PRESS RELEASE*

The following issues are scheduled for discussion at the Government Presidium meeting on June 9, 2011

1. Draft Federal Law on Introducing Amendments to Certain Legislative Acts of the Russian Federation

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

At present, under Federal Law No.59-FZ On the Procedure of Dealing with the Complaints of Citizens of the Russian Federation on May 2, 2006, the complaints that require prompt decisions to redress the rights and legitimate interests that have been violated are considered under the same procedure as any other submissions. For this reason the appeal more often than not is not conducive to receiving timely and quality state or municipal services. As a rule, the complaints are passed on to corresponding executive bodies and are considered by officials who in fact face no responsibility for giving a pro forma reply or ignoring the complaint.

The draft law would introduce a special status differing from other submissions by citizens and organizations for complaints (claims) about the decisions and actions (inaction) of state executive bodies and local self-government bodies and their officials in delivering state and municipal services as well as the procedure of considering them and taking decisions on them. That would ensure compliance with established standards of providing state and municipal services.

In addition, the draft law makes the officials of federal executive bodies responsible for violating the established standards and procedure of providing state services as well as for unreasonable refusal to meet a complaint (claim).

The adoption of the draft law would help to create and develop an effective mechanism of pre-trial (out-of-court) complaints that ensure compliance with the rights or legitimate interests of citizens and organizations in the process of providing state and municipal services, including holding officials of federal executive bodies responsible for non-compliance with the provisions of the law.

2. Progress in the implementation of the Federal Budget in the first quarter of 2011

I. Overall parameters of the implementation of the Federal Budget

The GDP in the first quarter of 2011 amounted to 11,530.0 billion roubles, having increased by 4.5% on the same period of last year. Consumer prices of goods and services increased by an average 3.8% in the first quarter of 2011.

The Federal Budget revenues in the first quarter of 2011 amounted to 2,392.8 billion roubles. The Federal Budget spending in the period under consideration amounted to 2,214.7 billion roubles. The Federal Budget surplus amounted to 178.1 billion roubles.

II. Federal Budget revenues

The total sum of Federal Budget revenues was 2,392.8 billion roubles, of which tax revenues accounted for 54.5% and non-tax revenues for 45.5%. The bulk of the Federal Budget revenues was formed by the Value Added Tax (30.3%), proceeds from customs duties (35.9%), the Extraction Tax (18.1%) and the Corporate Profits Tax (2.8%).

1. The tax revenues of the Federal Budget in the first quarter of 2011 amounted to 1,304.4 billion roubles, i.e. 216.5 billion roubles or 19.9% more than the forecast for the first quarter of 2011.

Most of the Federal Budget tax revenues came from the Value Added Tax (55.5% of the total tax revenue), the Extraction Tax (33.2%) and the Corporate Profits Tax (5.1%).

2.Non-tax revenues of the Federal Budget in the first quarter of 2011 amounted to 1,044.8 billion roubles, i.e. 109.8 billion roubles or 11.7% more than the forecast for the first quarter of 2011. Within the structure of non-tax revenues, incomes from the payment of customs duties accounted for 82.2%, and incomes from managing the Reserve Fund and the National Wellbeing Fund accounted for 4.5% of the total volume of non-tax revenue.

III. Federal Budget spending

1.In all, cash spending of the Federal Budget in the period under consideration amounted to 2,214.7 billion roubles or 20.8% of the adjusted budget itemization for 2011 (1,762.4 billion roubles or 17.7% in the first quarter of 2010; 2,199.5 billion roubles or 21.4% of updated budget itemization for the first quarter of 2010).

Cash non-interest spending of the Federal Budget in the first quarter of 2011 amounted to 2,131.8 billion roubles or 20.8% of updated budget itemization (2,128.3 billion roubles or 22.2% of updated budget itemization for the first quarter of 2009).

2.Cash spending  on the implementation of national priority projects in the report period amounted to 63.1 billion roubles (14.8% of updated budget itemization).  The following is the breakdown by project:

(billion roubles, in % of updated budget list)

Name of priority national project	Q1 2010	Q1 2011
Health	14.9 (11.7)	14.8 (10.9)
Affordable and comfortable housing for Russian citizens	12.1 (9.7)	24.6 (16.8)
Education	1.2 (7.3)	2.9 (11.8)
Development of agro-industrial complex d	21.9 (21.2)	20.8 (17.3)

4. The amount of sovereign debt as of April 1, 2011 was 4, 323.7 billion roubles, which is 165.5 billion roubles more than on January 1, 2011.

