PRESS RELEASE*
The following issues are scheduled for discussion at the April 12, 2010 meeting of the Presidium of the Government of the Russian Federation:
1. The availability of life-saving and vital drugs at pharmacies and the prices thereof.
In 1994, the Government of the Russian Federation in its resolution No.890 vested the executive agencies of the regions of the Russian Federation with the powers to determine the size of retail markups for all the drugs for the first time, for the purpose of preventing unreasonable growth of free prices for drugs, including life-saving and vital drugs (hereinafter LSVD).
In 1999, the Russian Government's resolution No.347, for the purpose of ensuring government control over prices for drugs, introduced state registration of maximum factory gate prices of the producers of LSVD for the first time, by submitting applications. As a result the prices of 20-25% of such drugs were registered annually.
From July 2008, the growth of the prices of drugs and medical supplies has outstripped the growth of consumer prices. By the results of 2008 the growth index of drug prices exceeded the growth index of the prices for consumer goods and services by 2%. In the 4th quarter of 2008 alone, growth amounted to 11%, and in January 2009, to 2.8%.
In this regard, on March 10, 2009 the Government Commission on Sustained Economic Development, jointly with the representatives of producers, wholesale and retail organisations outlined measures to tighten state regulation of prices for drugs by introducing mandatory registration of maximum factory gate prices for LSVD and limiting wholesale and retail markups as well as vesting Roszdravnadzor (Federal Service for Supervision of Healthсare and Social Development) and the Federal Tariff Service of Russia with powers to monitor and control the prices of drugs.
Pursuant to the above decisions, government resolution No.654 of August 8, 2009 introduced mandatory registration of maximum factory gate prices for LSVD and established that the executive agencies of the constituent entities of the Russian Federation determine the maximum wholesale and retail markups for LSVD, and with regard to the drugs not included in the list of LSVD, are entitled to establish maximum wholesale and retail markups.
The same resolution, for the purpose of excluding the numerous middlemen, determined that wholesale and retail markups are to be fixed on the basis of the factory gate prices of the producer of LSVD, and the Healthcare and Social Development Ministry creates a commission to settle the disputes arising during the registration of maximum factory gate prices of drugs.
The Ministry of Healthcare and Social Development of Russia and Roszdravnadzor have organised monitoring of a range and prices of drugs.
The executive order of the Ministry of Healthcare and Social Development of December 14, 2009 registered with the Ministry of Justice on December 24, 2009 approved the methodology of determining the maximum factory gate prices of LSVD (original and generic).
The executive order of the Federal Tariff Service of Russia of December 11, 2009 approved the methodology to be used by the executive agencies of the regions of the Russian Federation to set the maximum wholesale and retail markups on the actual factory gate prices for LSVD differentiated by price brackets of under 50 roubles, under 500 roubles and over 500 roubles.
For the purpose of effective implementation of these measures, government resolution No.203 of March 31, 2010 authorized Roszdravnadzor to control the prices of LSVD on behalf of the government, and the Federal Tariff Service to control the maximum size of wholesale and retail markups for LSVD set by the executive agencies of the regions of the Russian Federation.
In December 2009, the Ministry of Healthcare and Social Development signed an agreement whereby the domestic producers of medical drugs undertake to keep prices for the most common and popular drugs at an affordable level.
Registration of maximum factory gate prices for LSVD began on January 11 and the main stage of the registration was completed by April 1, 2010. The list of LSVD contains 500 international unpatented names (in expert estimates in accordance with the State Register of Drugs they correspond to about 10,000 items of LSVD taking into account various forms, dosages and packaging).
A total of 491 drugs have been submitted for registration under international unpatented names (98%). Drugs under nine international unpatented names have not been submitted for registration (according to Roszdravnadzor they have not been delivered during the past year).
At present 5,947 drugs have been registered under trade names if one considers various forms, dosages and packaging (i.e. 96% of the 6,096 drugs).
