PRESS RELEASE*

The following issues are scheduled for discussion at the Government Presidium meeting on December 22, 2011

1. Progress in the implementation of federal targeted programmes and implementation of the Federal Targeted Investment Programme in nine months of 2011

The materials on the issue have been submitted by the Ministry of Economic Development.

Results of the implementation of federal targeted programmes in nine months of 2011

The amount of budget allocations for the 54 FTPs and the two state programmes included in the public portion of the 2011 federal budget is 924.04 billion roubles, according to the Federal Treasury as of November 1, 2011.  Cash spending over nine months of 2011 on the above programmes amounted to 533.19 billion roubles (57.7% of budget allocations for 2011).

During the reporting period, state contracts were being implemented under the programmes (including contracts for previous years) in the amount of 702.41 billion roubles (78.9% of 2011 budget allocations). For comparison, during the same period in 2010 the allocations amounted to 603.8 billion roubles or 79.2% of the annual budget allocations.

Contracts have been signed for above average amounts (from 78.9% to 90% of 2011 budget allocations) for 15 programmes and for amounts of between 50% and 78.9% for 17 programmes.

Under the Defence Ministry FTP “Industrial Disposal of Arms and Military Technology in 2011-2015 and Until 2020” the practical activities in the reporting period were carried out within the framework of the State Defence Order for 2011 and the Planning Period of 2012 and 2013 (contracts have been signed for 51% of annual budget allocations).

Co-financing for the implementation of FTP activities during the reporting period from the budgets of the constituent entities of the Russian Federation,  municipal budgets and extra-budgetary sources amounted to 548.74 billion roubles (30.5% of the annual target) which is much lower than in the same period in 2010 (46.6%).

Results of FTIP implementation in nine months of 2011

The construction, reconstruction, modernisation and purchase of property, as well as the implementation of measures (of integrated investment projects) included in the FTIP (as amended by the Ministry of Economic Development on October 1, 2011) is to be financed out of the federal budget in the amount of 918.1 billion roubles, including subsidies for co-financing of capital construction of state-owned property of the constituent entities of the Russian Federation (municipal property) in the amount of 136 billion roubles.

During the reporting period the cost of financing construction projects, facilities and activities (including the financing of design and exploration work) of the FTIP out of the federal budget (including the State Defence Order) amounted to 428 billion roubles, or 46.6% of the total amount of budget investments earmarked for the FTIP in 2011.

During the same period in 2010 the level of funding for implementing the FTIP was 46.9%.

As part of the FTIP, 3,552 objects (not including state defence objects) are scheduled to be financed in 2011 (taking into account the amendments that have been made). Out of that number 3,060 are federal property objects, 362 are owned by the constituent entities of the Russian Federation and 130 are owned by open joint stock companies.

For comparison, as of the end of the third quarter of 2010, more than 1,800 construction projects, objects and activities were financed under the FTIP. The substantial increase in the number of objects included in the FTIP in 2011 is due in part to the fact that, unlike last year, the FTIP also includes activities and measures involving regional and municipal property.

In 2011, 1,618 objects, or 45.6% of the total number, are to be put into operation.  Almost all the launches of new facilities are planned for the second half of 2011.

2. Measures taken in 2011 by federal executive bodies on the provision of forest fire safety 

The materials on the issue have been submitted by the Federal Agency for Forestry (Rosleskhoz).

The Government has carried out a series of measures aimed at creating an effective system of forest fire protection.

In 2011 the Government of the Russian Federation issued eight resolutions on fire safety in forests, on extinguishing forest fires, including establishing the requirements for fire safety measures in forests depending on the purpose for which lands and forests are used, the procedures for drafting and approving the rules for extinguishing forest fires.

During the fire season the operations headquarters of Rosleskhoz held daily meetings (via videoconference) on how to tackle forest fires, and reviewed the situation of how to prevent and fight forest fires.

A specialised dispatch service for forest fire protection was formed at all  levels of management, from the federal centre down to each individual forest.

This year Rosleskhoz began work to create a 200-strong airborne fire service (from the federal reserve).

Technologies are being developed for the early detection, extinguishing and prevention of forest fires, including a system of early warning of forest fires using thermal vision and television surveillance methods.