The national external debt of the Russian Federation as of April 1, 2011 had diminished compared with January 1, 2011 by 113.7 billion roubles to 1,104.1 billion roubles.

As of April 1, 2011 the aggregate size of the Reserve Fund amounted to 748.5 billion roubles, the aggregate size of the National Wellbeing Fund stood at 2,609.7 billion roubles. The Reserve Fund diminished by 26.5 billion roubles and the National Wellbeing Fund by 85.8 billion roubles during the first quarter of 2011.

3. Federal Targeted Programme “The Russian Language” for 2011-2015

The relevance of developing a federal targeted programme “The Russian Language” for 2011-2015 has been determined in the Guidelines for the Activities of the Russian Government to 2012 (inclusive) and in the Foreign Policy Concept of the Russian Federation.

The development of the Federal Targeted Programme “The Russian Language” for 2011-2015 was preceded by successive fulfillment of the Federal Targeted Programmes “The Russian Language in 2002-2005” and “The Russian Language (2006-2010)”. A comparative analysis of the progress in their implementation points to the need to expand the number and scale of the tasks set, which requires increased funding.

The goal of the Federal Targeted Programme “The Russian Language for 2011-2015” is to support, preserve and ensure the dissemination of the Russian language (including among compatriots abroad).

The following are the tasks of the federal targeted programme:

- ensuring the functioning of the Russian language as the official language of the Russian Federation;

- creating conditions for the functioning of the Russian language as a vehicle of communication among the peoples of the Russian Federation;

- supporting the Russian language as the basis for the development of integration processes in the Commonwealth of Independent States;

- meeting the linguistic and cultural needs of compatriots abroad.

According to forecasts, by the end of 2015 the implementation of the measures under the Programme would yield the following positive results that will be a measure of the social and economic effectiveness compared with the reference year of 2010:

- the amount of information resources on the Russian language will increase by 2.7 times;

- the number of people who have received retraining and upgrading of qualifications on matters of the functioning of the Russian language as the official language of the Russian Federation will increase by 3.6 times;

- the number of teachers who have been retrained and have upgraded  their qualifications in the teaching of Russian as a non-native or foreign language will increase by 3.5 times;

- the number of textbooks and school aids on the Russian language and literature for schools teaching in the native (non-Russian) and Russian (non-native) language as well as textbooks on the teaching of Russian  as a foreign language will increase by 2.25 times;

- the amount of reference and information resources in the sphere of the Russian language and the Russian culture in the Commonwealth of Independent States  member countries will increase by 3.5 times;

- the number of people who have passed tests in the Russian language will increase by 1.9 times;

- the number of participants in cultural and educational activities popularizing the Russian language, literature and culture abroad will increase by 6 times;

- the number of textbooks and teaching aids, popular science books and journals on Russian language, literature and culture delivered to the missions of Rossotrudnichestvo (The Federal Agency for the Commonwealth of Independent States, Compatriots Living Abroad and International Cultural Cooperation )  in the Commonwealth of Independent States member countries will increase by 2.4 times;

- the number of scientific-methodological, educational and cultural events for compatriots living abroad will increase by 2.7 times;

- the number of sets of textbooks, teaching aids, popular science books, literary fiction works, reference books on the Russian language, literature and culture delivered to the missions of Rossotrudnichestvo in foreign countries (less the member states of the Commonwealth of Independent States) will increase by 4.4 times.

4. Introducing amendments to the Statute on the Ministry of Justice of the Russian Federation and the Statute on the Ministry of Economic Development of the Russian Federation

The draft decrees of the President of the Russian Federation and resolutions of the Government of the Russian Federation have been submitted by the Ministry of Economic Development.

The draft decree of the President of the Russian Federation proposes to adjust the powers of the Ministry of Justice to make submissions, pursuant to the proposals of the Ministry of Economic Development, on the repeal or amendment of regulatory acts or certain provisions thereof adopted by the federal executive bodies that without just cause impede the conduct of entrepreneurial and investment activities.

