PRESS RELEASE*

 The following issues are scheduled for discussion at the May 26, 2011 meeting of the government:

1. The creation and further development of the institute for regulatory assessment in the law-making activity of the government of the Russian Federation and its federal executive bodies

The report was submitted by the Ministry of Economic Development.

The term “regulatory assessment” has become widespread and indicates the governing bodies’ use of special analytical procedures aimed at the revelation and assessment of the possible benefits, costs, or effects of new or current state regulation in the course of state policy formation.

The decision to use regulatory assessment tools in the law-making activity of the government of the Russian Federation and its federal executive bodies was made in May 2010.

To prevent excessive functions of the federal executive bodies from emerging, it was necessary to elaborate and legislate the procedure for the public proof of the need for additional functions.

Under these conditions, the implementation of the tasks of the administrative reform required the introduction of a third party to the law-making system authorised to assess the relevance of the federal executive bodies’ proposals that entail additional costs for businesses and other entities.

The resolution of the government of the Russian Federation On Introducing Amendments to Certain Legislative Acts of the Government of the Russian Federation authorised the Ministry of Economic Development to prepare regulatory assessment reports for the draft legislative acts of the government and regulatory acts and documents of the federal executive bodies that regulate relations in the area of the state supervision, specification, application, and exercise of mandatory requirements on production or related engineering (including surveys), production, construction, installation, adjustment, operation, storage, transport, selling and utilisation processes, conformity assessments, and safety requirements. This decision was aimed to reveal those provisions that introduced excessive administrative and other restrictions and obligations for businesses and other entities or that promoted their introduction as well as those provisions that promoted the emergence of insufficient costs for businesses and other entities and for the budgets at all levels of the budget system of the Russian Federation.

According to the results of the first attempt to prepare regulatory assessment reports, upon the initiative of the Ministry of Economic Development, the government has adopted the resolution On Introducing Amendments to Certain Legislative Acts of the Government of the Russian Federation, which specified certain rules of regulatory assessment. 

To form the regulatory assessment mechanism, the Ministry of Economic Development has established a corresponding department and has determined the procedure for preparing regulatory assessment reports.

The implementation of regulatory assessment into the law-making activity of the Government of the Russian Federation and its federal executive bodies was widely supported by the representatives of businesses and other entities.

From August 2010 to May 2011, the Ministry of Economic Development prepared over 120 reports for the draft legislative acts of the federal executive bodies and the draft legislative acts elaborated by the said bodies for submission to the government. Almost half of the reports concluded that the draft legislative acts contained excessive regulation.       

To form a more reasonable policy and to take note of the opinions of businesses and other entities in the course of preparing regulatory assessment reports, the Ministry of Economic Development holds public consultations and meetings with the participation of legislative representatives and market players.

A wide range of the persons concerned can participate in such consultations. At the same time, to prevent lobbying by certain market players at the expense of other market players, the Ministry of Economic Development pays special attention to interaction with national non-commercial organisations aiming at protecting and representing the interests of businesses and other entities.

The Ministry of Economic Development has signed an agreement on cooperation in the area of regulatory assessment with the Chamber of Commerce and Industry, the Russian Union of Industrialists and Entrepreneurs, the Business Russia national public organisation, and the Opora Russia national public organisation of small and medium-sized businesses.

The introduction of such a procedure enabled better interaction between the regional executive bodies and the entrepreneurial community in the area of improving regional investment climates. The extension of such practices is another step towards the further development of the regulatory assessment institute at the regional level.

According to the results of this work, the Government Commission on Administrative Reform decided that the Ministry of Economic Development will provide “retrospective” regulatory assessment of the existing departmental acts on a regular basis.

In addition, the strategic development of the institute for regulatory assessment of the Russian Federation includes the step-by-step introduction of the obligation to provide regulatory assessment at the earliest stages of elaborating a draft regulatory act (including the grounds of the problem and the choice of a regulatory alternative) by the federal executive body-legislator itself. The Ministry of Economic Development reserves its powers to prepare reports for the draft regulatory acts, including the issues of the legislator’s compliance with the procedure for regulatory assessment as well as the completeness and impartiality of such assessment.

At the same time, the Ministry of Economic Development is to form a database and devise standard approaches to the assessment of the most widespread measures of state regulation chosen by legislators (compulsory liability insurance, compulsory self-regulation, licencing and accreditation, etc.), which simplify the calculation of the expected costs and benefits of regulation.

It is reasonable to extend the application of the institute for regulatory assessment as part of its further development. It is necessary to extend regulatory assessment to other draft legislative acts if they affect the interests of businesses and other entities. It is evident that such projects will primarily include draft regulatory acts for customs administration as well as the draft federal laws that are submitted to the State Duma by the holders of the right of legislative initiative other than the President and the Government of the Russian Federation.

2. Execution of the federal budget for 2010

3. Execution of the budget of the Pension Fund of the Russian Federation for 2010

The draft federal law was submitted by the Ministry of Healthcare and Social Development. The report on its execution was submitted to the Audit Chamber.

The revenue of the Pension Fund totaled 4,610.1 billion roubles (99.2% of the budgeted figure) in 2010. The expenses of the budget of the Pension Fund were 4,249.2 billion roubles (97.2% of the budgeted figure) in the reporting period. In 2009, revenue was equal to 101.9% and expenses to 98.5% of their respective budget targets.

