22 april 2010

Background material for the April 22, 2010 meeting of the Government of the Russian Federation (press release)

The following issues are scheduled for discussion at the April 22, 2010 meeting of the Government of the Russian Federation:

1. Progress in implementing measures to provide housing for all the veterans of the Great Patriotic War of 1941-1945

The materials have been submitted by the Ministry of Regional Development of Russia.

The Decree of the President of the Russian Federation on providing housing for the veterans of the Great Patriotic War of 1941-1945 makes it mandatory to complete the provision of housing for the veterans, members of the families of the dead participants and of invalids of the Great Patriotic War who are entitled to corresponding support under the Federal Law On Veterans, assuming that the overall housing floor space per person is 22 square metres.

For the purpose of implementing the Decree, 8.9 billion roubles was allocated in late December 2008 for providing housing for the veterans of the Great Patriotic War who joined the waiting list for improvement of housing conditions prior to March 1, 2005.

Under the Federal Law On Introducing Amendments to the Federal Law On Veterans of June 29, 2009 the size of housing space made available to Great Patriotic War veterans who are in need of improved housing conditions was increased from 22 square metres to 36 square metres per person.

Under executive order of the Government of the Russian Federation an additional sum of 40.2 billion roubles was allocated in 2009 to provide housing for veterans registered prior to March 1, 2005.

According to the Ministry of Regional Development information, as of April 15, 2010, as many as 27,838 veterans of the Great Patriotic War who were registered before March 1, 2005 have been provided with housing. In 46 regions these activities have been completed, and in 35 regions measures to provide housing for the remaining 728 veterans will be completed before May 1 this year.

Of the total number of veterans who have not yet been provided with housing, the largest number live in the Krasnodar Territory (204 persons), the Stavropol Territory (114 persons) and the Kemerovo Region (145 persons) for whom the construction of apartment blocks will be completed within the next few days, according to the latest information from the Ministry of Regional Development.

On December 21, 2009 amendments were introduced to the Federal Law On Veterans whereby housing will be provided for all Great Patriotic War veterans who need improved housing conditions from the Federal Budget regardless of the date when they were registered (that is, also after March 1, 2005).

To implement this piece of legislation, in accordance with the executive order of the Government of the Russian Federation, 5.6 billion roubles has been transferred to the budgets of the entities of the Russian Federation to finance the provision of housing to Great Patriotic War veterans who were registered after March 1, 2005.

Pursuant to Federal Law On the Federal Budget for 2010 and for the Planning Period of 2011 and 2012 an additional 34.5 billion roubles has been allocated for these purposes in 2010.

Besides, the leftover from 2009 of the money earmarked for the provision of housing for the veterans registered before March 1, 2005, estimated at 8.4 billion roubles by the Ministry of Regional Development can also be used to provide housing for the veterans registered after March 1, 2010.

Thus the total amount of resources available this year to provide housing for veterans registered after March 1, 2005 is 48.5 billion roubles.

According to information provided to the Ministry of Regional Development by the authorities of the Russian regions, as of April 1, 2010 the number of Great Patriotic War veterans registered after March 1, 2005 was 67,992, of whom 1546 veterans have already received housing this year.

In this regard, according to the calculations of the Ministry of Regional Development, an additional federal budget allocation of 20.6 billion roubles will be required to provide housing for the veterans who were registered after March 1, 2005. Proposals to the effect have been submitted to the Finance Ministry of Russia.

Considering that more veterans in need of better housing conditions are getting registered in the regions, the additional requirements for federal budget money may increase before the end of this year.

2. Draft Federal Law On Introducing Amendments to Some Legislative Acts of the Russian Federation Concerning the Regulation of Exchange of Documents and Information between Currency Control Bodies and Currency Control Agents

The Draft Federal Law has been submitted by the Finance Ministry of Russia. The Draft Law is aimed at filling the gaps in the Federal Laws On Banks and Banking and On Currency Regulation and Currency Control that have been exposed as a result of the review of the practice of enforcing currency legislation in the country, and at establishing the procedure for sending queries and transfer of documents and information in response to these queries between authorized banks, the state corporation The Bank for Development and Foreign Economic Activities (Vneshekonombank), on the one hand, and the customs and tax agencies on the other hand, in the process of performing their functions of currency control agents.

The draft law introduces amendments to the federal laws On Banks and Banking and On Currency Regulation and Currency Control.

