Windfall tax for major companies to be introduced in Russia

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Daily Monitoring of the Legislation

Monitoring of the Federal Legislation dated 31.07.2006

Federal Law No. 93-FZ of June 30, 2006 on the Amendments to Some of the Legislative Acts of the Russian Federation on the Simplified Procedure of Drawing up of the Rights of Citizens for Individual Objects of Immovable Property

Refines the terms and procedure of privatisation, cadastral registration of land plots granted for personal auxiliary needs and countryside cottages, gardens and private housing construction, registration of rights of citizens for these land plots, as well as the objects of immovable property located on the mentioned land plots.

The new wording of the City Planning Code of the Russian Federation specifies the list of objects not requiring the permission for construction (reconstruction). Such objects include garages, countryside cottage structures of auxiliary use. Since the new wording of the Code does not apply to immovable property built (reconstructed) before its entry into force, and registration of the rights for immovable property without the permission for construction (reconstruction) and the act of putting of object in operation is impossible, the Law specifies that Part 17 of Article 51 of the City Planning Code of the Russian Federation applies to the earlier built structures.

The Civil Code of the Russian Federation introduces a procedure of recognition in court of the proprietary rights for a structure built without the permission. The Law envisages opportunities of registration of rights for the given objects according to the simplified procedure. The grounds for the registration are the documents confirming the fact of creation of such an object and containing its description, as well as the document of title for the land plot.

The Law specifies an exhaustive list of documents confirming the fact of creation of objects of immovable property at registration. The document confirming the fact of creation of immovable property in the absence of the need to obtain the permission for construction is the declaration of such object; the fact of creation of the object of private housing construction is the declaration and the permission of the body of local government to put it in operation (if the object is not over, the permission for construction). Before January 1, 2010, obtaining such permission is not necessary.

The Law introduces opportunities of submission of documents for registration of rights for immovable property by a notary if the rights emerge on the basis of a notary-certified transaction or another action committed by a notary.

The Law regulates the procedure of registration of the rights for the land plots if there is no a direct indication of the type of right in the decision granting the land plot or in other documents of title. The land plot in the given situation will be considered to be provided on the basis of the proprietary right, except for the cases when such land plot is withdrawn from circulation and is subject to the prohibition to privatise.

In case of a deviation of information on the boundaries and the area of the land plot in the documents of title and the documents of the state body in charge of the state cadastral registration, the Law envisages that information of the documents of the federal body of executive power in charge of the state cadastral registration obtained from land surveys is entered in the Joint State Register of Rights for Immovable Property and Transactions with It.

The time limit for free privatisation of dwelling space is shifted from January 1, 2007 to March 1, 2010.

The payment for the registration of the proprietary right of the natural person for the land plot intended for personal auxiliary needs and countryside cottages, gardening, garage or private housing construction, or for the object of immovable property created on such land plot is fixed in the amount of Rbl 100.

The subjects of the Russian Federation are entitled to fix for the period until January 1, 2010 the limiting prices (tariff rates and alike) for the land planning works.

The Federal Law is entered into force from September 1, 2006, except for Article 6 entered into force from January 1, 2007, however, no sooner than one month after the day of its official publication.

Federal Law No. 92-FZ of June 30, 2006 on the Amendment to Article 72 of the Land Code of the Russian Federation

In the cities of federal significance of Moscow and St.Petersburg, the authority of the bodies of local government to control the use of lands and specify the procedure of its implementation may be included by the law of such subject of the Russian Federation in the authority of the bodies of state power of the subject of the Russian Federation. The given provision is aimed at introduction of the uniform system of land control on the territory of the cities of federal significance and providing a uniformity of the city economy.

Federal Law No. 91-FZ of June 30, 2006 on the Amendment to Article 9 of the Federal Law on the Preventive Immunal Measures against Infectious Diseases

The list of infectious diseases included in the National Calendar of Prevention Vaccination shall include influenza. The time limits of preventive vaccination against influenza and the categories of citizens subject of obligatory vaccination shall be specified on the annual basis taking into account the forecasts of morbidity.

The given amendment permits to vest execution of the financial obligation to purchase the vaccines against influenza in the federal budget.

Decision of the Government of the Russian Federation No. 400 of June 29, 2006 on the Invalidation of the Decision of the Government of the Russian Federation No. 302 of May 16, 2005

The lifting of restrictions on the flow of capital invalidates the Decision of the Government of the Russian Federation No. 302 of May 16, 2005 regulating the procedure of obligatory reservation of 10% of the amount of advance payment when residents grant to non-resident commercial credits for more than 180 days in the form of a pre-payment pertaining to foreign trade activities.

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

Decision of the Government of the Russian Federation No. 399 of June 29, 2006 on the Invalidation of the Decision of the Government of the Russian Federation No. 204 of April 11, 2005

The lifting of restrictions on the flow of capital invalidates the Decision of the Government of the Russian Federation No. 204 of April 11, 2005 on the procedure of making payments and transfers when residents buy with non-residents the shares, contributions in the property (registered and shared capital, shared fund of the cooperative) of legal entities, when residents transfer contributions under contracts of simple partnership with non-residents.

From July 1, the Government may not restrict payments with non-residents when Russian companies get credits and respites of payments for the export and import, purchase of stocks abroad, and the Central Bank - payments in crediting, transfer of resources abroad, sale of securities to non-residents.

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

Decision of the Government of the Russian Federation No. 396 of June 28, 2006 on the Requirements to the Automatic Means of Measuring and Registration of the Concentration and Volume of Anhydrous Alcohol in the Finished Products, the Volume of the Finished Products

Endorses the requirements to the automatic means of measuring and registration of the concentration and volume of anhydrous alcohol in the finished products, the volume of the finished products. The mentioned automatic means that are used to outfit the main technological equipment must provide for each name of the finished products for the transfer of information to the technical means of registration and transfer in the Joint State Automatic Information System of registration from February 1, 2007.

The measuring means are used to outfit distillers, units and columns for alcohol purification and rectification, complex units for production of alcohol and liqueurs and vodka, dispensing and packaging automatic machines.

The requirements include subdividing the automatic means by type depending on the type of alcohol-containing products, requirements to accuracy of measurements, opportunities of registration and storing of the results, as well as protection functions.

Decision of the Government of the Russian Federation No. 404 of June 30, 2006 on the Endorsement of the List of Documents Necessary for the State Registration of the Proprietary Right of the Russian Federation, Subject of the Russian Federation or Municipal Formation for the Land Plot in Case of Delimitation of the State Property for Land

The state registration of the proprietary right of the Russian Federation, subject of the Russian Federation or municipal formation for the land plot in case of delimitation of the state property for land requires submission of application indicating the normative act serving as grounds for the registration of the proprietary right for the land plot, as well as the documents of title for the objects of immovable property and the cadastral plan for the land plot confirming the location of the object of immovable property on the given land plot or the documents of title for the land plot (depending on the grounds for the registration of the proprietary right). Other documents may also be presented in cases specified in the federal legislation.

Decisions of the Government of the Russian Federation No. 140 of March 4, 2002, No. 576 of August 7, 2002 and No. 705 of November 21, 2003 having regulated the procedure of preparation and coordination of the list of land plots implying the proprietary right of the Russian Federation, subjects of the Russian Federation and municipal formations, as well as the procedure of disposal of the land plots available in the state property before the delimitation of the state property for land, are invalidated.

Direction of the Central Bank of Russia No. 1691-U of June 5, 2006 on the Amendments to the Regulation of the Bank of Russia No. 227-P of May 14, 2003 on the Procedure of Keeping Records and Submission of Information on Affiliated Persons of Credit Organisations

Specifies the criteria of inclusion in affiliated persons of natural persons executing labour duties in a legal entity and simultaneously forming part of executive bodies of another legal entity. This condition applies if the natural person, because of execution of labour duties in the legal entity, may exert a significant influence on the decisions taken by the management bodies of the given legal entity.

The list of affiliated persons shall be maintained by the credit organisation and submitted to the territorial institution of the Bank of Russia in charge of enforcement of activities of the given credit organisation drawn up to the Reporting Form 0409051 "List of Affiliated Persons" and to Form 0409052 "List of Affiliated Persons Associated with the Group of Persons Where the Credit Organisation Belongs".

The Direction invalidates Chapters 3 and 4 on the procedure of submission of information on affiliated persons by credit organisations and territorial institutions of the Bank of Russia, as well as Appendices 1 and 2 on the forms of reports on affiliated persons.

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 28, 2006. Reg. No. 7994.

Direction of the Central Bank of Russia No. 1692-U of June 6, 2006 on the Amendments to the Direction of the Bank of Russia No. 1292-U of June 19, 2003 on the Procedure of Submission of Documents to the Bank of Russia by a Non-Bank Credit Organisation for the Bank of Russia to Take the Decision to Grant the Status of a Bank to the Non-Bank Credit Organisation

The amendments are stipulated by the reorganisation, in compliance with the Decree of the President of the Russian Federation No. 314 of March 9, 2004, of the Ministry of Taxation of Russia into the Federal Tax Service of Russia, as well as the addition, in compliance with the Federal Law No. 127-FZ of November 2, 2004, to the Tax Code of the Russian Federation of Chapter 25.3 "State Duty" having entered into force from January 1, 2005.

Besides, the amendments pertain to the statement of opportunities of granting the status of a bank to the credit organisations prepared by the territorial institution of the Bank of Russia and the license expanding its activities if the license for bank operations of the credit organisation did not envisage the right to provide cash services to legal entities. The statement contains information of compliance of the rooms of the credit organisation for operations with values with requirements of the Bank of Russia, or of submission of documents envisaged in the normative acts of the Bank of Russia for the cases of insurance of cash for the amount of at least the minimum permissible residue of cash in the cash department and of their compliance with the specified requirements.

The Direction 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 28, 2006. Reg. No. 7993.

Order of the Federal Service for Financial Markets No. 06-48/pz-n of May 16, 2006 on the Endorsement of the Forms of Reports of Management Companies of Non-State Pension Funds of Investing of Resources of Accumulated Pensions, As Well As of Incomes from Investing

Endorses the forms of reports of the management companies of non-state pension funds of investing of resources of accumulated pensions and of incomes from investing of resources of accumulated pensions.

Explanations to the reports, as well as significant facts having affected the results of investing of resources of accumulated pensions generated in non-state pension funds and other significant information for analysis of reports, shall be provided in the explanatory note attached to the mentioned reports.

The given reports, in pursuance of the Decision of the Government of the Russian Federation No. 669 of November 4, 2003, is submitted to the Federal Service for Financial Markets of Russia.

Registered in the Ministry of Justice of the Russian Federation on June 28, 2006. Reg. No. 7987.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 390 of May 26, 2006 on the Endorsement of the Rules of Financing in 2006 of Preventive Measures to Reduce Industrial Injury Rates and Occupational Diseases of Employees and Sanatorium and Resort Treatment of Employees Engaged in Works Featuring Adverse and/or Hazardous Industrial Factors

Defines the procedure and terms of financing in 2006 of preventive measures to reduce industrial injury rates and occupational diseases of employees and sanatorium and resort treatment of employees engaged in works featuring adverse and/or hazardous industrial factors.

The financing at the expense of amounts of insurance contributions applies to expenses of:

" purchase for employees engaged in works with adverse and/or hazardous working conditions, as well as the works fulfilled in special temperature conditions, of certified means of personal protection according to specified norms;
" certification of operator positions carried out by an accredited organisation for the working conditions and certification of works for labour safety;
" works planned as a result of certification of operator positions for the working conditions to bring the air dust and gas levels at the operator positions in compliance with the normative requirements;
" sanatorium and resort treatment for employees engaged in works with adverse and/or hazardous industrial factors.

The financing shall be arranged by the insurant in accordance with amounts of insurance contributions due for transfer to the Social Insurance Fund of the Russian Federation in 2006 (from January 1 to December 31, 2006).

To get the financing, the insurant must submit an application to the executive body of the Social Insurance Fund of the Russian Federation at the place of his registration before August 1, 2006. The list of the documents attached to the application is specified.

Decision on the financing, amount of the given financing or refusal to finance shall be taken by the executive body of the Fund within 20 days.

The Order specifies the reasons of refusal to finance and the procedure of submission of the appropriate reports of the insurant. Provides the form of the insurant plan to finance preventive measures in 2006.

Registered in the Ministry of Justice of the Russian Federation on June 28, 2006. Reg. No. 7981.

Order of the Federal Tax Service No. SAE-3-06/334@ of June 6, 2006 on the Amendments to the Instruction No. 60 of April 10, 2000 on the Procedure to Draw up the Act of the On-Site Tax Check and Proceedings in Cases of Violation of the Legislation on Taxes and Fees Endorsed by the Order of the Ministry of Taxation of Russia No. AP-3-16/138 of April 10, 2000

Provides a new working for the form of the decision calling to account the taxpayer, payer of fees or tax agent for the tax violation (Appendix 4 to the Instruction No. 60 of April 10, 2000 on the procedure of drawing up of the act of the on-site tax check and proceedings in cases of violation of the legislation on taxes and fees endorsed by the Order of the Ministry of Taxation of Russia No. AP-3-16/138 of April 10, 2000).

Registered in the Ministry of Justice of the Russian Federation on June 28, 2006. Reg. No. 7976.

Order of the Ministry of Justice of the Russian Federation No. 213 of June 15, 2006 on the Endorsement of the Instruction on the Procedure of the State Registration of the Mortgage for Objects of Immovable Property

The endorsed Instruction on the procedure of state registration of the mortgage for objects of immovable property is aimed at promotion of the uniform practice of the state registration of the mortgage emerging from contract or law. The Instruction applies to the mortgage for land plots (other than those used for creation of objects of immovable property, including the dwelling and non-dwelling space, being the subject of contracts of participation in shared construction), enterprises as property complexes, buildings, structures, dwelling space, objects of unfinished construction.

The Instruction provides the list of documents submitted for the state registration of the mortgage emerging from contract, specifies the procedure of registration of the mortgage, amending the registration record of the mortgage, entry in the Joint State Register of Rights of the records of transfer of proprietary rights, restoration or replacement of the perished or damaged property being the object of the mortgage. Also provides the particulars of the state registration of the mortgage emerging by virtue of the law, procedure of the state registration in cases of rights cession under the mortgage contract, registration of subsequent mortgage, procedure of cancelling of the registration record of the mortgage, rules of handing out (revocation) of the mortgage deed and registration of its holders.

Registered in the Ministry of Justice of the Russian Federation on June 28, 2006. Reg. No. 7974.

Order of the Ministry of Economic Development of the Russian Federation and the Ministry of Finance of the Russian Federation No. 139/82n of May 23, 2006 on the Endorsement of the Method of Calculation of the Figures and Use of Criteria of Efficiency of Investment Projects Claiming the State Support at the Expense of Resources of the Investment Fund of the Russian Federation

The endorsed method specifies the criteria of assessment of efficiency of investment projects claiming state support at the expense of resources of the Investment Fund of the Russian Federation. The main quality criteria of selection of investment projects are participation in the project of a commercial organisation having proved availability of resources in the amount of at least 25% of the estimated cost of the investment project (or the right of disposal of the mentioned resources during implementation of the investment project), project compliance with the priorities of the socio-economic development of the Russian Federation, presence of positive social effects pertaining to the implementation of the investment project, impossibility of project implementation without the state support, estimated cost of the investment project greater than Rbl 5 billion, presence of a positive statement of the investment advisor on the project.

Besides quality criteria, quantity criteria shall also be used in selection of investment projects - return on investments during project implementation, project financial, budget and economic efficiency. The method provides common requirements to the calculation of the quantity criteria.

The method is used to prepare decisions granting state support for the implementation of investment projects at the expense of the resources of the Investment Fund, as well as may be used for preparation of the technical specifications (business plans) of the mentioned projects and in expert evaluation of investment projects.

Registered in the Ministry of Justice of the Russian Federation on June 21, 2006. Reg. No. 7959.

Federal Law no. 102-FZ of July 3, 2006 on the Ratification of the Treaty on the Status of the Fundamentals of the Legislation of the Eurasia Economic Community, Procedure of Their Development, Adoption and Implementation <br />

Ratifies the Treaty on the status of the fundamentals of the legislation of the Eurasia Economic Community, procedure of their development, adoption and implementation signed in Astana on June 18, 2004 defining the status of the fundamentals of the Eurasia Economic Community, introducing a uniform procedure of their development, examination, adoption, amending, suspension and termination.

The Treaty has been prepared in pursuance of the Agreement on the legal support of the forming of the Customs Union and the single economic environment of October 26, 1999 and the Founding Treaty of the Eurasia Economic Community of October 10, 2000.

Federal Law No. 101-FZ of July 3, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Tajikistan on the Transfer in the Property of the Russian Federation of the Nurek Optical Electronic Node and the System of Control of the Outer Space and Its Functioning Procedure <br />

The ratified Agreement provides for the right of ownership of the Russian Federation for the Nurek Optical Electronic Node of the system of control of outer space located on the territory of the Republic of Tajikistan and handed over in redemption of the debt of Tajikistan to Russia, as well as defines the general principles of its use, procedure of functioning, support and financing.

The Agreement on the transfer of mentioned optical electronic node was signed between the Government of the Russian Federation and the Government of the Republic of Tajikistan in Dushanbe on October 16, 2004. The Optical Electronic Node Nurek does not have analogues in the world and permits to monitor the outer space in the whole range of heights of travel of space objects over the Eurasia Continent, Northern and Central Africa, as well as adjacent water areas of the Indian, Pacific and the Atlantic Oceans.

Federal Law No. 100-FZ of July 3, 2006 on the Ratification of the Protocol of Endorsement of the Regulation on the Executive Committee of the Commonwealth of Independent States <br />

Ratifies the Protocol of endorsement of the Regulation on the CIS Executive Committee signed in Moscow on June 21, 2000.

The Protocol lays the legal basis for the reformation of the structure of the CIS executive bodies, the result being that the CIS Executive Secretariat and the Office of the Interstate Economic Committee of the Economic Union is reorganised into the CIS Executive Committee.

Pursuant to the reformation of the structure of the CIS bodies, the Law defines a new approach to the issue of the legal status and social guarantees of the officials of the CIS bodies on the basis of the commonly accepted international practice. Therefore, to avoid conflict of laws for the Russian Federation, the Protocol is ratified with a reservation stating that the Russian side is not obliged to fulfil the provisions of the Item 14 of the Regulation stating that employees of the office of the Committee for Legislation of the member-states of the Commonwealth have equal status as the state servants of their states.

When fulfilling its duties pertaining to employees of the office of the Committee, the Russian side will be guided by provisions of Articles 15 and 16 of the Agreement on the legal status of officials and employees of the CIS bodies of April 25, 2003, assigning to officials of the CIS bodies a uniform status of international servants with all privileges and immunity regardless of their affiliation to any particular body of the Commonwealth. According to the provisions of the declaration, international servants out of citizens of the Russian Federation are not qualified as appropriate categories of state servants of the Russian Federation.

Federal Law No. 99-FZ of July 3, 2006 on the Ratification of the Protocol on the Amendments to the Protocol on the Procedure of Control over the Use for Designated Purposes of the Products of Military Destination Supplied in the Framework of the Agreement on the Main Principles of Military and Technical Cooperation among the Member-States of the Collective Security Treaty of May 15, 1992 <br />

The ratified Protocol extends control over the use for designated purposes of the products of military destination and observation of the measures of protection of information pertaining to supplies of products of military destination and comprising the state secret of the supplying state to all products of military destination supplied in the framework of the Agreement on the main principles of military and technical cooperation among the member-states of the Collective Security Treaty and under bi-lateral contracts.

The Protocol was signed in Moscow on November 22, 2004. The need to control the use for designated purposes of all supplied products of military destination is stipulated by the amendments to the Agreement on the main principles of military and technical cooperation among the member-states of the Collective Security Treaty that applied beneficial terms of supplies of products of military destination to all national armed forces of the member-states of the Collective Security Treaty Organisation rather than the part of them included in the multi-lateral forces of the Collective Security Treaty Organisation in the regions of collective security.

Federal Law No. 98-FZ of July 3, 2006 on the Amendment to Article 151 of the Code of Criminal Procedures of the Russian Federation <br />

According to the amendment, preliminary investigation in cases of violation of the copyright and adjacent rights envisaged in Article 146 of the Criminal Code of the Russian Federation may be initiated not only by investigators of the prosecutor's office, but also the ones of the bodies of internal affairs (alternative jurisdiction).