The amount of inter-budgetary transfers from the federal budget to the Fund was over 2,643.8 billion roubles, which accounts for 6,2% of the Fund’s total expenses (6,5%, in 2009). Those included 1,254.7 billion roubles for state pension provision, pension supplements, grants, and other social benefits; over 1,316.3 billion roubles to cover the Fund’s budget deficit; and 72.8 billion roubles to compensate for revenue shortfalls due to the use of reduced insurance premium tariffs. 

The Fund has received transfers from the federal budget to provide monthly payments and additional payments, including 313.6 billion roubles allocated to disabled persons, veterans, Heroes of the Soviet Union, Heroes of the Russian Federation, and other categories of citizens; 98.6 billion roubles to provide maternity (family) capital; 32 billion roubles for paying additional federal pensions; and 2.5 billion roubles for co-financing pension savings at the expense of the funds of the National Welfare Fund.

In the reporting period, over 1.7 million citizens paid additional insurance premiums for the cumulative part of the labour pensions (a total of 4 million people, as of January 1, 2011). The Fund received over 3.6 million roubles of additional insurance premiums and employers’ contributions for the insured persons.

In 2010, the revenues of the Fund’s budget for financing the cumulative part of the labour pensions totaled 361.2 billion roubles (86.7% of the budgeted figure), with 318.5 billion roubles (90.1% of the budgeted figure) of insurance premiums for the cumulative portion of the labour pensions and 25.6 billion roubles of the income from the temporary investment of pension savings and the disposal of assets acquired as a result of pension savings.

Pension savings grew by 291.2 billion roubles (30%) in the reporting period and totaled 1,267 billion roubles as of January 1, 2011. They included 631.2 billion roubles of insurance premiums for pension savings transferred in trust, with over 616.2 billion roubles transferred to the state managing company (Vnesheconombank) and 635.8 billion roubles of pension savings not transferred in trust, with 309.9 billion roubles allocated for temporary placement in the assets permitted by the national law.

The expenses for compulsory pension insurance increased by 635 billion roubles against 2009 and constituted 3,611.5 billion roubles in 2010, including 3,380 billion roubles for paying labour pensions, or 99.4% of the budget target.

As of January 1, 2010, by a 10% indexation and an increase in pensions by 1% for each year of the total service performed before January 1, 1991, the Fund held the valorisation of citizens’ pension rights acquired until 2002.

As of April 1, 2010, the insurance portion of the old-age labour pension, the disability pension, and the survivor pension was additionally increased by 6.3%. Social pensions were indexed by 8.8%. As of July 1, an additional indexation of social pensions by 3.4% was carried out.

As a result of the above measures for raising pensions, the average yearly labour pensions grew by 144.5%, and the old-age labour pensions exceeded 8,000 roubles.

From April 1, 2010, monthly payments to disabled persons, veterans, and other categories of citizens were increased by 10%.

By the end of 2010, the total average income with regard to the established monthly payments and additional monthly payments equaled 23,000 roubles for disabled persons and WWII veterans (an increase of 3,700 roubles) and 17,000 roubles for military widows who receive two pensions (an increase of 2,200 roubles).

Maternity (family) capital was increased by 10% and stood at 343,400 roubles in 2010.

In 2010, the Fund’s budget had a surplus in the amount of 69.7 billion roubles in terms of current liabilities and a surplus of income over expenditures in the amount of 291.2 billion roubles in terms of the cumulative part of the budget.

4. Execution of the budget of the Social Insurance Fund of the Russian Federation for 2010

The draft federal law was submitted by the Ministry of Healthcare and Social Development. The report on its execution was submitted to the Audit Chamber.

The revenues of the budget of the Social Insurance Fund totaled 463.8 billion roubles (101.4% of the budgeted figure) in the reporting period of 2010. The budget’s expenses totaled 491.2 billion roubles (100.1% of the budgeted figure). In 2009, the revenues of the Fund’s budget were equal to 97.4% and its expenses to 99.0% of the respective budget targets.

In 2010, the Fund received 243.4 billion roubles of insurance premiums for mandatory social insurance against temporary disability or maternity, which accounts for 90.3% of the expected amount (the unified social tax stood at 95.6% in 2009).

The income from the aforementioned insurance premiums fell mostly due to a decrease in the share of the insured gross payroll (up to 415,000 roubles per employee) against the expected amount, which accounted for 82.7% and 90.2% respectively, as well as a decrease in the income of the insurants who either paid reduced insurance tariffs or were exempt from paying them in 2010.

According to 2010 results, the premium income in the given insurance line stood at 98.9% against the expected level of 98%.

The Fund received 11.8 billion roubles in total income taxes (those collected according to the simplified tax system, taxes on imputed income, etc.), which accounts for 85.6% of the expected amount (84.2%, according to the 2009 report).

The Fund received 62.2 billion roubles in premiums for mandatory social insurance against industrial accidents and occupational diseases, which accounts for 105.0% of the expected amount (102.6%, according to the 2009 report). The premium collection ratio was 97.8% against the expected 97.6%. The weighted average rate of insurance premiums equaled 0.51%, which corresponds to the expected level.

The bulk of the Fund’s expenses (353.6 billion roubles, or 72.0% of its total expenses; 65.3% according to the 2009 report) were allocated to the payment of temporary disability allowances, prenatal and maternity benefits, child benefits and other mandatory social insurance benefits for temporary disability or maternity.

In 2010, the expenses for the above purposes totaled 102.0% of the finalised budget quarterly breakdown (100.9%, according to the 2009 report). First of all, the spending on temporary disability allowances grew by 22.4%, as compared to 2009, thanks to an increase in the average daily allowance, changes in the structure of benefit eligibility for more well-paid categories of employees, and an increase in allowances to employees with a second job.