The draft resolution of the Government of the Russian Federation would vest the Ministry of Economic Development with the powers to examine the regulatory legal acts of the federal executive bodies to identify the provisions that create unreasonable obstacles to entrepreneurial and investment activities and the right to submit to the Ministry of Justice proposals on repealing such acts or certain provisions thereof.

The inspection will be initiated by the Ministry of Economic Development or will be conducted on the basis of appeals from the representatives of the business community. The procedure of the inspection is to be developed within two months and approved by a regulatory act of the Ministry.

Should it turn out that the provisions of departmental regulations that unreasonably hinder entrepreneurial and investment activities flow directly from the provisions of the federal laws, the acts of the President of the Russian Federation or the Government of the Russian Federation, the Ministry of Economic Development will submit under established procedure to the Government Commission for Administrative Reform proposals on introducing amendments to the said prevailing regulatory acts.  

5. Draft Federal Law on Introducing Amendments to Articles 20.6 and 20.7 of the Code On Administrative Offences of the Russian Federation

The draft federal law has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.

The draft law would introduce amendments to parts 1 and 2 of Article 20.6 of the Code On Administrative Offences related to the increase of administrative fines:

- to part 1: for non-compliance with the norms and rules of preventing and liquidating emergencies: from 10,000 to 20,000 roubles for officials, and from 100,000 to 200,000 for legal entities;

- to part 2: for failure to take measures to prepare the reserves and assets intended for the liquidation of emergencies or untimely dispatch of the forces and assets to the emergencies zone envisaged by the properly approved plan of response to emergencies: from 10,000 to 20,000 roubles with regard to officials.

The current version of parts 1 and 2 of Article 20.6 of the Code on Administrative Offences establishes respectively the following administrative fines for the above-mentioned offences:

Part 1: with regard to officials from 4,000 to 5,000 roubles, with regard to legal entities from 40,000 to 50,000 roubles;

For Part 2: with regard to officials in the amount from 1,000 to 2,000 roubles.

Simultaneously the draft law proposes a new edition of Article 20.7 of the Code that envisages administrative liability for non-compliance with the requirements and failure to take appropriate civil defence measures.

Failure to comply with the rules of operating the technical systems of civil defence control and management of civil defence assets, the use and maintenance of warning systems, personal protection means, special equipment and property for civil defence carries an administrative fine in the following amounts:

- for officials, from 5,000 to 10,000 roubles;

- for legal entities from 50,000 to 100,000 roubles.

The failure to carry out measures to prepare the protection and to protect the population, material and cultural values on the territory of the Russian Federation from the dangers arising during or as a consequence of combat operations as well as in the event of natural or man-made emergencies carries an administrative fine in the following amounts:

- for officials from 10000 to 20,000 roubles;

- for legal entities from 100000 to 200,000 roubles.

The adoption of the draft law will make for more effective legal regulation of the social relations arising in the field of protecting the population and territories from emergencies and civil defence in the Russian Federation.

6. Introducing amendments to the Statute on the Ministry of Transport of the Russian Federation  

 The draft government resolution on the issue has been submitted by the Ministry of Transport.

The draft resolution would vest the Ministry of Transport with the powers to approve:

sectoral cost estimates of the repair of federal highways and road structures that constitute the technological parts of these roads;

the provision on the classification of inland and river-sea vessels.

The draft resolution also determines that the said powers are to be exercised by the Ministry of Transport without increasing the central staff of the Ministry and Federal Budget allocations.

The adoption of the draft will permit quick introduction of new modern technological developments to make more effective use of budgetary money and improve the quality of repair of federal roads and road structures that constitute the technological parts of these roads and would bring the Statute on the classification of inland and river-sea vessels into compliance with modern requirements.

7. Draft Federal Law On Ratification of the Protocol on Introducing Amendments to the Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China on Oil Cooperation of April 21, 2009

The draft federal law has been submitted by the Ministry of Foreign Affairs Ministry and the Ministry of Energy.

The Protocol on Introducing Amendments to the Agreement (signed on September 27, 2010, in Beijing) has been prepared in connection with the completion and launching of the underwater crossing of the Skovorodino-Mohe oil pipeline under the Amur River, whose construction was envisaged under the Agreement.

