlier, the Direction of the Bank of Russia No. 1644-U of December 23, 2005 fixed the mentioned rate in the amount of 12 % annual.

The text of the Direction has been published in the Herald of the Bank of Russia of June 28, 2006, No. 36.

Letter of the Central Bank of Russia No. 87-T of June 20, 2006 on the Inclusion of Securities in the Lombard List of the Bank of Russia <br />

The Lombard List of the Bank of Russia shall include now individual issues of bonds of the Impexbank.

Decree of the President of the Russian Federation No. 637 of June 22, 2006 on the Measures to Render Assistance in Voluntary Resettlement to the Russian Federation for Compatriots Living Abroad <br

The program scheduled until 2012 implies benefits to migrants enjoying priority rights for the residence permit and citizenship of Russia. They will also get relocation allowance and various benefits when settling in a new life.

The mentioned program supplements the system of measures to stimulate the birth rate, reduce mortality and regulate migration aimed at stabilisation of the number of population in the Russian Federation.

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

Decision of the Government of the Russian Federation No. 395 of June 27, 2006 on the Endorsement of the Rates of Import Customs Duties for Used Grain and Silage Harvesting Combines <br />

The rates of the import customs duties for used grain and silage harvesting combines earlier introduced by the Decision of the Government of the Russian Federation No. 523 of August 18, 2005 for 9 months shall preserve on unlimited basis. The rates are fixed in the amount of EUR 70 per 1 kW of engine power rating.

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

Decision of the Government of the Russian Federation No. 393 of June 27, 2006 on the Endorsement of the Rules of Selection of Subjects of the Russian Federation and the Projects of Modernisation of Objects of Communal Infrastructure to Grant Resources of the Federal Budget in the Framework of the Subprogram "Modernisation of Objects of Communal Infrastructure" of the Federal Targeted Program "Housing" for the Years 2002-2010 <br />

Defines the procedure of selection of candidates and projects of modernisation of objects of communal infrastructure, the mechanism and terms of granting and spending of resources of the federal budget allocated in the form of state support to implement the projects in the framework of the mentioned subprogram.

The state support is provided to implement the measures of modernisation of the networks and objects of water, heat and power supplies, water disposal systems, as well as of reconstruction and construction of rubbish recycling plants.

Decision of the Government of the Russian Federation No. 398 of June 29, 2006 on the Labelling of Alcoholic Products Imported to the Customs Territory of the Russian Federation until March 31, 2006 Inclusive and Labelled with Excise Duty Stamps Issued until December 31, 2005 Inclusive

Circulation of the mentioned alcoholic items is permitted on the territory of the Russian Federation if labelled with excise duty stamps in compliance with the Decision of the Government of the Russian Federation No. 786 of December 21, 2005 and entry of information in the Joint State Automatic Information System of registration of the volume of production and circulation of ethyl alcohol, alcoholic and alcohol-containing products.

Importers of alcoholic products must take the inventory as of June 30, 2006 and draw up inventory sheets indicating the type, name, quantity of alcoholic products, series numbers of excise duty stamps used to label the given alcoholic products and the numbers of cargo customs declarations used to declare the alcoholic products.

When getting excise duty stamps in the customs bodies at the place of its state registration, the organisation shall assume obligation to use the purchased excise duty stamps until December 29, 2006 inclusive for their designated purposes. In case of a failure to fulfil the obligation, the amount of the backing is transferred to the federal budget in proportion to the number of excise duty stamps where the obligation is not fulfilled.

The Decision provides the form of the application for the issue of excise duty stamps.

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

Letter of the Federal Tax Service No. ShT-6-03/644@ of June 27, 2006 on the Application of the 10% VAT Rate in the Sale of Medical Items and Medicines

Reports information of the explanations of the Ministry of Finance of Russia pertaining to the procedure of taxation with the value added tax of operations of sale of items of medical destination and medicines.

From January 1, 2002, taxation of medicines including medicinal substances, those made in the apothecary, in particular, and items of medical destination is arranged using the VAT rate of 10%, the codes of the above products being defined by the Government of the Russian Federation.

Since appropriate decision has not been taken until now, in taxation of the mentioned operations, one should be guided by OKP codes listed in the Letter of the State Tax Service of Russia and the Ministry of Finance of Russia Nos. VZ-4-03/31n, 03-04-07 of April 10, 1996 on the procedure for exemption of medical items from the value added tax.

Commodities listed in the All-Russia Classifier of Products OK 005-93 under the Heading 940000 "Medical Equipment" and not included in the Decision of the Government of the Russian Federation No. 19 of January 17, 2002 (not included are medical syringes, sun-protecting glasses, frames, and sight-correction lenses) are subject to the tax rate of 20% (the tax rate of 20% was used before January 1, 2004, from January 1, 2004, 18% VAT rate applies).

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-03-04/2/162 of June 1, 2006

Since the works of the communication operator to connect the optical fibre communication channel are not being communication services, they may not be taken into account in the determination of the taxable base for the profit tax from organisations as expenses of communication services, however, they are taken into account as other expenses pertaining to production and/or sale on condition that the given data transfer channel is arranged to provide for the taxpayer activities, with expenses of connection to it being confirmed with documents.

Expenses to pay for the works to lay the cable and install additional equipment are those of capital nature, therefore, their cost may be written off as expenses for the profit taxation purposes using the mechanism of amortisation. One should keep in mind that the writing off of the mentioned works as expenses is not permitted if the cable and equipment are preserved in the property of the communication operator.