7 july 2011

Background materials for the July 7, 2011 meeting of the Russian Government (Press release)

PRESS RELEASE*

The following issues are scheduled for discussion at the July 7, 2011 meeting of the Government of the Russian Federation:

1. Draft guidelines for budget policy and basic characteristics of the federal budget for 2012 and the planned period of 2013 and 2014

The Finance Ministry has submitted the draft guidelines for budget policy for 2012 and the planned period of 2013 and 2014 and basic characteristics of the federal budget for 2012 and the planned period of 2013 and 2014 for consideration at the Government session.

In accordance with the Russian President’s Budget Address, the federal budget for 2012 and the planned period of 2013 and 2014 should become a tool to achieve stable post-crisis development, provide conditions for the economy’s development and modernization, improve standard and quality of living, reinforce the national defence capacity and security, and increase the efficiency and transparency of the state administration. During this period, measures should be taken to reduce the budget deficit and the budget dependency on revenues amid the current economic situation.

The main priorities for budget expenditures include:

- unconditional observance of the statutory commitments to pay social benefits and social security compensations, including pension benefits for servicemen;

- providing the balance of Russia’s Pension Fund budget;

- indexation of salary funds for employees at federal state institutions, salaries of judges and public prosecution officers, federal state civil employees, as well as monetary allowances of servicemen and others of equal rank, and payments which depend on monetary allowances, in 2012;

- implementation of programs for modernizing health and education sectors;

- purchase of new weaponry types, improving combat skills, securing social protection for servicemen, and providing them with permanent and service accommodation;

-  implementation of monetary allowance reform for servicemen and police personnel;

- establishing public safety police through the federal budget finances in 2012;

- supporting innovative and investment-driven development.

From 2012 through 2014, these priorities will provide conditions for securing a stable economic development and maintaining macro-economic stability, with unconditional observance of assumed expenditure obligations of the Russian Federation, implementation of key priorities of the country’s social and economic development, increasing the budget expenses efficiency, improvement of intergovernmental fiscal relations, and solving other tasks of the budget policy set in the budget address and other strategic planning documents.

II. Basic characteristics of the federal budget for 2012 and the planned period of 2013 and 2014

The basic characteristics of the federal budget for 2012 and the planned period of 2013 and 2014, submitted by the Ministry of Finance, have been developed in accordance with scenarios and basic parameters of the forecast for Russia’s social and economic development for 2012 and the planned period of 2013 and 2014, which were taken as the basis at the government meeting on April 21, 2011.

Basic parameters of the federal budget:

billions of roubles

 

2010 (report)

2011 (law)

Project

2012

2013

2014

 

 

 

 

 

 

Revenues, overall

8,305.4

10,303.4

10,614.6

11,674

12,631.2

% to GDP

18.5

19.3

18.4

18.4

17.9

Expenditures, overall

10,117.5

11,022.5

12,185.1

13,418.3

14,279.6

% to GDP

22.5

20.7

21.2

21.2

20.3

Including conditionally

approved

 

 

 

335.5

714

% to overall expenditures

0

0

0

2.5

5

Deficit

-1,812.1

-719.1

-1,570.5

-1,744.3

-1,648.4

% to GDP

-4

-1.3

-2.7

-2.7

-2.3

 

The federal budget expenditures growth planned for 2012-1014 both in nominal and real terms:

Index

2011 год
(law)

Forecast

2012

2013

2014

Increase as compared to previous year (overall expenditures):

billions of roubles

905

1,162.6

1,233.2

861.3

% (nominal terms)

8.9

10.5

10.1

6.4

% (real terms)

2.3

4.3

4.4

1.4

Increase as compared to previous year
(expenditures excluding compensation of state non-budgetary funds’ income shortfall):

billions of roubles

905

926.2

1,194.0

1,136.9

% (nominal terms)

8.9

8.4

10

8.7

% (real terms)

2.3

2.3

4.3

3.5







Financing the federal budget deficit will be undertaken via state loans and finances coming from federal property privatization.