Federal Law No. 97-FZ of July 3, 2006 on the Amendments to Article 23.34 of the Code of Administrative Violations of the Russian Federation and Articles 40 and 151 of the Code of Criminal Procedures of the Russian Federation <br />

The list of officials of the bodies of state fire enforcement authorised to process the cases of administrative violations and impose administrative punishments (Article 23.34 of the Code of Administrative Violations of the Russian Federation) shall include state inspectors of fire enforcement in closed administrative territorial formations.

Pursuant to the amendments introduced in the Federal Law on the fire safety by the Federal Law No. 122-FZ of August 22, 2004, refines Articles 40 and 151 of the Code of Criminal Procedures of the Russian Federation stating that the authority of the body of investigation in cases of violations of fire safety rules, as well as destruction of and damage to forests, is vested in the bodies of state fire enforcement of the Federal Fire Service.

Federal Law No. 96-FZ of July 3, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation on Defence and Military Service <br />

The amendments to the Federal Law on defence and in the Federal Law on the military duty and military service pertain to the legal norms regulating organisation of voluntary training of citizens when they study in military training centres of state institutions of higher professional education and further contract military service.

The Law introduces a system of contracts of education under military training programs for contract military service. The citizen undergoing intra-mural studies in an institution of higher professional education fit for military service on medical grounds and meeting specified requirements may conclude a contract with the Ministry of Defence of the Russian Federation to undergo military training program in the training centre of the higher educational institution. Such student will get additional stipends during study depending on training achievements.

The contracts of military training in the training centre may be concluded by citizens up to 24 years of age. The results of the military training permit graduates of civil higher educational institutions to enter the contract military service.

The contract of training of reserve officers at the military chair may be concluded by citizens up to 30 years of age. The specified age limit permits the citizen to be in the first priority reserve for at least 10 years after study (until 45 years of age). A prohibition to study at the military chair is introduced for the persons with outstanding convictions, as well as the persons under preliminary investigation or when the case is handed over to court.

The Federal Law is entered into force from January 1, 2008.

Federal Law No. 95-FZ of July 3, 2006 on the Ratification of the Convention on Seafarers' Welfare at Sea and in Port (Convention 163) <br />

Ratifies the Convention on seafarers' welfare at sea and in port (Convention 163) adopted at the 74th Session of the General Conference of the International Labour Organisation in Geneva on October 8, 1987.

The Convention defines international requirements of seafarers welfare aboard the ship and in port. The term "welfare facilities and services" means cultural, sports, recreational and information facilities and other measures.

Russia's accession to the Convention implies assumption of obligations to: finance seafarers' welfare; provide for seafarers' welfare in ports regardless of the nationality, race, sex, religion, political convictions or social origin, state of registration of the vessel; arrange regular checks in the given sphere.

Federal Law No. 94-FZ of July 3, 2006 on the Amendment to Article 1 of the Founding Agreement of the European Bank for Reconstruction and Development Approved by the EBRD Board of Governors in London on January 30, 2004 <br />

According to the Founding Agreement of the European Bank for Reconstruction and Development, the EBRD may carry out operation in the countries of Central and Eastern Europe only. The amendment permits the EBRD to start financing operations in Mongolia, granting Mongolia the right to use EBRD financial resources. The mentioned amendment was approved by the EBRD Board of Governors, including also the one from the Russian Federation, in London on January 30, 2004.

Federal Law No. 90-FZ of June 30, 2006 on the Amendments to the Labour Code of the Russian Federation, Invalidation on the Territory of the Russian Federation of Some of the Normative Legal Acts of the USSR and Some of the Legislative Acts (Provisions of Legislative Acts) of the Russian Federation <br />

Introduces a range of amendments to the Labour Code of the Russian Federation, the greater part being of legal and technical nature aimed at removing controversies and inaccuracies available in the Code, excluding opportunities of ambiguous interpretation of the legal norms without changing the conceptual nature of the provisions.

There are also amendments changing significantly individual provisions of the Code.

The notion of "organisation" in the Labour Code of the Russian Federation is replaced with the notion of "employer". This permits to apply the norms of the Code to employers not being legal entities (independent entrepreneurs and natural person employers hiring workers for personal services and household aid). The duty to keep labour-books of employees is introduced for independent entrepreneurs.

Independent entrepreneurs and employers out of subjects of small business are deprived of the right to conclude a labour contract with an employee for a limited period of time if the total number of workers is greater than 35. In case of activities in the sphere of retail trade and household services, the mentioned categories of employers may conclude limited-term labour contract if only the number of employees is not greater than 20.

The period of unpaid leave is increased from 7 to 14 days, which is included in the length of service permitting to have the annual paid leave.

When the paying out of earnings is delayed, the employer must pay out appropriate monetary compensation regardless of the presence of his fault.

Trade-unions may call to account for the violation of the rights of employees not only the head of the enterprise but also the head of the appropriate structural division.

If the work is suspended because of the failure to pay out the earnings for more than 15 days, the employee may leave his workplace in the working time. In this case, he must report for work no later than the next working day after receiving a written notification of the employer ready to make the payment.

The system of paying out of leave money and compensations for unused leave has also changed - it is calculated proceeding from earnings per year rather than three months, as was envisaged before.

The Law changes the procedure of labour remuneration for women with a child up to one and half years of age in cases of transfer to another job to her application because of the impossibility to fulfil the previous one. According to the amendment, the labour remuneration is paid out proceeding from work done, however, not less than the average earnings at the previous place of work, thus providing for opportunities of transfer to a higher paid job.

Intervals for baby feeding to working women are provided every three hours regardless of whether or not the work is of uninterrupted nature.

The guarantees pertaining to business trips, overtime work, work at night, on days-off and non-working holidays envisaged in Part 2 of Article 259 of the Labour Code of the Russian Federation shall be provided also to mothers and fathers bringing up children under five years of age without the spouse.

The Law changed the provisions pertaining to guarantees to expecting mothers in cases of dismissal. The limited-term labour contract shall be prolonged against employee application in the presence of appropriate medical certificate until the end of the pregnancy rather than the moment when the right for the maternity leave occurs. In this case, the employer may request from the employee the certificate confirming the pregnancy (no sooner than once in three months). If the employee continues to work after the end of the pregnancy, the employer may discontinue the prolonged contract within one week from the day when he learnt or was to learn of the end of the pregnancy.

One more reason is introduced permitting to dismiss a woman during expectancy - expiry of the period of the limited-period contract concluded to fulfil the duties of the temporarily absent worker, if it is impossible to transfer the woman with her consent before the end of the pregnancy to another job permitting to provide better health conditions. In this case, the employee must be offered all available vacancies meeting the mentioned requirements.

The Law changed individual norms pertaining to particulars of regulation of labour of part-time workers.

The Law introduces the minimum amount of compensation in case of dismissal of the head of the organisation at the decision of the authorised body of the organisation or the owner of the property in the absence of the head's fault. The compensation may not be lower than three times the average monthly earnings.

The procedure for strikes is also simplified. The meeting of employees is considered valid to endorse the decision announcing the strike taken by the trade-union if at least half of the total number of employees are present, the conference - if at least two thirds of the delegates are present. Earlier, both the meeting and the conference were considered valid in the presence of at least two thirds of the total number of employees (conference delegates).

The Law specifies the list of cases permitting to summon the employees to work on days-off and non-working holidays without their consent.

The Federal Law is entered into force 90 days after the day of official publication.

Decree of the President of the Russian Federation No. 658 of June 30, 2006 on the Federal Agency for Hi-Tech Medical Aid <br />

To improve the efficiency of development and implementation of modern medical technologies and new methods of diagnostics and treatment, forms the Federal Agency for Hi-Tech Medical Aid subordinate to the Ministry of Public Health and Social Development of the Russian Federation.

It is planned to endorse within three months the regulation on the new federal agency, redistribute the functions and authority of the Federal Agency for Public Health and Social Development and the Federal Agency for Hi-Tech Medical Aid, hand over to the created agency enterprises and institutions necessary for its functions, endorse the limiting payroll.

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

Decree of the President of the Russian Federation No. 657 of June 30, 2006 on the Invalidation of Some of the Acts of the President of the Russian Federation on the State Regulation of Safety of Use of Nuclear Power <br />

In the framework of the carried out administrative reform, the authority of state regulation of safety of use of nuclear power were vested in the Federal Service of Ecological, Technological and Nuclear Enforcement. This invalidates the acts of the President of the Russian Federation having vested this authority in the Federal Enforcement of Russia of Nuclear and Radiation Safety, Ministry of Public Health of the Russian Federation, Federal Mining and Industrial Enforcement of Russia, Ministry of the Russian Federation for Civil Defence, Emergency Situations and Elimination of Consequences of Natural Disasters and the Ministry of Defence of the Russian Federation.

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

Decision of the Government of the Russian Federation No. 414 of July 4, 2006 on the Measures to Ensure Activities of the Federal Fishing Agency <br>

Specifies the limiting number of employees of the territorial bodies of the Federal Fishing Agency in the amount of 1,200 persons.

Introduces amendments to the Regulation on the Federal Fishing Agency pertaining to activities of the agency territorial bodies.

Decision of the Government of the Russian Federation No. 412 of July 3, 2006 on the Federal Bodies of Executive Power in Charge of the State Management of the Use of Nuclear Power and the State Regulation of the Safety of Use of Nuclear Power <br>

The Federal Agency of Nuclear Power, Ministry of Defence, Federal Agency of the Industry, Federal Agency of the Sea and River Transport, Federal Agency of Education, Federal Agency of Science and Innovations, Federal Agency of Power Supplies, Federal Agency for Construction and the Housing and Communal Complex (where it pertains to the handling of radio active waste of low and medium activity and sources of ionising radiation other than nuclear, power-supply and military complexes of the country), Federal Service of Enforcement in the Sphere of Public Health and Social Development and the Federal Agency of Use of Subsoil Resources of Russia are empowered with authority of state management of the use of nuclear power in subordinate organisations, as well as organisations whose activities they coordinate and regulate.

The mentioned federal bodies of executive power are entitled to conclude agreements of interaction with organisations not subordinate to them to implement the functions of management of use of nuclear power in these organisations. Such organisation may conclude an agreement of interaction with only one of the federal bodies of executive power in charge of the state management of the use of nuclear power.

The Ministry of Emergency Situations, Federal Service of Ecological, Technological and Nuclear Enforcement, Federal Service of Enforcement in the Sphere of Protection of Consumer Rights and Human Well-Being and the Federal Medical and Biology Agency of Russia are empowered with authority of state regulation of the safety of use of the nuclear power.

Decision of the Government of the Russian Federation No. 413 of July 3, 2006 on the Endorsement of the Forms of Financial Reporting Documents of Execution of the Federal Budget for Submission to the Audit Chamber of the Russian Federation <br>



Beginning with reports as of August 1, 2006, introduces obligatory for all federal bodies of executive power, enterprises, institutions and organisations participating in the budget process financial reports of execution of the federal budget for submission to the Audit Chamber of the Russian Federation.

The given reports are introduced in execution of Article 14 of the Federal Law on the Audit Chamber of the Russian Federation.

The forms of documents of financial reports has been specified and the procedure of drawing up and submission of reports will be worked out and endorsed within one month.

Decision of the Government of the Russian Federation No. 411 of July 3, 2006 on the Amendments to Some of the Acts of the Government of the Russian Federation on the Generation of the Accumulated Part of the Labour Pension through the Non-State Pension Fund Providing Obligatory Pension Insurance <br>



Refines the grounds and procedure of transfer of accumulated pensions to finance the accumulated part of the labour pension from one non-state pension fund to another non-state pension fund or from a non-state pension fund to the Pension Fund of the Russian Federation. Accumulated pensions registered on the pension account shall be transferred no later than March 31 of the year following the year of submission by the insured of the application to transfer from fund to fund. In case of a court ruling revoking the fund’s license for activities in pension support and pension insurance, accumulated pensions shall be transferred no later than within 3 months form the day of adoption of the appropriate decision by the court.

Appropriate amendments are introduced in the typical contract of obligatory pension insurance between the non-state pension fund and the insured and in the typical insurance rules of the non-state pension fund providing obligatory pension insurance.

Order of the Federal Service for Tariff Rates No. 106-t/1 of May 23, 2006 on the Endorsement of the Rates of Port Fees in the Sea Fishing Ports of the Russian Federation



Defines the amounts of port fees collected by the state administrations of sea fishing ports in the sea fishing ports of the Russian Federation for vessels serving the fishing complex and used for catching aquatic biological resources, pickup boats, service boats and special-purpose boats.

The rates of port fees in sea fishing ports of the Russian Federation possessing common water area with sea merchant ports for the merchant marine vessels shall be equal to the rates available in the merchant ports located in the common water area (except for the pilotage fee in the port of Petropavlovsk-Kamchatski and the port of Kholmsk (out-of-port pilotage). The rates of port fees in the sea fishing ports of the Russian Federation that do not have a common water area with the sea merchant ports for merchant marine vessels shall be equal to the rates of fees available in the nearest sea merchant ports (Khasanksy Sea Merchant Port - port of Posyet, Nevelsky Sea Fishing Port - port of Kholmsk). Duplication of collection of fees from vessels in the ports with common water area is excluded.

The Order also endorses the rules of application of port fees in the sea fishing ports of the Russian Federation. The port fees in the sea fishing ports shall be collected by the state administrations of ports from Russian and foreign vessels (vessels serving the fishing complex and used for catching aquatic biological resources, pickup vessels, service boats and special-purpose boats) entering the sea fishing port for servicing regardless of proprietary forms, destination and agency subordination. The rules shall define the procedure of calculation and payment of the tonnage, beaconage, canal, wharfage, anchorage, ecological, pilotage and navigation fees, envisage opportunities of granting discounts for the rates of port fees, specify the grounds for exemption from the port fees.

The Order is entered into force from July 25, 2006.

Registered in the Ministry of Justice of the Russian Federation on July 6, 2006. Reg. No. 8023.

Federal Law No. 105-FZ of July 6, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation on Detached Service and Transfer of Servicemen, As Well As Suspension of the Military Service



Changes the existing system of secondment, transfer of servicemen and suspension of the military service specified in the Federal Law on the military duty and the military service.

According to the Federal Law, servicemen attached to the state bodies envisaging state civil service may dismiss from the military service while being transferred to the state civil service.

Servicemen attached to organisations and institutions fulfilling the tasks in state defence and security, if the federal state service is not envisaged in them, will serve in the mentioned organisations and institutions only on condition of suspension of the military service.

The Federal Law also envisages opportunities of allotment of servicemen to the commander (chief) according to the procedure defined in the Federal Laws and normative legal acts of the President of the Russian Federation.

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

Federal Law No. 104-FZ of July 6, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation in Pursuance of the Reduction of the Length of the Draft Service



The Federal Law envisages a switchover from January 1, 2008 to the 12-month-long draft military service, changing and abandoning of a number of reasons of granting respites, as well as exemption from the military service for students having undergone training at military chairs and having graduated from institutions of higher professional education.

To maintain the troops (forces) in permanent combat readiness in the course of transfer to the one-year-long draft military service, the Federal Law envisages two stages of transfer: at the first stage (from January 1, 2007), to transfer to one year and six months, and at the second stage (from January 1, 2008) to one year length of service.

Since the length of the alternative civil service is interconnected with the length of the draft military service according to Article 5 of the Federal Law on the alternative military service, the Federal Law envisages a similar reduction of this length of service.

To satisfy the increased needs of the military organisation of the state in draft resources in this connection, the Federal Law envisages, as an involuntary measure, a reduction of a number of reasons of respites for the draft granted to citizens.

The Federal Law is entered into force from July 1, 2006 except for individual norms entering into force according to the special procedure.

Federal Law No. 103-FZ of July 6, 2006 on the Amendments to the Federal Law on the Military Duty and Military Service



Amends Articles 32, 35 and 38 of the Federal Law on the military duty and military service.

Article 32 of the mentioned Federal Law defining the notion of contract for military service is being brought in compliance with Item 3 of Article 10 of the Federal Law on the system of the state service of the Russian Federation stating that the employer of the federal state servant is the Russian Federation.

Article 35 of the Federal Law on the military duty and military service envisages in addition that citizens discharged from institutions of professional military education for lack of discipline, bad achievements or lack of will to study or having refused to conclude the contract for the military service, as well as the citizens having graduated from the given educational institutions and dismissed from the military service ahead of the term specified in the contract for a number of reasons, shall reimburse resources of the federal budget spent on their military (special) training according the procedure and in the amounts specified by the Government of the Russian Federation.

The Federal Law amends Article 38 of the Federal Law on the military duty and military service to introduce a new type of contract for the military service – for an indefinite period of time (until the limiting age).

The Federal Law is entered into force from July 1, 2007.

Decision of the Government of the Russian Federation No. 418 of July 7, 2006 on Some Measures to Implement the Decree of the President of the Russian Federation No. 1313 of October 13, 2004 “Issues of the Ministry of Justice of the Russian Federation”



Amends the procedure of submission by the Ministry of Justice of the Russian Federation of representations to revoke or amend the normative legal acts of the federal bodies of executive power contradicting the Constitution of the Russian Federation and legislation of the Russian Federation from the State Register of Acts maintained by the Ministry of Justice.

In case of a failure to execute within one month the representation revoking or amending the mentioned normative legal acts, the Ministry of Justice is entitled to submit to the Government of the Russian Federation a proposal to revoke or suspend such act.

The Decision introduces the annul period of submission by the Ministry of Justice to the Government of the Russian Federation of information on the practice of the state registration of normative legal acts pertaining to rights, freedoms, and duties of the man and citizen, specifying the legal status of organisations or those of interagency nature (earlier, such information must have been submitted on the quarterly basis).

Information handed over by the Ministry of Justice to mass media on the acts recognised by the Supreme Court as not complying with the legislation shall include also the acts recognised as not complying with the legislation by the Higher Arbitration Court.

The Decision omits the provision permitting the first deputy heads of the federal body of executive power managing the industry sectors (blocks) formed in these bodies to endorse individual normative legal acts.

Decision of the Government of the Russian Federation No. 416 of July 6, 2006 on the Endorsement of the Regulation on the Licensing of Pharmacy Activities



According to the new Regulation on the licensing of pharmacy activities, the license for pharmacy activities is handed out not only to legal entities but also to independent entrepreneurs. Thus, the legislation on the licensing of pharmacy activities is being brought in compliance with the Decision of the Supreme Court of the Russian Federation No. GKPI 2003-11 of February 4, 2003 having recognised as illegal restriction of opportunities to engage in pharmacy activities for independent entrepreneurs.

The licensing body is the Federal Service of Enforcement in the Sphere of Public Health and Social Development of the Russian Federation. Earlier, the licenses were handed out by the Ministry of Public Health of the Russian Federation or the bodies of executive power of the subjects of the Russian Federation.

The Regulation defines the licensing procedure of pharmacy activities in the sphere of circulation of medicines intended for medical use, including wholesale trade, retail trade of medicines and making medicines. Specifies the licensing requirements and terms, list of documents submitted by the candidate, procedure of checking of authenticity of information presented by the candidate, issue of the copy of the license, information published in mass media pertaining to the licensed activities.

The period of validity of the issued license did not change and makes 5 years.

The pervious Regulation on the licensing of pharmacy activities endorsed by the Decision of the Government of the Russian Federation No. 489 of July 1, 2002 is invalidated.

Decision of the Government of the Russian Federation No. 415 of July 6, 2006 on the Endorsement of the Regulation on the Licensing of Production of Medicines



The Regulation defines the procedure of licensing of production of medicines by legal entities intended for medical use.

The Regulation specifies the requirements to the candidate, defines the list of documents submitted to get the license, procedure of checking of information in them, the reasons for issue of the copy of the license, as well as regulates other issues pertaining to the licensing of the given activities.

The authority to license production of medicines is vested in the Federal Service of Enforcement in the Sphere of Public Health and Social Development.

The license is granted for 5 years. The period may be prolonged through redrawing of the license.

The license requirements, as before, envisage, in particular, availability in the applicant staff of specialists in charge of production, quality and labelling of medicines with a higher or special secondary education (chemical technologies, biotechnologies, pharmacy or medicine) and experience of work in the speciality of at least 3 years. Professional development measures for the given specialists should be arranged at least once in 5 years.