In most cases lending organisations (authorised banks) refuse to disclose to the Federal Service for Fiscal and Budgetary Supervision, Rosfinnadzor, (its territorial divisions) and tax agencies the necessary information connected with currency transactions, the opening and keeping of accounts on the grounds that the information requested contains data that constitute a banking secret under Article 26 of the Federal Law On Banks and Banking. Under that Article, Rosfinnadzor and tax agencies are not on the list of federal executive bodies entitled to receive such information.

In accordance with current practice, justices of the peace terminate proceedings on cases connected with non-compliance with the rulings of Rosfinnadzor and tax agencies on the provision of information by lending organisations (authorised banks).

In this regard, the draft law vests Rosfinnadzor (its territorial divisions) as the currency control body authorised by the Government as well as the tax and customs bodies as agents of currency control with the right to obtain from the lending organisations documents and information containing data that constitute banking secrets. Lending organisations provide documents and information in connection with currency transactions, the opening and keeping of accounts only in cases under the procedure and on the scale envisaged by the Federal Law On Currency Regulation and Currency Control.

The Draft Law also envisages the possibility of providing authorised banks and the state corporation The Bank of Development and Foreign Economic Activities (Vneshekonombank), to enable them to perform their functions of currency control agents upon their request, with information from the Federal Customs Service of Russia and the Federal Tax Service of Russia as well as establishing deadlines for the fulfillment of requests of authorised banks by the Federal Customs Service and the Federal Tax Service and determines that the exchange of information between the authorised banks, on the one hand, and the Federal Customs Service and the Federal Tax Service on the other hand, takes place electronically under the procedure established respectively by the Federal Customs Service and the Federal Tax Service.

In addition, the draft law adds to the Federal Law On Banks and Banking (Article 26) the provision that makes the currency control body authorised by the Government of the Russian Federation and the currency control agents, as well as their officials and employees, liable for disclosing banking secrets.

Under the Draft Law, the Bank of Russia is charged with coordinating interaction between authorised banks on the one hand, and the currency control bodies and other currency control agents on the other in the process of exchanging information pursuant to the laws of the Russian Federation, obliges the currency control bodies and agents and their officials to keep the tax secrets to which they became privy in discharging their duties and establishes the procedure of interaction between authorised banks on the one hand, and customs and tax agencies on the other.

Considering the need for the Federal Customs and the Federal Tax Service to adopt a procedure for exchange of information with authorised banks and the state corporation The Bank of Development and Foreign Economic Activities (Vneshekonombank) in electronic form and the fact that the draft law sets new rights and duties for the currency control bodies and agents, the Federal Law is to come into force 90 days after its official publication.

3. Draft Federal Law On Introducing Amendments to Article 18.9 of the Code of the Russian Federation on Administrative Offenses and the Federal Law on Legal Status of Foreign Citizens in the Russian Federation

The Draft Federal Law has been submitted by the Federal Migration Service of Russia.

Under Clause 5, Article 16 of the Federal Law On the Legal Status of Foreign Citizens in the Russian Federation the host side provides guarantees of material, medical and housing provision of the foreign citizen during his sojourn in the Russian Federation.

The procedure for providing the above guarantees is stipulated under the resolution of the Government of the Russian Federation On the Procedure of Providing Guarantees of Material, Medical and Housing Support for Foreign Citizens and Stateless Persons during the period of their sojourn in the Russian Federation.

At the same time the Code of the Russian Federation On Administrative Offenses does not envisage the liability of the host party for non-performance of the above obligations.

The Draft Federal Law proposes amendments to Article 18.9 of the Code concerning administrative liability of the host party for failure to take measures for material, medical and housing provision for the invited foreign citizen during the period of his/her sojourn in the country.

Furthermore, the draft law introduces amendments to the Federal Law On the Legal Status of Foreign Citizens in the Russian Federation by introducing the concept of "inviting party" and sealing in Article 16 of the rule which makes it incumbent on the inviting party to take measures for material, housing and medical provision during the sojourn of the invited foreign citizen in the Russian Federation.

4. Draft Federal Law On Introducing an Amendment to Article 851 of the Air Code of the Russian Federation

5. Draft Federal Law On Ratification of the Agreement between the Government of the Russian Federation and the Government of Macao on Air Links

6. Draft Federal Law On Introducing an Amendment to Article 7 of the Law of the Russian Federation On Employment in the Russian Federation

The Draft Federal Law has been submitted by the Ministry of Healthcare and Social Development

The development of the Draft Law has been prompted by the need to forecast the balance of labour resources in the Russian Federation.