The Fund’s spending on maternity allowances grew by 22.3%, as compared to 2009, and constituted 160.5 billion roubles, or 99.4% of the forecast for that period.

In 2010, insurance premiums and other expenses for social insurance against industrial accidents and occupational diseases totaled 54.9 billion roubles, which accounts for 95.4% of the expected level (94.7%, according to the 2009 report), due to a drop in the expected severe accident rate and the number of occupational diseases.

In the reporting period, the federal budget financed the allowances provided by the Fund to the citizens who were exposed to radiation as a result of nuclear disasters and tests as well as for state assistance in providing health resort treatment to certain categories of citizens, rehabilitation equipment for disabled persons, and child benefits for non-working citizens. The Fund received a total of 64.0 billion roubles for these purposes.

In 2010, the federal budget also provided funds for the additional allocation of funds to cover a deficit in the Fund’s budget in the amount of 45.1 billion roubles.

In the same year, through the Federal Mandatory Medical Insurance Fund, the Fund also paid a total of 16.9 billion roubles for prenatal, natal, and postnatal care and provided stationary aid to working citizens, which accounted for 92% of the finalised budget breakdown.

The Fund will use the remaining 0.6 billion roubles for the same purposes in 2011.

The Fund executed its budget with a surplus in the amount of 27.4 billion roubles in 2010. The current deficit of the Fund in temporary disability insurance and maternity insurance is 34.2 billion roubles, and the current surplus in industrial accident and occupational disease insurance is 7.9 billion roubles.

The Fund’s budget deficit was financed by industrial accident and occupational disease insurance reserves in the amount of 30.5 billion roubles.

5. Execution of the budget of the Federal Mandatory Medical Insurance Fund for 2010

The draft federal law was submitted by the Ministry of Healthcare and Social Development. The report on its execution was submitted to the Audit Chamber.

The revenues of the budget of the Federal Mandatory Medical Insurance Fund totaled 101.8 billion roubles (96.2% of the budgeted figure) in the reporting period of 2010. The budget’s expenses totaled 109.1 billion roubles (98.4% of the budgeted figure). In 2009, the revenues of the Fund’s budget totaled 126.6 billion roubles (106.3%), and its expenses totaled 139 billion roubles (114.8%).

The Fund received 91 billion roubles in premiums for mandatory medical insurance, or 91.3% of the expected level.

In 2010 the Fund received 4.9 billion roubles as unified social tax arrears.

The Fund received 1.2 billion roubles in special regime taxes (the unified tax collected according to the simplified tax system, the unified tax on imputed income, and the unified agricultural tax), which accounts for 85.2% of the expected level (78.7%, according to the 2009 report).

The federal budget provided 4.7 billion roubles for special purposes (non-repayable receipts) to the Fund’s budget, with 0.7 billion roubles allocated for the medical examination of orphans staying in hospitals and children who are in difficult living situations and 4 billion roubles allocated for the additional medical examination of working citizens.

The expenses of the Fund totaled 109.1 billion roubles in 2010.

The Fund’s allowances for leveling-off the financial conditions of the activity of Mandatory Medical Insurance regional funds totaled 86.2 billion roubles (100% of the amount anticipated in the Fund’s budget and 0.488 billion roubles of the Fund’s normalised insurance reserves).

The Fund paid 17.5 billion roubles (100%) for prenatal, natal, and postnatal care and infant medical examination on the basis of applications provided by the Social Insurance Fund. Over 17 billion roubles were allocated for the aforementioned purposes in 2009.

The implementation of the Health priority national project included:

4.2 billion roubles for the additional medical examination of working citizens, or 103.9% of the amount anticipated in the Fund’s 2010 budget as a result of the use of federal budget surpluses that were formed as of January 1, 2010 due to their underuse for the above purposes in 2009 (3.8 billion roubles, or 94.7% of the budget target);

0.8 billion roubles for the medical examination of orphans and children in difficult living situations who are being hospitalised, which accounts for 108.4% of the budgetary allocations as a result of the use of federal budget surpluses that were formed as of January 1, 2010 due to their underuse for the above purposes in 2009 (0.8 billion roubles, or 100% in 2009).

By the end of 2010, the Fund had a surplus of 0.5 billion roubles.

6.  Measures to provide assistance to children and teenagers in abusive households 

The materials on the issue were submitted by the Ministry of Healthcare and Social Development jointly with the Ministry of Internal Affairs and the Ministry of Education and Science.

The Family Code of the Russian Federation stipulates that the methods of child raising shall exclude neglect, cruelty, verbal abuse, the violation of human dignity, and the abuse or exploitation of children. Abuse, physical and mental suppression, infringement upon his/her sexual inviolability, failure to render assistance to a sick child, exposing children to danger, etc. are grounds for the deprivation of parenthood. If a direct threat exists to the child’s life or health, the guardianship and trusteeship body shall have the right to take the child away from his/her parents. In addition, any person who surrounds the child in his/her everyday life shall immediately report to the guardianship and trusteeship bodies in case the child was in a crisis situation, which is grounds for investigation and taking concrete measures to protect and restore the violated child’s rights. The child can address the guardianship and trusteeship body for the protection of his/her rights or, after reaching the age of 14, the court.

The responsibility for non-fulfillment or improper fulfillment of the duties involved in child raising by parents or other persons is stipulated by the Criminal Code and the Code of Administrative Offences.