One hundred and forty nine drugs are in the process of registration. Registration has been withheld for 647 trade names, of which 631 have been submitted for registration another time.
Based on the results of a conference call on April 6, 2010 of the government with the chief executives of the regions of the Russian Federation the following instructions have been given:
- To the chief executives of the entities of the Russian Federation:
- within three days to appoint the deputy chief executive in charge of the issues connected with the provision of drugs, including control of prices of LSVD, the range thereof and report back to the Ministry of Healthcare (26 entities of the Russian Federation have failed to provide such information, according to the Ministry of Healthcare and Social Development;
- to provide the Ministry of Healthcare and Social Development with data on the level of prices for life-saving and vital drugs and the range thereof every month not later than the 10th of the month following the report month.
- To the Federal Tariff Service of Russia:
- to monitor the fixing by the executive agencies of the regions of the Russian Federation of maximum wholesale and retail markups on the prices for LSVD and report the results of this work every month not later than the 10th of the month following the report month to the Ministry of Healthcare and Social Development.
- To the Ministry of Healthcare and Social Development, jointly with the executive bodies concerned:
- to ensure systematic monitoring of the prices for life-saving and vital drugs, their range and provide quarterly reports to the government, and, on the issues that require a government decision, to submit proposals under established procedure.
According to the Ministry of Healthcare and Social Development, the monitoring of the activities of pharmacies conducted by Roszdravnadzor since April 1, 2010 has found that:
- most pharmacies do not have readily accessible information on maximum retail prices for registered LSVD;
- actual retail prices exceeded the maximum allowable retail prices calculated proceeding from the maximum wholesale and retail markups (in Novosibirsk Region by an average 20% in 209 instances, in St Petersburg by 41% in 157 instances; Volgograd Region, 155 instances (23%), Stavropol Region 408 instances (17%), Moscow 1,655 instances (26%); Moscow Region 3,696 instances (17%); Chelyabinsk Region, 296 instances (23%). In the Jewish Autonomous Region, for example, the price of the drug Indapamid-Verta has exceeded the fixed maximum by 295% in the Nadezhda-Pharm pharmacy, the city of Birabidzhan; in Stavropol Territory the price of the drug Tiogamma has exceeded the ceiling by 726% in Domashnaya Apteka pharmacy, Pyatigorsk;
- some LSVDs have been sold for which maximum factory gate prices have not been registered.
2. The results of implementation of measures to ensure affordable air travel for passengers from the Far East to the European part of the country and back in 2009 and the preparedness for providing such carriage in 2010.
Subsidising air fares from the Far East to the European part of the country and back was introduced since 2009 in accordance with the Rules approved by government resolution No.231 of March 17, 2009 concerning the allocation of 1.78 billion roubles of federal budget money for the purpose. Such discount fares (for Russian citizens aged between 23 and 60 inclusive) were offered at designated routes in the period between May 15 and October 31, 2009.
In 2009, more than 160,000 passengers were subsidised to the tune of 1,216.4 million roubles. Passenger traffic on the routes included in the programme increased by 9.1%.
The volume of socially sensitive local intraregional air carriage in the Republic of Sakha (Yakutia) remained at the pre-crisis level.
The government's resolution No.1095 of December 29, 2009 approved the Rules for granting subsidies to air transport organisations in 2010 to ensure affordable air travel for passengers from the Far East to the European part of Russia and back.
The Federal Law On the Federal Budget for 2010 and the planning period of 2011 and 2012 in its target article "Ensuring Affordable Air Travel from the Far East" earmarks 2.5 billion roubles of budget money for this purpose in 2010.
The plan envisages an expansion of the network of subsidised routes in 2010 (to include the cities of Kyzyl and Norilsk), a longer period of subsidies (from April 1 to October 31, 2010) and priority for carriers that use modern Russian-made planes on such routes. More than 300,000 passengers will have access to these services in the current year.
