Monitoring of the Federal Legislation dated 17.10.2007

Decision of the Government of the Russian Federation No. 674 of October 15, 2007 on the Temporary Rates of Import Customs Duty on Milk and Dairy Products

Import customs duty rates are lowered for a six-month term for milk and dairy products (from 15 to 5 per cent of customs value). The decision takes effect as of the date of official publication thereof.

Decision of the Government of the Russian Federation No. 671 of October 12 on Seasonal Duties on Raw Cane Sugar and Certain Types of Sugar Imported into the Territory of the Russian Federation in 2007 and 2008

Rates of seasonal duty on raw cane sugar and sugar with flavourings or dyeing additives shipped into Russia from December 1 through December 31, 2007 and from January 1 through May 31, 2008 are confirmed. Given the NYMEX average monthly raw sugar price of up to $99.21 per ton, the rate of import duty will be $270 per ton. It will be $250 for $99.22 to $182.98, $235 for $182.99 to 198.42, and $220 for over 198.43. The rates might cease to be applicable if Russia joins the WTO or if the NYMEX price exceeds $259.99 per ton. The decision takes effect one month after its official publication.

Decision of the Government of the Russian Federation No. 669 of October 12, 2007 on the Rules for Pre-Judiciary Examination of Disputes That Have to Do with Setting and Applying the Prices (Tariffs) Regulated in Accordance with the Federal Law on Natural Monopolies

A dispute is considered on an application filed with the Federal Service on Tariffs by a natural monopoly, its consumers or the executive governmental body of a subject of the Russian Federation charged with state tariff regulation. A final decision on the results of such consideration must be taken within 90 days after the application is received. The decision enters into force as of January 1, 2008.

Decision of the Government of the Russian Federation No. 666 of October 12, 2007 on Amending Some Acts of the Government of the Russian Federation on Communication Matters

The procedure for connecting communication networks and for interaction of such networks has been updated. Now, connection may be provided to local phone network operators both by fixed zone phone network operators and other operators as well. In their turn local phone network operators may offer connections to operators of all zone phone networks. Requirements governing the operators of networks being connected are set out. Also the procedure for provision of roving communication services is updated.

Order of the Ministry of Defence of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation and the Federal Migration Service No. 366/789/197 of September 10, 2007 on Endorsing the Instructions on Organising the Interaction of Military Commissariats, Bodies of Internal Affairs and the Territorial Bodies of the Federal Migration Service in the Work of Ensuring the Execution of the Duty to Undergo Military Service by Citizens

A new procedure is established for the interaction of military commissariats, bodies of internal affairs and territorial bodies of the Federal Migration Service in finding out the whereabouts of citizens evading military service, and for taking measures relating to conscript registration and draft. Registered by the Ministry of Justice of the Russian Federation, registration No. 10315 of October 11, 2007.

Order of the Federal Service on Financial Markets No. 07-94/pz-n of September 13, 2007 on Endorsing the Procedure for Inspecting the Organisations Subject to Control and Supervision by the Federal Service on Financial Markets

New rules govern the procedure for preparing and carrying out inspections of issuers, joint-stock investment companies, entities dealing with accumulated pension funds, non-state pensions, compulsory pension insurance and professional pension insurance, mortgage agents, managers of mortgage security and specialised depositaries of mortgage security, professional participants in the securities market, the managing companies of joint-stock investment companies, investment trusts and non-state pension funds, the specialised depositaries of investment companies, investment trusts and non-state pension funds, credit referencing offices, accumulation housing cooperatives and the self-regulating organisations thereof. Inspections may be schedule or off-schedule. The new procedure supersedes the one previously effective. Registered by the Ministry of Justice of the Russian Federation, registration No. 10300 of October 10, 2007.

Order of the Ministry of Economic Development and Trade of the Russian Federation No. 307 of September 11, 2007 on Endorsing the Rules for Keeping the Register of Federal Property

The register is kept by officials of the Federal Agency for Federal Property Management and territorial bodies thereof. Registered by the Ministry of Justice of the Russian Federation, registration No. 10297 of October 10, 2007.

Direction of the Central Bank of the Russian Federation No. 1891-U of October 10, 2007 on Setting the Rates of Compulsory Reserves (Reserve Claims) of the Bank of Russia

To help credit organisations manage their liquidity, starting from October 11, 2007 the rates of compulsory reserves are cut from 4.0 to 3.0 per cent for the liabilities of credit organisations owing natural persons in the Russian currency, from 4.5 to 3.5 per cent for liabilities owing non-resident banks and other credit organisations' liabilities in the Russian and foreign currencies. The averaging factor is increased. The direction enters into force when it is signed.

Direction of the Central Bank of the Russian Federation No. 1892-U of October 10, 2007 on Amending Direction of the Bank of Russia No. 1601-U of August 5, 2005 on the Terms for the Bank of Russia to Provide Credit Organisations with Credits Secured by the Pledge of Bills of Exchange, Things in Action under Credit Contracts of Organisations or Sureties of Credit Organisations

Starting from October 11, 2007 interest rates is set at 7 per cent per annum on credits of the Bank of Russia for a term of up to 90 calendar days (earlier it was 0.6 of the refinancing rate of the Bank of Russia), 8 per cent per annum on credits of the Bank of Russia for a term from 91 to 180 calendar days (earlier it was 0.75 of the refinancing rate of the Bank of Russia). The direction enters into force as of October 11, 2007.

Information Letter of the Federal Service on Financial Markets No. 07-VM-01/20826 of October 11, 2007 on Showing the Assets into Which Fund's Pension Reserves Are Placed in Special Reports

Explanations are offered concerning the completion of special reporting forms for non-state pension funds relating to the placement of pension reserve funds under the management of a trustee. While completing the forms a non-state pension fund has to be governed by the bookkeeping policy it has been adopted for the accounting year.