Application for the license or its redrawing is submitted on the paid basis. The amount and procedure of payment of the state duty is defined in the legislation on taxes and fees.

The Decision of the Government of the Russian Federation No. 500 of July 4, 2002 having regulated the issues of licensing of medicines before is invalidated.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-2843/02 of July 10, 2006 on the Prices for Design and Survey Works in Construction for the III Quarter of 2006



Reports information used to adjust the prices for design and survey works in construction for the III quarter of 2006.

Recommended indices of change of the cost of: design works in construction make 2.13 to the level of basic prices as of January 1, 2001 and 16.42 to the level of basic prices as of January 1, 1995; survey works in construction – 2.19 to the basic prices calculated from the guides of basic prices for engineering surveys as of January 1, 2001 and 24.91 to the basic prices calculated from the guides of basic prices for engineering surveys and the Collection of Prices for Survey Works in Capital Construction taking into account the Interim Recommendations for the Adjustment of the Basic Prices as of January 1, 1991.

In the II quarter of 2006, the indices of change of the cost of design works were fixed in the amount of 2.08 to the level of basic prices as of January 1, 2001 and 16.04 to the level of basic prices as of January 1, 1995. The indices of change of the cost of survey works made: 2.14 to the level of basic prices as of January 1, 2001 and 24.33 to the basic prices calculated as of January 1, 1991.

Letter of the Federal Agency for Construction and the Housing and Communal Complex No. SK-2842/02 of July 10, 2006 on the Indices of Change of the Estimated Cost for the III Quarter of 2006



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

The mentioned indices have been worked out on the basis of the reporting information of the regional bodies of price forming in construction for the II quarter of 2006 including the inflation forecast for the III quarter of 2006, take into account the full complex of construction and installation works and are intended for major estimates of the cost of construction using the basic indices method, preparation of documentation for tenders and general economic estimates in the investment sphere.

The indices for construction and installation works are determined taking into account overhead expenses and estimated profit. The overhead expenses are assumed with a reduction coefficient of 0.94 including the reduction from January 1, 2005 of the rate of 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. 03-08-07/Belar of July 7, 2006



To provide for the taxation on the territory of the Russian Federation in accordance with the reached agreements in the framework of the conciliation procedure between the Ministry of Finance of the Russian Federation and the Ministry for Taxes and Fees of the Republic of Belarus, Belarus independent entrepreneurs must present on the reciprocity principle to the tax bodies of the Russian Federation a certificate confirming their tax residency on the territory of the Republic of Belarus.

Provided the certificate confirming the tax residency on the territory of the Republic of Belarus is presented to the tax bodies of the Russian Federation, and the permanent representation is formed on the territory of the Russian Federation, the profit obtained by the independent entrepreneur from activities in the Russian Federation in the framework of the formed permanent representation is subject to taxation in the Russian Federation only at the rates specified in Article 224 of the Tax Code of the Russian Federation: 13% for the residents of the Russian Federation and 30% for non-residents.

Decision of the Constitutional Court of the Russian Federation No. 8-P of June 30, 2006 on the Case of Constitutionality of a Number of Provisions of Part 11 of Article 154 of the Federal Law No. 122-FZ of August 22, 2004 on the Amendments to 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 Laws on the Amendments to the Federal Law on the General Principles of Organisation of Legislative (Representative) and Executive Bodies of State Power of the Subjects of the Russian Federation and on the General Principles of Local Government in the Russian Federation Pursuant to the Request of the Government of Moscow <br>

The Constitutional Court of the Russian Federation recognised as complying with the Constitution of the Russian Federation provisions of the Law on monetization specifying the procedure of gratuitous transfer in the federal property of the property owned by the subjects of the Russian Federation in view of the delimitation of the authority among the bodies of state power of the Russian Federation and the bodies of state power of the subjects of the Russian Federation. Such Decision was stipulated by the request of the Government of Moscow challenging the constitutionality of the procedure permitting to hand over regionally owned property in the property of the Russian Federation on the gratuitous basis. According to the applicant, such legal regulation is not in line with the provisions of the civil legislation specifying general rules of purchase of the proprietary right, as well as an equal reimbursement in cases of withdrawal of property.

The court explained that relations of transfer of state-owned property stipulated by the delimitation of public power authority may not be regulated by the civil legislation based on equality, autonomous will and proprietary independence of participants of the civil process. Besides, the proprietary right of the subjects of the Russian Federation may be restricted, if such restriction is necessary for protection of constitutional values and is commensurate in its nature with the constitutionally significant goals for the sake of which it is introduced.

At the same time, the Federal Law delimiting the state property and specifying the procedure of transfer of property as a result of delimitation of the public power authority must provide for the balance of interests of the Russian Federation and the interests of its subjects. Such balance is provided by introduction of the procedure when the transfer of property in the federal property is implemented on the basis of the will of the subject of the Russian Federation. The authenticity of the intention of the legislator - not to permit the transfer of property against the will of the subject of the Russian Federation possessing it - is evident in the speeches of representatives of the State Duma, Council of the Federation and the President of the Russian Federation when this case was examined.

The same motive was pursued by the Government of the Russian Federation having specified in its Decision No. 374 of June 13, 2006 that the decision taken by the federal body of state power to transfer the property from the subject of the Russian Federation to the federal property requires a proposal of the body of state power of the subject of the Russian Federation on the transfer of property from the subject of the Russian Federation in the federal property (Subitem "a" of Item 2).

Moreover, since the property owned by appropriate public legal formations is intended for the implementation of the functions of the state by the bodies of public power within their sphere of reference, therefore, gratuitous transfer of property for its most rational use in the common public interest is possible as a result of delimitation of the authority between the federal centre and the region.

Decision of the Government of the Russian Federation No. 410 of July 3, 2006 on the Coefficient of Indexing of the Amount of the Monthly Insurance Payment in Obligatory Social Insurance against Industrial Accidents and Occupational Diseases <br>

From January 1, 2006, the coefficient of indexing of the amount of the monthly insurance payment in obligatory social insurance against industrial accidents and occupational diseases assigned before January 1, 2006 makes 1.085.

Decision of the Government of the Russian Federation No. 408 of July 3, 2006 on the Endorsement of the Rate of the Export Customs Duty for Leather of Other Animals, Additionally Treated, Exported outside the Member-Countries of the Customs Union Agreements <br>

Introduces the zero rate of the export customs duty for leather, additionally treated after tanning or in the form of a crust, including parchment-dressed, of bovine animals (including buffalo) or equine leather, hairless, whether or not split, other than leather of Heading 4114 (code of the Foreign Trade Commodity Nomenclature 4107).

Earlier, the rate amount for the given commodities made 10% of the customs cost, however, not less than EUR 60.

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

Decision of the Government of the Russian Federation No. 403 of June 30, 2006 on the Endorsement of the Regulation on the Licensing of Outer Space Activities <br>

The new Regulation on the licensing of outer space activities envisages the issue of licenses to legal entities only. According to the previous Regulation, the license for outer space activities might have been issued to independent entrepreneurs either.

The new Regulation extends the list of works (services), fulfilled (rendered) in the course of the outer space activities, adjusts license requirements and terms, the list of documents presented to get the license is provided in detail for the carried out works. The main license requirement for all works in the framework of outer space activities is availability on the proprietary basis (or on other legal grounds) of rooms, equipment, normative-and-technical and operational documentation providing for the implementation of the declared works.

The Regulation envisages the checking by the licensing body of completeness and authenticity of information and documents presented by the applicant, opportunities of fulfilling license requirements and terms. Provides the list of major violations of the licensing requirements.

The license is granted for 5 years. It may be granted for a greater period of time if the state contract with the developer envisages a longer period of works to be carried out under targeted programs.

The previous Regulation on the licensing of outer space activities endorsed by the Decision of the Government of the Russian Federation No. 422 of June 14, 2002 is invalidated.

Order of the Federal Service of Ecological, Technological and Nuclear Enforcement No. 595 of June 20, 2002 on the Endorsement of the Instruction on the Organisation of Issue of Permissions by the Federal Service of Ecological, Technological and Nuclear Enforcement to Develop the Parts of the Forest Lands When They Are Transferred into Non-Forest Lands <br>

Specifies the procedure of issue of permissions by the Federal Service of Ecological, Technological and Nuclear Enforcement for development of the parts of forest lands, when they are transferred into non-forest lands, for the purpose of geological surveys, geological studies, prospecting and extraction of mineral resources, construction and other works in the presence of mineral deposits on the selected part, as well as specifies the procedure of issue (refusal to issue) of the mentioned permissions and the procedure of registration of the issued permissions (refusals to issue them) in the territorial bodies of the Federal Service of Ecological, Technological and Nuclear Enforcement.

The permission is an integral part of the set of documents necessary for the preparation of the decisions of the territorial bodies of the Federal Forestry Agency on the transfer of forest lands into non-forest ones.

The grounds of refusal to issue the permission are the failure to present necessary documents or a violation of the available requirements on protection of subsoil resources.

Registered in the Ministry of Justice of the Russian Federation on July 4, 2006. Reg. No. 8002.

Order of the Federal Tax Service No. SAE-3-09/355@ of June 16, 2006 on the Publication of Information of the State Registration of Legal Entities in Compliance with the Legislation of the Russian Federation on the State Registration <br>

Defines the procedure of publication of information available in the Joint State Register of Legal Entities.

Information available in the Joint State Register of Legal Entities and intended for publication shall be placed in the Internet on the site of the Federal Tax Service of Russia. The mentioned information, as well as other information that must be published in compliance with the legislation on the state registration, shall be published in the Herald of the State Registration.

The Order specifies the form used for the placing of the information available in the Joint State Register of Legal Entities on the site of the Federal Tax Service of Russia and the composition of information published in the mentioned journal.

Information for publication in the journal and for placing in the Internet shall be presented on the weekly basis by the Interregional Inspection of the Federal Tax Service of Russia for Centralised Data Processing.

Information on adopted decisions on anticipated exclusion of inoperable legal entities from the Joint State Register of Legal Entities shall be presented to the journal by the tax (registration) bodies.

Registered in the Ministry of Justice of the Russian Federation on July 4, 2006. Reg. No. 8001.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 75 of June 14, 2006 on the Endorsement of the Method of Organisation and Carrying out of the Measures to Control Activities in the Sphere of Postal Communication <br>

Works out the method defining the procedure of organisation and carrying out of measures to control activities of legal entities, independent entrepreneurs and natural persons when they render services of postal communication.

Enforcement and control of observation of the requirements in the sphere of postal communication shall include organisation and implementation of checking of observation of the requirements to:

· * structure of networks of the postal communication, design, construction, reconstruction and operation of networks (structures) of postal communication;
· * fulfilling of rules of rendering of services of postal communication by postal communication operators;
· * metrological support of equipment used to register the volume of rendered services of postal communication;
· * normatives of frequency of collection from mail boxes, exchange, transportation and delivery of written correspondence;
· * time limits of transfer of mail dispatches and mail money transfers;
· * procedure of registration of dispatched and received mail dispatches and money transfers between organisations of postal communication;
· * procedure of use of postage meters and finding the ones not permitted for use.

Control over observation of the legislation on the licensing in the sphere of communication shall include the checking of: observation of the license terms; finding the persons rendering the services of postal communication at cost without appropriate licenses.

Control measures shall be vested in the state inspectors of the Russian Federation for enforcement of communication and information technologies.

The Order specifies the list of measures to be carried out during each of the above checks, as well as their method and procedure of determination of the volumes of control measures. Regulates the issue of drawing up of the results of carried out control measures. Provides the forms of documents drawn up in the course of the checks and as a result of the carried out control measures.

Registered in the Ministry of Justice of the Russian Federation on July 4, 2006. Reg. No. 8000.

Order of the Federal Service for Tariff Rates No. 123-s/1 of June 19, 2006 on the Endorsement of Tariff Rates for the Services of the Regional Telephone Connection to the User of the Network of Fixed Telephone Communication between the User (Terminal) Equipment Connected to the Network of Local Telephone Communication and the User (Terminal) Equipment Connected to the Network of Mobile Radio Telephone Communication, When the Appropriate User of This Network of Mobile Radio Telephone Communication is Assigned a User Number Forming Part of Resources of Geographically Undefined Numbering Zone Allocated to the Same Subject of the Russian Federation, Provided by the OAO North-Western Telecom, OAO Pskov GTS, OAO CentreTelecom, OAO MGTS, OAO VolgaTelecom, OAO TatTelecom, OAO BashInformSvyaz, OAO Southern Telecommunication Company, OAO DagSvyazInform, FGUP Department of Telecommunication of the Republic of Ingushetia, OAO UralSvyazInform, OAO SibirTelecom, OAO TyvaSvyazInform, OAO Far-Eastern Company of Telecommunication, OAO SakhaTelecom, OAO ChukotkaSvyazInform <br>


Pursuant to the abandoning from July 1, 2006 of the payment for the users of cellular communication for incoming telephone calls from urban telephones to cellular ones and introduction of payment for the users of fixed telephone communication for the calls from urban telephones to cellular ones, introduces the minimum and maximum amounts of tariff rates for the mentioned calls. The specific amount of the tariff rate is fixed by the communication operator within the limits of the mentioned minimum and maximum amounts and may be differentiated by the time of day, days of the week, days-off and non-working holidays, volume of rendered services and form of payment.

For the majority of the regions, the maximum amount of the tariff rate for the call from the urban telephone to the cellular one, if the user number is registered in the same region, makes Rbl 1.5, the minimum amount - Rbl 0.75. An exception is the regions of the Far North and localities of similar status, where the maximum amount of the tariff rate makes Rbl 1.7, and the minimum - Rbl 0.85, as well as Yakutia (Rbl 2.47 and Rbl 1.24 respectively) and the Chukotka Administrative District (Rbl 2 and Rbl 1 respectively).

Higher amounts of the minimum and maximum tariff rates are fixed for the calls from urban telephones to the cellular ones outside the municipal formation where the calling user equipment is installed. The given amounts of tariff rates are differentiated by tariff zones depending on the distance of connection.

Provided amounts of tariff rates for the population include the value added tax, for organisations, VAT is collected in addition to the specified tariff rates.

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

Decision of the Government of the Russian Federation No. 421 of July 8, 2006 on the Amendments to Some of the Decisions of the Government of the Russian Federation on Circulation of Narcotic Drugs and Psychotropic Substances



The list of narcotic drugs and psychotropic substances prohibited from circulation in the Russian Federation (List I) is extended to include the following narcotic drugs: hydroxypethidine, 2,5-dimethoxy-4-N-propylthiophenethylamine, home-made preparations of phenylpropanolamine or of preparations containing phenylpropanolamine, fenfluramine, 1-(3-trifluoromethylphenyl) piperazine, pethidine, (intermediate product B, C), stereo isomers of narcotic drugs and psychotropic substnces provided in the list.

The list of narcotic drugs and psychotropic substances with restricted and controlled circulation in the Russian Federation (List II) shall include in addition N-benzilpiperazine, dihydroetorphine, capsules of 30 mg of codein and 10 mg of phenyltoloxamine, alfa-methyl-4-methylthiophenetylamine, remiphentanyl, phenetylline, isomers and stereo isomers of narcotic drugs and psychotropic substances provided in the list.

Pursuant to the inclusion of the above narcotic drugs and psychotropic substances in the lists of prohibited and restricted for circulation, the Decision defines the large and specially large amounts used to qualify the crimes pertaining to illegal circulation of the mentioned narcotic drugs and psychotropic substances.

Narcotic drug oxycodone (tecodine) is transferred from List I to List II.

Meanwhile, the mentioned lists do not include now properidine, propiram, levamphetamine, estocine, estocine hydrochloride. Since restrictions are lifted for circulation of the given substances, the list of large and specially large amounts of narcotic drugs and psychotropic substances now does not include appropriate items.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-11-04/3/335 of July 4, 2006



If the shop room was rearranged to reduce the sales area, with the tax inspection being notified by sending an application for the change of the sales area (with attached copy of the auxiliary form to the technical certificate for the object of trade), the actions of the tax inspection to increase the uniform imputed income tax are considered to be legal for only the period of time when the organisation has not yet submitted the application for the change of the sales area.

Letter of the Federal Tax Service No. GV-6-02/664@ of June 30, 2006 on the Submission of the Correcting (Adjusted) Tax Declarations for the Profit Tax from Organisations



Explains the procedure of submission and filling out of the correcting (adjusted) tax declarations for the profit tax from organisations by taxpayers possessing separate divisions.

The correcting tax declarations for the given tax for the past reporting (tax) periods before January 1, 2006 shall be submitted by organisations having switched over from January 1, 2006 to the payment of the profit tax from organisations to the budgets of the subjects of the Russian Federation through their responsible separate divisions to the tax body at the place of location of the mentioned separate divisions.

In case of the taxpayer decision to pay on his own the profit tax for all of its separate divisions located in the same subject of the Russian Federation as the parent organisation, the adjusted declarations for the separate divisions shall be submitted to the tax body at the place of registration of the taxpayer (parent organisation).

The adjusted tax declarations shall be submitted on the specified blank form available in the reporting (tax) period where the recalculation of the tax obligations pertain.

In this case, Section I of the adjusted tax declarations show the same OKATO codes that were used in the initial tax declarations submitted at the place of location of the separate divisions.

Information of the adjusted tax declarations on the amounts of tax in addition (reduction) to the budget of the subject of the Russian Federation is recorded in the RSB card with the OKATO code of the place of location of the responsible separate division (parent organisation). The same OKATO code is shown in the payment document to transfer the tax to the budget of the subject of the Russian Federation.

The Letter also explains the procedure of recalculation of appropriate obligations to the local budgets and the procedure of recording of the given recalculation in the adjusted declarations.

Direction of the Central Bank of Russia No. 1693-U of June 6, 2006 on the Amendments to the Regulation of the Bank of Russia No. 230-P of June 4, 2003 on the Reorganisation of Credit Organisations in the Form of a Merger and Incorporation <br>

In view of the changes in the procedure of registration of credit organisations and licensing of bank activities, introduces appropriate changes in submitted documents in the cases of reorganisation in the form of a merger and incorporation of credit organisations.

In case of a merger, the documents are sent to the territorial institution of the Bank of Russia envisaged in the normative act of the Bank of Russia regulating the procedure of registration of credit organisations and licensing of bank activities and a request for the license for bank operations.

In case of incorporation, if the credit organisation requests a new license for bank operations, one copy of the request of the credit organisation for the new license for bank operations is submitted to the territorial institution of the Bank of Russia addressed to the head of the Bank of Russia besides the documents envisaged in the normative act of the Bank of Russia.

The Direction omits the provision requiring the document of payment of the state duty for the license for bank operations.

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 July 4, 2006. Reg. No. 8022.

Order of the Ministry of Economic Development of the Russian Federation No. 144 of May 29, 2006 on the Rules of Organisation and Carrying out of the Contest Among Editorial Boards of Printed Mass Media to Determine the Official Source to Publish Information Envisaged in the Federal Law on Insolvency (Bankruptcy) and on the Prototype Contract on the Procedure and Terms of Publication by the Official Source of Information Envisaged in the Federal Law on Insolvency (Bankruptcy) <br>

Endorses the rules of organisation and carrying out of the contest among editorial boards of printed mass media to determine the official sources to publish information envisaged in the Federal Law on insolvency (bankruptcy) defining the procedure of organisation and carrying out of the open contest to determine the official source for the cases of bankruptcy and bankruptcy proceedings among editorial boards of printed mass media.

The rules shall specify the duties of the contest organiser, the list of information to be contained in the notification of the contest, content of the contest documentation, as well as the requirements to the printed mass media organisations whose editorial boards are permitted to participate in the contest.

The winner of the contest will be the one having proposed the lowest price of publication of the official information in roubles per square centimetre while observing all requirements to the circulation of the publication, periods, time limits of publication, territory of dissemination of the publication. If the prices suggested by the contest participants are the same, the winner is recognised to be the one with the larger circulation. If the price of publication of official information and the circulation of the publication indicated in the requests of the contest participants are the same, the winner of the contest is recognised to be the one whose request was submitted to the contest organiser earlier.

The Order also endorses the prototype contract on the procedure and terms of publication by the official source of information envisaged in the Federal Law on insolvency (bankruptcy).

