Monitoring of the Federal Legislation dated 20.07.2006

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.