Press Release*

1. Results of the assessment of the work of regional executive authorities of the Russian Federation in 2009

         The draft report has been submitted by the Ministry of Regional Development of the Russian Federation.

         The draft report includes an analysis of the quality of governance in regions of the Russian Federation in the following sectors: the economic development of the region, including the population's satisfaction with the quality of the government services provided and the work of the region's executive authorities, healthcare, education, housing construction, public utilities, roads, the security of the population and government management.

         The assessment of the work of regional executive authorities in the above mentioned sectors is based on such parameters as the results achieved, the efficiency of budget spending and the population's opinion of how efficiently executive authorities of this particular region of the Russian Federation work.

         In 2009, the assessment of the efficiency of executive authorities of the Russian Federation is based on the changes in corresponding parameters in comparison to 2007.

         The draft report includes a general rating of the constituent entities of the Russian Federation according to their overall efficiency improvement and in such sectors as Economy and Government Management, Healthcare, Education and Housing Construction and Public Utilities.

         The ratings have been prepared with consideration of the independent expert evaluation of the results and were approved by an expert group which included representatives of the Presidential Executive Office, the Government Staff, the Ministry of Healthcare and Social Development, the Ministry of Education and Science, the Ministry of Economic Development, the Federal State Statistics Service, the Ministry of Finance and independent experts.

         2. Distribution of subsidies to regional budgets for ensuring the balance of regional budgets of the Russian Federation with the view of encouraging and (or) rewarding the best work rates of regional executive authorities of the Russian Federation

         The draft executive order has been submitted by the Ministry of Finance of the Russian Federation.

         The draft executive order envisages the distribution of 1 billion roubles in the form of subsidies for ensuring the balance of regional budgets of the Russian Federation with the view of encouraging and (or) rewarding the best work rates of regional executive authorities of the Russian Federation in 2009.

         These subsidies will be distributed among the 20 regions that showed the best improvement in the efficiency of their regional executive authorities in 2009 in comparison to 2007. The distribution will be made following a procedure set by the Resolution of the Government of the Russian Federation On Approving the Rules for Awarding Grants to Regions of the Russian Federation with the View of Encouraging and (or) Rewarding the Best Work Rates of Regional Executive Authorities of the Russian Federation.

         3. Draft federal law On Introducing Amendments to the Federal Law On Seaports of the Russian Federation and Introducing Amendments to Certain Legislative Acts of the Russian Federation

         The draft federal law has been submitted by the Ministry of Transport of the Russian Federation.

         The draft law envisages excluding the requirements for the government's setting the procedure for the disposal and decontamination of dangerous goods in seaports from part 3 of Article 26 of the Federal Law On Seaports of the Russian Federation and Introducing Amendments to Certain Legislative Acts of the Russian Federation.  This draft federal law is necessary because the procedure for disposing of dangerous goods does not depend on where such disposal is carried out and that regulations for disposing of and decontaminating dangerous goods are set by Russian legislation.

           For example, the Federal Law stipulates that government regulation in seaports is also carried out by licensing certain types of activity. According to the Regulations on Licensing Loading and Unloading of Dangerous Goods in Seaports, the licensing requirements and conditions for loading and unloading dangerous goods include carrying out such activity in full compliance with the Maritime Dangerous Goods Regulations. The license holder (or an applicant for such a license) is also required to have an accident prevention and response plan for loading (unloading) of dangerous goods of a certain type. According to item 5.4.1 of the regulations, dangerous substances which have become worthless due to  pollution or an accident and have not been accepted by the consignee shall be decontaminated and (or) disposed of (buried) outside the port.

          The Federal Law On the Protection of the Population and Territories from Natural Disasters and Industrial Accidents stipulates the requirements as to the creation and contents of accident prevention and response plans, which must include measures for disposing of or decontaminating dangerous goods. According to these requirements, an accident prevention and response plan in a seaport must state the class of hazard of goods, the nature of an accident, optimal prevention measures, means for containing accidents, the persons in charge and emergency procedure. Only organisations licensed for decontaminating, transporting and storing dangerous wastes may be in charge of decontaminating and disposing of such goods. According to a Decree by the President of the Russian Federation, accident prevention and response plans for seaports are approved by the Ministry of Civil Defence, Emergencies and Disaster Relief.