Registered in the Ministry of Justice of the Russian Federation on July 4, 2006. Reg. No. 8020.

Letter of the Central Bank of Russia No. 92-T of July 4, 2006 on the Rouble Equivalents of the Figures Envisaged in the Direction of the Bank of Russia No. 1346-U of December 1, 2003 <br>

For the III quarter of 2006, the Bank of Russia specifies new rouble equivalents of the minimum amount of the registered capital for created credit organisations, amount of own resources (capital) for operating credit organisations as a prerequisite for creation of their branches on the territory of a foreign state, amount of own resources (capital) for non-bank credit organisations requesting the status of a bank.

The rouble equivalent of the registered capital for created banks, regardless of the share of participation of foreign capital in them, as of the day of submission of documents to the territorial institution of the Bank of Russia must be at least Rbl 169,879,500 (in the II quarter, the equivalent amounted to at least Rbl 167,367,000). For created non-bank credit organisations as of the day of submission of documents - at least Rbl 16,987,950 (in the II quarter - at least Rbl 16,736,700).

The rouble equivalent of own resources (capital) for operating credit organisations requesting the general license for bank operations as of the first of the month preceding the day of submission of documents to the territorial institution of the Bank of Russia must be at least Rbl 169,879,500 (in the II quarter - at least Rbl 167,367,000). For non-bank credit organisations requesting the status of a bank as of the first of the month preceding the day of submission of documents to the territorial institution of the Bank of Russia - at least Rbl 169,879,500 (in the II quarter - at least Rbl 167,367,000).

Federal Constitutional Law No. 3-FKZ of July 12, 2006 on the Amendments to Articles 24 and 33.1 of the Federal Constitutional Law on the Courts of Arbitration in the Russian Federation <br>

Pursuant to the creation of the new subject of the Russian Federation of the Kamchatka Territory having united the Kamchatka Province and the Koryak Autonomous District and creation of the Arbitration Court of the Kamchatka Territory instead of the Arbitration Court of the Kamchatka Province, amends Articles 24 and 33.1 of the Federal Constitutional Law on the courts of arbitration of the Russian Federation stating that from the moment of formation of the Arbitration Court of the Kamchatka Territory until January 1, 2009, the checking of the court rulings adopted by the Arbitration Court of the Kamchatka Province shall be vested in the 5th Appellate Arbitration Court and the Federal Arbitration Court of the Far-Eastern District.

The Federal Constitutional Law is entered into force from the day of the forming of the Arbitration Court of the Kamchatka Territory.

Federal Constitutional Law No. 2-FKZ of July 12, 2006 on the Forming in the Russian Federation of the New Subject of the Russian Federation As a Result of the Merger of the Kamchatka Province and the Koryak Autonomous District <br>

From July 1, 2007, forms a new subject of the Russian Federation - Kamchatka Territory - as a result of the merger of the two bordering subjects of the Russian Federation - Kamchatka Province and the Koryak Autonomous District. The forming of the new subject is stipulated by the need to speed up the social and economic development and improve the living standards of the population of the Koryak Autonomous District.

The administrative territorial unit of the Koryak District is created in the Kamchatka Territory within the boundaries of the Koryak Autonomous District

The transient period for the creation of the Kamchatka Territory is specified from the day of entry into force of the Federal Constitutional Law founding it till the day of the forming of the legislative and higher executive bodies of state power of the Kamchatka Territory.

The Law defines the procedure of legal succession, as well as the functioning in the transient period of the bodies of state power of the Kamchatka Province and the Koryak Autonomous District, territorial bodies of the federal bodies of executive power, the courts. Specifies the procedure of forming of the legislative and executive bodies of state power of the Kamchatka Territory, particulars of drawing up, examination, endorsement and execution of the budgets of the Kamchatka Province and the Koryak Autonomous District for the year 2007 and the budget of the Kamchatka Territory for the year 2008. Examines separately the correspondence of laws and other normative legal acts of the Kamchatka Territory, Kamchatka Province and the Koryak Autonomous District.

To preserve the national originality, develop national languages and national cultures of the native small peoples of the territory of the Kamchatka Territory, opportunities of forming of the territory of traditional use of nature of small peoples of the North, Siberia and the Far East are envisaged.

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

Federal Law No. 108-FZ of July 12, 2006 on the Amendments to the Federal Law on the Physical Culture and Sports in the Russian Federation <br>

Introduces the sports passport for identification of sports affiliation and sports qualification of sportsmen. It is obligatory for all citizens engaging in selected sports activities on the regular basis and taking part in sports competitions. In the absence of the sports passport, the sportsmen (citizens of the Russian Federation) will not be permitted to take part in all-Russia sports events. The presence of the sports passport is necessary also when sportsmen (citizens of the Russian Federation) transfer from one sports club to another.

The sports passport indicates the full name, date of birth, affiliation with a sports organisation, selected type of sports, information on awarded sports grades and ranks, confirmation of fulfilled qualification normatives, anthropometrics and physiology information, figures of medical tests, sports achievements, information of disqualification, state awards and other forms of rewards. The mentioned information (except for the physiology and medical figures) may be used and disseminated freely for the purposes of the sportsman's sports activities.

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

Federal Law No. 107-FZ of July 12, 2006 on the Amendments to Some of the Legislative Acts of the Russian Federation Pertaining to Abandoning of the Form of Vote against All Candidates (against All Lists of Candidates) <br>

Amends three Federal Law: No. 67-FZ of June 12, 2002 on the main guarantees of electoral rights and the right to participate in the referendum of the citizens of the Russian Federation, No. 19-FZ of January 10, 2003 on the election of the President of the Russian Federation and No. 51-FZ of May 18, 2005 on the election of the deputies of the State Duma of the Federal Assembly of the Russian Federation omitting column "Against All Lists of Candidates" ("Against All Candidates") for election bulletins of all levels.

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

Provisions of the Federal Law do not apply to legal relations pertaining to elections assigned before its entry into force.

Federal Law No. 106-FZ of July 12, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation Refining the Procedure of Nomination of Candidates to Elected Positions in the Bodies of State Power <br>

The amendments specify that the State Duma deputy may only be a member of the political party in whose federal list of candidates he was permitted to participate in the distribution of the deputy mandates in the State Duma, thus prohibiting the transfer of deputies from one political party to another, which is expected to provide for stability of activities of deputy associations (fractions). Violation of the given rule shall imply an early termination of the deputy authority. At the same time, the law permits the party member deputy to leave it to become a non-party deputy. His authority in this case is not terminated.

The mentioned provisions shall apply also to the deputies of the legislative (representative) bodies of state power of the subjects of the Russian Federation. Since a mixed election system is used in the elections of the given level (through party lists and by districts), the deputy fractions beside deputies of political parties having formed the fraction may include the deputies elected in single-mandate (multiple-mandate) districts. The deputies elected from political parties may not leave the fraction. The deputies elected in the districts and forming part of the fraction must be either the members of the party having formed this fraction or non-party members. The failure to observe the mentioned requirements implies an early termination of the deputy authority.

The Law introduces a prohibition for political parties to nominate as candidates for deputies and to other elected positions in the bodies of state power and local government the citizens being members of other political parties. The given prohibition restricts opportunities of parties failing to enjoy a real support of the electorate to use resources of more powerful parties to get positions in the bodies of state power and local government.

The Federal Law is entered into force from the day of its official publication. Provisions pertaining to the deputies of the State Duma of the Russian Federation and legislative (representative) bodies of state power of the subjects of the Russian Federation do not apply to convocations elected before the entry into force of the Federal Law. The prohibition to nominate the candidates of other political parties applies to legal relations pertaining to elections assigned after the entry into force of the given Federal Law.

Letter of the Federal Tax Service No. GV-6-02/664@ of June 30, 2006 on the Submission of the Correcting (Adjusted) Tax Declarations for the Profit Tax from Organisations <br>

Explains the procedure of submission and filling out of the correcting (adjusted) tax declarations for the profit tax from organisations by taxpayers possessing separate divisions.

The correcting tax declarations for the given tax for the past reporting (tax) periods before January 1, 2006 shall be submitted by organisations having switched over from January 1, 2006 to the payment of the profit tax from organisations to the budgets of the subjects of the Russian Federation through their responsible separate divisions to the tax body at the place of location of the mentioned separate divisions.

In case of the taxpayer decision to pay on his own the profit tax for all of its separate divisions located in the same subject of the Russian Federation as the parent organisation, the adjusted declarations for the separate divisions shall be submitted to the tax body at the place of registration of the taxpayer (parent organisation).

The adjusted tax declarations shall be submitted on the specified blank form available in the reporting (tax) period where the recalculation of the tax obligations pertain.

In this case, Section I of the adjusted tax declarations show the same OKATO codes that were used in the initial tax declarations submitted at the place of location of the separate divisions.

Information of the adjusted tax declarations on the amounts of tax in addition (reduction) to the budget of the subject of the Russian Federation is recorded in the RSB card with the OKATO code of the place of location of the responsible separate division (parent organisation). The same OKATO code is shown in the payment document to transfer the tax to the budget of the subject of the Russian Federation.

The Letter also explains the procedure of recalculation of appropriate obligations to the local budgets and the procedure of recording of the given recalculation in the adjusted declarations.

Decision of the Government of the Russian Federation No. 430 of July 14, 2006 on Special State Scholarships of the Government of the Russian Federation for the Post-Graduate Students and Students Who Study in Federal State Higher and Secondary Vocational Education Institutions <br>

An increase has occurred in the rate of special state scholarships of the Government of the Russian Federation paid out to the post-graduates and daytime students of state higher and secondary vocational education institutions who display outstanding abilities in their studies and in the scientific field. Thus, the post-graduates of federal state higher professional education institutions will be entitled to receive 3,000 roubles, the students of federal state higher vocational education institutions, 1,200 roubles, the students of federal state secondary vocational education institutions, 700 roubles. The rates are effective from January 1, 2006.
Before that, the rates of government scholarships were equal to 1,500, 600 and 350 roubles respectively.

Order of the Government of the Russian Federation No. 1014-r of July 14, 2006<br>

Rossiyskaya Gazeta is designated as the official periodical publication responsible for publishing a comprehensive federal list of the organisations, in particular, foreign and international ones, deemed by Russian courts as terrorist ones.

Decision of Plenary Meeting of the Higher Arbitration Court of the Russian Federation No. 20 of June 22, 2006 on Certain Issues Arising from the Application of Norms of the Customs Code of the Russian Federation on the Periodical Temporary Declaration of Russian Goods (Except for Goods Moved by Means of Pipelines or Power Transmission Lines)<br>

The plenary meeting of the Higher Arbitration Court of the Russian Federation has clarified some issues that can arise from the application of norms of the Customs Code of the Russian Federation concerning the periodical temporary declaration of Russian goods (when goods for which no exact information can be provided for customs formality purposes are allowed for being imported through periodical temporary declaration involving the filing of a temporary customs declaration).

Notably, when Articles 137 and 138 of the Customs Code of the Russian Federation are applied account has to be taken of the following: if as of the time of filing of a temporary customs declaration a normative legal act has been published but not yet put in force, which establishes new customs duties for the period of time within which Russian goods are to be exported the use of a periodical temporary declaration would mean partial exemption from customs payments. Accordingly, in this case a simplified procedure for declaring the Russian goods in the form of a periodical temporary declaration is not applicable.

Decision of Plenary Meeting of the Higher Arbitration Court of the Russian Federation No. 21 of June 22, 2006 on Certain Issues of Arbitration Courts' Practices of Hearing Disputes Involving the Participation of State and Municipal Institutions in Connection with the Application of Article 120 of the Civil Code of the Russian Federation<br>

Explanations have been prepared concerning issues of the arbitration courts' practices of hearing disputes involving the participation of state and municipal institutions in connection with the application of Article 12 of the Civil Code of the Russian Federation which define the general legal situation of institutions, the terms on which their formation is allowed, including the procedure for creating their property, and issues concerning the liabilities of these organisations.

The aspects that must be taken into account are indicated as follows: when cases are heard concerning claims for deeming institutions' transactions null and void; when the scope of powers of an institution is defined in respect of incomes received by these organisations from the profit-yielding activities mentioned in their constitutive documents, and also the property acquired with these incomes; when the owner of the institution's property is held liable on lines of vicarious liability for debts of the institution (including the case of winding up of the institution) and when it is determined if the owner may dispose of the property assigned to the institution by the right of operative management, for instance by leasing it out.
Thus, for instance, it is explained that the Civil Code of the Russian Federation, without regulating the content of the institution's right of disposing at its own discretion of property acquired with incomes from income-yielding activities, determines that the institution cannot possess the property by right of ownership. The Budget Code, fixing the details of keeping record of these incomes, does not modify the scope of the institution's rights established by the Civil Code of the Russian Federation concerning these incomes and the property purchased with them.

Since the owner of the institution's property cannot be held accountable without a claim to the principal debtor being filed with the court if a creditor addresses his claim for repayment of the institution's debt directly to a vicarious debtor without addressing a claim to the institution the arbitration court is to suggest that the creditor have the principal debtor take part in the case as another defendant.

Moreover, it should not be neglected that the undertaking of an institution in the form of money obligations in excess over a cost estimate is not a ground for refusing to hold the owner of the institution accountable on lines of vicarious liability for the institution's obligations.

In the event of winding up of an institution creditors' claims declared after the completion of the winding up cannot be met at the expense of the owner of the institution's assets.

Decision of Plenary Meeting of the Higher Arbitration Court of the Russian Federation No. 22 of June 22, 2006 on the Procedure for Redemption of Expenses in a Case of Bankruptcy <br>

The plenary meeting of the Higher Arbitration Court of the Russian Federation has offered its explanations concerning the procedure for redeeming expenses in a case of bankruptcy. For instance, courts have to take into account that where the insufficiency of debtor's assets and also the lack of or insufficiency of funding by an applicant, an insolvency practitioner or another person of bankruptcy proceedings make it impossible to further implement them than the bankruptcy case has to be terminated under Item 1 of Part 1 of Article 150 of the Arbitration Procedural Code of the Russian Federation, for instance, on the court's initiative. However, unless such circumstances impede the issuance of a ruling on termination of winding up proceeding, then case proceeding is not subject to termination. In the ruling on termination of the proceeding in this case reference should be made to the procedure for distribution of the expenses both incurred before the termination of the case and the future ones as well. Here, o ne is to bear in mind that compensation is possible for expenses deemed substantiated and necessary by the court.

Decision of Plenary Meeting of the Higher Arbitration Court of the Russian Federation No. 23 of June 22, 2006 on Certain Issues of Arbitration Courts' Application of Norms of the Budget Code of the Russian Federation<br>

The plenary meeting of the Higher Arbitration Court of the Russian Federation has prepared recommendations concerning the details of application of budget legislation norms in disputes to which a public-law entity is party.

It is explained that in cases of compensation for harm inflicted by unlawful actions of state bodies, and also in lawsuits on lines of vicarious liability against public-law entities concerning the obligations of institutions they have formed the relevant chief manager of budget funds acts on behalf of the public-law entity. In this case, the indication that defendant is a body not being the relevant chief manager of budget funds is not deemed an obstacle for hearing the case on the merits thereof. While settling disputes in lawsuits presented by a creditor of a state (municipal) institution the appropriate defendant in line of vicarious liability for the obligations of the institution is the relevant public-law entity rather than the empowered bodies thereof.

Notably, according to Item 6 of 242.2 of the Budget Code the execution of a court's judgement on collecting funds from a public-law entity at the expense of budget funds has to be accomplished by the relevant financial body within three months after the receipt of a writ of execution by the said body. Thus, a writ of execution may be presented by a claimant for enforced execution to a bailiff only if the court's decision has not been implemented at the expense of budget funds within the said three-month term.

Also some issues have been examined concerning disputes on holding public-law entities liable for the state (municipal) guarantees they have granted; on deeming cash collection instructions of state bodies in the area of enforcement as not subject to execution; on deeming as illegal decisions concerning the withdrawal of the budget funds allocated to an institution and used by it for purposes inconsistent with the terms and conditions defined for receipt thereof by the estimate of revenues and expenditures. Special attention is drawn to such category of cases as cases of collection of the damages economic entities incur in connection with the granting to certain categories of citizens of the privileges established by the legislation. It is stressed that these disputes have an economic nature, and therefore fall within the jurisdiction of an arbitration court. A procedure is defined for designating proper defendants in such cases with due regard to the amendments to legislation that have been made since Janua ry 1, 2005 concerning delineation of powers of the Russian Federation and the subjects thereof on matters of joint jurisdiction, like social protection.

Decision of Plenary Meeting of the Higher Arbitration Court of the Russian Federation No. 24 of June 22, 2006 on the Application to State (Municipal) Institutions of Item 2 of Article 1 of the Federal Law on Placing Orders for the Delivery of Goods, Performance of Works and Provision of Services for State and Municipal Needs and Article 71 of the Budget Code of the Russian Federation<br>

The plenary meeting of the Higher Arbitration Court of the Russian Federation has provided its explanations concerning the limits on and the procedure for state or municipal institutions' exercising their powers to spend the funds allocated by a cost-estimate for the purchase of goods (works, services) for the purpose of supporting their own activities.

The acquisition by budget-funded institutions for their own needs of goods, works and services for an amount not exceeding 200,000 roubles takes place under contracts concluded in the ordinary procedure in keeping with the provisions of the civil legislation. However, one is to see the difference between the agreements (contracts) concluded by an institution within the limits of funds allocated under a cost-estimate for meeting its own needs and the contracts concluded for the purpose of meeting state (municipal) needs according to the Federal Law on Placing Orders for the Delivery of Goods, Performance of Works and Provision of Services for State and Municipal Needs. For the purpose of concluding such contracts an institution has to secure the powers of a state (municipal) customer that can be conferred thereon by the relevant governmental body or municipal authority. If an institution is empowered by a governmental body to carry out the functions of a state (municipal) customer in placing orders for the del ivery of goods, performance of works and provision of services for state (municipal) needs then in this case, acting in the interests and on behalf of a public-law entity, shall be fully governed by the provisions of the Law on Placing Orders, save cases when goods (works and services) are delivered for an amount not exceeding the maximum amount allowed for settlement of accounts in cash in the Russian Federation between legal entities under a single transaction (at present it is equal to 60,000 roubles).

Decision of Plenary Meeting of the Higher Arbitration Court of the Russian Federation No. 30 of June 22, 2006 on Certain Issues of Application of Article 103(1) of the Tax Code of the Russian Federation Concerning the Regulation of Extrajudicial Procedure for Collecting Tax Sanction Amounts<br>

The plenary meeting of the Higher Arbitration Court of the Russian Federation has explained the procedure for application of Article 103.1 of the Tax Code of the Russian Federation establishing the procedure for collecting tax sanctions under a decision of a tax body. For instance, when this norm is applied the rule of Item 3 of Article 46 of the Tax Code of the Russian Federation on the limit on the term for collection of said amounts in an extrajudicial procedure is not applicable. If the tax sanction amounts not paid by the taxpayer (tax agent) voluntarily exceed the limits set by the Tax Code of the Russian Federation these amounts are collected through a judicial procedure in the observance of statute of limitations concerning the collection of tax sanctions set at six months by Article 115 of the Tax Code of the Russian Federation. If the sum of outstanding tax sanctions does not exceed the limits set by the Tax Code of the Russian Federation then they may be collected within six months by means of send ing relevant documents to a bailiff, in view of Subitem 3 of Item 1 of Article 14 of the Federal Law on Execution Proceedings. Here, while determining the starting point of the term one is to be governed by the same approach as for the starting point for counting the tax sanction collection term in a judicial procedure.