III. Federal budget expenditures for 2012 and the planned period of 2013 and 2014 

The federal budget volume and structure for the period from 2012 through 2014 are developed in accordance with the following basic efforts:

- determining the volume of budgetary allocations for the period from 2012 through 2014 in accordance with the Federal Law On the Federal Budget for 2011 and the Planned Period of 2012 and 2013, with account of the decisions that alter parameters of the approved budget’s planned period;

- transferring financial provisions for public safety police to the federal budget starting from 2012;

-  determining budget allocations required for a 6% indexation of the salary funds for federal state institution employees, wages for judges and prosecutor offices’ employees and federal civil employees beginning October 1, 2012, along with a 6% indexation of the salary funds of servicemen and others of equal rank, and payments which depend on monetary allowances, beginning April 1, 2012, as well as a 6% indexation of the scholarship fund of the students at federal educational institutions beginning September 1, 2012;

- the compensation of shortfall in the income for state non-budgetary funds from 34% to 30% for 2012 and 2013, taking into account the rates of insurance into the state non-budgetary funds, as well as the compensation of up to 20% for small businesses and non-profit organizations operating in public social services and charity organizations, and organizations which use a simplified system of tax assessment, with establishing an insurance payment tariff rate exceeding the determined taxable basis in the amount of 512,000 roubles,10% of which goes towards insurance holders;

- determining budget allocations required for the statutory inflation-based indexation of public legislative and equated commitments;

- the reform of monetary allowances for servicemen and law enforcement personnel;

- determining budgetary allocations required for a 6% indexation as of January 1, 2012, a 5.5% indexation as of January 1, 2013, and a 5% indexation as of January 1, 2014 for expenses to maintain operation of federal state bodies and providing work of federal state institutions, including expenses for communication, transport, housing and communal services, as well as for food and material support for servicemen and persons of similar status.

The federal budget allocations are proposed for the following major purposes:

1. From 2012 through 2014, measures will be taken to provide balance and compensate the deficit of the budget of Russia’s Pension Fund. A total 1,060.1 billion roubles will be allocated from the federal budget in 2012, while 1,192.7 billion roubles will be allotted in 2013, and 1,355.7 billion roubles will be allotted in 2014. The total transfers from the federal budget to the Pension Fund will account for 2,621.8 billion roubles, while in 2013 and 2014 they will stand at 2,857.1 and 3,150.1 billion roubles, respectively.

2. Budget allocations for labor compensation from 2012 through 2014 are calculated in accordance with decisions on indexation of the federal budget for federal state institutions employees, monetary allowances of servicemen and persons of the same status, payments depending on the monetary allowances (excluding federal executive bodies where the monetary allowance reform is scheduled for 2012), and salaries of judges and public prosecution employees, as well as federal civic employers.

3. The federal budget allocations for expenditure commitments in the educational sector will total 547.2 billion roubles in 2012, while in 2013 and 2014 they will stand at 508.5 and 454.5 billion roubles, respectively.

The federal budget for 2012-2014 includes allocations for a 9% indexation of the scholarship fund for students of federal professional education institutions beginning September 1, 2011, as well as a 6% indexation as of September 1, 2012. Allocations are also planned to increase scholarships for junior physicians and attending physicians for one-year period so that their scholarships meet the current cost of living, namely 6,367 roubles, beginning June 1, 2011.

In addition, 9.9 billion roubles will be allocated from the budget for improving scholarship provisions for students of federal professional education institutions in 2012, while 10.1 billion roubles will be allotted annually in 2013 and 2014.

4. The federal budget allocations for the health sector in 2012, 2013, and 2014 will stand at 498.8 billion, 454 billion, and 445 billion roubles, respectively.

5. The federal budget allocations for national security from 2012 through 2014 will account for 1,847.7 billion, 2,334.7 billion, and 2,752.6 billion roubles, respectively.