         Thus, issuing a legislative act setting the regulations for disposing of and decontaminating dangerous goods in seaports, the Government  creates doubling  legal regulations for the relations arising from applying and executing the essential requirements for the goods or related procedures of storing, transporting, trading and disposing of such goods.

         4. Submitting to the President of the Russian Federation a proposal on signing the Agreement on Unified Technical Regulations between the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation

         The draft proposal has been submitted by the Ministry of Industry and Trade of the Russian Federation.

         The Interstate Council of the Eurasian Economic Community (EurAsEC) has approved the Action Plan toward the Establishment of a Common Economic Space between the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation for 2010and 2011.

         To implement the Action Plan (item 14, Part V) on harmonising technical regulations of the three countries and to facilitate free transportation of goods across the common customs territory, a draft Agreement on Unified Technical Regulations between the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation has been worked out.

         The Agreement envisages having the parties set unified technical regulations which include the following:

• to ensure such technical supervision, the introduction of the Customs Union's technical regulations is required as developed specially for the goods included in the Unified List of Goods and subject to mandatory requirements under the Customs Union, if corresponding technical regulations of EurAsEC have not been passed;
• the parties to the Agreement ensure the circulation of goods, while meeting the technical regulations of the Customs Union or EurAsEC, on their territory without setting any additional requirements for such goods or executing additional assessment (confirmation) of compliance;
• only goods, in relation to which technical regulations of the Customs Union or EurAsEC have been passed or which are included in the Unified List of Goods, are subject to mandatory assessment (confirmation) of compliance;
• mandatory assessment (confirmation) of compliance of goods included in the Unified List of Goods, in relation to which technical regulations of the Customs Union or EurAsEC have not come into force yet, is carried out according to the legislation of the parties;
• setting mandatory requirements for goods which are not included in the Unified List of Goods is prohibited;
• the parties recognize the results of assessment (confirmation) of compliance of goods carried out by one of the parties;
• the parties must ensure that goods, not meeting the technical regulations of the Customs Union or EurAsEC, are barred from circulation; such goods must be withdrawn from commerce in accordance with their national legislation and the other parties must be informed of it;
• the responsibility for violating the technical regulations of the Customs Union and for violating the procedures for the assessment (confirmation) of compliance of goods is stipulated by the parties' legislation.

         The Agreement also provides for transferring the following powers to supranational agencies:

• adopting technical regulations of the Customs Union, if EurAsEC's technical regulations do not include mandatory requirements for the goods;
• approving the list of standards, including regional, interstate and national standards, the voluntary application of which constitutes compliance with the technical regulations;
• approving unified procedures for confirming the compliance of goods;
• approving the Unified List of Goods;
• approving the unified form for the certificates of compliance and the declarations of compliance with technical regulations of the Customs Union;
• approving a unified mark for goods circulating in the markets of the Customs Union.

         These powers are to be transferred to the Customs Union Commission.

         In addition, the draft Agreement envisages:

• basic principles for the state supervision over the compliance with the technical regulations of the Customs Union;
• the possibility of one of the parties' imposing temporary domestic restrictions for certain types of goods with the view of protecting the lives and health of citizens, animals or plants and the environment;
• the parties' obligations in harmonising their national administrative offence legislations on violating technical regulations.

         The Agreement also recognizes earlier arrangements on technical regulations, stipulated by international agreements signed under  EurAsEC.

         The Customs Union Commission approved the draft Agreement on May 20, 2010 and recommended that the parties carry out corresponding domestic procedures.

         The Agreement will help substantially reduce technical barriers for mutual trade between the parties across a common customs territory as well as create favourable conditions for trade.

         The draft resolution envisages approving the draft Agreement and submitting it to the President of the Russian Federation for signing.