In 2011 the Emergencies Ministry carried out work to ensure that the authorities, personnel and equipment, which form a unified national system of prevention and disaster relief, was ready and able to protect the population and economic facilities from forest fires. A task force was formed from the units of the Emergencies Ministry, the Interior Ministry, the Defence Ministry and the Forestry Agency with a total strength of 929,000 personnel and 192,000 units of equipment. It was agreed that during the high fire risk period 105 aircraft from the Defence Ministry, the Interior Ministry and the FSB will be brought in, for which water discharge devices are being purchased.

To prevent emergencies situations arising from forest fires, inspections have been held to certify the readiness of all Russian regions for the  start of the fire-risk period. All the communities and gardening associations that border forest areas have been certified, with 11,326 communities and 6,355 gardening partnerships having been registered.

In 2011, 72,000 personnel and 13,000 units of fire fighting equipment were used to extinguish forest fires and Emergencies Ministry aircraft made 8,507 flights.

The Ministry of Natural Resources and the Ministry of Defence took measures to enhance the protection of forests located within their respective jurisdictions and to provide equipment for fire-chemical stations.

Extensive work to prepare for fighting forest fires has been carried out by the Russian regions: more than 6,000 km of new forest roads intended to protect forests against fire have been built and 11,200 km have been repaired, 221,000 km of anti-fire mineralized strips and  breaks have been created. In addition, work has been carried out to create anti-fire mineralized strips around populated communities and economic facilities, with a total length of 150,000 km.

To improve the fire safety of communities bordering on forests, 8,000 volunteer associations of firemen comprising 82,000 people, as well as voluntary fire-fighting squads in 4,127 organisations, have been formed.

In 2011 the federal budget allocated 4.5 billion roubles for protecting forests from fires, which is double the amount in 2010. The regions for their part contributed 4.7 billion roubles for the protection and regeneration of forests. Massive work has been carried out to replenish the fleet of fire-fighting vehicles (1,900), for which the federal budget issued targeted subsidies in the amount of 5 billion roubles to 51 regions. In addition, the Defence Ministry is transferring free of charge to 59 regions 2,199 units of mobile water stations to be converted into fire engines. In the Moscow Region 19,000 hectares of peat deposits have been watered, and the sections of the forest where peat fires occurred in 2010 are being constantly monitored. Agreement has been reached with the Government of the Moscow Region on which sections of the forest need to be watered in 2012 and 2013.

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Since the start of the high fire risk season this year, the area affected by fires has dropped by 470,000 hectares to 1.636 million hectares compared with the same period last year, the number of fires has dropped by a factor of 1.6, the area swept by crown fires, the most destructive type of fire, has dropped by a factor of 4.5. Direct damage caused by forest fires this year was 4 times less than in 2010 (amounting to 20 billion roubles).

3. Draft interstate targeted programme of the Eurasian Economic Community “Recultivation of the Territories of the EurAsEC Member States Exposed to the Impact of Uranium Production” for 2013-2018

The draft executive order has been submitted by the Ministry of Economic Development.

The draft executive order approves the draft interstate targeted programme of the Eurasian Economic Community “Recultivation of the Territories of the EurAsEC Member States Exposed to the Impact of Uranium Production” for 2013-2018.

The main aim of the programme is to implement a pilot project for the recultivation of areas aimed at uniting the efforts and creating common radiation security systems for EurAsEC member states, which will ensure further development of cooperation between the EurAsEC member states in the use of nuclear energy and make such interaction more effective.

The programme envisages recultivation of two areas in the Republic of Kyrgyzstan and one in the Republic of Tajikistan.

The programme is to be implemented in two stages.

The first stage (2013-2016) envisages research and design and exploration work, development of the structure and the main elements of the system of radiation safety of the territories of the ErAsEC member states exposed to uranium production, the development of a plan of building and assembly work and the approval of such a plan by the government bodies of the Republic of Kyrgyzstan and the Republic of Tajikistan.

The second stage (2017-2018) includes the actual construction and assembly work aimed at recultivating selected radiation-prone sites in the Republic of Kyrgyzstan and the Republic of Tajikistan.

The programme will be financed by the EurAsEC budget using contributions paid by the member states in the following amounts: Kyrgyzstan and Tajikistan 5% each, Kazakhstan 15% and the Russian Federation 75%.

The estimated cost of the entire programme is 1,155,971,030 roubles.

4. Draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation in Terms of Improving the Mechanism of Mortgages on Land Plots Intended for Agricultural Use

The draft federal law has been prepared by the Ministry of Agriculture. The draft law fixes the mechanism of decision-making in the process of mortgaging a plot of farmland that is common shared property. Under the provisions of the law the decision to mortgage and the terms of the mortgage of plots of farmland belonging to the body of shared property is made by a general meeting of the shareholders. Under Article 14.1 of the Federal Law On Agricultural Land Turnover a decision is deemed to be valid if it has the votes of the participants of the general meeting who between them own more than 50% of the total number of shares, or the majority of the participants of the general meeting.

The draft law would introduce amendments to the federal laws On mortgage (pledge of immovable
property) and On Agricultural Land Turnover that envisage that the mortgaging of plots of land intended for agricultural use is carried out in accordance with the civil law and the federal law On Agricultural Land Turnover.

The draft law would expand mortgaging opportunities in agriculture by bringing in agricultural land that is common shared property.

5. Introducing amendments to certain acts of the Government of the Russian Federation on providing notification of the commencement of certain types of business activities

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

The federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation on State Control (Supervision) and Municipal Control introduced amendments to Article 8 of the Federal Law On Protection of the Rights of Legal Entities and Individual Entrepreneurs
during the State Control (Supervision) and Municipal Control (Supervision) that expand the list of types of entrepreneurial activities that can be started after notifying the state control (supervision) bodies.

The current list of services for which only the notification, and not a permit, is needed increases from 43 to 68 types of activities.

The draft resolution is aimed at implementing measures to reduce administrative restrictions in entrepreneurship connected with the simplification of the procedure for commencing certain types of business activities and for state control (supervision) in the corresponding spheres of the economy.

6. Submitting to the President of the Russian Federation a proposal to sign an Agreement between Member States of the Customs Union on Removing the Technical Barriers in the Way of Mutual Trade with the Member States of the Commonwealth of Independent States that are not Members of the Customs Union

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

The Customs Union is currently developing a regulatory framework in the sphere of technical regulation that would establish uniform requirements to products, rules and procedures of assessment (confirmation) of compliance. The members of the Commonwealth of Independent States that are not members of the Customs Union apply in their jurisdictions various requirements and procedures that differ from the requirements and procedures established within the Customs Union, which creates problems in mutual trade.

The draft resolution would approve the draft Agreement which sets forth the terms and procedures of possible use by any interested state of the technical regulations of the Customs Union and decisions of the Customs Union Commission required for their optional or mandatory use. That would significantly diminish the technical barriers in mutual trade with the states concerned through the application of uniform mandatory requirements of safety of products and assessment (confirmation) of compliance procedures. An optional regime of technical regulation means that the state in question, at its discretion, applies the technical regulations of the Customs Union alongside its current national technical regulations and other technical rules. Under the Agreement any interested state has the right to apply to the Eurasian Economic Commission to join one of the technical regulation schedules (optional or mandatory).

The draft Agreement also envisages several provisions which, if complied with, allow the Parties to recognise the results of the activities of the accredited certification bodies and test laboratories that assess (confirm) compliance within the national accreditation system of the state concerned. The inclusion of accredited certification bodies and laboratories of the interested state in the Single Register must be preceded by the presentation of the authorised body of the interested state in accordance with the criteria established by the Commission.

7. Signing  an Agreement between the Government of the Russian Federation and the Government of Democratic People’s Republic of Korea on Cooperation in the Prevention of Illegal, Unreported and Unregulated Harvesting of Marine Wildlife

The draft executive order has been submitted by the Federal Agency for Fishery (Rosrybolovstvo).

It proposes approving the draft agreement submitted by Rosrybolovstvo, agreed with the Russian Foreign Ministry and other relevant federal executive bodies and agreed with the Korean side, and to charge Rosrybolovstvo with holding negotiations with the Korean side and signing the said Agreement on behalf of the Russian government.

The spread of illegal, unreported and unregulated harvesting of marine wildlife resources both in the open sea and within the jurisdiction of the  coastal states is one of the most serious problems in fishing.

The draft Agreement is aimed at the preservation, management and regulation of marine wildlife, measures to prevent illegal, unreported and unregulated harvesting of marine wildlife resources and the export from the territories of the parties (the import to the territories of the parties) of marine wildlife resources (catches of live marine resources and products made from them) in violation of the laws of the signatory states.

Under Article 4 of the Agreement, the competent bodies of the signatory parties will issue a certificate for the objects of marine life exported from the territories of the signatory states confirming the legality of the catching of these marine resources. A copy of such a certificate will be sent to the competent body of the signatory state into whose territory the fish catches are to be imported.