In this regard, priority will go to the financial support for the 2011-2020 State Arms Procurement Programme, which implies the armed forces’ complex will be retrofit with modern weapons and military equipment. The major expenditure growth is planned for providing Russia’s Armed Forces with new equipment and weapons. 

The planned provision of resources for the Armed Forces corresponds to the task of their development and advancement.

6. From 2012 through 2014, the federal budget allocations for implementing expenditure commitments in the civil science sector will stand at 254.7 billion, 244.8 billion, and 199.0 billion roubles, respectively.

The planned finances will allow a gradual expansion of the competitive national sector of research and development, the key element of the economy’s transition to innovation-based growth.

7. Financial allocations for the projects approved by the Presidential Commission on Russian Economy’s Modernization and Technological Advancement will be carried out through the finances of private investors’, as well as through the federal budget and the budgets of constituent entities. In 2012, a total of 10 billion roubles will be allocated for this purpose, while 6.3 billion and 3.6 billion roubles will be allocated in 2013 and 2014, respectively. The decrease in budget allocations in 2014 is due to the planned completion of ten projects in 2013. 

IV. Major directions of the national debt policy from 2012 through 2014:

- securing the federal budget balance, with maintaining a high level of debt sustainability that has been achieved in the past few years;

- developing the national government security market;

- maintaining high level of Russia’s investment credit ratings.

Russia’s expenditure commitments for the national debt service have been determined according to international agreements and contracts, original schedules of payments to foreign creditors in accordance with bilateral agreements, terms of government securities issue, and forecast interest rate level for 2012 through 2014.

billions of roubles

 

2011 (law)

2012

2013

2014

project

% to previous year 

project

% to previous year 

project

% to previous year 

National and municipal debt service, overall 

350.7

438.9

125.1

538.0

122.6

640.2

119.0

including:

 

 

 

 

 

 

 

Russia’s internal national debt service

271.3

360.9

133.1

450.4

124.8

543.1

120.6

Russia’s foreign national debt service

79.4

77.9

98.1

87.6

112.5

97.1

110.8

2. Draft guidelines for tax policy for 2012 and the planned period of 2013 and 2014

The draft guidelines for tax policy for 2012 and the planned period of 2013 and 2014 have been submitted by the Ministry of Finance.

The document contains assessment of the outcome of Russia’s major tax policies for 2011 and the planned period of 2013 and 2014, which were approved in 2010. The guidelines determine priorities of the Russian Government for tax policy from 2012 through 2014, namely the establishment of an efficient and secure tax system which would provide both medium-term and long-term budget sustainability. The tax policy aims at supporting innovation activities and activities in the education and health sectors.

The approval of the draft guidelines for tax policy for 2012 and the planned period of 2013 and 2014 will generally allow for the setting of objectives for economic agents in the tax sector, as well as determining sources of revenue inflow for budgets of all levels and priorities for tax incentives, and developing the background for the expansion of regional and municipal authorities’ tax autonomy.

 

 

The following efforts are proposed for the tax system improvement from 2012 through 2014:

1. Tax incentives for innovation activities and human capital development, which implies the following measures:

a. Starting from 2012, compulsory social insurance fee rates on payments of up to 512,000 roubles per employee will be decreased down to 20% for beneficiary taxpayers who make insurance payments at the total rate of 26% in 2011 and for non-profit organisations that operate mostly in social services as well as charity organizations. Other categories of taxpayers will have social insurance payment rates decreased from 34% to 30%. Additional tariffs of 7% and 10% will be collected from payments exceeding 512,000 roubles per employee.

b. Amortisation policy will be improved, particularly to specify the bonus depreciation usage procedure and exclude loopholes for dishonest taxpayers.

c. Benefits and tax refunds will be extended for paying socially important expenditures and other expenses.