The federal laws On Introducing Amendments to Articles 127 and 146 of the Family Code of the Russian Federation and On Introducing Amendments to Article 22.1 of the Federal Law On State Registration of Legal Entities and Individual Entrepreneurs and the Labour Code of the Russian Federation imposes additional restrictions for persons seeking to become adoptive parents, foster parents, or guardians (trustees), which are related to the citizens in question having a record of conviction or past or present exposure to criminal prosecution for crimes against life, health, liberty, or dignity, sexual assaults, domestic violence, crimes against minors, public order, or public health. Furthermore, such citizens are prohibited from working with children.

The implementation of preventative measures is an important part of deterring abuse against children.

The federal law On the Fundamentals of the System for the Prevention of Child Neglect and Juvenile Offences has determined the bodies and institutions for preventing child neglect and juvenile offences (the commissions for the affairs of minors and the protection of their rights in the entities of the Russian Federation, social protection authorities and social service institutions, education management bodies and educational institutions, guardianship and trusteeship bodies, youth authorities, health management bodies, employment service bodies, internal affairs bodies, etc.), as well as the key areas of their activity.

The resolution of the Government of the Russian Federation has established the Government Commission for the Affairs of Minors and Protection of Their Rights.

Issues concerning the establishment, exercise, and termination of guardianship and trusteeship over children without parental care are regulated by the federal law On Trusteeship and Guardianship.

To prevent abusive treatment against children in foster families, the abandonment of infants, and the return of children left without parental care to institutions for orphaned children, the Ministry of Education and Science submitted the draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation on the Issues Concerning Training for Persons Who Want to Adopt Orphaned Children and Children Left Without Parental Care to the Government. The draft federal law envisages the introduction of special training for citizens who wish to adopt a child left without parental care.

In addition, the draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation on the Issues Concerning the Execution of Social Patronage, which was submitted to the Government by the Ministry of Education and Science, is intended to increase the efficiency of measures for preventing family disadvantage and the abusive treatment of children. The above law envisages the introduction of social patronage as a form of individual preventive work with a family that is socially insecure. Such work will be conducted by a guardianship and trusteeship body on the basis of an agreement with the child’s parents, which will allow for the timely provision of necessary aid to families and prevent the forcible removal of a child from a family.

The fund for supporting children in difficult living situations has devised the programme “Protecting Children from Violence.”

The programme is aimed at preventing social tolerance of various forms of violence against children, raising children’s awareness of possible risks and dangers, raising parental responsibility for abuse, and providing rehabilitation for children who were exposed to violence or crime.

In 2010, at the instructions of the Presidium of the Presidential Council for implementing priority national projects and demographic policy under the President of the Russian Federation, the Fund held a national information campaign for combating child abuse.

Beginning September 1, 2010, the appearance of a single, national children’s hotline (8-800-200-01-22) became one of the important measures to prevent child abuse and provide assistance to children in crisis situations.

At to the instruction of the President of the Russian Federation, the Ministry of Healthcare and Social Development has analysed the work of the entities of the Russian Federation in this field. The survey revealed that many regions enjoyed positive experiences in preventing child abuse and providing appropriate assistance.

Regional target programmes aimed at protecting children’s rights and interests have been implemented in 47 entities of the Russian Federation.

Support services for socially at-risk families have been created in 22 regions; databases for socially at-risk families and children were formed in 14 regions.

Some 78 regions introduced the institute of school inspectors, whose primary goal is the early detection and prevention of negative behaviour and the prevention of offences and antisocial actions, including extremist actions.

To reduce the time during which a child is left unattended, “social drawing-rooms,” which work similarly to the extended-day groups that have been organised on the basis of general schools in 19 entities of the Russian Federation.

Emergency services providing psychological and social aid to families and children operate in 82 regions via telephone or internet consultation with experts. Twenty-five regions created mobile emergency response groups, including psychologists, social workers, medical workers, and lawyers, whose visits rely on information provided by the population, the authorities, institutions, family and children’s services, social workers, and law enforcement officials.

The Ministry of Healthcare and Social Development states that the government bodies and organisations have enough resources for preventing child abuse and providing assistance to children and teenagers in difficult living situations.

However, some regions lack efficient interdepartmental coordination and targeted approaches to families and children. Preventive measures are often confined to the registration of a problem situation or a formal conversation with parents. If a child is taken away from a family, he/she is transferred from one institution to another.

It is also necessary to note the important role of mass media in the formation of moral values, including family values in society, intolerance of child abuse, and the active citizenship of the population.

On the basis of a survey, the ministry selected 7 regions (the Republic of Buryatia, the Altai Territory, the Perm Territory, the Tomsk Region, the Tyumen Region, the Tambov Region, and the Vologda Region), which have created systems of complex interaction for preventing family disadvantage and child abuse and providing assistance to socially vulnerable families and children.

Yet, with regard to the significance of the problem, it is necessary to continue such work both at the federal and regional levels, with particular attention to:

 

-         the optimisation of interdepartmnental coordination mechanisms in the field;

-         the introduction of social patronage in disadvantaged families;

-         methodological support of expert work on preventing child abuse and rehabilitating children who were exposed to violence;

-         holding information campaigns for combating violence against children, the strengthening of family values, encouraging active citizenship in protecting children’s rights, and providing assistance to children and teenagers in abusive households;

-         the development of infrastructure in organisations that prevent violence against children and provide rehabilitation to children exposed to violence, the extension of the list of services provided to families and children, and the implementation of new forms of work in the field;

-         the elaboration of a performance indicator system for the governing bodies of the constituent entities of the Russian Federation, local government bodies, and organisations that provide assistance to children and teenagers who have suffered from abuse;

-         ensuring the constant monitoring of child abuse prevention.