At present there is no legislation dealing with the development of the forecast of the balance of labour resources and there is no federal executive body responsible for this.

In this connection the draft law proposes to include in the list of powers of the federal executive bodies in the field of employment the development of the forecast of the balance of labour resources under the procedure determined by the Government of the Russian Federation.

It is proposed that the Government issue a legislative act charging the Ministry of Health and Social Development with this function.

The implementation of the law will not require additional outlays from the Federal Budget because the Ministry of Healthcare and Social Development will exercise its powers to develop the forecast of the balance of labour resources without increasing its staff.

7. Draft Federal Law On Ratification of the Holidays with Pay Convention (revised in 1970)  (Convention No.132)

The Draft Federal Law has been submitted by the Ministry of Foreign Affairs and the Ministry of Healthcare and Social Development under established procedure.

Convention No.132 was adopted by the 54th Session of the General Conference of International Labour Organization in Geneva on June 24, 1970 and came into force on June 30, 1973.

The subject matter of Convention No.132 is the basic human and civil rights concerning guaranteed annual paid leave. To come into force in the Russian Federation it is subject to ratification under Federal Law on July 15, 1995 No.101-FZ On International Treaties of the Russian Federation.

Convention No.132 envisages the establishment of the minimum duration of annual paid leave. To acquire the right for any annual paid leave a minimum period of work may be required. The duration of such a period of work is determined by the competent authority or other body in each country, but it must not exceed six months.

In the Russian Federation the provisions of the Convention are reflected in Chapter 19 (Leaves) of the Labour Code of the Russian Federation which sets the minimum duration of the basic annual paid leave at 28 calendar days (Article 115 of the Code). The right to use a paid leave in the first year of work arises after six months of continuous work for a given employer (Article 122 of the Code).

Under the agreement between the employee and the employer the annual paid leave may be split into parts, with at least one part of the leave having a duration of not less than 14 calendar days (Article 125 of the Code).

Under Convention No.132 every member of the International Labour Organization at the time of ratification declares the minimum duration of the annual paid leave and specifies the circle of persons with regard to whom the obligations under the Convention are assumed.

In this connection the Draft Federal Law On Ratification includes the texts of the declarations to the effect that the minimum duration of the annual paid leave in the Russian Federation is 28 calendar days and that the Russian Federation assumes the obligations, under Convention No.132, both with respect to workers in sectors of the economy not connected with agriculture as well as workers engaged in agriculture.

An analysis of compliance of Russian legislation with the provisions of Convention No.132 shows that Russian legislation fully reflects the provisions and requirements of the said Convention.

With the adoption of the Draft Law the Russian Federation accedes to the universally recognised international labour standards on the basis of which all the national legislations on labour are created.

8. Draft Federal Law On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Namibia on Mutual Encouragement and Protection of Capital Investments

The Draft Federal Law has been submitted by the Ministry of Foreign Affairs and the Ministry of Economic Development of Russia.

The Draft Federal Law envisages the ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Namibia on Mutual Encouragement and Protection of Capital Investments signed in Windhoek on June 25, 2009.

In the opinion of the Ministry of Foreign Affairs and the Ministry of Economic Development of Russia, the implementation of the Agreement will ensure for Russian and Namibian investors long-term stability and a predictable legal environment and will stimulate investment and trade-economic cooperation between the two countries.

The agreement envisages the granting of a most favoured regime to the investment whereby investment is allowed into the territory of the state referred to in the Agreement in accordance with its legislation, and the investors of the state of the other contracting party are granted a regime no less favourable than the regime granted to national investors or investors of third countries. Each party reserves the right to apply and introduce in accordance with its legislation and on a non-discriminatory basis exemptions from the national regime with regard to foreign capital investment.

Neither of the contracting parties is obliged to apply to investors of the other contracting party the advantages it grants investors of any third state on the basis of agreements on taxation as well as in connection with its membership of a free trade zone, customs or economic union and similar economic integration entities.

Protection is guaranteed for capital investment and incomes of investors against seizure - nationalisation, expropriation or other measures with similar consequences except when such measures are taken in public interests under a procedure established by the laws of the states of the contracting parties. The protection mechanisms for capital investment and compensation are specified. Measures of judicial protection of the rights of investors, and procedures of resolving investment disputes, including through international arbitration, are envisaged.  Free transfer of incomes and other payments arising from capital investment after investors have met all their tax obligations is guaranteed.