2. Monitoring efficiency of tax benefits, which implies inventory and optimisation of the federal-level benefits for regional and local taxes, with maintained benefits for linear facilities of natural monopoly entities in the short term, as well as an analysis of current tax incentives mechanisms (including favourable taxes) to detect ineffective and unclaimed benefits.

3. In excise taxation, excise duty rate increase is suggested for excisable tobacco and alcoholic products, with rates outstripping inflation. For other kinds of excisable goods, the previous excise duty rates will be maintained in 2012 and 2013, with their indexation of 10% in 2014.

4. Improving tax assessment for securities transactions, term transaction financial instruments, and financial operations will be based on a set of measures to establish a preferential taxation procedure for operations with Russian issuers’ Eurobonds, depositary receipts, as well as for receiving and paying dividends. An additional value-added tax reduction will be provided for securities traders in their principal activities, which, as has been stated, corresponds with the global practice.

5. Concerning corporate profits tax, a simplification of accounting treatment procedure is planned for taxation of income from immouvables’ sale.

6. In natural resources taxation, an improvement of mechanisms is implied for taxation of oil and gas industries, in accordance with decisions on increasing the tax burden on the oil industry by as much as 150 billion roubles in 2012, as much as 168.3 billion roubles in 2013, and as much as 185.9 billion roubles in 2014, with the transition to introduction of the natural resources production tax on natural and combustion gas production depending on the global price of crude hydrocarbons, as an analogue to oil production taxation, and depending on the gas domestic price growth rate. In addition, a provision is made for introducing tax rates on mineral resources depending on their cost in the global market, in case their exports share exceeds 50%.

7. Improving taxation within special tax regulations implies the introduction of a patent taxation system for individual entrepreneurs starting from 2012, determining parameters for gradual abolishment of the taxation system based on imputed income from 2012 through 2014.

8. The introduction of real estate tax is planned upon completing works on a large-scale assessment of capital construction facilities in the first quarter of 2012.

9. In tax administration, analysis is planned for provisions of the Russian legislation on taxes and fees to expose and correct their gaps and inaccuracies, and to implement work on determining criteria for tax evasion and tax optimisation.

In the midterm, the aforementioned measures will aim at increasing the budget system revenues, mainly through taxation of consumption and natural resource rent, and through the transition to the new system of real estate taxation.

The stimulating role of the tax system will aim at technological advancement and production modernisation, as well as development of the non-profit sector providing social services.

The key innovations proposed for implementation from 2012 through 2014 include providing benefits and tax preferences based on their efficiency analysis, introducing tools for tax assessment on gas and other natural resources in case their exports share exceeds 50% depending on their cost on the global market, establishing legislative approaches to determine criteria for tax evasion and tax optimisation, as well as changing rates of insurance payments into state non-budgetary funds.

3. Draft guidelines for customs and tariffs policy for 2012 and the planned period of 2013 and 2014

The draft guidelines for customs and tariffs policy for 2012 and the planned period of 2013 and 2014 has been developed by the Ministry of Economic Development.

The draft considers regulations provided in the Concept for Long-Term Social and Economic Development of Russia Through 2020, the Guidelines for the Russian Government’s Activities Through 2012, and the Guidelines for Russia’s Foreign Economic Policy Through 2012.

In 2012 and the planned period of 2013 and 2014, the customs and tariff policy will be implemented amid conditions of restoring the pre-crisis volumes of foreign trade. The key factor for the policy is adaptation to new institutional conditions of the Customs Union, such as adopting decisions of the Customs Union Commission, considering Belarus and Kazakhstan’s interests while implementing the customs and tariff policy and applying the union’s Customs Code and the law On Customs Regulation in the Russian Federation.

The regional economic integration within the Customs Union and the Common Economic Space will make for favourable conditions to provide advantages for Russian, Kyrgyz, and Belarusian companies on the three countries’ markets. The incentives will allow the expansion of domestic economic links, thus establishing a developed domestic competitive environment, which, in combination with measures to liberalise foreign trade with third countries, will have its effect on the collective customs and tariff protection of the common market. The measures of the custom tariff regulation will lose their urgent anti-crisis character but instead will become fine-tuned and a galvanising force for the implementation of the industrial and structural policy within the Customs Union.