7. Draft federal law On Amendments to Articles 401, 415 and 43 of the Federal Law on the Prosecutors Office of the Russian Federation

8. Draft federal laws On Investment Partnerships and On Amendments to Some Legislative Acts of the Russian Federation Due to the Adoption of the Federal Law on Investment Partnerships

9. Draft federal laws On Economic Partnerships and On Amendments to Part One of the Civil Code of the Russian Federation Due to the Adoption of the Federal Law On Economic Partnerships

10. Draft federal law On Amendments to Some Legislative Acts of the Russian Federation with Regard to Mechanisms for Protecting the Information Rights of Members of Business Associations”

The draft federal law was submitted by the Ministry of Economic Development.

To protect shareholders’ rights to information and access to information, the above law envisages the introduction of amendments to the federal law On Joint-Stock Companies.

The draft federal law stipulates amendments to Articles 89 and 91 of the Law On Joint-Stock Companies, which regulate issues concerning the custody of business associations’ documents and the provision of information to shareholders by business associations, respectively. The above law specifies the list of documents to be kept by a business association and a list of documents to be provided to shareholders for informational purposes.

A number of amendments specify the timeframe when general shareholders’ meetings are held and contribute to the implementation of shareholders’ rights. The draft federal law specifies the terms for compiling a list of persons who have the right to participate in the general shareholders’ meeting. In addition, the law establishes a five-day term during which the company is obliged to provide copies of its documents upon the behest of any person who has the right to participate in the general shareholders’ meeting.

The draft federal law specifies the procedure for exercising the right of a shareholder, whose aggregate share in the company’s authorised capital is 10 % or more, to demand a special inspection of the company’s financial and economic activity by an auditor. The law also specifies the issues that regulate the provision of confidential information to shareholders.

The draft law stipulates that the shareholders have the right to demand that a business association provide them with the access to the documents under its direct or indirect control, and correspondingly, a company is obliged to provide such access to its shareholders.

The measures stipulated by the draft law are meant to protect the shareholders’ right to the access of information on the company’s activity.

11. Draft federal law On the State Information System for the Fuel and Energy Industry

The draft federal law was submitted by the Ministry of Energy.

At present, the law lacks the necessary legal basis for comprehensively regulating the provision of information to the state executive bodies on the activity of organisations involved in the energy industry.

The current state of information-analytical support in the energy industry is characterised by:

- the lack of reliable information sources as well as state and departmental statistical reporting for exercising state functions in the energy industry and related industries;

- the prevailing use of paperwork and insufficient use of modern information technologies in the course of interaction between the state bodies and organisations;

- the gaps and contradictions in the legal basis for and lack of systematic and integrated control over the formation and use of the state information resources in the energy industry.

The lack of up-to-date information on the state of the energy industry also hampers the functions exercised by a system operator in accordance with the Federal Law On the Electric Energy Industry, primarily the function of providing compliance with the established reliability parameters of the Unified Energy System of Russia and the qualitative control of electric energy. The absence of a structured system for information collection and analysis can have a negative impact on the control of accumulating fuel supplies in the course of preparing power stations and boiler-houses for work during the peak autumn and winter period.

The draft law envisages the creation of a state reporting and control system concerning the production and movement of oil and oil products (the Neftecontrol system), which is to become one of the components of the state information system for the fuel and energy industry.

12. Draft federal law On Amendments to Some Legislative Acts of the Russian Federation with Regard to the Work of the State Academies of Sciences and Affiliated Organisations 

The draft federal law was submitted by the Ministry of Education and Science.

The draft federal law stipulates the legal structure of state academies of sciences (non-commercial organisations created as state-financed institutions) and affiliated organisations (state organisations and state unitary enterprises).

The draft federal law introduces amendments to part one of the Civil Code, the Federal Law On Non-Commercial Organisations, the Federal Law On Science and State Research and Development Policy, the Federal Law On State and Municipal Unitary Enterprises and the Federal Law On Autonomous Institutions, aimed to support state academies of sciences and affiliated organisations.

According to the current version of Article 6 of the Law on Science as amended, state academies of sciences have the right to create, reorganise and liquidate affiliated organisations. However, according to Article 120 of the Civil Code, an institution can be created by a citizen or a legal entity (i.e., a private organisation) or, correspondingly, by the Russian Federation, the entities of the Russian Federation, or a municipal organisation. Hence, proceeding from the rules of the Civil Code, the affiliated organisations are obliged to be private, which contradicts the status of these organisations as existing on federally-owned property. 

In this respect, the draft law envisages amendments to Articles 114 and 120 of the Civil Code of the Russian Federation, which allow state organisations that exercise ownership of the federal property transferred to them on behalf of the Russian Federation to establish state organisations and state unitary enterprises that correspond to their statutory purposes, confirm their foundations, and appoint heads of the given organisations, as well as to be founders and/or members of business associations, as provided by the applicable law.

The state academies of sciences on behalf of the Russian Federation are authorised to exercise ownership rights over the federal property upon which they or affiliated organisations are settled. The procedure for exercising that right is determined by the government.

The draft federal law introduces amendments to the Federal Law On Non-Commercial Organisations, which provides the state academies of sciences exercising ownership rights over the federal property transferred to them with the right to establish an affiliated organisation in the form of a state organisation as well as to confirm its charter.

In addition, the draft law stipulates that state organisations exercising ownership rights over federal property transferred to them have the right to establish state unitary enterprises, as provided under the applicable law.