Decision of the Government of the Russian Federation No. 431 of July 14, 2006 on Performing the State Technical Inspection of Vehicles Registered by Military Motor Vehicle Inspectorates (Motor Vehicle Services)

Rules have been confirmed to establish uniform requirements governing the compulsory state technical inspection of vehicles registered by the military motor vehicle inspectorates (motor vehicle services) of federal executive governmental bodies in which military service is envisaged by a federal law.Here, "motor vehicles" means motor road vehicles (including the ones having the maximum design speed of 50 km/hour and less), tractors, self-propelled road-construction and other vehicles featuring an engine displacement of over 50 cu. cm and trailers for them, and also motor vehicles and military machinery not intended for public roads.The technical inspection is conducted free of charge by the military motor vehicle inspectorates (motor vehicle services) of federal executive governmental bodies in which military service is envisaged by a federal law.The following is established: intervals between inspections, the procedure for determining the time, place and duration of the inspection and a list of the documents to be filed for inspection purposes.A card is going to be issued to acknowledge that a vehicle that has passed inspection, with the form thereof being approved by the Ministry of Internal Affairs of the Russian Federation. The registration documents of a vehicle may be amended due to a change in the particulars of the owner (representative thereof) or replacement of the state licence plate, and in this case a new card will be issued without verification of the vehicle.Digital codes for the federal executive governmental bodies in which military service is envisaged by a federal law, as well as the letter series applied to certificates of registration of vehicles and technical inspection cards are to be established by the Ministry of Defence of the Russian Federation in agreement with the Ministry of Internal Affairs of the Russian Federation and the Ministry of Agriculture of the Russian Federation.



Decision of the Government of the Russian Federation No. 425 of July 14, 2006 on Amending Certain Acts of the Government of the Russian Federation on Issues of Countering Terrorism

In connection with the enactment of the Federal Law on Countering Terrorism that has classified the entities engaged in countering terrorism, adjusted their powers, more clearly delineated the powers of executive governmental bodies and local self-government bodies, provided the definition of "act of terrorism" and put the counter-terrorism operation on a legal foundation, relevant amendments have been made to specific acts of the Government of the Russian Federation concerning fight against terrorism.The following is removed from the Regulations on the Federal System for Protection of Maritime Navigation against Unlawful Acts Endangering Navigation Safety (Decision of the Government of the Russian Federation No. 324 of April 11, 2000): the norms defining the powers of executive governmental bodies to conduct counter-terrorist operations and specifically describing the order of organisation's actions, the performance thereof and the use of forces and means.In the List of the Territories, Organisations and Installations to Which Entry for Foreign Citizens Require a Special Permit (Decision of the Government of the Russian Federation No. 754 of October 11, 2002) the counter-terrorism operation zones have been replaced with territories (installations) within which (on which) the legal regime of counter-terrorism operation is declared.Decision of the Government of the Russian Federation No. 164 of March 20, 2003 on Approving the Regulations on the Burial of Persons Whose Death Is Due to the Stopping of the Terrorist Act They Committed defines a procedure for the burial of persons in respect of which criminal prosecution in connection with participation in terrorist activities is terminated because they died when the act of terrorism they committed was stopped. The term "act of terrorism" is included in the title and throughout the text in place of "terrorist action". Reference to the Federal Law on Fight against Terrorism is removed from the grounds for elaboration of the Regulations.Also the term "act of terrorism" is included in the text of the federal target programme "Reducing the Risk of, and Alleviating the Aftermath of, Natural and Man-Made Emergencies in the Russian Federation until 2010 (Decision of the Government of the Russian Federation No. 1 of January 6, 2006).

Letter of the Tax and Customs-Tariff Policies Department of the Ministry of Finance of the Russian Federation No. 03-11-04/3/293 of June 19, 2006

Concerning the calculation of uniform tax on imputed income on an activity in the area of provision of services of motor vehicle parking on toll parking lots the Ministry of Finance of the Russian Federation has explained that the size of a parking lot is established on the basis of the right-establishing documents confirming taxpayers' rights to use the land plot for arranging the parking lot (purchase contract, lease and other documents). The Tax Code has no provision for reducing the area of a toll parking lot by the area of access roads in its vicinity, the area occupied by the lot's service premises or the area used for toll-free parking of special-purpose vehicles etc.



Federal Law No. 120-FZ of July 18, 2006 on the Amendments to the Federal Law on the General Principles of Organisation of Local Government in the Russian Federation



The list of medical institutions rendering initial medical and sanitary aid on the territory of the municipal region is extended to include stationary out-patient institutions, and the list of medical institutions rendering initial medical and sanitary aid on the territory of the urban district - out-patient institutions.

Besides, the list of property that may be included in the property of municipal regions, is extended to include the property intended for initial medical and sanitary aid in stationary out-patient institutions.

Federal Law No. 119-FZ of July 18, 2006 on the Amendments to Article 218 of Part 2 of the Tax Code of the Russian Federation



The standard tax exemption for the incomes tax from natural persons in the amount of Rbl 500 applies to persons having taken part in compliance with decisions of the bodies of state power of the Russian Federation in combat actions on the territory of the Russian Federation.

The Federal Law is entered into force from January 1, 2007, however, no sooner than one month after the day of its official publication.

Federal Law No. 118-FZ of July 18, 2006 on the Amendments to the Law of the Russian Federation on the Private Detective and Guard Activities in the Russian Federation



The amendments make more specific individual types of guard services when engaging in non-state (private) guard activities and bring them in compliance with the Civil Code of the Russian Federation. At present, the guard activities permit to provide such service as safeguarding owner property, including the cases of its transportation. The amendments expand and refine the essence of these services where they pertain to the proprietary rights, in particular: the services of safeguarding the property shall be provided not only to their owners, but also to the persons possessing, using, holding the given property in economic management, operative or trust control.

Federal Law No. 117-FZ of July 18, 2006 on the Export of Gas



The Federal Law is aimed at protection of economic interests of the Russian Federation, fulfilling international obligations in gas supplies, as well as ensuring security of power supplies and development of the fuel and power-supply complex.

Organisation possessing a joint system of gas supplies to its branch where the share of the organisation possessing the joint system of gas supplies makes 100% in the registered capital enjoys an exclusive right of export of gas.

Federal Law No. 116-FZ of July 18, 2006 on the Amendment to Article 45 of the Federal Law on Insolvency (Bankruptcy)



The amendments envisage a special procedure of endorsement by the arbitration court of the bankruptcy commissioner permitting the meeting of creditors to appeal to the arbitration court requesting to endorse as the bankruptcy commissioner (administrator, external manager or receiver) the person having fulfilled the duty of the bankruptcy commissioner during the bankruptcy procedure directly preceding the one introduced by the arbitration court. In this case, the common procedure of endorsement of bankruptcy commissioners permitting for unmotivated challenging of candidates does not apply.

The mentioned norm permits to prevent unmotivated challenging of candidates for bankruptcy commissioners by the debtors enjoying this right, thus eliminating a certain dependence of bankruptcy commissioners on the debtors.

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

Federal Law No. 115-FZ of July 18, 2006 on the Amendment to Article 56 of the Air Code of the Russian Federation



The flying crew of the air vessel of the Russian Federation qualified as commercial civil aviation may include only the citizens of the Russian Federation. Inclusion of a foreign citizen in the flying crew of the given air vessel is permitted only for the period of his training to get the permission for activities in air transportation of passengers, luggage, cargo and mail on the air vessel of a certain type on condition that the foreign citizen is not the commander of the air vessel of the Russian Federation.

Thus, conditions are created for flight training of foreign specialists capable of operation of home-made aircraft permitting to inspire activities of Russian aviation educational institutions to train citizens of foreign states and improve competitive potential of Russian-made aircraft abroad.

Federal Law No. 113-FZ of July 18, 2006 on the Amendments to Articles 12 and 20 of the Federal Law on the Higher and Post-Graduate Professional Education



Changes the procedure for the rector of the state or municipal institution of higher education to occupy his position. The candidates for the rector positions of higher educational institutions nominated in accordance with their charters shall appear before appropriate certification commissions of the authorised bodies of executive power or execution and administrative bodies of the urban districts. The rector is elected out of persons upon coordination with the certification commission.

According to the amendments, the president position is introduced in the state or municipal educational institutions. The president of the higher educational institution is elected by the academic council at the presentation of the body of executive power or the executive and administrative body of the urban district, after which a labour contract is concluded between the president and the body of executive power or the executive and administrative body of the urban district. The person occupying the position of the president of the higher educational institution as a rule must have experience of work in the position of the rector of the higher educational institution. Combining the positions of the rector and the president in the state and municipal higher educational institutions is not permitted.

Federal Law No. 111-FZ of July 18, 2006 on the Amendments to the Federal Law on the Participation in Shared Construction of Apartment Houses and Other Objects of Immovable Property and on the Amendments to Some of the Legislative Acts of the Russian Federation and on the Amendments to Some of the Legislative Acts of the Russian Federation



Improves the mechanism of attraction of monetary resources of citizens and legal entities for construction of apartment houses and/or other objects of immovable property on the basis of the contract of participation in shared construction.

Construction parties shall not include now independent entrepreneurs. The amendments envisage securing of execution of obligations of construction parties under the contract of participation in shared construction not only with a pledge, but also with a guarantee. The Law does not permit a joint responsibility of construction parties and the pledgee banks, introduces opportunities of discontinuation of the contract of participation in shared construction by the construction party on the unilateral basis in case of violation by the participant of shared construction of obligations to pay the price of the contract. Refines the procedure of discontinuation of the contract of participation in shared construction at the initiative of one of the parties and the procedure of state regulation, control and enforcement in the sphere of shared construction.

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

Federal Law No. 110-FZ of July 18, 2006 on the Amendments to the Federal Law on the Legal Status of Foreign Citizens in the Russian Federation and on Invalidation of Individual Provisions of the Federal Law on the Amendments to Some of the Legislative Acts of the Russian Federation



Simplifies migration procedures pertaining to the status of temporary resident in the Russian Federation obtained by foreign citizens having arrived to the Russian Federation according to visa-free procedure, as well as the mechanism of employment for the given foreign citizens on the territory of the Russian Federation. The amendments introduce opportunities to obtain the permission for temporary residence in excess of the quotas for the foreign citizens having arrived to the Russian Federation according visa-free procedure on the basis of the application followed by subsequent submission of necessary documents within one month according to established procedure. Foreign citizens living in the Russian Federation permanently and temporarily are exempted from the duty to reregister on the annual basis.

The Federal Law grants opportunities to foreign citizens having arrived to the Russian Federation according to the visa-free procedure to obtain independently the work permission within ten days from the day of submission of the application. Employers may use such foreign work force without obtaining the permission for the use of foreign work force.

A further improvement of the instruments of state regulation in the sphere of migration is envisaged simultaneously. In particular, the amendments extend the existing mechanism of fixing of labour migration quotas, thus permitting to take into account not only the quantitative, but also the qualitative (occupation, skills) characteristics of labour migrants, regulate migration flows at the federal and the regional levels.

The Federal Law is entered into force from January 15, 2007.

Federal Law No. 109-FZ of July 18, 2006 on the Migration Records of Foreign Citizens and Stateless Persons in the Russian Federation



Improves the migration legislation by forming a new administrative and legal mechanism of registration of foreign citizens and stateless persons living in (arriving to) the Russian Federation. The Law envisages a simplified procedure of registration of foreign citizens and stateless persons at the place of residence and the place of stay in the Russian Federation.

The new procedure of migration record keeping is one of the priority elements of creation of the system of better immigration control to solve the task of attraction of skilled work force to the Russian Federation, including the work force from the member-states of the Commonwealth of Independent States.

After the entry into force of the Federal Law, the foreign citizens earlier registered at the place of stay shall be considered registered in migration records at the place of stay before expiry of the period of temporary stay or before the expiry of the visa. Foreign citizens possessing the permission for temporary residence and registered at the place of temporary residence in the Russian Federation as of the day of entry into force of the Federal Law may register at the place of residence within the period of the permission for temporary residence according to the simplified procedure.

The Federal Law is entered into force from January 15, 2007.

Decision of the Government of the Russian Federation No. 445 of July 18, 2006 on the Endorsement of the Rates of Export Customs Duties for Commodities of Oil Exported from the Territory of the Russian Federation Outside the Member-States of the Customs Union Agreements



The rate of the export customs duty for propane, butanes, ethylene, propylene, butylene, butadiene, other liquefied gases, xylenes, light and medium distillates, gas oils, benzene and toluene is increased from USD 146.9 to USD 158.1 per ton. The rate of the export customs duty for lubricants, liquid fuels, spent oil products, petrolatum, paraffin, wax, oil bitumen and coke is increased form USD 79.2 to USD 85.2 per ton.

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

Decision of the Government of the Russian Federation No. 444 of July 18, 2006 on the Endorsement of the Rate of the Export Customs Duty for Raw Oil and Raw Oil Products from Bituminous Materials Exported from the Territory of the Russian Federation Outside the Member-States of the Customs Union Agreements



From August 1, 2006, the rate of the export customs duty for raw oil and raw oil products from bituminous materials (code according to the Foreign Trade Commodity Nomenclature of Russia 2709 00) exported from the territory of the Russian Federation outside the member-states of the Customs Union agreements is fixed in the amount of USD 216.4 per ton. Earlier, the rate amounted to USD 199.8 per ton.

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

Decision of the Government of the Russian Federation No. 429 of July 14, 2006 on the Licensing of Operation of Chemically Hazardous Industrial Objects



Defines the procedure of licensing of operation of hazardous industrial objects obtaining, using, processing, creating, storing, transporting, destroying toxic substances and other substances hazardous for the environment in compliance with the Federal Law on the industrial safety of hazardous industrial objects.

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

The Decision lists violations of the license requirements and terms by the license holder in operation of chemically hazardous industrial objects qualified as major violations that may entail a revocation of the license.

Order of the Federal Service of Ecological, Technological and Nuclear Enforcement No. 557 of June 8, 2006 on the Time Limits to Pay the Fees for the Negative Impact on the Environment



According to the Federal Law on the protection of the environment, the negative impact on the environment (emissions of pollutants into the atmospheric air, contamination of subsoil resources, soils, water objects deployment of industrial and consumption waste and other) is fee-paying.

The payment for the negative impact on the environment must be transferred by the users of natural resources as a result of the reporting period no later than the 20

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8077.

Decision of the Government of the Russian Federation No. 446 of July 18, 2006 on the Cost of Insurance Year for the Year 2006



The cost of insurance year for the year 2006 proceeding from the tariff rate of insurance contributions for obligatory pension insurance and the minimum amount of labour remuneration as of January 1, 2006 is endorsed in the amount of Rbl 1,344. The similar cost for the year 2005 amounted to Rbl 1,209.6.

According to the Federal Law on obligatory pension insurance in the Russian Federation, the cost of the insurance year is used to fix the amount of the monthly fixed payment of insurance contributions to the budget of the Pension Fund of Russia paid by insurants.

Decision of the Government of the Russian Federation No. 432 of July 14, 2006 on the Licensing of Individual Types of Activities at Financial Markets



Endorses four provisions specifying the procedure of licensing of activities of investment funds, activities of management of investment funds, shared investment funds and non-state pension funds, activities of special depositaries of the mentioned funds, as well as activities of non-state pension funds in pension support and pension insurance.

In all of the mentioned cases, the licensing is vested in the Federal Service for Financial Markets of Russia. The licence is granted for 5 years, except for the activities of non-state pension funds in pension support and pension insurance. The Decision lists the types of violations of the license requirements and terms considered to be the major ones that may entail a revocation of the license.

Order of the Federal Service for Tariff Rates No. 122-s/l of June 9, 2006 on the Endorsement of the Method of Calculation of the Amount of Economically Substantiated Expenses and the Normative of Profit to Use in the Forming of the Regulated Tariff Rates for the Services of Public-Use Telecommunication



The method is intended for use by the federal body of executive power in charge of regulation of natural monopolies and by communication operators being the subjects of natural monopolies in the sphere of communication in the estimates of tariff rates for the regulated communication services.

The Order defines the list of expenses included in the economically substantiated costs pertaining to the services of public-use telecommunication.

The amount of the normative of profit is calculated using information of the communication operator for the reporting period proceeding from: cost of fixed and other assets necessary for the rendering of services of public-use telecommunication; amount of resources in circulation necessary for the rendering of services of public-use telecommunication; norms of profit (profitability) for the capital used to render the services; cost of capital of the communication operator. Determination of the amount of profit is envisaged stage by stage (in 7 stages).

The Order provides the forms of tables filled out as a results of determination of the estimate of amortisation deductions, estimate of economically substantiated expenses and the normative profit.

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8073.

Order of the Federal Service of Enforcement in the Sphere of Communication No. 52 of June 28, 2006 on the Endorsement of the Procedure of Publication and Entry into Force of the Acts of the Federal Service of Enforcement in the Sphere of Communication Recognised by the Ministry of Justice of the Russian Federation As Not Needing the State Registration



The acts of the Federal Service of Enforcement in the Sphere of Communication (signed by the head or the person executing his duties) recognised by the Ministry of Justice of Russia as not needing the state registration must be published in the official source founded by the Ministry of Information Technologies and Communication - the monthly journal SvyazInform - while placing simultaneously on the official site of the Federal Service of Enforcement in the Sphere of Communication. The publishing in the mentioned journal is an official publication of the act of the Federal Service of Enforcement in the Sphere of Communication.

The acts of the Federal Service of Enforcement in the Sphere of Communication due for publication shall enter into force from the day of their signing, if the acts themselves do not envisage another procedure of their entry into force.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2006. Reg. No. 8057.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 476 of June 13, 2006 on the Amendments to the Order of the Ministry of Public Health and Social Development of the Russian Federation No. 328 of August 23, 1999 on the Rational Assigning of Medicines, Rules of Issue of Prescriptions for Them and the Procedure of Sale by Apothecary Institutions (Organisations)



Pursuant to the introduction of the new form of the blank prescription - registration form 148-1/u-06(l) for optimisation of medicinal supplies for citizens entitled for the state social aid in the form of a set of social services and citizens entitled for the medicines free of charge or with a discount, amends appropriately the Order of the Ministry of Public Health and Social Development No. 328 of August 23, 1999 on the rational assigning of medicines, rules of issue of prescriptions for them and procedure of their sale by apothecary institutions (organisations). Provides the form of the blank prescription and its filling recommendations.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2006. Reg. No. 8044.

Order of the Ministry of Finance of the Russian Federation No. 88n of June 9, 2006 on the Endorsement of the Regulation on the Procedure for Coordination of the Rules of Internal Control in Organisations Carrying out Operations with Monetary Resources or Another Property Where Enforcement Bodies Are Not Available



Endorses a new Regulation on the procedure of coordination of the rules of internal control in organisations carrying out operations with monetary recourses or another property where enforcement bodies are not available. According to it, the rules of internal control of the mentioned organisations worked out for the purpose of combating of legalisation (laundering) of incomes obtained in a criminal way and financing of terrorism shall be presented for coordination to interregional departments of the Federal Service for Financial Monitoring in the federal districts. The previous Regulation required the rules to be coordinated in the Committee of the Russian Federation for Financial Monitoring (later reorganised into the Federal Service for Financial Monitoring of the Russian Federation).

Changes the list of organisations that must submit their rules of internal control for coordination to the Federal Service of Financial Monitoring. In addition to the leasing companies, pawnshops and organisations maintaining sweepstakes and bookmaker offices or those arranging lotteries, sweepstakes (pari mutuel) and other games of chance, including the ones in the electronic form, the list shall include now organisations rendering mediation services in purchase and sale transactions for immovable property.

Organisations buying and selling precious metals and precious stones, items of them and waste and scrap of such items are excluded from the list, since according to the Order of the Ministry of Finance of the Russian Federation No. 77n of June 21, 2005, they coordinate the rules of internal control in the state inspections of assay enforcement of the Russian State Assay Chamber of the Ministry of Finance of the Russian Federation.

The new Regulation provides a detailed procedure of presenting the rules for coordination, specifies the reasons of refusal to coordinate the rules, envisages the keeping of files of coordination of the mentioned rules for each organisation by the interregional departments of the Federal Service of Financial Monitoring.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2006. Reg. No. 8042.

Order of the Ministry of Public Health and Social Development of the Russian Federation No. 461 of June 13, 2006 on the Endorsement of the Procedure for Assigning the Monthly Monetary Payment to the Heroes of the Soviet Union, Heroes of the Russian Federation, Bearers of the Order of Glory and Members of Their Families



Regulates the procedure of applying for the monthly monetary payment for the Heroes of the Soviet Union, Heroes of the Russian Federation, bearers of the Order of Glory and members of their families, processing of the given appeals by the territorial body of the Pension Fund of the Russian Federation, as well as the rules of assigning, calculation and organisation of delivery of the monthly monetary payment.

The mentioned payment is assigned in pursuance of the Law of the Russian Federation No. 4301-1 of January 15, 1993 and is paid out regardless of other payments.