The document introduces amendments and additions to those articles of the Agreement that need to be extended to cover the stage of the operation of the underwater crossing in order to prevent and remedy probable accidents and their consequences.

The Protocol specifies the procedure and terms of the launching of the oil pipeline and the underwater crossing, identifies the measures necessary for transition to the operational stage (development of plans to deal with accidents, ensuring the technical capacity to fill the pipeline with crude oil linefill and the start of reception of deliveries).

To ensure timely introduction of the oil pipeline into operation and the measures required for this, Article 2 of the Protocol envisages its temporary application from the time of signing, which would make it possible to apply amended provisions of the Agreement without waiting for the completion of internal state procedures required for putting the Protocol into effect.

The Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China on Oil Cooperation of April 21, 2009 establishes the categories of goods for which a simplified procedure of crossing the Russian-Chinese border is established for the period of the construction and exclusively for the purposes of the construction of the Skovorodino-Mohe crossing under the Amur River (building materials, equipment, including construction machinery and transport). The Protocol adds to the said categories of goods disposable materials and extends the simplified procedure of the movement of such goods to the stage of the operation of the oil pipeline and the underwater crossing (technical maintenance of the crossing and, if necessary, repair or work to prevent and eliminate emergency situations and their aftermath).

The implementation of the Agreement and the Protocol will make it possible to continue developing oilfields in Eastern Siberia, the industrial infrastructure of Eastern Siberia and the Far East, creating thousands of new jobs, resulting in the development of new housing and social welfare infrastructure.

8. Introducing amendments to the Technical Rules of Gas Distribution and Gas Consumption Safety Networks

The draft resolution of the Government of the Russian Federation that would introduce amendments to the technical rules of the safety of gas distribution and gas consumption networks approved by Government Resolution No.870 of October 29, 2010 has been submitted by the Ministry of Energy.

The draft resolution, in order to harmonize the provisions of the technical regulations with the Federal Law  No.123-FZ of July 22, 2008 Technical Regulation on the requirements of fire safety,  would elaborate sections 30, 35 and 38 of the Technical Regulations with respect to the fireproofing of buildings and structures.

9. Concerning revision  and annulment of certain acts of the Government of the Russian Federation in connection with the adoption of the Federal Law On Introducing Amendments to Certain Legislative Acts of the Russian Federation in connection with the Transfer of Certain State Control Powers to the Customs Agencies of the Russian Federation

The draft resolution of the Government of the Russian Federation on the issue has been submitted by the Federal Customs Service.  

The draft resolution envisages amendments to the statutes on the Ministry of Transport, Rostransnadzor (Federal Service for Supervision  of Transport) and the Federal Customs Service as well as certain acts of the Government of the Russian Federation.

The draft resolution aims at implementing the provisions of the federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation in Connection with the Transfer of Certain State Control Powers to the Customs Agencies of the Russian Federation concerning the transfer to the Customs bodies of authority to carry out full-scale inspection of transport vehicles at crossing points and at specialized crossing points to carry out documentary quarantine phyto-sanitary, veterinary and sanitary quarantine supervision, the aim of which is to improve state control at the crossing points on the border of the Russian Federation and to speed up the passage of goods and means of transport across the state border of the Russian Federation.

10. Draft Federal Law On the Ratification of the Convention on the Privileges and Immunities of the Secretariat, Its Staff and Representatives of the Member States of the Conference on Interaction and Confidence Building Measures in Asia (CICA)

The draft federal law On the Ratification of the Convention on the Privileges and Immunities of the Secretariat, Its Staff and Representatives of the Member States of the Conference on Interaction and Confidence Building Measures in Asia (CICA) has been submitted by the Ministry of Foreign Affairs. The Convention would vest the Secretariat of the Conference on Interaction and Confidence Building Measures in Asia (CICA), its staff and representatives of CICA member states with a range of privileges and immunity. The said privileges and immunities are granted on the territories of the CICA member states to corresponding persons to ensure free discharge of their professional functions.

The Convention would extend to the property and assets of CICA secretariat immunity against any forms of administrative action or judicial interference. The Secretariat, its assets, incomes and other property are also exempt from all direct taxes. The Convention envisages immunity of the staff of the Secretariat and the representatives of the CICA member states against personal arrest or detention, any prosecution in connection with their actions in their official capacity as well as some other privileges.