According to the draft law, the affiliated state unitary enterprises are created, reorganised, and liquidated by the state academies of sciences upon an agreement with the federal executive body that exercises the functions for managing the federal property.

According to the Federal Law On State and Municipal Unitary Enterprises, the ownership rights of a unitary enterprise on behalf of the Russian Federation are exercised by the state government bodies. The Russian Federation can act as a founder of a unitary enterprise. The decision to found a federal state enterprise is made by the government or the federal executive bodies, according to the acts that stipulate the authority of such bodies.

The draft federal law envisages amendments to the Federal Law On State and Municipal Unitary Enterprises with regard to state unitary enterprises established by the state academies of sciences.

According to the amendments, exercising ownership rights over federal state enterprises affiliated with the state academies of sciences, including the confirmation of their charters, the introduction of amendments to their charters, or the confirmation of a restated charter are regulated by the provisions of the Federal Law On State and Municipal Unitary Enterprises taking into account the specific features established by the Federal Law On Science and State Research and Development Policy.

The draft federal law also introduces amendments to the Federal Law On Autonomous Institutions, according to which the decision to create an affiliated autonomous institution on the basis of federally-owned property via its foundation or change of institutional status is taken by the State Academy of Sciences, which exercises ownership rights over the federal property transferred to it on behalf of the Russian Federation.

The aforementioned state academies of sciences exercise the functions and rights of a founder with regard to the affiliated federal autonomous institutions.

13. Draft federal law On Amendments to Article 15.25 of the Code of Administrative Offences of the Russian Federation

The draft federal law was submitted by the Ministry of Finance.

Part 6 of Article 15.25 of the Code of Administrative Offences stipulates, among other things, that, if officials and legal entities fail to present accounting and reporting systems for exchange transactions in due time, they are liable to pay administrative sanctions ranging from 4,000 to 5,000 roubles or from 40,000 to 50,000 roubles, respectively.

According to the Ministry of Finance, the established sanction is unnecessary and inefficient, even at its lower limit if non-compliance with deadlines does not exceed several days, and particularly if the exporters are individual entrepreneurs or small companies with small-scale operations in terms of cost.

The draft federal law will make Part 6 of Article 15.25 into an independent article (Article 6.1) pertaining to the violation of the law by failure to present accounting and reporting systems, supporting documents, and information on exchange transactions in due time.

The draft federal law stipulates that non-compliance with deadlines entails:

-         a warning or imposition of an administrative fine ranging from 500 to 1,000 roubles for officials or from 5,000 to 15,000 roubles for legal entities if they fail to meet the deadline for up to 10 days;

-         the imposition of an administrative fine ranging from 2,000 to 3,000 roubles for officials and from 20,000 to 30,000 roubles for legal entities if they fail to meet the deadline by 10 – 30 days;

-         the imposition of an administrative fine ranging from 4,000 to 5,000 roubles for officials and from 40,000 to 50,000 roubles for legal entities if they fail to meet the deadline by more than 30 days.

Thus, the draft law envisages a differentiated penalty for the aforementioned category of offence with regard to the duration of the offence. At the same time, it determines the lower and upper limits of the administrative fine in order to guarantee individualisation of the penalty with regard to the nature of the committed administrative offence, the amount of harm caused to public interests, and mitigating or aggravating circumstances with regard to administrative responsibility as well as the offender’s extent of culpability. The law also stipulates a warning as an administrative punishment.

14. Draft federal law On Amendments to Articles 3.5 and 15.25 of the Code of Administrative Offences of the Russian Federation

The draft federal law was submitted to the Ministry of Finance.

The Code of Administrative Offences of the Russian Federation stipulates that residents are liable to an administrative fine ranging from three-fourths to the entire amount of resources not credited to their accounts in authorised banks should they fail to receive foreign or Russian currency payable for the goods, works, services, information, or intellectual property provided to non-residents in due time (Article 15.25, part 4).

The draft law envisages differentiated penalties for the above offences with regard to the term in which these payments are received by authorised banks.

The draft law stipulates that officials and legal entities are liable to an administrative fine in the amount of one one-hundred-and-fiftieth of the refinancing rate of the Bank of Russia for the entire amount not credited to their accounts in the authorised banks in due time, for each day of the delay, or ranging from three-fourths of to the entire amount not credited to their accounts in the authorised banks. The law also determines the procedure for calculating an administrative fine for not crediting in due time the funds to the accounts in the aforementioned authorised banks with regard to the refinancing rate of the Bank of Russia that was effective in the period of delay.

The amendments envisaged by the law will allow for the mitigation of residents’ administrative responsibility for the delay in crediting funds to their accounts in the authorised banks as compared to the administrative responsibility for non-credited funds to the accounts in the authorised banks.

15. Draft federal law On Amendments to the Federal Law on Currency Regulation and Control with Regard to the Simplification of Currency Control Procedures 

The draft federal law was submitted by the Ministry of Finance.

Following an instruction of the President of the Russian Federation, the draft federal law introduces the following amendments to the Federal Law on Currency Regulation and Control.

The draft law expands the group of Russian citizens categorised as non-resident individuals in order to provide salaries and other payments to Russian citizens permanently residing outside Russia or Russian citizens entitled to stay in a foreign country for not less than one year in conformity with that country’s laws, including those having residence permits or work or student visas issued by the relevant foreign authorities and valid for not less than one year, or a combination of such visas valid for not less than one year (actually non-residents) (Amendment to the Federal Law Article 1, part 1, clause 6, subclause “a” ).