Federal enterprises are being created to develop regional and local air carriage in the Far North and the Far East.
At present such enterprises include Northern Airports (Republic of Sakha-Yakutia) for which 851.97 million roubles have been allocated for 2010.
In addition, federal enterprises are being formed on the basis of regional airports in the Chukotka Autonomous Area and the Kamchatka Territory, for which purpose the federal budget has allocated 643.5 million roubles for 2010.
3. Submitting to the President of the Russian Federation a proposal to sign the Protocol on Introducing Amendments to the Treaty on the Customs Code of the Customs Union of November 27, 2009
The draft resolution of the Government of the Russian Federation has been submitted by the Federal Customs Service of Russia.
The draft resolution would approve the draft Protocol on Introducing Amendments and Additions to the Treaty on the Customs Code of the Customs Union of November 27, 2009.
The protocol has been drafted by a panel of authorised representatives of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation pursuant to the decision of the EurAsEC Interstate Council (the Supreme Customs Union body) No.17 of November 27, 2009.
The signing of the Protocol is prompted by the need to amend the Treaty On the Customs Code of the Customs Union and accordingly, to provide the legal framework for the Customs Union within EurAsEC with a view to deepening the integration between the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan.
The Protocol includes provisions concerning: cutting the time of custom clearance of goods to a single day, specifying the list of documents and information required for custom clearance that rules out the possibility of the issue of additional regulations by the customs services; minimising the list of submitted documents and cutting the time of custom clearance for the export of non-commodity goods and the import of hi-tech equipment, materials, raw materials and production components. The goods brought into the export customs procedure that are exempt from customs duties and goods brought into the customs procedure of temporary export whose list is determined by the Customs Union Commission must be released by the customs body not later than four hours from the time of the registration of the declaration for such goods. In submitting declarations for the goods brought into the customs export regime and goods to which export customs duties do not apply, a shortened list of documents is to be submitted to the customs authority. The documents confirming the customs value of the goods are not included in such list.
The signing of the Protocol will not require additional outlay from the federal budget and will not reduce federal budget revenue.
The Protocol contains some rules other than those envisaged under the laws of the Russian Federation and therefore requires ratification under Article 5 of the Protocol, subclause ‘a' of Clause 1 and Clause 2 of Article 15 of the Federal Law On the International Treaties of the Russian Federation.
4. Draft federal law On the Accession of the Russian Federation to the Convention on International Interests in Mobile Equipment of November 16, 2001 and the Protocol on Matters Specific to Aircraft Equipment of November 16, 2001
The draft federal law has been submitted to the Government of the Russian Federation by the Ministry of Foreign Affairs and the Ministry of Economic Development.
Under the draft law the Russian Federation recognises as binding the provisions of the Convention and the Protocol aimed at creating a uniform international legal regime for securing and protecting the rights of lenders under the obligations connected with the acquisition, financing of production, transfer into ownership or use of aviation objects (aircraft and aircraft engines).
Aviation objects covered by the Convention and the Protocol are movable property and are designated to be in constant movement from one jurisdiction to another. To develop international exchange in aviation objects it is necessary to create a special regime of security measures in the shape of an international safeguard without which commercial banks face a high risk of large credits because it is not known in advance the law of which state may turn out to be applicable to the transactions involving these objects.
One of the problems in international trade in aviation objects is the differences of national legal systems, which are fraught with the risk that the security measures recognised in one country and accepted by the lending bank would not be recognised in another country where payment to the lender is to be made. In this regard, the Convention envisages the use of an international registration system whereby the objects of registration are not only aviation equipment but also the national safeguards and the subordination of safeguards.
The accession of the Russian Federation to the Convention and the Protocol thereto permits to solve these problems by ruling out the risks of non-payment of the debt to the lender for aviation equipment.