For the import of catches of water bio-resources and products made from them the corresponding competent bodies of the signatory states will verify the original of the certificate presented by the importer against a copy thereof sent by the other signatory state. From the results of the verification a decision will be taken on whether to allow or forbid the import of live marine resources to the territory of the state.

To prevent the erection of additional administrative barriers for the exporters of fish products the certificate should be issued free of charge and within the shortest possible time. 

8. Introducing amendments to Russian Government Resolution No.703 of December 1, 2004.

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

The draft resolution would give the Russian Treasury the powers to perform the functions of founder of the federal state-owned institutions within its jurisdiction.

These institutions will be engaged in the following main types of activities:

● organising capital construction, current and capital repair of buildings and structures;

● maintenance of non-residential stock, utilities and other property and ensuring uninterrupted operation of the technical systems, equipment, buildings and structures;

● material and technical support (office equipment, copying equipment, including stationery, inventory, washing and cleaning materials, furniture, etc.);

● organising state procurement;

● ensuring the safety of existing equipment, utility supplies, materials and material values;

● organising the keeping of a document archive;

● provision of motor transport services;

● organising support of meetings of boards, conferences, and similar events.

At present the above types of services are provided by the relevant structural units of the Federal Treasury.

The above mentioned federal state-owned institutions will perform the functions of supporting the activities of the Treasury, which would optimise the managerial structure without increasing the number of civil service staff and thus contribute to the more effective management of state property.

The transfer of non-core functions of the Federal Treasury will ensure effective budgetary spending and proper performance of its functions.

9. Certain powers of the Ministry of Economic Development

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

The resolution would give the Ministry of Economic Development the powers to approve standard terms of lease agreements with regard to federally owned commercial premises, buildings and structures that are reserved for federal government agencies or federal state unitary enterprises, as well as being in the Treasury and would make it binding on the lease holder to use the object of real estate in accordance with its original purpose, to make timely repairs, maintain the object in good condition as well as insure the leased object against the risk of loss, shortfall or damage in favour of the lessor for the entire effective term of the lease agreement and make the lessee liable for causing damage to life, health and property of third persons.

In addition, the draft resolution would approve the rules of information exchange between the federal executive bodies and insurance associations as well as insurance organisations that are not members of insurance associations in administering the above types of insurance.

The draft resolution also makes it binding on the federal executive bodies to agree the draft contracts for the lease of federal property (take decisions on the transfer of a lease) only if they comply with the standard terms approved by the Ministry of Economic Development, unless otherwise provided for by other regulatory acts passed in accordance with the federal laws.

The adoption of the draft resolution would enhance the safety of state property that is leased out as well as streamlining the requirements the federal executive bodies present to lease holders when concluding contracts with them, which would make the transfer of federal property under lease more efficient.

10. Transferring to the Treasury of the Russian Federation Rostelekom shares by the state corporation Deposit Insurance Agency

The draft executive order has been submitted by the Ministry of Economic Development.

Under the plan for the participation of the Deposit Insurance Agency in preventing the bankruptcy of KIT Finance Investment Bank (an open joint stock company), the Agency has used the property contribution of the Russian Federation to acquire from KIT Finance Investment Bank 218.6 million ordinary shares of Rostelecom, worth 50,278 million roubles. The Agency acquired the Rostelecom shares at the price of 230 roubles per share.

The draft executive order envisages 218.6 million ordinary shares of Rostelecom being transferred by the Deposit Insurance Agency into the Treasury at the purchasing price in 2011. The shares are being transferred at the expense of the reduction of the property contribution of the Russian Federation made available to the state corporation to finance the activities envisaged under Federal Law No.175-FZ of October 27, 2008 “On Additional Measures to Strengthen the Stability of the Banking System in the Period Until December 31, 2011” by the amount equal to that spent by the Agency to acquire the same, i.e. 50,278 million roubles.

11.  Allocating subsidies to the budgets of the constituent entities of the Russian Federation to reward the best performing regional executive bodies in 2010

The draft executive order has been submitted by the Ministry of Regional Development. It will allocate 1 billion roubles in the form of subsidies to the budgets of Russian regions to reward the best performing executive bodies of the Russian regions based on the results for 2010.

The subsidies are to be distributed among the 10 regions of the Russian Federation that received the highest marks based on the results for 2010.