To improve currency control in foreign trade transactions by reducing paperwork, eliminating redundant functions of currency control agents, and specifying the competence of customs bodies as currency control agents, as well as converting to the use of electronic transaction passports and reducing the information necessary for its execution, the draft law stipulates:

1.     The residents’ obligation to provide the authorised banks with information on the expected maximum terms of receiving foreign or Russian currency for goods, works, services, information, or intellectual property provided to non-residents in conformity with the agreements (contracts), as well as the expected maximum terms of performing the related foreign trade transaction by non-residents providing goods, works, services, information, and intellectual property to residents due to fulfilled advance payments, in conformity with the agreements (contracts) (Amendments to the Federal Law, Article 19).

2.     The delineation of the Bank of Russia’s authority to establish unified rules for issuing a transaction passport, including the authority to determine a comprehensive list of information that is to be specified in a transaction passport and supporting documents. The authorised banks are obliged to transfer the passports of transactions in an electronic format to the currency control bodies and agents in conformity with the procedure established by the Bank of Russia. The draft law also stipulates the terms for the transfer of transaction passports (Amendment to the Federal Law, Article 20).

3.     The introduction of single provision of documents by residents and non-residents to the currency control bodies and agents and the categorisation of the provided documents (Amendments to the Federal Law, Article 23 (5)).

4.     The specification of the customs bodies’ authority for the transfer to the Bank of Russia of electronic information on the declarations registered by the customs bodies.

The enacted federal law will come into effect with a delay of 180 days after its official publication in order to allow for the elaboration and adoption of the necessary legislative acts and the implementation of logistic measures for applying the principles in question. It is proposed to make this norm come into effect on January 1, 2013, in order to enable the Federal Customs Service to implement the necessary logistic measures related to the presentation of electronic information on the declarations registered by the customs authorities to the authorised banks (Amendments to the draft federal law, Article 1, clause 5, subclause “c”, para 3).

16. Draft federal law On Money Allowances and Other Payments to Servicemen

The draft federal law was submitted by the Ministry of Finance.

The system of money allowances for servicemen and law enforcement officers is being reformed in order to bring the high social status of the military in line with their salary level, which is expected to increase by 150%-200%. At the same time, it is expected that the number of additional payments as part of money allowances will be reduced (from over 100 to 9), along with an increase in pensions for citizens who performed military or equivalent service.

The draft federal law addresses the above tasks and stipulates:

 

-         two stages of money allowances reform (2012: an increase in military pensions in the Ministry of the Interior and the Ministry of Defence; 2013: others);

-         a comprehensive list of bonuses and additional payments as part of money allowances can be supplemented only by the President and the Government of the Russian Federation;

-         increased payments with regard to death or early retirement of military personnel due to trauma experienced during service (effectively available to all current or former military personnel upon implementation);

-         additional payments with regard to a changed duty station, active duty disposal, etc;

-         the establishment of a servicemen’s money allowances fund that will be formed by the Government (in order to increase the efficiency of planning and executing budgetary expenses for these goals). 

17. Draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation and the Repeal of Certain Legislative Acts of the Russian Federation Due to the Adoption of the Federal Law On Money Allowances and Other Payments to Serviceme.

The draft federal law was submitted by the Ministry of Finance. 

The system of money allowances for servicemen and law enforcement officers is being reformed in order to bring the high social status of the military in line with their salary level, which is expected to increase by 150%-200%. At the same time, it is expected that the number of additional payments as part of money allowances will be reduced (from over 100 to 9), along with an increase in pensions for citizens who performed military or equivalent service by not less than 50% on average.

The draft federal law, which is an integral part of the draft federal law On Money Allowances and Other Payments to Servicemen addresses these tasks and stipulates that: 

-         the benefits and social payments provided to military personnel are partly eliminated due to a considerable increase in military salaries;

-         insurance premiums provided to all military personnel are increased at the same time in case of harm done to their health during the period of military service;

-         the procedure for calculating pensions for citizens who performed military service is altered in such a way as to provide an average increase in pensions by not less than 50% in terms of money allowances;

-         these pensions are to be increased starting January 1, 2012 for all military retirees.

18. Draft federal law On Ratification of the Protocol on the Procedure for the Disclosure of Information, Including Confidential Information for the Purpose of Investigation That Precedes the Introduction of Special Protective, Antidumping and Compensation Measures in Relation to Third Countries

The draft federal law was submitted by the Ministry of Foreign Affairs and the Ministry of Industry and Trade.

The protocol on the procedure for the disclosure of information, including confidential information for the purpose of investigation, that precedes the introduction of special protective, antidumping and compensation measures in relation to third countries, was signed in St Petersburg on November 19, 2010.

The protocol determines the procedure for disclosing information for investigation to an authority that performs special protective, antidumping and compensation investigations, in accordance with the provisions of the Agreement on the Use of Special Protective, Antidumping and Compensation Measures in Relations to Third Countries of January 25, 2008, as well as for considering applications needed for investigation.

As provided by Article 15, clause 2 of the Federal Law On International Agreements of the Russian Federation, the protocol is subject to ratification.

19. Submission for ratification to the President of the Russian Federation of the agreement on the procedure for the payment and transfer of export customs duties (or other duties, taxes and fees having equal effect) for the movement of crude oil and certain categories of oil products from the territory of the Republic of Belarus across the customs border of the Customs Union

The draft federal law was submitted by the Ministry of Foreign Affairs and the Ministry of Finance.