The application of the provisions of the Convention will enable domestic aviation producers, aviation and leasing companies to benefit from the economic advantages inherent in the principles and mechanisms of the Convention to ensure the rights of lenders and create favourable opportunities for the export of Russian aviation technology. Thus, Russian aviation producers will be able to borrow from foreign commercial banks to support sales on more favourable terms that are in keeping with international practice.
This would substantially reduce the financial burden on Russian aircraft building enterprises and leasing companies and make Russian aviation technology more competitive by reducing its cost and the sums of lease payments by air companies.
The implementation of the draft law will not require additional outlays from the federal budget or the assumption of new obligations by the Russian Federation.
5. Draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Angola on Encouragement and Mutual Protection of Capital Investments
The draft federal law has been submitted to the Government of the Russian Federation by the Ministry of Economic Development.
The agreement between the Government of the Russian Federation and the Government of the Republic of Angola on Encouragement and Mutual Protection of Capital Investments was signed in the city of Luanda on June 26, 2009.
The main provisions of the Agreement are:
1. Capital investment of one contracting party are allowed on the territory of the state of the other contracting party in accordance with the laws of the host state.
2. Each contracting party offers the capital investment of the other contracting party a regime no less favourable than is offered to domestic investors or investment from any other third state.
3. Each contracting party reserves the right, in accordance with its legislation, to determine the sectors of the economy in which the activities of foreign investors are forbidden or limited.
4. Guaranteed protection of the capital of investors from forced seizure through nationalisation, expropriation or other measures that have similar consequences, except in cases when such measures are taken in the public interest in accordance with the laws of the host country on a non-discriminatory basis and are accompanied by prompt and adequate compensation. In addition, the right of investors to obtain compensation is affirmed in the event of damage to their investment, in particular due to war, armed conflicts or the introduction of a state of emergency.
5. Unobstructed transfer abroad of revenues and other payments in connection with capital investments after investors have fulfilled all their tax and other obligations stipulated under the law of the host country.
6. Application of proper judicial procedure to protect the rights of investors by allowing the use of modern procedures of the resolution of disputes between one contracting party and the investor of the other contracting party, as well as methods of resolving disputes between contracting parties over the interpretation and application of the provisions of the Agreement.
The provisions of the Agreement correspond to the standards of international law and do not contradict international obligations of the Russian Federation.
The Agreement is subject to ratification in accordance with Article 15 of the Federal Law On International Treaties of the Russian Federation.
The implementation of the Agreement will not require additional outlays from the federal budget and will not have any negative financial or economic consequences.
The application of the Agreement will ensure for investors long-term stability and a predictable legal environment and will contribute to the development of investments and trade-economic cooperation between the Russian Federation and the Republic of Angola.
6. Draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Great Socialist People's Libyan Arab Jamahiriya on Encouragement and Mutual Protection of Capital Investments
The draft federal law has been submitted to the Government of the Russian Federation by the Ministry of Economic Development of Russia.
The Agreement between the Government of the Russian Federation and the Great Socialist People's Libyan Arab Jamahiriya on Encouragement and Mutual Protection of Capital Investment was signed on April 17, 2008.
The main provisions of the Agreement are as follows:
1. Capital investment of one contracting party are allowed on the territory of the state of the other contracting party in accordance with the laws of the host state.
2. Each contracting party offers the capital investments of the other contracting party a regime no less favourable than is offered to domestic investors or investment from any other third state depending on which of the regimes, in the investors' opinion, is more favourable.
3. Each contracting party reserves the right to apply and introduce exemptions from the national regime with respect to the foreign investors and their investment, including reinvested capital.
4. Guaranteed protection of the capital of investors from forced seizure through nationalisation, expropriation or other measures that have similar consequences except when such measures are taken in public interests, in accordance with the laws of the host state on a non-discriminatory basis and are accompanied by prompt and adequate compensation. In addition, the right of investors to obtain compensation is affirmed in the event of damage to their investment, in particular due to war, armed conflicts or the introduction of a state of emergency.