The procedure applies to the citizens of the Russian Federation awarded with the title of the Hero of the Soviet Union, Hero of the Russian Federation or the bearer of the Order of Glory, and in case of their death (being killed) - to their family members (widow), parents, children until 18 years of age and children until 23 years of age if they are students of intra-mural studies. For the mentioned categories of citizens living outside the Russian Federation, as well as the foreign citizens and stateless persons living in the Russian Federation, the rules apply specified in international treaties of the Russian Federation.

To get the payment in the next calendar year, it is necessary to apply before October 1 of the current year to the territorial body of the Pension Fund of Russia with appropriate application at the place of residence, stay, living (depending on the registration).

The following must be attached to the application of the Hero or bearer of the Order of Glory: personal identification document, document of the place of residence, citizenship, document confirming the status of the Hero or bearer of the Order of Glory.

The following are attached to the application of the family member: personal identification document, document of age, place of residence, citizenship, certificate of death (being killed) of the deceased; document confirming the status of the deceased (killed); document confirming kinship relations with the deceased (killed); certificate of the composition of the family of the deceased (killed).

In necessary cases, certificates and documents of the competent bodies are accepted containing necessary information.

The decision to assign the payment, application and attached documents are stitched together in the Pension Fund of Russia in the payment file to be preserved in the Pension Fund of Russia. The copy of the decision assigning the payment certified in the Pension Fund of Russia is sent to the territorial body of the Fund at the place of residence (place of stay, place of actual living) of the applicant to arrange the paying.

The payment is assigned for 1 year (from January 1 to December 31 of the appropriate year) to the member of the family of the deceased (killed) who got the payment - from the day of the death (being killed) of the Hero or the bearer of the Order of Glory to December 31 of the current year.

The Order provides appropriate forms of documents, including the form of the application to assign the payment.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2006. Reg. No. 8041.

Order of the Ministry of Justice of the Russian Federation No. 222 of June 22, 2006 on the Endorsement of the Procedure of Checking of Compliance of Activities of the Non-Commercial Organisation, Including the Spending of Monetary Resources and Use of Another Property, with the Goals Envisaged in Its Constituent Documents (Chartered Goals)



Introduces a uniform procedure of checking by the Federal Registration Service and its territorial bodies of compliance of activities of non-commercial organisations, including the spending of monetary resources and use of another property, with the goals envisaged in their constituent documents (chartered goals). The checks shall be carried out by the authorised federal state civil servants of the Federal Registration Service and the territorial bodies (one person in charge or the commission no oftener than once a year).

The checks may be the planned ones and extraordinary ones, may be carried out at the place of location and/or activities of the non-commercial organisation (on-site checks) or without the visit by investigation of the documents submitted to the request, information on the financial and economic activities, other documents.

Registered in the Ministry of Justice of the Russian Federation on July 11, 2006. Reg. No. 8028.

Order of the Ministry of Defence of the Russian Federation No. 225 of June 16, 2006 on the Endorsement of the Procedure to Provide to Participants of the Accumulated Mortgage System of Housing Support for Servicemen of the Armed Forces of the Russian Federation Information on the Condition of Their Personal Savings Accounts



Specifies the procedure of providing to participants of the accumulated mortgage system of housing support for servicemen of the Armed Forces of the Russian Federation information on the condition of their personal savings accounts. The Department of the Housing Programs of the Ministry of Defence keeping the Register of Participants of the Accumulated Mortgage System shall get on the annual basis before March 31 from the federal state institution Federal Department of the Accumulated Mortgage System of Housing Support for Servicemen information on the condition of the personal savings accounts of participants and shall send it before April 15 to the armed forces, military districts, arms, directorates and central departments of the Ministry of Defence.

Commanders of the military units keeping the first copies of personal files of contract servicemen shall send on the annual basis before April 15 to the military management bodies appeals to present information on the condition of personal savings accounts.

The military management bodies, when they get the mentioned appeals, shall refine within 30 days information on the condition of the accounts and send the refined information through commissions of the bodies of military management to the military units where the commanders shall inform within 10 days, however, no later than June 15

Registered in the Ministry of Justice of the Russian Federation on July 11, 2006. Reg. No. 8027.

Order of the Ministry of Education and Science of the Russian Federation No. 145 of June 9, 2006 on the Endorsement of the Rules of Awarding the Prizes to Support Gifted Young People and the Procedure to Pay out the Mentioned Prizes



The prizes are awarded to the citizens of the Russian Federation 14 to 25 years of age being the winners of international, all-Russia, regional and interregional olympiads and other measures arranged on the contest basis. The list of olympiads and other contest measures where the prizes are awarded, as well as the number of prizes by the subjects of the Russian Federation, is endorsed on the annual basis by the Order of the Ministry of Education and Science of Russia.

The prizes in support of the gifted young people are awarded in the following nominations: socially significant and public activities, scientific and technical creative activities and educational research activities, professional skills, crafts, amateur sports. The prizes are of personal nature and may not be repeated during the year.

The Order also defines the list of the documents submitted to get the prize and the time limits for their submission.

Registered in the Ministry of Justice of the Russian Federation on July 10, 2006. Reg. No. 8026.

Letter of the Federal Tax Service No. ShT-6-08/689@ of July 19, 2006 on the Return and Re-Labelling of Alcoholic Products Labelled Appropriately until December 31, 2005 Inclusive



In case of re-labelling by producer organisations of alcoholic products labelled until December 31, 2005 inclusive with the wholesale organisations, the labelling shall be arranged under control of the tax bodies on condition of the presence of documents: contract for supplies of alcoholic products between the supplier and the recipient; inventory act for the alcoholic products as of July 3, 2005; documents confirming the return of the alcoholic products to producer organisations for labelling.

Departments of the Federal Tax Service of Russia in the subjects of the Russian Federation are ordered to provide for the exchange of information on the quantity of stamps handed out to the producer organisation and the fact of re-labelling and the number of stamps on the alcoholic products found with the wholesale organisation.

Decision of the Government of the Russian Federation No. 452 of July 22, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 872 of December 31, 2005

Amends the form of the certificate attached to the cargo customs declaration for imported ethyl alcohol, alcoholic and alcohol-containing products, tobacco items and beer.

Instead of information on series numbers of excise duty stamps, the words "Commodity Labelled with Excise Duty Stamps" are entered to confirm the labelling of commodities with excise duty stamps.

Appropriate changes are introduced in the procedure of filling of the given certificate.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-02-07/1-178 of July 12, 2006



According to the Ministry of Finance, the tax bodies may not refuse to accept the tax declaration on paper. According to Item 2 of Article 80 of the Tax Code, the tax declaration is submitted to the tax body according to appropriate form on paper or in the electronic form.

The Letter of the Ministry of Taxation of Russia is cited, No. 06-5-03/866 of June 22, 2004, ordering the departments of the Ministry of Taxation of Russia in the subjects of the Russian Federation to take measures to prevent the facts of refusal on the part of the subordinate tax bodies to accept tax declarations (estimates) on paper.

Letter of the Department of the Tax and Customs Tariff Policy of the Ministry of Finance of the Russian Federation No. 03-06-01-04/138 of July 5, 2006



The state duty for the registration and the payment for the state technical examination paid at the purchase of the transport vehicle - object of fixed assets are being actual expenses of purchase, erection and making and are included in the initial cost of this object taken into account, in particular, in the calculation of the property tax from organisations.

Order of the Government of the Russian Federation No. 1024-r of July 17, 2006 <br>

Approves the concept of regional informatisation until the year 2010. The concept is aimed at modernisation of the state management and socio-economic development of the regions of the Russian Federation. The main goals of the regional informatisation is providing access for the population and organisations to information on activities of the bodies of state power of the subjects of the Russian Federation, creation of conditions for development of modern information and telecommunication infrastructure ensuring the demand of the population and the bodies of state power of the subjects of the Russian Federation for information and interaction, ensuring information security of the regional and municipal information systems.

The concept provides the main principles and directions of the state policy in the sphere of regional informatisation. Suggests creation of a complex of state and municipal information systems in support of activities of the bodies of state power of the subjects of the Russian Federation and the bodies of local government, as well as uniting them on the basis of the common information infrastructure of the region (the so-called electronic government of the region).

Provides the main principles of the functional subsystems and elements of the infrastructure of the electronic government of the region. In particular, the structure of the electronic government of the region shall include subsystems of issued licenses and permissions, registration of acts, documents, rights and objects, various registers and cadastres, provided benefits, grants, subsidies, allowances. To provide for activities of institutions and enterprises of the budget-supported sphere, it is suggested to create analytic information and normative-and-methodology subsystems of the electronic government.

To improve the efficiency of budget expenses and planning of activities of the bodies of state power of the subject of the Russian Federation in implementation of the regional informatisation, appropriate program of regional informatisation must be adopted in the subject of the Russian Federation. The mentioned program must imply creation in the region of the council for informatisation to monitor implementation of the program and prepare recommendations to determine necessary volumes of budget financing of the program, as well as an authorised body of state power of the subject of the Russian Federation in charge of the functions of the state coordinator of the program and the chief administrator of the budget resources.

The program of the regional informatisation will be financed at the expense of resources of the budgets of the subjects of the Russian Federation and local budgets, as well as the extra-budgetary sources. For co-financing of joint projects of regional informatisation of mutual interest, resources of the federal budget may be attracted in the framework of the federal targeted program "Electronic Russia (Years 2002-2010)" and other targeted programs aimed at development and introduction of information and communication technologies.

Order of the Federal Service of the Russian Federation for Control of Circulation of Narcotics No. 195 of June 9, 2006 on the Endorsement of the Instruction on the Organisation of Work of the Bodies in Charge of Control of Circulation of Narcotic Drugs and Psychotropic Substances to Check Legal Entities Engaged in Activities Pertaining to Circulation of Narcotic Drugs, Psychotropic Substances, Their Precursors and Potent Agents and on the Amendments to the Order of the Federal Service for Control of Circulation of Narcotics of Russia No. 216 of July 8, 2005 <br>

Defines the procedure of organisation of work of the bodies in charge of control of circulation of narcotic drugs and psychotropic substances to check legal entities engaged in activities pertaining to circulation of narcotic drugs, psychotropic substances, their precursors and potent agents.

The planned and extraordinary checks are envisaged. In cases of checking of special-regime objects, the persons in charge must carry certificates of access to work with information comprising the state secret. The order to eliminate revealed violations is issued by the Director of the Federal Service for Control of Circulation of Narcotics of Russia or the head of the territorial body.

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8088.

Order of the Ministry of Regional Development of the Russian Federation No. 79 of July 6, 2006 on the Normative of the Cost of 1 Square Meter of the Total Dwelling Space for the Russian Federation for the Second Six Months of 2006 and the Average Market Cost of 1 Square Meter of the Total Dwelling Space by the Subjects of the Russian Federation for the III Quarter of 2006 <br>

For the second six months of 2006, the normative of the cost of 1 square meter of the total dwelling space for the Russian Federation is fixed in the amount of Rbl 14,900. In the first six months, the normative amounted to Rbl 13,600.

The given normative is determined for the calculation of the amounts of free subsidies for the purchase of dwelling space by all categories of citizens getting these subsidies from the federal budget in the framework of the implementation of the Decision of the Government of the Russian Federation No. 153 of March 21, 2006.

The Order also specifies the average market cost of 1 square meter of the total dwelling space (in roubles) for the subjects of the Russian Federation that is applied to calculate the amounts of subsidies allocated in accordance with the plans for the III quarter of 2006 for all categories of citizens getting the mentioned subsidies from the federal budget for the purchase of dwelling space.

Thus, according to the given figures, the average cost of dwelling space in Moscow makes Rbl 29,600 (in the II quarter, Rbl 25,100); in St.Petersburg - Rbl 21,200 (in the II quarter, Rbl 19,200).

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8087.

Order of the Federal Service of Ecological, Technological and Nuclear Enforcement No. 459 of May 23, 2006 on the Endorsement of the Form of the Estimate of Payment for the Negative Impact on the Environment and the Procedure of Filling and Submission of the Form of the Estimate of Payment for the Negative Impact on the Environment <br>

Endorses a new form of the estimate of payment for the negative impact on the natural environment and its filling procedure. The estimate is filled out by enterprises, institutions, organisations, foreign legal entities and natural persons engaged in any types of activities on the territory of the Russian Federation pertaining to the use of natural resources, responsible on the territory of the Russian Federation for the following types of adverse impact: emissions of pollutants into the atmospheric air, disposal of pollutants into the surface and underground water objects, deployment of production and consumption waste subject to the payment for the negative impact on the environment in compliance with the Decision of the Government of the Russian Federation No. 632 of August 28, 1992.

The estimate is submitted to the territorial bodies of the Federal Service of Ecological, Technological and Nuclear Enforcement at the place of location of the stationary object of negative impact and the place of the state registration of the mobile object of negative impact. The estimate is submitted by the payers no later than the 20th of the month following the expired reporting quarter.

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8070.

Order of the Ministry of Information Technologies and Communication of the Russian Federation No. 65 of May 24, 2006 on the Endorsement of the Rules of Granting Subsidies in 2006 to Organisations of Communication and Informatisation <br>

Defines the procedure of providing state support in 2006 to organisations of communication and informatisation (except for the budget-supported institutions) by granting subsidies at the expense of resources of the federal budget.

The subsidies are granted within the limits of budget allocations to the Federal Agency of Communication and the Federal Agency of Information Technologies respectively in accordance with the summary budget list for the year 2006 in Subitems 241 "Gratuitous and Non-Repayable Transfers to State and Municipal Organisations" and 242 "Gratuitous and Non-Repayable Transfers to Organisations Other Than the State and Municipal Ones" of the economic classification of expenses of the budgets of the Russian Federation.

The subsidies are granted to communication organisations providing for the readiness of the means of communication at the special objects of the higher bodies of power and management of the Russian Federation in the special period, the federal state unitary enterprise Mail of Russia to cover the losses when they render multiple services of postal communication at tariff rates regulated by the state.

In the sphere of informatisation, the subsidies are granted to informatisation organisations assuming the duty of maintenance of the funds of obligatory federal copy of Russian electronic publications, software programs and databases forming part of the electronic publications, their state registration, bibliography work, permanent storage, preparation and issue of reference information, informing the society of the electronic publications, state registration of databases and registration of databanks, the keeping of the state register of databases, operation of the database of the registered databases, registration of electronic scientific publications and creation of the electronic library of scientific publications.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2006. Reg. No. 8045.

Order of the Ministry of Finance of the Russian Federation No. 92n of July 12, 2006 on the Amendments to the Order of the Ministry of Finance of the Russian Federation No. 64n of August 2, 2004 on the Amounts of the Daily Allowance and the Limiting Norms of Reimbursement of Lodging Expenses for Short-Term Business Trips on the Territory of Foreign Countries <br>

The Order of the Ministry of Finance of Russia No. 64n of August 2, 2004 is being brought in compliance with the Decision of the Government of the Russian Federation No. 812 of December 26, 2005.

Uniform limiting norms are introduced for reimbursement of lodging expenses in foreign currencies for business trips on the territory of foreign states for the employees of organisations financed from the federal budget regardless of the length of the business trip. They are similar to the earlier available limiting norms of lodging expenses for short-term business trips.

Amounts of the daily allowance for short-term business trips are excluded from the Order, since the Decision of the Government of the Russian Federation No. 812 of December 26, 2005 introduced a uniform (regardless of the length of the business trip) amount and procedure of paying out of the daily allowance in foreign currencies and mark-ups to the daily allowance in foreign currencies during business trips on the territory of foreign states for employees of organisations financed from the federal budget.

Registered in the Ministry of Justice of the Russian Federation on July 13, 2006. Reg. No. 8040.

Letter of the Federal Tax Service No. ChD-6-07/706@ of July 21, 2006 on the Speeding up of the Loading and Synchronisation of the Guides of the Joint State Automatic Information System <br>

In view of the significant increase of the number of participants of the alcoholic market of Russia connected to the Joint State Automatic Information System, there are difficulties of information exchange. To speed up the process of loading and synchronisation of the guides, thus improving the capacity of the Joint State Automatic Information System, the guides are placed on the site of the Federal Tax Service of Russia.

Territorial departments of the Federal Tax Service of Russia together with the developer of the Joint State Automatic Information System (federal state unitary enterprise Atlas of the Federal Security Service of Russia ) shall make copies of the guides on portable media to load them in the databases of organisations. The loading from portable media is vested in the servicing organisation having concluded the contract for technical maintenance of transfer and entry of information in the Joint State Automatic Information System. Subsequent additional loading of the guides will be arranged on the basis of requests.

Decision of the Government of the Russian Federation No. 451 of July 22, 2006 on the Amendments to the Customs Tariff of the Russian Federation Pertaining to Individual Types of Transport Vehicles Older Than 5 Years of Age



According to the amendments, an interim rate of the import customs duty applies (for 9 months) in the amount of EUR 2.2 per cu. cm of the engine volume for fifth-wheel tractors, motor vehicles with the carrying capacity greater than 20 tons and transport vehicles outfitted with a loading device to move lumber from the place of felling to the point of loading or the haulage road older than 5 years of age. Earlier, the mentioned rate was applied to transport vehicles older than 7 years of age.

In other cases (if younger than 5 years old), the mentioned transport vehicles are subject to the rate of 15% of the customs cost (for fifth-wheel tractors and motor vehicles with the carrying capacity greater than 20 tons) and 10% (for transport vehicles outfitted with a loading device to move lumber from the place of felling to the place of loading or the haulage road).

The codes of the Foreign Trade Commodity Nomenclature of Russia classifying the above transport vehicles also changed. Code 8701 20 901 3 is applied for fifth-wheel tractors older than 5 year so age instead of code 8701 20 901 2, code 8701 20 901 7 for other tractors instead of code 8701 20 901 8. Code 8704 22 990 3 is applied for transport vehicles outfitted with a loading device to move lumber from the place of felling to the place of loading or the haulage road older than 5 years of age instead of code 8704 22 990 2, code 8704 22 990 7 for other instead of code 8704 22 990 8. Code 8704 23 990 3 is used for motor vehicles with the carrying capacity greater than 20 tons older than 5 years of age instead of code 8704 23 990 2, code 8704 23 990 7 for other instead of code 8704 23 990 8.

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

Order of the Federal Agency of Geodesy and Cartography No. 48-pr of July 4, 2006 on the Procedure of Publication and Entry into Force of the Acts of the Federal Agency of Geodesy and Cartography Recognised by the Ministry of Justice of the Russian Federation As Not Needing the State Registration



The acts of the Federal Agency of Geodesy and Cartography recognised by the Ministry of Justice of the Russian Federation as not needing the state registration must be published in the newspaper Herald of Geodesy and Cartography which is an official source. The mentioned acts shall enter into force from the moment of their signing (endorsement) if the acts themselves do not specify another time limit and procedure of entry into force.

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8100.

Direction of the Central Bank of Russia No. 1699-U of June 30, 2006 on the Amendment to the Regulation of the Bank of Russia No. 215-P of February 10, 2003 on the Method of Determination of Own Resources (Capital) of Credit Organisations



According to the amendments, if the facts of economically unsubstantiated forming of sources of own resources (part thereof) are revealed in the course of assessment of assets and liabilities of the credit organisation, i.e. they are formed while investors use inappropriate assets, the Bank of Russia shall send an order to the credit organisation with a demand to record in the reports beginning with the nearest reporting date after getting the order the amount of own resources (capital) with the adjustment determined by the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on July 17, 2006. Reg. No. 8091.

Direction of the Central Bank of Russia No. 1698-U of June 30, 2006 on the Amendments to the Direction of the Bank of Russia No. 1656-U of February 6, 2006 on the Actions When Revealing the Facts (Signs) of Forming of Sources of Own Resources (Capital) (Part Thereof) Using Inappropriate Assets



The amendments specify legal grounds for the territorial institutions of the Bank of Russia to send orders to credit organisations to correct own resources (capital) in cases of forming of sources of own resources (capital) (part thereof) while investors use inappropriate assets.

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 July 17, 2006. Reg. No. 8090.

Letter of the Central Bank of Russia No. 98-T of July 18, 2006 on the Requirements to the Documents Submitted to the Federal Tax Service of Russia



Lists the normative acts for credit organisations to use as a guidance in the registration of their documents submitted to the authorised bodies of registration to enter information in the Joint State Register of Legal Entities.