The agreement on the procedure for the payment and transfer of export customs duties (or other duties, taxes and fees having equal effect) for the movement of crude oil and certain categories of oil products from the territory of the Republic of Belarus across the customs border of the Customs Union, was elaborated in accordance with the decision of the Commission of the Customs Union.

The Agreement is aimed at determining the procedure for the payment (recovery) and return of export customs duties (or other duties, taxes, and fees having equal effect) for the movement of crude oil and certain other categories of oil products from the territory of the Republic of Belarus across the customs border of the Customs Union.

The Agreement regulates the issues of the payment (recovery) and return of penalty fees for non-payment or the failure to pay the entire amount of export customs duties in cases stipulated by the customs legislation of the Customs Union, the legislation of the Republic of Belarus, and the Agreement.

The Agreement does not apply to the payment (recovery) and return of export customs duties (or other duties, taxes, or fees having equal effect) for the movement of crude oil that was produced in the territory of the Republic of Belarus and moved from the territory of the Republic of Belarus across the customs border of the Customs Union.

As provided by the Agreement, the obligation to pay export customs duties (or other duties, taxes, and fees having equal effect) for the payers of export customs duties applies and ceases to apply in the cases stipulated by the Customs Code of the Customs Union.

Export customs duties for the movement of goods from the territory of the Republic of Belarus across customs borders of the Customs Union are paid (recovered) according to the rates in effect in the Russian Federation for the date when the declaration for export goods is registered by the customs body of the Republic of Belarus.

20. Submission for ratification to the President of the Russian Federation of the agreement on the procedure for the movement of goods for personal use by individuals across the customs border of the Customs Union and customs operations in regard to the release thereof, of June 18, 2010

The draft resolution was submitted by the Federal Customs Service.

The draft protocol introduces amendments of a technical and instructive nature that specify the provisions of the Agreement on the procedure for the movement of goods for personal use by individuals across the customs border of the Customs Union and customs operations in regard to the release thereof.

The draft protocol was approved by the Commission of the Customs Union.

21. Signing of the Agreement between the Russian Federation and the Republic of Estonia on Cooperation in Pension Provision

The draft agreement between the Russian Federation and the Republic of Estonia on cooperation in pension provision and a package of related documents were submitted by the Ministry of Healthcare and Social Development.

At present, relations in the sphere of pension provision for citizens of the Russian Federation and the Republic of Estonia are regulated by the Agreement between the Russian Federation and the Republic of Estonia on cooperation in pension provision­­­­­ of June 25, 1993 (the edition of the November 5, 2002 protocol on introducing amendments to the above Agreement).

The above Agreement is based on the territorial principle and stipulates pension provision for Russian and Estonian citizens in conformity with the law of the country on whose territory they permanently reside.

The Agreement expires in October 2011.

If a new agreement is not signed in due time, pension provision for the 73,000 Russian citizens living in Estonia will be executed in conformity with Russian law.

The costs will equal 6,359.1 million roubles in 2012 and 6,933.9 roubles in 2013.

The draft agreement is based on the proportion principle, which allows for pension provision in conformity with both countries’ laws and with regard to pensionable service (labour experience) acquired on Russian and Estonian territories, except when these periods of service are equal in duration.

The draft agreement applies to Russian and Estonian citizens who reside within the territory of the agreeing parties, as well as members of their families. The agreement will regulate the procedure for the extension of pension rights for Russian citizens residing in Estonia who have reached pension age under Russian law until they reach pension age under Estonian law.

The draft agreement stipulates the right of “military” pensioners to receive two pensions, i.e. a “military” pension and a “labour” pension for the periods of their activity within the territory of the Republic of Estonia.

According to Article 15 of the Federal Law On International Agreements of the Russian Federation, the Agreement is subject to ratification after being signed.

22. Introduction of amendments to some legislative acts of the Government of the Russian Federation on the import of drugs for medical purposes

The draft resolution was submitted by the Ministry of Healthcare and Social Development.

The draft resolution was prepared in order to bring the Rules for the import of drugs for medical purposes to the territory of the Russian Federation into line with the provisions of paragraph 2.14 of the single list of goods that are prohibited or limited for entry or exit by member states of the Customs Union as part of the Eurasian Economic Community in the course of trade with third countries.

The draft resolution introduces amendments to the specified Rules in regard to the provision of entry for specific consignments of registered and/or un-registered medical drugs for clinical tests, for specific consignments of unregistered medical drugs in need of state registration, and for specific consignments of unregistered medical drugs for the provision of life-saving medical assistance to a specific patient, on the basis of permission issued by the Ministry of Healthcare and Social Development. The draft resolution also introduces a list of documents necessary to receive permission for the entry of a specific consignment of medical drugs for clinical drug tests to the territory of the Russian Federation. It is proposed that the authority of the Ministry of Healthcare and Social Development to issue permission for the entry of medical drugs into the territory of the Russian Federation be introduced to the Provision on the Ministry of Healthcare and Social Development.

23. Dissolution of the Government Commission for the 2010 National Population Census

The draft resolution was submitted by the Ministry of Economic Development.

Whereas the census was held during the period established by the government, in conformity with the national law and official statistical methodology, and the federal and regional executive bodies as well as local government bodies executed the necessary complex of measures for the preparation and completion of the census, the tasks allotted to the Commission have been performed.

The issues of summarising and officially publishing the census results, which are primary at the moment, will be undertaken by a working group for the official publishing of the 2010 National Population Census, which will remain active until the official publishing of the census results in 2013.

Moscow

May 25, 2011

 

* Press releases by the Department of the Press Service and Information are based on the materials submitted by the executive federal bodies for discussion by the Government Presidium