5. Unobstructed transfer abroad of the revenues and other payments in connection with the capital investment in accordance with the laws of the host contracting party after the investors have met all their tax obligations.
6. Application of proper judicial procedure to protect the rights of investors by allowing the use of modern procedure of the resolution of disputes between one contracting party and the investor of the other contracting party, as well as methods of resolving disputes between contracting parties over the interpretation and application of the provisions of the Agreement.
The provisions of the Agreement correspond to the standards of international law and do not contradict international obligations of the Russian Federation.
The Agreement is subject to ratification in accordance with Article 15 of the Federal Law On International Treaties of the Russian Federation.
The implementation of the Agreement will not require additional outlays from the federal budget and will not have any negative financial or economic consequences.
The application of the Agreement will ensure for investors long-term stability and a predictable legal environment and will contribute to the development of investments and trade-economic cooperation between the Russian Federation and the Great Socialist People's Libyan Arab Jamahiriya.
7. Draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Federal Republic of Nigeria on Mutual Encouragement and Protection of Capital Investments
The draft federal law has been submitted to the Government of the Russian Federation by the Ministry of Economic Development of Russia.
The Agreement between the Government of the Russian Federation and the Government of the Federal Republic of Nigeria on Encouragement and Mutual Protection of Capital Investments was signed on June 24, 2009.
The main provisions of the Agreement are as follows:
1. Capital investment of one contracting party are allowed on the territory of the state of the other contracting party in accordance with the laws of the host state.
2. Each contracting party offers the capital investment of the state of the other contracting party a regime no less favourable than is offered to domestic investors or investments from any other third state depending on which of the regimes, in the investors' opinion, is more favourable.
3. Each contracting party reserves the right, in accordance with its legislation, to determine the sectors of the economy in which the activities of foreign investors are forbidden or limited.
4. Guaranteed protection of the capital of investors from forced seizure through nationalisation, expropriation or other measures that have similar consequences except when such measures are taken in public interests in accordance with the laws of the host state on a non-discriminatory basis and are accompanied by prompt and adequate compensation. In addition, the right of investors to obtain compensation is affirmed in the event of damage to their investments, in particular due to war, armed conflicts or the introduction of a state of emergency.
5. Unobstructed transfer abroad of revenues and other payments in connection with the capital investment in accordance with the laws of the host contracting party after the investors have met all their tax obligations.
6. Application of proper judicial procedure to protect the rights of investors by allowing the use of modern procedure of the resolution of disputes between one contracting party and the investor of the other contracting party as well as methods of resolving disputes between contracting parties over the interpretation and application of the provisions of the Agreement.
The provisions of the Agreement correspond to the standards of international law and do not contradict international obligations of the Russian Federation.
The Agreement is subject to ratification in accordance with Article 15 of the Federal Law On International Treaties of the Russian Federation.
The implementation of the Agreement will not require additional outlays from the federal budget and will not have any negative financial or economic consequences.
The application of the Agreement will ensure long-term stability for investors and a predictable legal environment and will contribute to the development of investments and trade-economic cooperation between the Russian Federation and the Federal Republic of Nigeria.
8. Draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Cuba on Avoiding Double Taxation and Preventing Evasion of the Income and Capital Taxes
The draft federal law has been submitted by the Ministry of Foreign Affairs and the Finance Ministry of the Russian Federation.
The Draft Law envisages ratification of the agreement signed in the city of Havana on December 14, 2000.
The Agreement aims to provide conditions under which the legal entities and individuals of each contracting state will not be required to pay tax twice on the same type of revenue or capital in their own country and in the partner country. This will make it possible for each of the contracting states, on a mutually beneficial basis, to attract foreign investment and ensure conditions for the elimination of double taxation of legal entities and private individuals.
In preparing the Agreement, the Russian side proceeded from the model agreement on avoiding double taxation of incomes and property and the contracting states have also proceeded from the models recommended by the Organisation for Economic Cooperation and Development (OECD) and the United Nations Organisation (UN).