Letter of the Central Bank of Russia No. 01-13-5/2534 of July 14, 2006 on the List of Organisations



The list of organisations whose promissory notes (claims rights under credit contracts) may be accepted as a security for the credits of the Bank of Russia, as well as organisations that may act as guarantors under the promissory notes (claims rights under credit contracts) accepted as a security for the credits of the Bank of Russia, is amended as follows: since the name of the open-type joint-stock company Siberian Oil Company is changed into the open-type joint-stock company Gazprom Oil, the new name of the mentioned legal entity is provided instead of the previous one.

Decision of the Government of the Russian Federation No. 455 of July 22, 2006 on the Endorsement of the Rules of Use of the 0% VAT Rate When Selling Commodities (Works, Services) for Official Use of International Organisations and Their Representations Operating on the Territory of the Russian Federation

The 0% VAT rate applies to commodities (works, services) sold for official use of international organisations and their representations operating on the territory of the Russian Federation that are included in the list defined by the Ministry of Foreign Affairs together with the Ministry of Finance of Russia on the basis of provisions of international treaties envisaging exemption from the value added tax.

Organisations or independent entrepreneurs selling such commodities (works, services) shall draw invoices indicating the 0% VAT rate. A mark is entered in such invoices "For Official Needs of the International Organisation".

The Decision lists the documents permitting to draw such invoices, as well as the documents confirming the reasons of application of the 0% VAT rate. The value added tax is reimbursed on the basis of application signed by the head of the international organisation or its representation (the person authorised by him).

The Decision is entered into force from the day of its official publication and applies to legal relations emerging from January 1, 2001.

Federal Law No. 136-FZ of July 26, 2006 on the Amendments to the Federal Law on the Federal Budget for the Year 2006



The amendments pertain to the procedure of reimbursement in 2006 of expenses to pay the interest under credits and loans obtained by peasant (farmers’) enterprises, citizens possessing subsidiary husbandry, agricultural consumer cooperatives.

The Law refines the list of the reasons for introduction at the presentation of chief administrators of resources of the federal budget of changes in the agency functional and economic structure of expenses of the federal budget in the course of execution of the Federal Law on the federal budget in excess of the limits specified in the Budget Code.

The Federal Law is entered into force from the day of its official publication. The Federal Law has been published in Rossiyskaya Gazeta No. 162 of July 27, 2006.

Federal Law No. 135-FZ of July 26, 2006 on the Protection of Competition



Improves legal regulation of relations pertaining to protection of competition, including prevention and stopping monopolist activities and unfair competition, combating resistance to competition on the part of the bodies of power and management. Introduces uniform fundamentals of activities to protect competition at commodity and financial markets.

Contains an expanded set of notions built taking into account the practice of application of the antimonopoly legislation. Significant changes occurred in such basic notion as commodity, which may now imply also objects of civil rights not being a product of activities.

Describes in detail the signs of the dominating position of the economic subject, monopoly-low and monopoly-high price for commodity, coordinated actions of economic subjects, monopolist activities. Makes more specific prohibitions for all forms of anticompetitive actions.

Defines general antimonopoly requirements to the procedure of all types of tenders, including those organised by the federal bodies of executive power, bodies of state power of the subjects of the Russian Federation, bodies of local government, other recipients of budget resources (pertaining to financing from the budget).

One of the most significant novelties of the Law is the definition of the notion of the state aid as a special variety of the anticompetitive actions of the bodies of state power and local government, prohibition to render it, as well as the definition of individual exceptions from such prohibition and the procedures granting state aid in exclusive cases.

Introduces the criteria for the antimonopoly body permitting to recognise as admissible individual types of monopolist activities restricting competition.

Describes the status of the antimonopoly body: its functions, authority, duties.

Regulates the issues of state control over economic concentration. Differentiates the types of actions and transactions requiring a permission of the antimonopoly body and those requiring to notify the antimonopoly body.

The Law contains a section that was not envisaged earlier, specifying the procedure for processing the cases of violation of the antimonopoly legislation by the antimonopoly body. The procedure of processing cases is collegiate (by the commission) which is aimed at protection of interests of the parties - economic subjects.

Provisions of a number of the laws contradicting the newly introduced procedure are invalidated from the day of entry into force of the Law.

The Federal Law is entered into force 90 days after the day of its official publication. The Federal Law has been published in Rossiyskaya Gazeta on July 27, 2006, No. 162.

Federal Law No. 134-FZ of July 26, 2006 on the Amendments to Chapter 22 of Part 2 of the Tax Code of the Russian Federation and Some Other Legislative Acts of the Russian Federation



Taking into account the forecasts of the growth of consumer prices and the level of inflation for the year 2007, envisages an indexing of the rates of excise duties for excisable commodities. The rates of excise duties for oil products do not change.

For cigarettes, combined tax rates are introduced consisting of a fixed (specific) and ad valorem (in percent of the maximum retail prices declared by the taxpayers) rates, as well as the procedure of calculation of the maximum retail prices is defined for the mentioned commodities. Tax rates are increased 30% on the average.

The amendments introduce certificates for production of alcohol-containing perfumery and cosmetics items and alcohol-containing products of household chemistry in metallic spray packages.

The Law changes the available procedure of payment of excise duties for oil products (other than straight-run gasoline) by excluding from taxpayers the persons carrying operations of wholesale and retail sale of oil products.

For taxation of operations with straight-run gasoline, the taxpayers are recognised to be direct producers of straight-run gasoline and the persons producing petrochemical products from purchased straight-run gasoline.

The Federal Law is entered into force from January 1, 2007, however, no sooner one month after the day of its official publication, except for the provisions where other time limits are specified for the entry into force.

Federal Law No. 133-FZ of July 26, 2006 on the Amendments to the Code of Administrative Violations of the Russian Federation



Enhances responsibility for the violation of the rules of state protection of objects of archaeological heritage and field archaeological works specified in the Federal Law on the objects of cultural heritage (monuments of history and culture) of the peoples of the Russian Federation.

Increases the amount of administrative fines imposed for the archaeological surveys or excavations with the permission (or in violation of the terms of the permission). The amount of fines makes: from 10 to 20 minimum amounts of labour remuneration for citizens (earlier, from 10 to 15 amounts of the minimum labour remuneration); from 40 to 50 minimum amounts of labour remuneration for officials (earlier, from 20 to 30 minimum amounts of labour remuneration); from 400 to 500 minimum amounts of labour remuneration for legal entities (earlier, from 200 to 300 minimum amounts of labour remuneration).

Administrative responsibility is introduced for the given actions having resulted in the damage or destruction of the object of archaeological heritage occurring through carelessness. The amount of fine makes: from 20 to 25 minimum amounts of labour remuneration for citizens; from 40 to 50 minimum amounts of labour remuneration for officials; from 500 to 1,000 minimum amounts of labour remuneration for legal entities.

All above fines shall apply together with a simultaneous confiscation of the items obtained during excavation, as well as the tools and equipment that were used for survey works or excavation.

Administrative responsibility is also introduced for avoidance to hand over cultural values found during field archaeological works for permanent storage to the state part of the Museum Fund of the Russian Federation. The given actions entail an administrative fine in the amount of 15 to 25 minimum amounts of labour remuneration for citizens, from 30 to 40 minimum amounts of labour remuneration for officials, from 300 to 400 minimum amounts of labour remuneration for legal entities. The given cases are qualified as the authority of the bodies in charge of the state control of observation of the rules of protection and use of objects of cultural heritage.

Federal Law No. 132-FZ of July 26, 2006 on the Amendments to the Federal Law on Communication



Specifies the particulars of rendering of communication services for the needs of the country’s defence, security of the state and ensuring public order.

The federal body of executive power in the sphere of communication may impose additional requirements to communication networks forming part of the public-use communication network and used to render services for the needs of the country’s defence, security of the state and ensuring public order, and the communication operator having concluded the state contract may not suspend and (or) stop rendering the services without the written consent of the state orderer.

The Law specifies the particulars of determination and changing of prices for communication services rendered for the needs of the country’s defence, security of the state and public order.

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

Federal Law No. 131-FZ of July 26, 2006 on the Amendments to the Federal Law on the Currency Regulation and Currency Control



The amendments implement the provision of the Message of the President of the Russian Federation to the Federal Assembly of the Russian Federation pertaining to rouble convertibility and envisage a lifting from July 1, 2006 of a number of restrictions in the sphere of currency regulation and currency control. Thus, the Law removes restrictions pertaining to the reservation requirement of the Bank of Russia for currency operations of flow of capital between residents and non-residents, as well as the restrictions pertaining to the use of the special account for currency operations between non-residents with internal securities on the territory of the Russian Federation.

Article 7 specifying the procedure of regulation by the Government of the Russian Federation of currency operations of flow of capital is invalidated ahead of time (from July 1, 2006).

The Federal Law is entered into force from the day of its official publication. The Federal Law has been published in Rossiyskaya Gazeta on July 27, 2006, No. 162.

Federal Law No. 130-FZ of July 26, 2006 on the Amendment to Article 3 of the Federal Law on the Financial Leasing



The amendments envisage opportunities of leasing of products of military destination used in the course of the military and technical cooperation with foreign states.

The given measure is aimed at development of the military and technical cooperation with countries with limited financial resources and is regarded also as an instrument of foreign policies.

Federal Law No. 128-FZ of July 25, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation Refining the Requirements to Occupied State and Municipal Positions



Introduces a restriction for the state and municipal positions for citizens of the Russian Federation possessing the citizenship of a foreign state or a residence permit or another document confirming the right for permanent residence abroad.

Such restrictions apply to the deputies of the State Duma and members of the Council of the Federation, deputies of legislative (representative) bodies and higher officials of the subjects of the Russian Federation, members of the Security Council of the Russian Federation, Chairman, deputy chairman and auditors of the Audit Chamber of the Russian Federation, as well as the deputies of representative bodies of municipal formations and elected officials of local government, if otherwise is not envisaged for the persons occupying elected municipal positions in the international treaty of the Russian Federation.

Citizens of the Russian Federation possessing the citizenship of a foreign state or a residence permit or another document confirming the right for permanent residence abroad also may not be elected in the bodies of state power and the bodies of local government (except for the cases when the international treaty of the Russian Federation envisages opportunities of election of persons possessing dual citizenship in the bodies of local government) and may not be elected (appointed) in the members of the Council of the Federation.

The Federal Law is entered into force from the day of official publication, except for individual provisions entering into force 30 days after the day of the publication.

Federal Law No. 127-FZ of July 25, 2006 on the Ratification of the Protocol on the Amendments to the European Convention on the Suppression of Terrorism



Ratifies the Protocol on the amendments to the European Convention on the Suppression of Terrorism signed on behalf of the Russian Federation on May 15, 2003.

The Protocol has been worked out and adopted in the framework of the Council of Europe with active participation of Russia. It is aimed at modernisation of the European Convention on the Suppression of Terrorism of 1977. The amendments introduced by the Protocol in the Convention are aimed at enhancing international cooperation in the sphere of suppression of terrorism, first and foremost, in Europe, and meet the interests of the Russian Federation.

Federal Law No. 126-FZ of July 25, 2006 on the Amendments to the Law of the Russian Federation on Militia and on Invalidation of Individual Provisions of the Federal Law on the Amendments to the RSFSR Law on Militia



Article 7 of the Law on militia is provided in the new wording envisaging that appointing to positions in the framework of the Ministry of Internal Affairs of Russia occupied by higher commanding staff of the bodies of internal affairs of the Russian Federation and dismissal from them is vested in the President of the Russian Federation. Besides, the Law is extended to include the norm defining the procedure of endorsement of the regulations on the ministries of internal affairs, departments (directorates) of internal affairs in the subjects of the Russian Federation and empowering the Minister of Internal Affairs of the Russian Federation with the right to endorse the mentioned regulations, as well as the right to define the procedure of endorsement of the regulations on other bodies of internal affairs of the Russian Federation.

Federal Law No. 125-FZ of July 25, 2006 on the Ratification of the Convention on the Criminal Responsibility for Corruption



Ratifies the Convention singed on behalf of the Russian Federation in Strasburg on January 27, 1999. The ratification of the Convention will contribute to improvement of international cooperation in the sphere of the fight against corruption and further integration of Russia in the common European legal environment.

After the entry into force of the Convention, the Russian Federation becomes a participant of the Group of States against Corruption (GRECO) created to monitor execution by the GRECO member-states of their duties in the fight against corruption.

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

Federal Law No. 124-FZ of July 25, 2006 on the Ratification of the Protocol on Accession of the Republic of Uzbekistan to the Founding Treaty of the Eurasia Economic Community of October 10, 2000 and the Protocol on Amendments to the Founding Treaty of the Eurasia Economic Community of October 10, 2000



Ratifies the Protocols singed in St.Petersburg on January 25, 2006. The Protocols create a legal basis for a full participation of the Republic of Uzbekistan in the activities of the Eurasia Economic Community.

According to the Protocols, the Republic of Uzbekistan assumes in full amount the rights and duties arising from the Founding Treaty of the Eurasia Economic Community of October 10, 2000.

Besides, the Law changes the procedure of adoption of decisions in the framework of the Eurasia Economic Community and financing of activities of its bodies, which is stipulated by the redistribution among the member-states of the amounts of their shares in the budget of the Eurasia Economic Community and the number of votes after accession of the Republic of Uzbekistan.

Federal Law No. 123-FZ of July 25, 2006 on the Ratification of the Protocol on the Procedure of Forming and Functioning of the Forces and Resources of the System of Collective Security of the Member-States of the Collective Security Treaty of May 15, 1992



Ratifies the Protocol signed in Yerevan on May 25, 2001. The Protocol envisages the forming by the member-states of the Collective Security Treaty in the framework of the forces and resources of the system of collective security of coalition (regional) groups of troops (forces) and the bodies managing them, as well as the united systems, empowering of coalition (regional) groups of troops (forces) and the united systems with the tasks of prevention and repulsing possible aggression; presence in peace time of the military units allocated in the coalition (regional) groups of troops (forces) and the united systems on the territory of the member-state of the Treaty in subordination of the management bodies of this state, if the states of the region do not take another decision.

Federal Law No. 122-FZ of July 25, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Korea on Cooperation in the Sphere of Investigation and Use of the Outer Space for Peaceful Purposes



Ratifies the Agreement signed in Moscow on September 21, 2004.

The Agreement is aimed at providing for necessary conditions for an efficient development of the mutually beneficial cooperation of the two states in such areas as astrophysical research, study of planets, remote probing of the Earth from the outer space, outer space medicine and biology and other.

The Agreement covers issues of bilateral cooperation pertaining to the financing, customs regulation, export control, protection and distribution of rights in the intellectual sphere, protection of property, as well as responsibility of the parties

Federal Law No. 121-FZ of July 18, 2006 on the Amendments to Individual Legislative Acts of the Russian Federation on Issues of Improvement of State Management in the Sphere of Migration



Endorses at the legislative level the authority of the Federal Migration Service of Russia and its territorial bodies in the sphere of migration. Appropriate amendments are introduced in the 13 legislative acts, including the Federal Laws on the legal status of foreign citizens in the Russian Federation, on the citizenship of the Russian Federation, on the procedure of exit from the Russian Federation and entry in the Russian Federation, on the refugees, as well as the Laws of the Russian Federation on the unwilling migration and on the right of the citizens of the Russian Federation for the freedom of travel, choice of the place of stay and residence within the boundaries of the Russian Federation.

The Federal Migration Service of Russia and its territorial bodies shall be responsible for the following:

processing of cases of citizenship of the Russian Federation, drawing up and issue of the main personal identification documents of the citizen of the Russian Federation; keeping registration records of the citizens of the Russian Federation at the place of stay and the place of residence within the boundaries of the Russian Federation and control of observation by citizens and officials of the rules of registration and cancelling registration of citizens of the Russian Federation; drawing up and issue to foreign citizens and stateless persons of the documents for entry in the Russian Federation, residence and temporary stay in the Russian Federation; control of observation by foreign citizens and stateless persons of available rules of residence and temporary stay in the Russian Federation; working out and implementation in coordination with other state bodies of the measures of prevention and stopping illegal migration; execution of the legislation of the Russian Federation on refugees and forced migrants, participation in available procedures of granting political asylum to foreign citizens and stateless persons; control and enforcement in compliance with the legislation of the Russian Federation in the sphere external labour migration, attracting foreign workforce in the Russian Federation and employment of citizens of the Russian Federation abroad.

Amendments to the Code of Administrative Violations of the Russian Federation define the list of administrative violations qualified as the sphere of reference of the Federal Migration Service of Russia, as well as the authority of appropriate officials.

Besides, the sphere of reference of the Federal Migration Service of Russia shall include taking decisions on unwanted stay (residence) of foreign citizens and stateless persons in the Russian Federation, prohibition to enter the Russian Federation for foreign citizens and stateless persons, deportation of foreign citizens and stateless persons, as well as implementation together with the bodies of internal affairs of deportation and administrative withdrawal of the mentioned persons outside the Russian Federation.

Decision of the Government of the Russian Federation No. 458 of July 25, 2006 on the Qualification of the Types of Products As Agricultural Products and the Products of Initial Processing Made of Agricultural Raw Materials of Own Production



For the purpose of application of the system of taxation for agricultural producers (uniform agricultural tax) in compliance with Chapter 26.1 of the Tax Code of the Russian Federation, endorses the list of the types of products qualified as agricultural products and the list of products qualified as products of initial processing made of agricultural raw materials of own production.

The products of initial processing made of agricultural raw materials of own production shall include agricultural products (products of plant growing of agricultural and forestry enterprises and the products of animal breeding (including the growing and maturing of fish and other aquatic biological resources) having undergone technological operations of processing for preservation of quality and ensuring prolonged storage used in the form of raw materials in subsequent (industrial) processing or sold without subsequent industrial processing to consumers.

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

Decision of the Government of the Russian Federation No. 456 of July 25, 2006 on the Amendments to the Customs Tariff of the Russian Federation Pertaining to Individual Types of Cheese



To protect Russian producers of cheese, introduces for 9 months increased rates of import customs duties for cheep imported cheeses (classified under the code of the Foreign Trade Commodity Nomenclature of Russia 0406 90). The rate of the import customs duty for cheeses with the free-on-the-border-of-the-country-of-import price not greater than EUR 1.65 per kg of the net weight will make EUR 0.7 per kg. The rate of the import customs duty for cheeses with the free-on-the-border-of-the-country-of-import price greater than EUR 1.65, however, not greater than EUR 2 per kg of the net weight, will make EUR 0.65 per kg. Import of more expensive cheeses will be subject to the rate of the import customs duty in the amount of EUR 0.3 per kg. Earlier, imported cheeses were not differentiated depending on the price, with the uniform rate of import customs duty being applied in the amount of 15% of the customs cost, however, not less than EUR 0.3 per kg.

Since the rates of the import customs duties for imported cheeses are increased by more than 10 points as a single action, the Decision emphasises especially that the prohibition of a single change of the rates of import customs duties by more than 10 percentage points (for ad valorem types of rates) or equivalent absolute value for specific types of rates (the rates calculated from physical parameters of the commodity - weight, size etc.) or specific components of combined types of rates of import customs duties introduced by the Decision of the Government of the Russian Federation No. 1347 of October 22, 1997 does not apply in this case.

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

Decision of the Plenum of the Higher Arbitration Court of the Russian Federation No. 25 of June 22, 2006 on Some Issues of Qualification and Fixing of Claims Pertaining to Obligatory Payments, As Well As the Sanctions for Public Violations in the Case of Bankruptcy



The plenum of the Higher Arbitration Court of the Russian Federation provided explanations on the issues of qualification and fixing of claims pertaining to obligatory payments and sanctions for public violations in the case of bankruptcy. The Decision emphasises the problems of initiation of the case of bankruptcy pursuant to the application of the authorised body pertaining to claims in obligatory payments, of execution of such claims. It also examines the issues of qualifying, as well as the procedure of fixing and satisfying of claims of collection of fines for tax and administrative violations.