The Convention was signed by the Russian Federation during the visit to Istanbul of the Russian Prime Minister Vladimir Putin on June 8, 2010.

The ratification of the Convention will make a tangible contribution to creating conditions for independent and effective discharge by the CICA of its goals and tasks, which will expand the opportunities for cooperation between Russia and the said international forum.

11. Submitting to the President of the Russian Federation a proposal to sign the Agreement on the Basic Principles of Relations Between the Russian Federation and the Republic of El Salvador

The draft resolution of the Russian Government on the issue has been submitted by the Ministry of Foreign Affairs.

This is the first interstate agreement between the Russian Federation and El Salvador (there exists a Trade Agreement between the USSR and the Republic of El Salvador). It is a framework agreement aimed at developing long-term partnership between the two countries in the political, trade-economic, cultural and other fields on the basis of universally recognized principles and norms of international law and it also provides the basis for the signing of new bilateral interstate and intergovernmental Russian-Salvadorian agreements.

12. Submitting to the President of the Russian Federation for subsequent introduction for ratification of the Agreement on Security Cooperation in the Caspian Sea

The draft federal law On Ratification of the Agreement on Security Cooperation in the Caspian Sea has been submitted by the Ministry of Foreign Affairs.

The Agreement is aimed at providing the legal framework for cooperation between the competent parties involved in combating terrorism, organized crime, illegal sale of arms and ammunition, explosives and toxic substances, trafficking in drugs, smuggled goods, human trafficking, illegal migration, poaching and other criminal acts as well as ensuring navigation safety.

Furthermore, the Agreement reaffirms the provision whereby ensuring that security on the Caspian Sea is the prerogative of the Caspian states and that it contributes to peace, stability and law and order, thus confirming the commitment of the Russian Federation and other littoral states to the development of all-round cooperation in the region.

The Agreement was signed on behalf of the Russian Federation in the city of Baku on November 18, 2010.

13. The voluntary contribution of the Russian Federation in 2011-2015 to the United Nations Institute for Training and Research (UNITAR)

The draft executive order of the Russian Government has been submitted by the Ministry of Foreign Affairs.

The main task of the United Nations Institute for Training and Research, founded in 1965, is to implement programmes of training and upgrading the qualifications of diplomatic workers in the field of multilateral diplomacy and international cooperation.

UNITAR is financed by voluntary contributions to the Common Fund and Special Targeted Subsidies Fund of International Organizations, member states and the private sector. The Institute’s total budget for 2010-2011 amounts to $50.4 million.

14. Allocating to the Ministry of Culture of the Russian Federation budgetary appropriations from the Reserve Fund of the Government of the Russian Federation for creating digital copies of the Esterhazy Princes book collection

The draft executive order of the Russian Government on the issue has been submitted by the Ministry of Finance.

The draft executive order would allocate 13 million roubles out of the Reserve Fund of the Government of the Russian Federation for the federal state cultural institution Rudomino All-Russian State Library of Foreign Literature to finance the cost of creating digital copies of the Esterhazy Princes book collection.

The Esterhazy Princes book collection contains books of world importance dating to the 15^th-17^th centuries.

The measure proposed is aimed at the preservation and use in the Russian Federation of digital copies of the Esterhazy book collection which was brought to the USSR from Austria as a result of the Second World War and is being handed back to the Austrian Republic by decision of President Medvedev of the Russian Federation.

The work would involve the creation of digital copies of 185,000 pages (mainly old printed editions) of that book collection.

15. Allocating to the Government of the Republic of Dagestan  budgetary appropriations from the Reserve Fund of the Government of the Russian Federation for the Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters  to compensate for the damage caused in the process of stopping by legitimate actions a terrorist attack in Makhachkala (Republic of Dagestan) on October 2-3, 2010

The draft executive order of the Government of the Russian Federation has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.

The draft executive order allocates to the Government of the Republic of Dagestan 3,928,900 roubles out of the budget to compensate for the damage to health and property of citizens as well as for urgent restoration work at the facilities damaged during the counterterrorist operation in Makhachkala on October 2-3, 2010.

Moscow, June 8, 2011

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