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 19.12.2006

Federal Law No. 229-FZ of December 15, 2006 on the Ratification of the Agreement between the Government of the Russian Federation and the Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization on the Measures Pertaining to Objects of the International Monitoring System Envisaged in the Comprehensive Nuclear-Test-Ban Treaty

The ratified Agreement creates legal basis for cooperation of the Russian Federation with the Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization (PC CNTBTO) pertaining to the creation, modernisation, certification and providing for temporary operation of the Russian part of the International Monitoring System created in accordance with the Comprehensive Nuclear-Test-Ban Treaty.

Federal Law No. 228-FZ of December 7, 2006 on the Ratification of the Protocol on the Amendments to the Agreement between the Government of the Russian Federation and the Government of the Estonian Republic on Cooperation in the Sphere of Pension Support of June 25, 1993

Ratifies the Protocol on the amendments to the Agreement between the Government of the Russian Federation and the Government of the Estonian Republic on cooperation in the sphere of pension support of June 25, 1993. The need to sign the protocol is stipulated by the refusal of the Estonian side to ratify the Agreement on cooperation in the sphere of pension support. The Protocol was signed by the parties on November 5, 2002 and amends the procedure of calculation of the pension, determination of the time limits for assigning the pension at the new place of residence, procedure of administrative and technical cooperation in the implementation of the Agreement and the period of validity of the Agreement.

According to the provisions of the Protocol, the amount of the pension for the citizens having resettled from the Russian Federation to Estonia and vice versa will be calculated according to the legislation of the state where they live on legal grounds. The actual wording of the Agreement contains the norm on the calculation of the pension proceeding from the pensioner earnings after resettlement, and if he is not working - proceeding form the average monthly earnings of the employee of a similar profession or qualification.

If the pension of the same kind is envisaged in the legislation of the state at the new place of residence, the paying out of the pension at the pervious place of residence will be stopped from the first of the month following the month of the resettlement. At the new place of residence of the pensioner, the pension will be assigned from the month following the month when the paying out of the pension was stopped at the previous place of residence.

If the pension of the appropriate type is not envisaged in the legislation of the state at the new place of residence of the pensioner, the paying out of the pension will be continued by the state the pensioner moved from. The pension will be paid out in the currency of the state where the pensioner is moving to.

It is supposed that the Agreement will be in effect for 3 years (at present, the period of validity of the Agreement is not restricted). If neither of the parties wishes to terminate it, the agreement is prolonged for 1 year more.

The ratification of the Protocol will permit to protect the interests of the citizens of the Russian Federation living in the Estonian Republic.

Federal Law No. 227-FZ of December 7, 2006 on the Ratification of the Agreement between the Russian Federation and the Republic of Belarus on Cooperation in the Sphere of Social Support

Ratifies the Treaty creating legal fundamentals to solve the problems in the sphere of state social support, obligatory (state) social insurance and obligatory insurance against industrial accidents and occupational diseases of citizens of the Russian Federation and the Republic of Belarus.

The Treaty defines the procedure of assigning and paying out of temporary disability and maternity allowances, allowances for the families with children, unemployment allowances, allowances for the cases of labour mutilation or occupational diseases, for the burying, as well as the labour old-age, disability, lost-breadwinner, length-of-service (in the Republic of Belarus) and social pensions.

Each side shall calculate and pay out the pensions in proportion to the periods of insured length of work after March 13, 1992 on the its territory. For the periods of insured length of service before March 13, 1992 on the territory of one of the sides, the pension is assigned and paid out by the side where the person lives when he applies for the pension.

Besides, the Treaty significantly reduces the time limits for assigning the pension to the persons having resettled or resettling to the territory of Russia from the territory of the Republic of Belarus to one month from the moment of termination of paying out of the pension in the Republic of Belarus. A similar procedure is applied for the pensioners resettling from Russia to the Republic of Belarus.

The Treaty adjusts collection of insurance contributions for obligatory pension insurance according to the legislation of the contracting party where the insured covered by the Treaty are employed.

Federal Law No. 226-FZ of December 7, 2006 on the Ratification of the Protocol between the Government of the Russian Federation and the Government of the Latvian Republic on the Prolongation of the Agreement between the Government of the Russian Federation and the Government of the Latvian Republic on the Regulation of the Process of Resettlement and Protection of Rights of the Resettled Population of June 2, 1993

The Agreement on the regulation of the process of resettlement and protection of rights of the resettled population of June 2, 1993 is prolonged for unlimited period of time. The Agreement has entered into force on February 27, 1995 and was intended for 5 years, however, it was prolonged until 2005.

