PRESS RELEASE*
The following issues are scheduled for discussion at the Dec. 27, 2011 Government meeting:
1. Government securities in 2012: Amount issued
Under the Federal Law On the Federal Budget for 2012 and the Planning Period for 2013 and 2014, a state internal borrowing programme for 2012 will be approved. Under the programme, borrowing for 2012 through the emission of state securities whose face value is denominated in the Russian currency amounts to 1,208.8 billion roubles (1,809.3 billion roubles borrowed and 600.5 billion roubles redeemed).
The federal law also authorises the government to make decisions in 2012 on exchanging federal loan bonds with a face value of up to 200, 000,000,000 roubles with their owners' consent for federal loan bonds (OFZs) of other emissions. For the purpose of exchanging OFZs, it is proposed to issue up to 130,216,159,000 roubles worth of OFZs at 100% of their face value.
The amount of money borrowed in the capital market under the programme will be 1,679,060,970,800 roubles without taking into account the exchange of OFZs in 2012.
The emission of state securities denominated in the Russian currency in the amount required to execute the programme will be 1,713,500,620,000 roubles without taking into account the emission of state securities as part of the exchange of OFZs and proceeding from the average emission price of 98% of the face value.
Thus, the total maximum amount of the emission of state securities denominated in the Russian currency in 2012 will be up to 1,843,716,779,000 roubles, including the emission of state securities in the amount of up to 130,216,159,000 roubles as part of the exchange of OFZs.
The government's draft directive on approving ceilings for the emission of state securities denominated in the Russian currency sets the maximum amount of the emission for 2012 at no more than 1,843.7 billion roubles.
The Federal Law On the Federal Budget for 2012 and the Planning Period for 2013 and 2014 envisages the approval of the Programme of the State External Borrowing of the Russian Federation in 2012, whereby the 2012 borrowing amount through the emission of state securities denominated in a foreign currency is $7 billion.
The draft government directive on establishing the maximum amounts of the emission of state securities denominated in foreign currencies sets the limit for the emission in 2012 at no more than $7 billion.
Under Article 114 of the Budget Code, the ceiling for the emission of state securities at face value is established by the government in line with the upper limit of the sovereign debt of the Russian Federation as set by the Federal Law On the Federal Budget for the next fiscal year and planning period.
2. Draft federal law On the Ratification of the Protocol to the Agreement between the Government of the Russian Federation and the European Space Agency on the Establishment in the Russian Federation of the Permanent Representative Office of the European Space Agency and Its Status of April 10, 1995
The draft federal law has been submitted by the Ministry of Foreign Affairs.
The Protocol to the Agreement between the Government of the Russian Federation and the European Space Agency on the Establishment in the Russian Federation of the Permanent Representative Office of the European Space Agency and Its Status of April 10, 1995 was signed in Moscow on Sept. 24, 2010 and seeks to increase the amount of privileges arising from the tax exemption of the European Space Agency (ESA) and its Permanent Representative Office in the Russian Federation in accordance with the legislation of the Russian Federation.
In addition to the provision concerning direct taxes and levies envisaged under the agreement, the protocol envisages the exemption of the ESA from VAT on goods and services sold on the Russian territory and intended for official use by the ESA and its permanent representative office.
Under the Tax Code, the use of the zero VAT rate will be determined in accordance with the legislation of the Russian Federation concerning the application of the 0% tax rate for VAT when selling goods and services for official use by international organisations and their representative offices conducting their activities on the country’s territory.
The ESA Permanent Representative Office performs the important function of maintaining uninterrupted prompt communications between the agency and its contracting European research organisations and aerospace enterprises and the Federal Space Agency and the Russian industry. This circumstance contributes substantially to the successful implementation of cooperation programmes and projects in the exploration and use of outer space for peaceful purposes.
The protocol is subject to ratification under the Federal Law On International Treaties of the Russian Federation.
3. Introducing Amendments to Certain Acts of the Government of the Russian Federation
The draft resolution has been submitted by the Ministry of Industry and Trade
The draft comprehensively implements the government’s decisions on the transfer to the Federal Tax Service of the function of maintaining the State Register of Control and Cash Registration Technology. Therefore, the draft strips the Ministry of Trade and Industry of the powers to maintain the State Register of Control and Cash Registration Technology and vests the Federal Tax Service with these powers.
In addition, the draft introduces relevant amendments to the Rules of Maintenance of the State Register of Control and Cash Registration Technology, requirements to its structure and body of necessary data.
4. On forming an organising committee for the preparation and holding of the Twenty-First World Petroleum Congress in Moscow in 2014
The draft directive has been submitted by the Ministry of Energy.
The World Petroleum Congress is organised by the World Petroleum Council once in three years. It will be held during five days in the first half of June 2014.
The establishment of the Organising Committee for the Twenty-First World Petroleum Congress in Moscow in 2014 and the determining of the participants make it possible to prepare the event properly. The next congress' programme is being prepared by the International Programme Committee, while the host country must provide the conditions for efficiently organising and holding the event.
Moscow, Dec. 26, 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 meeting.