         5. Introducing amendments to certain legislative acts of the Russian Federation on the functioning of the Ministry of Healthcare and Social Development, the Ministry of Industry and Trade and the Federal Service for Supervision of Healthcare and Social Development in the circulation of pharmaceuticals

         Federal Law No. 61 On the Circulation of Pharmaceuticals dated June 12, 2010 stipulates that an authorised federal executive body can  approve regulatory acts for the circulation of pharmaceuticals in relation to developing and approving registration procedures and forms, issuing permissions, keeping registries and other procedures.

         Considering that Statute approved by Resolution No. 321 of the Government of the Russian Federation dated June 30, 2004 sets the Ministry of Healthcare and Social Development as the federal executive body responsible for formulating the government policy and executing regulatory functions in healthcare, it is suggested that principal powers, provided for in the Federal Law, should be assigned to the Ministry of Healthcare and Social Development with introducing corresponding amendments to the Statute. 

         Amendments are also proposed for the Statute on the Federal Service for Supervision of Healthcare and Social Development approved by Resolution No. 321 of the Government of the Russian Federation dated June 30, 2004 in relation to authorising the Federal Service to execute government supervision over the following: carrying out preclinical studies of pharmaceuticals, and clinical trials of pharmaceuticals,  assuring the quality of pharmaceuticals, manufacturing, preparing, storing, transporting and importing pharmaceuticals into the Russian Federation, advertising, retailing, trading and disposing of pharmaceuticals, treatment with pharmaceuticals as well as to monitor the safety of pharmaceuticals circulating in the Russian Federation.

         To exclude overlapping legislative provisions, it is proposed to exclude the powers assigned to the Ministry of Healthcare and Social Development from the Statute on the Federal Service for Supervision of Healthcare and Social Development.  These powers include issuing permissions to import a particular consignment of unregistered pharmaceuticals for leading clinical trials with the view of carrying out the state registration of this pharmaceuticals or saving the life of a particular patient; carrying out the state registration of pharmaceuticals for medical use and of the manufacturer's ex-works price limits on pharmaceuticals included in the list of vital medicines; issuing permissions to execute clinical trials of pharmaceuticals for medical use; keeping the state registries of pharmaceuticals for medical use and of the manufacturer's ex-works price limits on pharmaceuticals included in the list of vital medicines, and other responsibilities.

         Amendments are also proposed for the Statute on the Ministry of Industry and Trade approved by Resolution No. 438 of the Government of the Russian Federation dated June 5, 2008 in relation to authorising the Ministry of Industry and Trade to license the manufacture of pharmaceuticals carried out by manufacturers of pharmaceuticals for medical use and to keep the registry of issued licenses.

         Amendments are also proposed for the List of Federal Executive Authorities Issuing Licenses approved by Resolution No. 45 of the Government of the Russian Federation On Organising the Licensing in Certain Types of Activity dated January 26, 2006 in relation to including the Ministry of Industry and Trade in the list of federal executive authorities empowered to license the manufacture of pharmaceuticals carried out by manufacturers of pharmaceuticals for medical use, and in relation to including the Federal Service for Supervision of Healthcare and Social Development and the Federal Service for Veterinary and Phytosanitary Supervision in the list of federal executive authorities empowered to license the manufacture of pharmaceuticals carried out by producers of pharmaceuticals for veterinary use.

         6. The creation of an organising committee to prepare events to mark the 50^th anniversary of the Federal State Educational  Establishment Orlyonok  Children's Centre

         The draft executive order has been submitted by the Ministry of Education and Science of the Russian Federation.

         A Decree of the President of the Russian Federation has assigned the Government of the Russian Federation to create a corresponding organising committee and approve its composition, as well as to elaborate and approve a plan for major events.

         The draft resolution envisages the creation of an organising committee to be presided over by Minister of Education and Science Andrei Fursenko.

         It is proposed that the committee should include representatives of the Ministry of Internal Affairs, the Ministry of Finance, the Ministry of Regional Development, the Ministry of Economic Development, the Ministry of Sports, Tourism and Youth Policy, the Ministry of Communications and Mass Media and the Presidential Executive Office, as well as the management of the Orlyonok National Children's Centre.