The Agreement has been prepared on the basis of the model agreement on encouragement and mutual protection of investments approved by a resolution of the Russian Government.

Under Article 15 of the Federal Law On International Treaties of the Russian Federation the Agreement is subject to ratification.

9. Draft Federal Law On Ratification of the Agreement between the Government of the Russian Federation and the Government of Turkmenistan on Encouragement and Mutual Protection of Investment

The Draft Federal Law has been submitted by the Ministry of Foreign Affairs and the Ministry of Economic Development of Russia.

The Draft Federal Law envisages the ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Turkmenistan on Mutual Encouragement and Protection of Capital Investment signed in Moscow on June 25, 2009.

In the opinion of the Ministry of Foreign Affairs and the Ministry of Economic Development of Russia, the implementation of the Agreement will ensure for Russian and Turkmen investors long-term stability and a predictable legal environment and will stimulate investment and trade-economic cooperation between the two countries.

The agreement envisages the granting of a most favoured regime for investment whereby investment is allowed into the territory of the state referred to in the Agreement in accordance with its legislation, and the investors of the state of the other contracting party are granted a regime no less favourable than the regime granted to national investors or investors of third countries. Each party reserves the right to apply and introduce in accordance with its legislation and on a non-discriminatory basis exemptions from the national regime with regard to foreign capital investments.

Neither of the contracting parties is obliged to apply to investors of the other contracting party the advantages it grants investors of any third state on the basis of agreements on taxation as well as in connection with its membership of a free trade zone, customs or economic union and similar economic integration entities.

Protection is guaranteed of the capital investments and incomes of investors against seizure - nationalisation, expropriation or other measures with similar consequences except when such measures are taken in public interests under a procedure established by the laws of the states of the contracting parties. The mechanism of protection of capital investment and compensation are specified. Measures of judicial protection of the rights of investors, and procedures of resolving investment disputes, including through international arbitration, are envisaged.  Free transfer of incomes and other payments arising from capital investments after investors have met all their tax obligations is guaranteed.

The Agreement has been prepared on the basis of the model agreement on encouragement and mutual protection of investments approved by a resolution of the Russian Government.

Under Article 15 of the Federal Law On International Treaties of the Russian Federation the Agreement is subject to ratification.

10. Introducing amendments to the Statute on the Ministry of Economic Development of the Russian Federation

The draft resolution of the Government of the Russian Federation has been submitted by the Ministry of Economic Development of Russia.

The draft resolution will nominate the Ministry of Economic Development of Russia as the authorised government body in charge of interaction with the Committee on Foreign Trade Regulation formed in accordance with the Rules of Procedure of the Customs Union Commission approved by the resolution of the Interstate Council of the Eurasian Economic Community at the level of heads of state.

11. Introducing amendments to the legislative acts of the Government of the Russian Federation on the development of the state border of the Russian Federation

12. The creation of an organising committee to hold events to mark the 75th anniversary of the non-stop flight of Valery Chkalov's crew

The draft executive order has been submitted by the Ministry of Industry and Trade.

Under the draft executive order the composition of the Organising Committee headed by the Minister of Industry and Trade Viktor Khristenko is to be approved and the Organising Committee is to be charged with developing and approving the plan of the main activities to prepare and conduct the celebrations of the anniversary.

The Organising Committee includes 14 candidates from the executive bodies concerned, including representatives of 9 ministries, the governor of the Nizhny Novgorod Region, the President of the International Chkalov Memorial and Charitable Fund and the heads of industrial organisations.

13. The creation of an organising committee for the preparation and holding of the finals of the international company management competition Global Management Challenge in Khanty-Mansiisk on May 15-19, 2010.

14. Draft Federal Law On Ratification of the Agreement on Mutual Recognition of Accreditation of Agencies for Certification (Assessment/Confirmation of Compliance) and Test Laboratories (Centres) that Perform the Work of Assessment (Confirmation) of Compliance

15. Draft Federal Law On Ratification of the Agreement on the Handling of Goods Subject to Mandatory Assessment (Confirmation) of Compliance in the Customs Territory of the Customs Union

16. The Integrated Inter-Agency Information Statistical System (EMISS)

Moscow, April 22, 2010

  * 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.