The agreement covers the taxes on the incomes and capital of persons who have their permanent residence, permanent location, location of management or registration in the Russian Federation or the Republic of Cuba.
Under the Agreement the taxation of incomes (profits) from entrepreneurial activities of a person of one contracting state is administered in the other contracting state if such a person is engaged in activities in that other state through the permanent representative office located there. With regard to building and assembly work and the corresponding supervisory activities, the profits from such activities will be taxable if the duration of such work exceeds 12 months and 6 months with respect to the services, including managerial or consultancy services.
Capital represented by movable property which is part of the property of the permanent representative office that the enterprise of one state has in the other state, or movable property pertaining to the permanent base at the disposal of the resident of one state in the other state for the purpose of rendering independent personal services, may be taxed in the other state.
Capital represented by ships and aircraft used in international carriage by the enterprise of one state or movable property connected with the operation of such ships or aircraft is taxable only in that state.
The income from immovable property may be taxed in the state where such property is actually located.
The profits derived by the enterprise of one contracting state from the use of ships or aircraft in international carriage are taxable only in that state.
The dividends paid by a company which is resident in one state to the resident of the other state may be taxed in either of the states. However, if the recipient is a person who has de facto right to dividends, the tax may not exceed 15% (in some cases 5%).
The royalties arising in one state and paid to the resident of the other state may be taxed in either of the states, however, if the recipient is a person who has de facto right to royalties, the tax may not exceed 5% of the total sum of the royalties.
The agreement envisages a taxation regime for the incomes of individuals analogous to that used in international practice. An individual pays taxes on all his/ her incomes in the country in which he/ she has been staying over 183 days during the corresponding twelve-month period.
An exception, in line with international practice, is made for the members of the crews of transport vehicles, actors, athletes, civil servants, pensioners, students, interns and teachers.
The Agreement guarantees against tax discrimination, regulates the procedure of considering petitions and applications by taxpayers and of resolving disputes as well as the issues of exchanging the information between the competent bodies of the contracting states and determines methods of eliminating double taxation.
In accordance with subclause A, Clause 1, Article 15 of the Federal Law of July 15, 1995 No. 101-FZ On the International Treaties of the Russian Federation, the Agreement is subject to ratification because it contains rules other than those envisaged under the laws of the Russian Federation.
The Agreement comes into force from the date of the last notification of compliance by the contracting states with the domestic state procedures required for its coming into force. The provisions of the Agreement will apply from January 1 of the year following the year of its coming into force. The Agreement remains in force until one of the contracting parties terminates the same by sending through diplomatic channels written notification on termination at least six months before the end of the year, five years after the effective date of the Agreement.
The Agreement will enable the Russian tax agencies to control timely and full payment of tax on the income earned by Russian legal entities and private individuals from their activities on the territory of the Republic of Cuba.
The Agreement will contribute to ensuring the conditions under which the legal entities and private individuals of the contracting states will not have to pay taxes twice on one and the same type of income and capital in their country and in the partner country, which will make it possible to attract foreign investments into each of the contracting states on mutually beneficial terms.
The draft law will not require additional outlays from the federal budget.
9. Draft federal law On Introducing Amendments to the Federal Law On Federal Security Service and the Code of the Russian Federation on Administrative Offenses
The draft federal law has been developed and submitted by the Federal Security Service of Russia.
The draft law is aimed at bringing in legal force the institution of special preventive measures used by the Federal Security Service agencies and vesting the said agencies with the right to issue an official warning about inadmissible actions by a person that may cause or create conditions for the perpetration of crimes, the inquiry and preliminary investigation of which is, under the laws of the Russian Federation, within the jurisdiction of the Federal Security Service, if there are no grounds for instituting criminal proceedings.
