Monitoring of the Federal Legislation dated 27.07.2006

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.