The draft executive order seeks to create additional incentives for the executive bodies of the Russian regions to improve the quality and efficiency of state management at the regional level and to raise living standards.

12. Allocating subsidies to the budgets of the constituent entities of the Russian Federation in support of measures to balance the budgets of the constituent entities of the Russian Federation in 2011

The draft executive order has been submitted by the Ministry of Finance. It proposes approving the allocation of subsidies to the budgets of the Russian regions to support measures to balance the budgets of Russian regions in 2011 in the amount of 6.2 billion roubles.

Financial support through subsidies to the Russian regions would help to stabilise the social and economic situation in these regions.

13. Allocating subsidies in support of measures to balance the budgets of the constituent entities of the Russian Federation in 2011 as part of state support of the implementation of comprehensive investment plans for the modernisation of single-industry municipal entities

The draft executive order has been submitted by the Ministry of Finance. It proposes approving the allocation of subsidies to the budgets of Russian regions in support of measures to balance the budgets of Russian regions in 2011 as part of state support for the implementation of comprehensive investment plans for the modernisation of single-industry municipal entities. The total amount of subsidies is 1.5 billion roubles.

Financial support of the budgets of Russian regions through the provision of subsidies will help to implement a complex of measures aimed at carrying out investment projects that would diversify the economies of such municipal entities and cushion the impact of the crisis on the labour market.

14. Allocating in 2011 to the Government of the Republic of Dagestan  state housing certificates to be distributed to people who lost their housing as a result of torrential rain and hail in May 2011 in the Republic of DagestanThe draft executive order has been submitted by the Emergencies Ministry.

As a result of the torrential rain and hail that affected the Republic of Dagestan in May 2011, considerable damage was caused to residential property, housing and communal services, social services, the agriculture industry and transport facilities. Thirty-six households have been declared unfit for human occupation.

The draft executive order would instruct the Finance Ministry to issue to the Government of the Republic of Dagestan in 2011 36 state housing certificates to be distributed to the citizens who lost their homes as a result of  this disaster.

15. Allocating in 2011 to the Government of the Republic of Dagestan budget money 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   and issuing state housing certificates  in compensation for the damage caused during the legitimate action to suppress a terrorist act in the village of Kani (Kulinsky District, Republic of Dagestan) on March 22, 2011

The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief. It envisages:

● the allocation of 672,200 roubles to the government of the Republic of Dagestan in 2011 out of 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 finance the cost of compensation for the damage caused by legitimate actions to suppress a terrorist act in the village of Kani (Kulinsky District, the Republic of Dagestan) on March 22, 2011;

● an instruction to the Ministry of Finance to issue to the Government of the Republic of Dagestan in 2011 one state housing certificate to be made available to the citizen who lost his home as a result of the operation to suppress this terrorist act.

16. Allocating in 2011 to the budget of the Government of the Republic of Bashkortostan and the Russian Defence Ministry of budget money 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 provide relief efforts following the  explosions at  Defence Ministry ammunition depots on May 26, 2011 in the village of Urman (Republic of Bashkortostan)

The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief .As a result of the explosion of ammunition at the artillery ammunition depots of the Russian Defence Ministry on May 26, 2011 and the resulting fires in the village of Urman (Iglinsky District, the Republic of Bashkortostan), 40 structures, including residential houses, were destroyed, utilities and social amenities  damaged, the life of more than 2,680 people, including 700 children, disrupted and 53 families left homeless.

The draft executive order would allocate 62,296,100 roubles in 2011 out of the Reserve Fund of the Government of the Russian Federation for Emergency Prevention, Emergency Relief and Disaster Relief to cover part of the cost of cleaning up in the aftermath of the explosion of munitions at the Defence Ministry depots on May 26, 2011 in the village of Urman (Republic of Bashkortostan).

17. Allocating in 2011 to the Government of the Republic of Sakha (Yakutia)  budget money 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 conduct relief efforts following the flood in the Republic of Sakha (Yakutia) in May, 2011

The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief. As a result of the flood in the Republic of Sakha (Yakutia) in May 2011, more than 1,900 residents have been affected, and housing and utilities, social amenities and transport infrastructure has been damaged.

The draft executive order would allocate 62,244,700 roubles in 2011 to the Government of the Republic of Sakha (Yakutia) out of 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 conduct relief efforts following the flood in the Republic of Sakha (Yakutia) in May 2011. 

Moscow,

December 21, 2011

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