Article 2 of the Federal Law On Counteracting Extremist Activities assigns priority to preventive measures as one of the main principles of counteracting extremist activities. Such preventive measures arguably include the right granted to the federal security bodies under clause K of Article 13 of the Federal Law On the Federal Security Service, to submit to the government bodies, the management of enterprises, institutions and organisations of whatever form of ownership, as well as to non-governmental associations, mandatory representations on eliminating the reasons and conditions that contribute to making real the threats to the security of the Russian Federation, the perpetration of crimes with regard to which inquiry and preliminary investigation are, under the laws of the Russian Federation, within the jurisdiction of the Federal Security Service bodies. However, this right does not empower the Federal Security Service bodies to apply preventive measures with regard to individuals.
Under this draft law, the Federal Law On the Federal Security Service will be augmented by the provisions that grant the federal security bodies the right to issue an official warning on the inadmissibility of the actions of the person that give rise to causes and create conditions for the perpetration of crimes with regard to which inquiry and preliminary investigation is, under the laws of the Russian Federation, within the jurisdiction of the Federal Security Service bodies.
In addition, the draft law would introduce administrative liability for disobeying a legitimate instruction or demand of a Federal Security Service official in line of duty as well as obstructing the performance of his duty, for which purpose corresponding amendments are proposed to Articles 19.3, 23.1 and 28.3 of the Code of the Russian Federation on Administrative Offenses.
The implementation of the draft law will not require expenditure out of the federal budget.
The proposed decisions will have no impact on the activities of the government bodies of the regions of the Russian Federation and (or) local self-government bodies and will not require extra allocations from the corresponding budgets or reduce their revenues.
10. Draft federal law On Introducing Amendments to Articles 22 and 36 of the Air Code of the Russian Federation and Article 1 of the Federal Law On State Regulation of the Development of Aviation
The draft federal law has been developed and submitted by the Federal Security Service of Russia.
The draft federal law is aimed at streamlining state regulation of activities in the field of state aviation as well as optimising the process of manufacturing and commissioning state aircraft (special-purpose aviation technology) intended for use by federal executive bodies which comprise units of special-purpose state aviation.
The current procedure of the creation and commissioning of aviation technology for the needs of state aviation established under the Air Code of the Russian Federation assumes that new aviation technology is developed above all for the purpose of defence of the Russian Federation and does not take due account of the specific nature of the activities of other federal executive bodies.
Military aviation is part of the Armed Forces of the Russian Federation intended to repel aggression against the Russian Federation and to defend the integrity and inviolability of the territory of the Russian Federation.
The use of state aviation units by the Federal Security Service, the Interior Ministry, the Emergencies Ministry and the Federal Customs Service is mainly confined to peacetime and involves the use of special-purpose aviation technology with specialised equipment not intended for the purposes of defence.
On the strength of the above, the draft law introduces amendments to Articles 22 and 36 of the Code and Article 1 of the Federal Law On State Regulation of the Development of Aviation aimed at providing the legal grounds for the current practice and creating within the framework of "state aviation" of two separate types of aviation: "state military aviation" (Defence Ministry of Russia) and "state special-purpose aviation" (Federal Security Service, Emergencies Ministry, Interior Ministry, Federal Customs Service).
In addition, the draft law would put the determination of the procedure of acceptance of aircraft for state use under the jurisdiction of the Government of the Russian Federation.
Legislative delimitation of the above mentioned types of state aviation is prompted by the specific nature of the functions exercised by various federal executive bodies and in practice will make it possible:
1) for the federal executive bodies to receive direct funding for the purchase and use of special-purpose aviation technology bypassing the Defence Ministry of Russia;
2) to simplify the procedure of creating (modification, modernisation) of special-purpose aviation technology and its entry into service in accordance with the functions of the corresponding federal executive bodies which shall act as the general customer that orders special-purpose aviation technology;
3) to determine the special procedure of acceptance of aircraft of the state military aviation and state special-purpose aviation.
The implementation of the federal law will require the issue of a government resolution On Approving the Procedure of Acceptance of State Aircraft for Exploitation.
