Monitoring of the Federal Legislation dated 2.08.2006

Decree of the President of the Russian Federation No. 795 of July 1, 2006 on Raising the Salaries of Judges in the Russian Federation

Effective July 1, 2006, a rise occurred in the official salaries of judges of the Constitutional Court of the Russian Federation, the Supreme Court of the Russian Federation and other federal general jurisdiction courts, the Higher Arbitration Court of the Russian Federation and other federal arbitration courts and the justices of the peace of subjects of the Russian Federation.The Decree enters into force as of the date of its official publication.

Decree of the President of the Russian Federation No. 766 of July 25, 2006 on Raising the Monetary Remuneration of the State Office-Holders of the Russian Federation

Effective August 1, 2006 a 15-per cent rise takes place in the monetary remuneration of the top officials of the Russian Federation, i.e. the President of the Russian Federation, members of the Government of the Russian Federation, the Secretary of the Security Council of the Russian Federation, members of the Election Commission of the Russian Federation, the Director General of the Judicial Department under the Supreme Court of the Russian Federation, the Human Rights Commissioner of the Russian Federation, and also of the persons who occupy state offices of the Russian Federation in diplomatic missions and Russia's missions with international organisations in foreign states. The previous rise in the monetary remuneration of the said officials took place on October 1, 2003 (by 11%). Last time the monetary remuneration of the President of the Russian Federation and Chairman of the Government of the Russian Federation was increased 2.1 times on March 9, 2004.The Decree enters into force as of the date when it is signed.

Decree of the President of the Russian Federation No. 765 of July 25, 2006 on the Lump-Sum Incentive Bonus Payable to the Persons Undergoing Federal State Service

The rates are set for the lump-sum incentive bonus payable to persons undergoing federal state service when they receive decorations, honorary titles or incentives.Federal state civil servants, military personnel, the personnel of internal-affairs bodies, the institutions and bodies of the criminal penitentiary system, the State Fire-Fighting Service of the Ministry of the Russian Federation for Civil Defence Issues, Emergency Situations and Liquidation of the Consequences of Natural Disasters, the bodies charged with control of narcotic drugs and psychotropic substances, customs bodies and the commanding members of the federal courier service are entitled to receive a lump-sum incentive bonus equal to one monthly allowance of money if provided by the Government of the Russian Federation; two monthly allowances of money if provided by the President of the Russian Federation; three salaries when the honorary titles of the Russian Federation and the badges of distinction of the Russian Federation are conferred; five salaries when the orders or medals of the Russian Federation are bestowed; and ten salaries when the "Gold Star" Medal is bestowed.

Decree of the President of the Russian Federation No. 764 of July 25, 2006 on the Allowance of Money Payable to the Federal State Civil Servants Who Occupy Positions of Federal State Civil Service in a Federal State Body Located outside of the Russian Federation

Effective August 1, 2006, the federal state civil servants who occupy the positions of federal state civil service in a federal state body located outside of the Russian Federation are entitled to receive an allowance of money in a foreign currency as a monthly official foreign currency salary. The monthly salaries corresponding to the position occupied, rank (diplomatic rank), monthly and other supplementary compensations (except for a monthly incentive in cash) envisaged by Article 50 of Federal Law No. 79-FZ of July 27, 2004 on the State Civil Service of the Russian Federation (bonuses for long-service, special service conditions, handling state-secret information, especially-important assignments, lump-sum vacation payment and subsistence allowance) are paid in roubles at the rate of 20%.The Decree enters into force as of August 1, 2006.

Decision of the Government of the Russian Federation No. 469 of July 29, 2006 on Amending Decision of the Government of the Russian Federation No. 487 of June 27, 2001

The following is brought in line with Federal Law No. 122-FZ of August 22, 2004 which re-distributed powers between the governmental bodies of the various levels in terms of financing social support to citizens: Decision of the Government of the Russian Federation No. 487 of June 27, 2001 on Endorsing the Model Regulations on the Provision of Scholarships and Other Forms of Subsistence Assistance to Students of Federal State Higher and Secondary Vocational Education Institutions, Post-Graduates and Aspirants for Doctor Degree.The Decision is supplemented with a provision for allocation of funds for the purpose of setting the rate of scholarship with due regard to residence in the extreme natural and climatic conditions of the North.Since the financing of a social support in the form of compensations for a rise in the prices for meals in students' canteens, reduced transport fares and sanatorium and health-resort health treatment has been handed over to local budgets the relevant provision has been removed from the Model Regulations on Scholarships.

Decision of the Government of the Russian Federation No. 468 of July 28, 2006 on Endorsing Lists of the Goods (Works/Services) Whose Manufacturing (Completion/Provision) Cycle Exceeds Six Months

The new list is to replace List-2001 comprising 140 commodity items and based on CC FEA codes. The new list has 45 items shown in compliance with the All-Russia Classification of Products (ACP) and the All-Russia Classification of Types of Economic Activity (ACTEA). If the taxpayer being the manufacturer/provider of goods (works, services) receives payment or partial payment for a forthcoming delivery of goods (completion of works, provision of services) whose manufacturing/provision cycle exceeds six months (according to the said list) he is entitled to recognise the time of tax base assessment as the date of shipment (delivery) of the goods (completion of the works or services) if separate records are kept of transactions accomplished and tax amounts on acquired goods (works and services), in particular, in respect of the fixed assets and intangible assets and property rights used to carry out the operations of manufacture of the goods (works or services) having a long manufacturing cycle as well as other operations.The Decision enters into force as of the date of its official publication, and it extends to the tax legal relationships that have come into being since January 1, 2006.