The Agreement was signed to provide for a free resettlement of citizens from one state to the other and create a mechanism of protection of proprietary rights of the resettled population. The resettled population is exempted from the payment of duties, taxes and fees when crossing the border. They retain in full amount the right of possession, use and disposal of their property. The Russian side assumes obligation to assist in privatisation of the dwelling space from the state and municipal fund for the resettled population having received the permission for resettlement. The Latvian side grants to the resettled population the right to sell the occupied dwelling space, as well as the right to lease the dwelling space.

Prolongation of the Agreement also provides for the further work in the Latvian Republic of the representation of the Federal Migration Service of the Russian Federation.

Decision of the Government of the Russian Federation No. 772 of December 16, 2006 on the Federal Standards of Payment for the Dwelling Space and Communal Services for the Year 2007

In 2007, the federal standard of the limiting cost of provided housing and communal services per 1 square meter of the total dwelling space a month is fixed in the amount of Rbl 47.2, the federal standard of the cost of capital repair of the dwelling space per 1 square meter of the total dwelling space a month, in the amount of Rbl 3.6.

Decision of the Government of the Russian Federation No. 770 of December 15, 2006 on the Amendments to the Decision of the Government of the Russian Federation No. 55 of January 19, 1998

From February 1, 2007, prohibits retail sale of alcoholic products if the consumer container of the unit of the product does not have a warning of the hazard of excessive consumption of alcoholic products for the human health, as well as information on contraindications of its consumption, the content being endorsed by the Ministry of Public Health and Social Development of Russia. Earlier, the label must have carried a warning of the hazard of consumption of alcoholic products for the human health.

Decision of the Government of the Russian Federation No. 765 of December 14, 2006 on the Procedure to Grant Subsidies to Young Scientists for the Purchase of Dwelling Space in the Framework of the Measures of Housing Support to Individual Categories of Citizens of the Federal Targeted Program "Housing" for the Years 2002-2010

The subsidies are granted to young scientists aged not greater than 35 years (for candidates of sciences) or 45 years (for the doctors of sciences) as of the day of taking the decision to include in the list of participants of measures. The length of work in the scientific organisation in the position of a research fellow must be at least 5 years. The right for the subsidy is granted only once and is certified with a personal document - the state housing certificate.

Calculation of the amount of the subsidy is made proceeding from the amount of the total area of dwelling space specified for the young scientist and the average market cost of 1 square meter of the total dwelling space in the subject of the Russian Federation being the place of location of the scientific organisation where he works. The young scientist may use the subsidy exclusively in the subject of the Russian Federation where his scientific organisation is located in. However, if the place of location of the place of work of the young scientist is Moscow and St.Petersburg, it is permitted to purchase the dwelling space in the Moscow Province or the Leningrad Province respectively.

The Decision lists the documents submitted to the Russian Academy of Sciences for participation in the program and defines the further procedure to issue the certificate, conclude the bank account contract, pay for the purchased dwelling space.

Order of the Federal Service for Financial Markets No. 06-125/pz-n of November 2, 2006 on the Minimum Cost of Property of the Shared Investment Fund Making It Formed

Increases the minimum cost of the property of the shared investment fund making it formed.

For the open-type shared investment fund, the minimum cost of the property makes Rbl 10 million instead of the former Rbl 2.5 million, for the periodic-redemption shared investment fund - Rbl 15 million (earlier, Rbl 5 million), for the closed-type investment fund - Rbl 25 million (earlier, Rbl 2.5 million).

Information on the minimum cost of the property of the shared investment fund is indicated in the rules of trust control of the shared investment fund. The property of the shared investment fund belongs to the holders of investment shares as common shared property and is handed over for trust control to the management company.

The increase of the minimum cost of the property of the shared investment fund making it formed applies to the shared investment funds with the rules of trust control submitted for registration after the entry into force of the given Order.

Registered in the Ministry of Justice of the Russian Federation on December 15, 2006. Reg. No. 8603.

Order of the Federal Customs Service No. 1233 of November 28, 2006 on the Creation on the Territory of the Novosibirsk Province of the Customs Control Zone along the Customs Border of the Russian Federation with the Republic of Kazakhstan

Creates customs control zone on the territory of the Novosibirsk Province along the customs border with the Republic of Kazakhstan coinciding with the state border of the Russian Federation. The customs control zone includes a strip of land 5 km wide from the customs border line into the territory of the Russian Federation not including the territories of residential settlements.

If highways and railroads included in the customs control zones pass through residential settlements, the boundaries of the customs control zone are limited to the highway strip and alienation zone exclusively.

The customs control zone is outlined by the Siberian Customs Department.

Registered in the Ministry of Justice of the Russian Federation on December 15, 2006. Reg. No. 8599.

Order of the Federal Customs Service No. 1249 of November 29, 2006 on the Creation of the Customs Control Zone on the Territory of the Kurgan Province along the Customs Border of the Russian Federation with the Republic of Kazakhstan

To provide for the customs inspection of commodities and transport vehicles moved from the Russian Federation to Kazakhstan and back, as well as their storage, creates customs control zone on the territory of the Kurgan Province along the customs border of the Russian Federation with the Republic of Kazakhstan.