4. Major characteristics of the state non-budgetary funds budget for 2012 and the planned period of 2013 and 2014

5. Draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation In Connection With Introducing Civil Service Rotation

The draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation In Connection With Introducing Civil Service Rotation has been developed and introduced to the government by the Ministry of Healthcare and Social Development to execute the instruction that appears in sub-paragraph “b” of paragraph 2 of the National Plan to Combat Corruption for 2010 and 2011, approved by the Russian President’s decree No. 460 of April 13, 2010, and to execute the sub-paragraph “g” of paragraph 3 of the government’s directive No. SI-P16-2924 of May 7, 2010.

Seeking to reinforce the normative and legal reinforcement of state civil service, the draft law implies introducing amendments to the federal laws On the System of Civil Service in the Russian Federation, On the State Civil Service in the Russian Federation, On Introducing Amendments to Certain Legislative Acts of the Russian Federation Due to Ratification of the United Nations Convention Against Corruption of October 31, 2003, the Criminal Law Convention on Corruption of January 27, 1999, and envisages adopting the federal law On Counteracting Corruption and the Housing Code of the Russian Federation.

The draft law establishes that the federal civil service rotation will be performed solely for those replacing the positions in the “executives” category in the local agencies of federal executive bodies that exercise controlling and supervising functions.

Rotation for other positions of the federal civil service, included on the list of the register of federal state civil service positions, can be performed in accordance to the class-lists of federal state civil service positions approved by the Russian President and developed on the basis of proposals from federal executive bodies controlled by the Russian Government.

The draft law determines the conditions, terms, and procedure of state civil servants rotation, and establishes state guarantees for civil servants subject to rotation.

The draft law has no connection with the Guidelines for the Russian Government’s Activities until 2012, approved by the executive order No. 1663-r of  November 17, 2008 issued by the Russian Government

The draft law stipulates implementing rotation of civil servants to increase efficiency of civil service and combat corruption through appointing civil servants to other civil positions in different state bodies and establishes state guarantees for civil servants subject to rotation.

Due to the additional 322.5 million roubles required on an annual basis from the federal budget to provide state guarantees to state civil servants to be employed in other regions, the draft law is planned to enter into effect beginning January 1, 2013.

The draft law will neither lead to an increase in the number of the state government bodies of Russia’s constituent entities and/or local government bodies, nor will it require additional allocations from corresponding budgets.

6. Draft federal law On Introducing Amendments to the Federal Law On Production and Consumption Waste and Other Legislative Acts Concerning Economic Stimulation in Waste Treatment

The draft law aims to economically stimulate the decrease in the production and storage of waste, including its use in economic circulation as secondary material resources, and reduce the negative impact on the environment during waste disposal.

Currently, the insufficient raw material processing results in both waste production growth and an increased volume of residual products subject to disposal.

The draft law specifies the established authorities of executive bodies of Russia’s constituent entities as regards to:

- accepting reports on waste production, use, detoxifying and placement, submitted by small and medium-sized business entities through notification;

- opportunities to include estimated figures and events, aimed to reduce the amount of domestic solid waste subject to be disposed, and approval of balance sheet schemes for production and consumption waste generation and disposal through ecologically friendly methods in regional programs for social and economic development.

The draft law stipulates the manufacturer’s commitment to dispose the manufactured finished products and packing materials that lost their usability in accordance with the law established by the Russian Government. Executive bodies of Russia’s constituent entities are authorized  to establish the procedure of accepting the reusable packing materials upon the earlier submitted security.

The proposed measures of government control and regulation will allow an increase in waste disposal volumes, which will result in saving raw and material resources and reducing the volume of waste to be buried.