One should keep in mind that by virtue of Item 3 of Article 6 of the Law on insolvency (bankruptcy), only those claims in obligatory payments are taken into account for the purpose of initiation of the bankruptcy case that are confirmed by decisions of the tax (customs) body on debt collection at the expense of the debtor property. Meanwhile, the decision on debt collection at the expense of the debtor property, as well as the fact that the mentioned decision was not challenged as of the moment of submission of the application to recognise the debtor bankrupt, do not serve as an implicit proof of substantiation of the presented claims. Information on the debt where the decision on collection at the expense of the debtor property is not available is of reference nature. When the moment of occurrence of the obligatory payment is examined, one should proceed from the fact that the date of occurrence of the duty to pay the tax is the date of the end of the tax period, rather than the date of submission of the tax declaration or the date of the end of the time limit of payment of the tax.

When resolving disputes arising in legal relations where the debtor is a tax agent, the courts must keep in mind that the claim to the tax agent having failed to fulfil the duty to transfer the collected tax to the budget system does not fall under the notion of obligatory payment defined in the Law on bankruptcy and, therefore, may not be qualified as a claim of obligatory payments. The mentioned claim, regardless of the moment of its occurrence, is not included in the register of creditor claims and is satisfied according to the procedure specified in the tax legislation. Disputes arising from legal relations where the debtor is a tax agent are processed beyond the case of bankruptcy.

As to the procedure of execution of claims in obligatory payments, it is explained, in particular, that since the bank does not examine the debtor arguments in cases of direct debit of monetary resources from the taxpayer account, the debtor may not collect from the bank the amounts written off by the latter under the encashment order of the tax body in a situation when the tax body provided incorrect amount of collected obligatory payments or information qualifying them as current claims.

The plenum emphasised especially the procedure of calculation of the time limits specified for submission of the application challenging non-normative legal acts of the tax bodies; for acceptance and sending to the organisation of the demand to pay the arrears, as well as the legal consequences of the failure to observe these time limits in the case of bankruptcy.

Federal Law No. 157-FZ of July 27, 2006 on Amending the Federal Law on Appraising Activity in the Russian Federation

The amendments regulate the matters of formation and operation of self-regulating organisations of appraisers, the structure and powers of their governing bodies, the monitoring of activities of members, i.e. appraisers, the methods of securing appraisers' liabilities under appraising contracts (compensation fund, insurance of appraisers' liabilities), and the state's supervision over the operation of self-regulating organisations of appraisers.The membership of appraisers being natural persons rather than legal entities (organisations) is the basis of the self-regulation system for self-regulating organisations of appraisers.Also the amendments provide for the formation of a special body, a National Appraising Council, being a non-commercial umbrella organisation for self-regulating organisations of appraisers.



Federal Law No. 156-FZ of July 27, 2006 on Amending Article 18 of the Federal Law on Licensing Specific Types of Activity

Starting from January 1, 2007, audit activity will no longer need licensing. Previously, the effective date for the new procedure has been already extended to July 1, 2006.The reason for it is that the process of transition to the methods of self-regulation of audit activity by means of setting up self-regulating organisations of auditors to monitor the quality of services provided in that area is not yet completed.The text of the Federal Law is published in Rossiyskaya Gazeta, No. 165, July 29, 2006.



Federal Law No. 155-FZ of July 27, 2006 on Amending Article 28 of the Federal Law on Joint-Stock Companies and the Federal Law on the Privatisation of State and Municipal Property

According to the amendment made to Article 28 of the Federal Law on Joint-Stock Companies if the shares of a public joint stock company set up in the course of privatisation which are under state or municipal ownership represent over 25% of votes at the general meeting of shareholders an increase in the charter capital of the said company is accomplished through the issuance of a supplementary issue of shares, with the stake of the state or municipal formation being preserved, and it is secured by the contribution in the company's charter capital of state or municipal property or funds of a relevant budget in order to make payment for the shares so additionally issued. This norm corresponds to Article 40 of the Federal Law on the Privatisation of State and Municipal Property.The compulsory provision concerning the preservation of the state's or municipal formation's stake in the joint-stock company's charter capital is revoked if a decision to this effect is made by the Government of the Russian Federation, executive governmental bodies of subjects of the Russian Federation or local self-government bodies. Also, the Federal Law regulates relationships that have to do with the preservation of the state's or municipal formation's stake in the charter capitals of public joint-stock companies when shares are floated by public subscription and when they are listed on a stock exchange, and also if shares of public joint-stock companies are floated abroad.The text of the Federal Law is published in Rossiyskaya Gazeta, No. 165, July 29, 2006.



Federal Law No. 154-FZ of July 27, 2006 on Amending Specific Legislative Acts of the Russian Federation on Issues of the Use of Forest Lands

The amendments concern the provision of forest land tracts for the purpose of geological exploration, prospecting and mining, the construction and re-construction of power transmission lines, communication lines, pipelines and other line facilities, and also for other purposes other than forestry and forest use. A provision is made for leasing out forest land tracts for relevant purposes, a procedure is set up for determining the rent charged for using such tracts, and also the procedure is updated for the performance of works in forest resources other than forestry or forest use.The Federal Law enters into force upon the expiry of 30 days after its official publication, with an exception. The text of the Federal Law is published in Rossiyskaya Gazeta, No. 165, July 29, 2006.



Federal Law No. 153-FZ of July 27, 2006 on Amending Specific Legislative Acts of the Russian Federation in Connection with the Enactment of the Federal Law on Ratifying the Council of Europe Convention on the Prevention of Terrorism and the Federal Law on Countering Terrorism

The amendments concern the mass media's activities on a territory where the regime of counter-terrorist operation has been declared, the activities of governmental bodies of subjects of the Russian Federation, local self-government bodies and federal security service bodies, the procedure for taking a decision on using armed-force formations and special units to combat terrorism outside of Russia, the establishment of criminal liability for various manifestations of terrorism, the introduction of confiscation of the money, valuables and other property used to finance terrorism as another criminal-law measure, the possibility of in-absentia conviction of perpetrators of grave and especially-grave crimes who stay outside of Russia and/or who decline to appear in court, and also administrative liability for breaches of the legal regime of counter-terrorist operation.The Federal Law enters into force as of the date of its official publication, with certain exceptions. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 152-FZ of July 27, 2006 on Personal Data



The Federal Law is intended to implement the constitutional provisions whereby everyone has a right to privacy and the freedom of information, and also Russia's international obligations to ratify the Council of Europe Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data. General uniform requirements are established to govern the processing of personal data in all areas where such data are used, definitions are provided for the rights of data subjects and of the duties of data processing operators, for the principles of trans-border personal data transmission, and also measures for state control over the activities of state and municipal bodies, legal entities and natural persons relating to personal data processing.The Federal Law allows various methods of personal data recording in state and municipal information systems, including the various methods of attributing personal data to a specific person. However, here a ban is established on limitation of rights and freedoms of citizens for reasons that have to do with personal data recording and attribution techniques, including a ban on the use of such attribution methods that could offend citizens' feelings or denigrate human dignity. In state and municipal information systems a provision is made for the possibility of setting up a state registry of the population, with the status and working procedure for it being established by a federal law.Responsibility for the monitoring and supervision of the compliance of personal data processing is vested in the empowered body charged with protection of the rights of data subjects, i.e. the federal executive governmental body responsible for control and supervision in the area of information technologies and communication. The personal data information systems formed earlier have to be brought in line with the provisions of the Federal Law by January 1, 2010.The Federal Law enters into force upon the expiry of 180 days after its official publication. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 151-FZ of July 27, 2006 on Amending Chapter 26 of Part 2 of the Tax Code of the Russian Federation and Deeming as No Longer Effective Specific Provisions of Legislative Acts of the Russian Federation

The amendments are intended to improve the mining tax calculation and payment mechanism. A zero rate of mining tax is established for oil produced in the sub-soil tracts fully or partially located within the boundaries of the Republic Sakha (Yakutia), Irkutsk Region and Krasnoyarsk Kray until the accumulated oil production at a sub-soil tract reaches 25 million tons, provided the term of development of resources in the sub-soil tract does not exceed ten years for a licence for sub-soil use for mineral prospecting and mining or 15 years for a licence for sub-soil use simultaneously for geological exploration and prospecting and mineral mining from the date of state registration of the relevant licence, and also in as much as extreme-viscosity oil as concerned.When a tax base and tax rate are determined for mining tax purposes in oil production the fixed rate of 419 roubles per ton is established for produced water-free, salt-free and stabilised oil. Here, additional adjustment factors are introduced in the tax rate calculation formula to cater for the world oil price variation and the degree of depletion of a specific sub-soil tract.The Federal Law enters into force as of January 1, 2007 but not earlier than upon the expiry of one month after the official publication thereof. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 150-FZ of July 27, 2006 on Amending Article 11 of the Federal Law on the Insurance of Natural Persons' Deposits in the Banks of the Russian Federation and Article 6 of the Federal Law on the Bank of Russia's Paying Out for Natural Persons' Deposits in the Banks Deemed Bankrupt and Not Deemed Part of the System of Compulsory Insurance of Natural Persons' Deposits in the Banks of the Russian Federation

The amendments establish a continuous (regressive) scale for deposit compensation in full within 100,000 roubles, or in part (90% but in any case not exceeding 190,000 roubles) for larger amounts. This will allow to enhance the protection of depositors' interests, and also to improve the effectiveness of the compulsory deposit insurance system.The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 149-FZ of July 27, 2006 on Information, Information Technologies and Information Protection

The Federal Law is intended to improve the legal regulation in the field of information, and to foster favourable conditions for the ratification of the Council of Europe Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data of January 28, 1981. Accordingly, Federal Law No. 24-FZ of February 20, 1995 on Information, Information Technologies and Information Protection is deemed no longer effective.The Federal Law regulates the relationships that arise from the exercising of a right to search, obtain, transmit, produce and disseminate information, and the application of information technologies and information protection as well. It defines the term "information", describes the legal capacity of the owner of information, the right of access to information, guarantees and procedure for exercising such right, the various forms of using up-to-date information technologies, like information systems, information telecommunication networks, and also sets out basic state policy guidelines in the field of information technology application. The term "information system" is defined and the types of such systems are described as well as the standards governing the formation and running of state information systems.The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.





Federal Law No. 148-FZ of July 27, 2006 on Amending Articles 1 and 15 of the Federal Law on Countering Extremist Activities

The amendments have established the following new actions as posing a danger for the public interest and having the features of extremist activity:- an obstruction of lawful activities of governmental bodies, election commissions or lawful activities of officials of such bodies as combined with violence or a threat of using it;- public slander in respect of an office-holder who occupies a state position of the Russian Federation or subject of the Russian Federation when he/she executes his/her duties or in connection with the execution thereof as combined with charges of having committed actions that can be classified as extremist activity;- the use of violence in respect of a representative of authorities or a threat of use thereof in respect of a representative of authorities or his/her family in connection with his/her executing his/her official duties;- an assassination attempt against a state or public figure committed with the aim of terminating his/her state or another political activity or as vengeance for such activity;- a violation of human and citizen's rights and freedoms, the infliction of harm to citizens' health and property in connection with their convictions, race or ethnic origins, faith, social status or social origins;- the creation of printed, audio, audiovisual and other materials intended for public use and containing at least one feature of extremist activity.Extremism does not only imply a direct call to engage in an extremist activity but also public calls or addresses inciting an extremist activity or allowing the possibility of extremist activities.The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 147-FZ of July 27, 2006 on Amending Articles 5 and 7 of the Federal Law on Countering the Legalisation of Incomes Received through Crime (Money Laundering) and the Financing of Terrorism

It is established that no identification of a payer (client) is required when certain money remittance transactions take place in an amount of up to 30,000 roubles, or 15,000 roubles when a foreign currency in cash is remitted.Such transactions for instance include payments to the budgets of all levels of the budget system of the Russian Federation; payment for the services of budget-funded institutions, payment of alimony; payment for utility services, communication services etc. Expanded is the list of the organisations which accomplish transactions in amounts of money or other property and have the duty to identify the persons to which they provide services. These entities include the non-credit organisations receiving cash from natural persons.The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 146-FZ of July 27, 2006 on Amending the Federal Law on Joint-Stock Companies

The amendments are intended to improve the procedure for re-organising joint-stock companies and ensuring the protection of interests of minority shareholders against possible abuse as transactions are carried out. According to the amendments a notice has to be sent in any case by the federal executive governmental body empowered by the Government of the Russian Federation about a decision taken by the board of directors (supervisory board) of a joint-stock company to set the price (monetary value) of property, the floatation price of serial securities, the buy-back price of shares of the company if the state and/or a municipal formation owns 2 to 50% of voting shares of the company, and if the price of said items is determined by the company's board of directors (supervisory board). The Federal Law defined the term for notification and the list of the documents to be submitted to the said federal executive governmental body as well as the powers of the body and the procedure for preparing a substantiated statement concerning the documents so submitted.The Federal Law enters into force upon the expiry of ten days after the official publication thereof, with a certain exception. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 145-FZ of July 27, 2006 on Amending Article 3 of the Federal Law on the Customs Tariff

A procedure is determined for setting the rates of export customs duties on certain categories of petroleum products. Decisions of the Government of the Russian Federation on modifying the rates of export customs duties on crude oil and certain categories of petroleum products have to be published in an official publication of the Russian Federation at least ten days prior to the entry into force of the said decisions. Now, such decisions of the Government of the Russian Federation take effect upon the expiry of one month after the official publication thereof.The Federal Law enters into force not earlier than after the expiry of one month after the official publication thereof. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 144-FZ of July 27, 2006 on Amending Part 2 of the Tax Code of the Russian Federation in as Much as It Concerns the Fostering of Favourable Taxation Conditions for the Taxpayers Pursuing Their Activities in the Area of Information Technologies, and Also Making Other Amendments Aimed at Enhancing the Effectiveness of the Taxation System

The amendments establish preferential treatment for the payment of uniform social tax and profit tax for the organisations pursuing their activities in the area of information technologies.The social tax deductible for education and medical treatment rose from 38,000 roubles to 50,000 roubles. Moreover, property tax deductible provision does not only extend to the acquisition of residential houses and apartments but of rooms as well. The tax base for profit tax purposes does not include the sum of taxpayers' payables in terms of penalties and fines when debts owing the budget are restructured. A more favourable taxation regime is created for the organisations engaged in R&D. The rate of fee charged for the use of aquatic biological resource items is reduced from 100,000 roubles to 60,000 roubles for the king crab, and the procedure for payment of the fee for fauna items is modified.The Federal Law enters into force as of January 1, 2007 but not earlier than after the expiry of one month after the official publication thereof. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 143-FZ of July 27, 2006 on Amending Article 55 of the City Development Code of the Russian Federation

The amendments eliminate the ambiguity in the construction of the provisions of Article 55 of the City Development Code of the Russian Federation that govern the procedure for issuing permits for commissioning a capital construction facility. According to the previous version the body that issued a building permit had to decide within ten days after the receipt of a commissioning permit application either to issue a commissioning permit or to refuse to issue such a permit and indicate the reason for the decision. Due to such language in practice some local self-government bodies took two decisions, one for the commissioning of a facility and the other one in the form of a permit proper for the commissioning of the facility, thus stalling the actual commissioning procedure. Moreover, the City Development Code does not contain the powers of local self-government bodies to take decisions on the issuance of a commissioning permit. Such a decision has no legal consequences for the applicant. The ground for state registration of rights to a capital construction facility built may only be a permit to commission the facility. So, it is established that the empowered bodies have to issue a commissioning permit to an applicant (or to refuse to do so) rather than take a decision on issuance of such a permit.Also to avoid parallelism in the functions of governmental bodies it is decided to cancel the provision on inspecting a facility being commissioned if state building supervision has been carried out in the course of its construction, re-construction or overhaul. Until now, an inspection of a facility at its commissioning has been a must in all cases.The Federal Law enters into force as of the date of its official publication. The text of the Federal Law in published in Rossiyskaya Gazeta No. 165, July 29, 2006.



Federal Law No. 142-FZ of July 27, 2006 on Amending the Federal Law on Placing Orders for the Delivery of Goods, Performance of Works and Provision of Services for State and Municipal Needs

According to the amendments in certain cases the duty to provide communication services for national defence, state security or law-and-order purposes is vested by the Government of the Russian Federation in the communication operator specified in a representation made by a state customer and agreed upon with the federal executive governmental body in charge of communication matters. Apart from that, the details of placing an order for the provision of communication services for the said needs are defined, and an addendum is made to the list of cases when an order is placed with a single supplier (contractor).The Federal Law enters into force as of January 1, 2007.



Federal Law No. 141-FZ of July 27, 2006 on Amending the Federal Law on Mortgage Securities

The amendments have removed obstacles for the issuance of mortgage securities. The Federal Law on Mortgage Securities updated the amount of mortgage coverage, the standards governing a mortgage coverage, the provisions concerning the withdrawal of property items from a mortgage coverage, and some other provisions. These modifications are aimed at implementing the provisions of the Law which earlier lead to a discrepancy between its norms and the prevailing economic relationships in the area of mortgage lending.The text of the Federal Law is published in Rossiyskaya Gazeta, No. 165, July 29, 2006.



Federal Law No. 140-FZ of July 27, 2006 on Amending the Federal Law on Banks and Banking Activity and Article 37 of the Law of the Russian Federation on Protecting Consumers' Rights

The commercial organisations not deemed credit organisations have acquired a right to accept cash from natural persons in payment for communication services, residential premises and utility services without a banking transaction licence.To obtain such right one should observe the following two conditions, i.e. to have a contract between the commercial organisation and a credit organisation whereby these transactions are implemented in the name of the commercial organisation but at the expense of the credit organisation; to have a contract between the credit organisation and the person which provides the services paid for. The consumer's duty to make payment for services is deemed discharged from the time when he delivers cash to the cashier's counter of the commercial organisation.The Federal Law enters into force upon the expiry of ten days after the official publication thereof. The text of the Federal Law is published in Rossiyskaya Gazeta, No. 165, July 29, 2006.





Federal Law No. 139-FZ of July 27, 2006 on Amending the Code of Administrative Offences of the Russian Federation

The amendments eliminate the certain discrepancies between norms of legislation arising from the enactment of the Federal Law on Insolvency (Bankruptcy). Amendments have been made to Part 1 of Article 4.5 of the Code of Administrative Offences whereby the statute of limitation period is increased from two months to one year for holding persons accountable under administrative law in cases of breach of the insolvency (bankruptcy) legislation.Also Articles 23.1, 28.1, 28.3 and 28.7 of the Code have been modified in as much as it concerns the powers of officials of relevant regulations bodies to draw up reports and to hear cases of administrative offences in the relevant field.Apart from the above, the Federal Law declared Articles 14.21 and 14.22 of the Code of Administrative Offences as redundant and no longer effective..



Federal Law No. 138-FZ of July 27, 2006 on Amending the Federal Law on the Securities Market and Certain Other Legislative Acts of the Russian Federation

The amendments are intended to ensure the legal regulation of the issuance of, and trading in, stock-exchange bonds, i.e. bonds which are issued by public joint-stock companies whose shares have undergone listing procedure, and which are floated by public subscription in a public sale at a stock market. The issuance of such bonds may take place without a state registration of the issue (supplementary issue) thereof, or the registration of a prospectus of bonds or the state registration of a report on the results of the issue (supplementary issue) thereof.These new developments will enable the issuers which have already proven that they are sufficiently reliable for borrowing in a stock market to borrow by means of stock-market bonds within a shorter term.The text of the Federal Law is published in Rossiyskaya Gazeta, No. 165, July 29, 2006.



Federal Law No. 137-FZ of July 27, 2006 on Amending Parts 1 and 2 of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation in Connection with the Taking of Measures for Improvement of Tax Administration

More than 150 amendments have been made to the Tax Code. They are intended to improve tax control, streamline tax inspections and paperwork in the field of taxation. The procedure for sending the materials of tax inspections to internal-affairs bodies is updated as well as a restricted-access list of the documents that may be demanded from a taxpayer within the framework of a desk tax inspection (with due regard to the details of value added tax compensation), a compulsory procedure is instituted for considering taxpayers' objections before the taking of a decision on the results of a tax inspection, and a ban on conducting more than two field tax inspections per year is imposed, save for cases when an inspection is ordered by the head of the Federal Tax Service. The institution of a cross-inspection is replaced with a special procedure for demanding and obtaining documents. This may only be done by the tax body with which the taxpayer is registered. The term is increased for the filing of the documents demanded by a tax body, and a ban is established on the imposition of sanctions according to the results of repeated tax inspections.The Federal Law enters into force as of January 1, 2007, except for the provisions for which other effective dates are set.





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