Defines the territorial borders of the new customs control zone. Specifies that the territories of residential settlements are not included in the customs control zone. If parts of highways and railroads included in the zone pass through residential settlements, the zone borders will be restricted to the highway strip and the alienation zone exclusively.

Registered in the Ministry of Justice of the Russian Federation on December 15, 2006. Reg. No. 8597.

Order of the Ministry of Internal Affairs of the Russian Federation No. 961 of November 23, 2006 on the Amendments to the Order of the Ministry of Internal Affairs of Russia No. 393 of October 23, 1995

The amendments introduced by the Decision of the Government of the Russian Federation of December 22, 2004 to the rules of registration and removal of citizens of the Russian Federation from records at the place of stay and place of residence in the Russian Federation specify that citizens having arrived for temporary stay in the dwelling space not being their place of residence for more than 90 days (earlier, 10 days) must apply for registration to the authorised persons upon expiry of this period (earlier, within 3 days from the day of arrival) (excluding the week-ends and holidays). The given Order of the Ministry of Internal Affairs of the Russian Federation introduces appropriate changes to the Instruction on the application of the above rules endorsed by the Order of the Ministry of Internal Affairs of Russia No. 393 of October 23, 1995.

Registered in the Ministry of Justice of the Russian Federation on December 14, 2006. Reg. No. 8593.

Order of the Ministry of Internal Affairs of the Russian Federation No. 1003 of December 7, 2006 on the Amendments to the Instruction on the Procedure to Drawn up and Hand out the Insert in the Birth Certificate Confirming the Presence of the Citizenship of the Russian Federation Endorsed by the Order of the Ministry of Internal Affairs of Russia No. 257 of April 18, 2003

According to the amendments to the Instruction, the insert to the certificate of birth confirming the presence of the citizenship of the Russian Federation with a child is issued to the parents, adoptive parents, trustees at the place of residence of the applicant or the place of birth of the child rather than the place of residence of the child as was specified before.

Registered in the Ministry of Justice of the Russian Federation on December 14, 2006. Reg. No. 8592.

Order of the Ministry of Finance of the Russian Federation No. 145n of November 13, 2006 on the Amendments to the Order of the Ministry of Finance of the Russian Federation No. 113n of December 8, 2003

Improves the typical form of the annual reports of insurance organisations No. 7-insurer "Report of the Placing of Insurance Reserves" submitted as an enforcement measure to the Federal Service of Insurance Enforcement and its territorial bodies.

According to the new wording of the form No. 7-insurer, the figures characterising insurance reserves must reflect in addition the reserve of unearned premium, including the reserve of unearned premium under the contracts of obligatory state insurance. Information on the bonds, stocks and immovable property in trust control must be indicated separately. The report will show in more detail such assets as promissory notes of non-bank organisations, mortgage certificates of participation, ingots of platinum and palladium, memorial coins of the Russian Federation of precious metals, loans of insurants under life insurance contracts.

Amendments are also introduced in the Instruction on the volume of the forms of reports of insurance organisations submitted as an enforcement measure, procedure of their drawing up and submission pertaining to the reporting form No. 7-insurer. When drawing up the report according to the new form No. 7-insurer for the year 2006, information as of the beginning of the reported year is not filled out.

The Order is entered into force beginning with the annual reports for the year 2006.

Registered in the Ministry of Justice of the Russian Federation on December 13, 2006. Reg. No. 8590.

Direction of the Central Bank of Russia No. 1761-U of December 13, 2006 on the Simultaneous Investigation of the Early Redemption of the Mortgage Housing Credits

Credit organisations shall submit to the territorial institutions of the Bank of Russia information on the early redemption of mortgage housing credits according to the form and procedure provided in the Direction. This information must be submitted to the Bank of Russia no later than April 25, 2007.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Letter of the Central Bank of Russia No. 158-T of December 15, 2006 on the Operations with Credit Cards after Introduction of the Prohibition of the Bank of Russia to Attract in Deposits Monetary Resources of Natural Persons and Open Bank Accounts to Natural Persons in Compliance with Articles 47 and 48 of the Federal Law on the Insurance of Deposits of Natural Persons in the Banks of the Russian Federation

After introduction of the prohibition to attract in deposits monetary resources of natural persons and open bank accounts to them, the banks recognised as not complying with the requirements of participation in the deposit insurance system shall lose the right to issue credit cards, operations with which require opening bank accounts of natural persons in the bank issuing the card. The given restrictions do not apply to the issue of credit cards and operations with them when monetary resources are granted to the resident natural person in the currency of the Russian Federation without the use of the bank account in the bank having issued the card.

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