Seeking to stimulate construction of environmentally safe facilities for waste disposal, the draft law proposes the absence of fees for waste emplacement at specialised waste disposal facilities equipped with engineering security systems and not directly affecting the environment.

The adoption of the draft law will provide for a decrease in both the volume and production of waste to be buried, particularly through using it for economic purposes as secondary material resources, and it will allow for the reduction of waste emplacement’s negative impact on the environment.

The proposed adjustments of the available authorities of the constituent entities’ state government bodies will not result in new budget expenditure commitments for the entities, as the specified authorities have already been established by the current legislative acts.

7. Draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation Concerning Improvement of Standardization in Environmental Protection and Introducing Economic Stimulation of Economic Entities for the Implementation of Best Technologies

The draft law aims to establish a new system of actions  for regulating the negative impact on the environment and a set of economic stimulus measures for introducing the best available technologies and making efforts to decrease environmental pollution.

In accordance with the criteria established by the Russian Government, the draft law determines three categories of facilities for economic activity:

  • environmentally hazardous facilities
  •  moderate environmental impact facilities
  •  insignificant environmental impact facilities

The draft law envisages:

a. As regards environmentally hazardous facilities:

- determining allowable standards for emission and pollutants discharge, as well as waste disposal limits, through an overall permission to replace the current three types of individual permissions;

- exercising state ecological control and state ecological expert review on a federal level.

b. As regards moderate environmental impact facilities:

- submitting declarations on planned volumes of emissions and pollutants discharge at the facilities, with the estimated standards for allowable emissions and pollutants discharge included, in accordance with the established procedures and methods.

c. As regards insignificant environmental impact facilities:

- submitting reports on actual emissions and pollutants discharge volumes by notification.

Due to requirements on obtaining environmental permits now being excluded for the vast majority of business entities, the draft law proposes:

- to introduce a state electronic data system of governmental accounting for facilities that have negative impact on the environment, and determine requirements for its establishment and use;

- to maintain the current system of a gradual switch to the standards for allowable emissions and pollutants discharge by specifying norms for temporarily authorized discharges and emissions while measures on reducing negative impact are implemented, with their duration not exceeding 7 years (which is the investment cycle period) and not to be prolonged;

- to confirm the basic principles for introducing and regulating the best technologies available in the Russian Federation, and develop the basics for technologic standardization based on such technologies and determine its field of application.

The draft law envisages that indicators of emissions, discharges, and water and energy consumption, determined at a rate per one output unit and utilized in technologic standardization system for certain environmentally hazardous enterprises, should be used to calculate the best available technology. The draft law proposes the use of international reference books on the best technical methods as a basis.

Seeking to economically stimulate the introduction of the best available technologies by business entities, the draft law stipulates the following amendments to the Tax Code of the Russian Federation as regards:

- reducing the taxable base through specifying equipment maintenance expenses as financial expenditures;

-  providing investment tax credits with full reimbursement of expenses for interest payment;

- applying the additional coefficient 2 for the equipment depreciation rate.

The stimulating measures implied in the draft law include certain pollution fee benefits, namely:

-  establishing the order of adjusting the fee for negative impact on the environment, with the taxpayer’s actual expenditures on measures for decreasing negative environmental impact held back from the calculated sum to be paid for  the environmental impact fee;

- cancellation of the negative environmental impact fee in case the best available technology is used.

In addition, the draft law proposes to toughen economic sanctions against economic entities that perform activities exceeding admissible levels of impact on the environment through introducing the coefficients of 25 and 100 for rates of the environmental fee, instead of the current 5 and 25, at the end of the three-year period dating from the law’s inception.

The draft law implies that the government establishes a list of the economic facilities of large social and economic importance, which amid new conditions will face risks of a shutdown, bankruptcy, or growing costs of producing socially important amenities, such as electricity and water. For such facilities, temporarily authorized discharges are permitted, without planned measures for environmental protection.

