Monitoring of the Federal Legislation dated 7.06.2006

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.