In this connection the above federal law is to come into force 90 days after its official publication.
The implementation of this draft will not entail additional outlays from the federal budget.
11. Submitting to the President of the Russian Federation for the purpose of ratification the Agreement on Training Personnel for the Anti-Terrorist Units of the Member States of the Shanghai Cooperation Organisation
The draft federal law on ratification of the Agreement on the Training of Personnel for Anti-Terrorist Units of the Member States of the Shanghai Cooperation Organisation, signed in the city of Yekaterinburg on June 16, 2009 at a meeting of the Council of the Heads of State of the Shanghai Cooperation Organisation has been submitted by the Ministry of Foreign Affairs of Russia jointly with the Federal Security Service of Russia.
The aim of the agreement is to develop cooperation of the competent bodies of the SCO member states and to create a legal framework for the training of personnel for anti-terrorist units of the SCO member states.
The main tasks of the agreement are to improve the knowledge and practical skills of anti-terrorist units of the SCO member states in fighting terrorism, to enhance the special training of the members of anti-terrorist units of the SCO member states as well as exchange of experience among these anti-terrorist units.
Since the agreement contains rules other than those stipulated under the laws of the Russian Federation as regards the exemption of the support materials required for the training of personnel from customs duties and other levies (Article 12 of the Agreement), it is subject to ratification under Subclause A, Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.
12. Introducing amendments to Government Resolution No.408 of May 29, 2008 On the Ministry of Sport, Tourism and Youth Policy of the Russian Federation
The draft resolution has been submitted to the Government of the Russian Federation by the Ministry of Sport, Tourism and Youth Policy of Russia.
The draft resolution would introduce the post of Deputy Minister of Sports, Tourism and Youth Policy whose competence would include the preparation and holding of the XXII Winter Olympic Games and XI Winter Paralymic Games in Sochi in 2014, and introduce amendments to the Statute on the Ministry of Sports, Tourism and Youth Policy the Russian Federation that vests the Ministry of Sport, Tourism and Youth Policy with the powers to approve the emblem of the Ministry and the corresponding statute, to issue regulatory legal acts on the procedure of classification of the objects of the tourist industry, including hotels and other accommodation, ski slopes and beaches, the procedure of forming the list of physical fitness and sports organisations and educational institutions that train athletes and that use, without signing a corresponding agreement with International Olympic Committee, the International Paralympic Committee or organisations authorised by the above, the words Olympic, Paralympic and derivatives thereof in their names.
The adoption of the draft resolution will contribute to quality preparation and holding of the XXII Winter Olympic and XI Winter Paralympic Games in Sochi in 2014 and will harmonize the Statute on the Ministry of Sports, Tourism and Youth Policy of the Russian Federation with current legislation.
The draft resolution will be implemented within the budget allocations earmarked for the Ministry of Sport, Tourism and Youth Policy under the federal budget item dealing with control and management in the relevant sphere.
13. Creation of an organising committee for the preparation and holding of the first Presidential Regatta in 2010 in St Petersburg as part of the celebration of the 150th anniversary of the rowing sports in Russia.
The draft executive order has been submitted by the Ministry of Sports, Tourism and Youth Policy of Russia.
The draft executive order envisages:
- the formation of an Organising Committee, whose organisational and technical support is to be provided by the Ministry of Sports, Tourism and Youth Policy;
- instructions to the Ministry of Sports, Tourism and Youth Policy, jointly with the organisations concerned, to develop and to submit to the Organising Committee the plan of activities connected with the preparation and holding of the first Presidential Regatta.
The adoption of the draft executive order will contribute to quality preparation and holding of the first Presidential Regatta, the popularisation of the rowing sport and its further development in the Russian Federation.
Moscow
April 11, 2010
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Press releases by the Department of Press Service and Information contain the materials submitted by the executive federal bodies for discussion by the Presidium of the Government of the Russian Federation