Due to the necessity to gradually introduce certain provisions and organize work for switching to a new system of regulation in environmental protection, the draft law establishes a gradual transition period of 14 years dating from the law’s inception.

Aiming to bring the Federal Law On Environmental Protection into conformity with the suggested provisions, the draft law proposes to introduce amendments to the following federal laws:

- On Protection of Atmospheric Air and On Production and Consumption Wastes;

- On Ecological Appraisal;

- Town-Planning Code of the Russian Federation;

- Administrative Offences Code of the Russian Federation.

The draft law will allow:

- lessening anthropogenic load on environmental components down to levels which best corresponds to environmentally safe global technologies;

- reducing administrative barriers which occur during exercising economic and other activities;

- modernizing available production facilities through introducing the best current technologies available.

8. Draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation Concerning Improvement of Recognition Procedures for Certificates of Education, Academic Degrees and Academic Titles

The draft law aims to improve the recognition procedure for foreign issued documents of education, academic degrees and titles, to boost competitiveness of the national scientific and educational sector through simplifying the access to further academic professional career in Russia for highly trained foreign professionals, as well as to develop international academic mobility.

The draft law proposes that foreign documents and certificates of education or/and qualification, falling within the corresponding international law on mutual recognition and equivalence, should be recognized without any additional procedures.

In a similar manner, the draft law proposes recognition of documents issued by basic foreign educational institutions, with their list to be established by the Russian Government. Otherwise, the recognition of a foreign document on education and/or qualification is to be implemented upon citizens’ applications by a federal executive body that exercises control and supervision in the educational sector.

The draft law adoption will provide the opportunity for automatic recognition of documents of education, qualification, academic degrees and titles, issued by basic foreign scientific organizations.

9. Submitting to the Russian President a proposal on signing the Russian-Swedish intergovernmental agreement on transit of weapons, military equipment, property and personnel via Russian territory due to the Swedish Armed Forces’ involvement in efforts to stabilise and restore the Islamic Republic of Afghanistan

The submitted draft resolution of the Russian Government proposes to approve the draft agreement and submit to the Russian a proposal on its signing.

The agreement provisions establish international regulations for providing the air transit of military cargoes, including weapons and personnel, via Russia for the Swedish Armed Forces heading to participate in operations conducted by the International Security Assistance Force (ISAF) in Afghanistan.

10. Submitting to the Russian President for introducing for subsequent ratification the Russian-Abkhaz Agreement On Cooperation and Mutual Aid in Customs Affairs

The draft resolution proposes to approve and submit the Russian-Abkhaz Agreement On Cooperation and Mutual Aid in Customs Affairs, signed in Sukhumi on October 16, 2010, to the Russian President for its further introducing to the State Duma for ratification.

The agreement seeks to strength the partnership in customs affairs, combat customs violations, facilitate passenger and freight traffic between Russia and Abkhazia, recover customs charges in full, and observe bans and limitations set on goods transported through the border between the two states in accordance with their corresponding laws.

In accordance with Article 15 of the Federal Law On International Agreements of the Russian Federation, the agreement is subject to ratification following its approval as it contains regulations different than those stipulated by the laws of the Russian Federation.

11. Allocating to the Government of the Republic of Dagestan budgetary provisions from the Reserve fund of the government of the Russian Federation  for the Prevention and Liquidation  of Emergencies Situations and the Aftermath of Natural Disasters to compensate damages inflicted to individuals during a terrorist act in the town of Khasavyurt, Dagestan, January 14, 2011

12. Allocating to the Government of the Republic of Dagestan budgetary provisions from the Reserve fund of the government of the Russian Federation  for the Prevention and Liquidation  of Emergencies Situations and the Aftermath of Natural Disasters to compensate the damage  caused during the counterterrorist legitimate operation carried out in the town of Khasavyurt, Dagestan, January 27, 2011

Moscow

July 6, 2011

* Press releases by the Department of Press Service and Information 

contain the materials submitted by the executive federal bodies for 

discussion by the  Government meeting