         The Ministry of Education and Science is responsible for organisational and technical support of the organising committee's activity.

         The organising committee is in charge of elaborating and approving the plan of events to mark the anniversary of the children's centre.

         7. Distribution of subsidies to regional budgets for ensuring the balance of regional budgets of the Russian Federation

         The draft resolution has been submitted by the Ministry of Finance of the Russian Federation.

         The draft resolution envisages approving the provision of subsidies for ensuring the balance of the budgets of the Republic of Altai, the Republic of Buryatia, the Republic of Ingushetia, the Republic of Kalmykia, the Karachayevo-Circassian Republic, the Republic of Mari El, the Republic of Mordovia, the Kamchatka Territory, the Arkhangelsk, Belgorod, Volgograd, Voronezh, Ivanovo, Irkutsk, Kaliningrad, Kirov, Leningrad, Magadan, Murmansk, Saratov, Tomsk and Yaroslavl Regions to a total of 7.948 billion roubles.

         The Federal Law On the Federal Budget of 2010 and the Planning Period of 2011 and 2012 provides for a total of 90 billion roubles of subsidies for ensuring the balance of regional budgets of the Russian Federation in 2010.

         Of that determined amount, 59.4 billion roubles were distributed among 25 regions of the Russian Federation according to the Federal Law on the Federal Budget of 2010 and the Planning Period of 2011 and 2012.

         An amount of 42.7 billion roubles is set aside to compensate for part of short-falls in the revenues of regional budgets due to consolidating the taxes paid for extracting hydrocarbon raw materials in the federal budget. And 16.7 billion roubles are  allocated for ensuring the balance of the budget of the Chechen Republic.

         Reserve subsidies of 25 billion roubles are stipulated to be distributed by the government to financially ensure the execution of expenditure obligations of the regions of the Russian Federation if the regional budgets lack the necessary funds for this and on the basis of  special orders by the President and (or) Prime Minister of the Russian Federation.

         As of August 1, 2010, the government has distributed 2.8013 billion roubles in subsidies for ensuring the balance of regional budgets of the Russian Federation, including:

-       123.1 million roubles - to the budgets of Moscow, the Republic of Dagestan, the Republic of Ingushetia, the Kabardino-Balkarian Republic and the Stavropol Territory for making single payments to the citizens  injured,  and the families of citizens killed , in the terrorist attacks in Moscow on March 29, 2010, in Kizlyar on March 31, 2010, in the village of Lenin-Aul on April 29, 2010, in Derbent on May 7, 2010, in the village of Sergokala on May 13, 2010, in Karabulak on April 5, 2010, in Nalchik on May 1, 2010 and in Stavropol on May 26, 2010;

-       1 billion roubles - to the budgets of 20 regions of the Russian Federation with the view of encouraging and (or) rewarding the best work rates of regional executive authorities of the Russian Federation in 2008;

-       1.6782 billion roubles - for ensuring the balance of the budgets of the Kirov and Samara Regions;

         As of August 1, 2010, the remainder of subsidies not yet distributed by the Government to ensure the balance of regional budgets of the Russian Federation is 22.1987 billion roubles.

         The distribution of subsidies in question has been prepared according to the Resolution of the Government of the Russian Federation On the Procedure of Distributing and Providing Subsidies to the Budgets of Regions of the Russian Federation for Ensuring the Balance of Regional Budgets of the Russian Federation in 2010 pursuant to relative instructions by the President and the Prime Minister of the Russian Federation.

         The distribution of subsidies is based on proposals by the federal executive authorities cooperating on issues of distributing subsidies for ensuring the balance of regional budgets.

         The remainder of subsidies not yet distributed by the Government of the Russian Federation to ensure the balance of regional budgets of the Russian Federation after the distribution of this additional financial aid to regions of the Russian Federation will be 14.2507 million roubles.

         Moscow

         August 19, 2010

         * The content of press releases issued by the Press Service and Information Department is a compilation of materials provided by the federal executive authorities for discussion at a Presidium Meeting of the Government of the Russian Federation.