PRESS RELEASE*
The following issues are scheduled for discussion at the Government Presidium meeting on February 9, 2012:
1. Preliminary results of measures to improve the investment climate
The materials have been submitted by the Ministry of Economic Development. In 2011, important amendments were introduced to legislation under the Plan of Measures to Improve the Investment Climate and Enhance Investment Activities in the Russian Federation in 2011.
In the Urban Development Code, the time allocated for expert examinations has been reduced from 90 to 60 days and liability mechanisms for inadequate expert examinations have been established.
Laws have been adopted envisaging, among other things, simplified requirements to the list and procedure for preparing territorial planning, urban development zoning and territory layout documents, as well as for recognizing foreign educational documents, qualifications, scientific degrees and scientific ranks in the Russian Federation.
Access to engineering and technical supply networks has been streamlined. An expert review is being conducted of the regulatory acts of federal executive bodies with the option to abolish such acts. The forms and rules for filling in documents used to calculate the VAT have been approved.
Departmental acts on significant investment climate issues have been adopted.
Pursuant to President Dmitry Medvedev's directives, the Government has developed a mechanism for cutting state procurement costs. A procedure for publishing information on proposed procurements by major state companies ahead of time has also been introduced.
The tax load on the wage fund has been left at the 2010 level.
The procedure for foreign investment in businesses of strategic importance for the country’s defence and security is being simplified.
Major blocks of shares owned by the state are being privatised.
State participation in the economy is being scaled down by including independent and trust directors in the boards of directors and supervisory boards of joint stock companies with state participation.
To improve the investment climate in the constituent entities of the Russian Federation, authorised presidential investment representatives have been appointed. In 2011, these representatives received 181 complaints from investors.
As part of activities to protect investors' rights, First Deputy Prime Minister Igor Shuvalov, the authorised representative for handling investors' problems, has received 83 complaints. Sixty-two have been addressed.
Attention is being paid to further creating institutional mechanisms to improve the investment climate and attract investments.
Therefore, the Russian Direct Investments Fund was created in 2011 to stimulate foreign investment, with 62.6 billion roubles allocated for the purpose from the federal budget.
To promote specific projects and new businesses, the Strategic Initiatives Agency has been formed. The agency operates by supporting projects and eliminating systemic restrictions on businesses revealed during their implementation. Over 2,000 projects have been submitted to the ASI so far.
In November 2011, the SIA has developed a Standard of the Activities of Executive Bodies of a Constituent Entity of the Russian Federation to ensure a favourable investment climate in the regions. The SIA standard aims to regulate investment activities in the regions and describes the normative documents and organisational decisions to be adopted by a constituent entity. The SIA standard will be tested in six regions: the Republic of Tatarstan, the Perm Territory, the Lipetsk Region, the Kaluga Region, and the Sverdlovsk and Ulyanovsk regions.
After analysing the best practices of attracting investments, the national non-governmental organisation Delovaya Rossiya has developed a model programme for Improving the Investment Climate in the Constituent Entity of the Russian Federationies.
The programme was approved by the Ministry of Economic Development. As of January 2012, 69 of 83 constituent entities had approved similar programmes, while 14 regions were in the process of developing such programmes.
The Export Credit Insurance Agency has commenced working in 2011 as a 100% subsidiary of Vneshekonombank with an authorised capital of 30 billion roubles. The agency supports domestic exports and investments abroad by ensuring credit and political risks.
2. Results of the 2011 review of the validity of decisions taken by the executive bodies of constituent entities of the Russian Federation on state electricity tariff regulation
Materials on the issue have been submitted by the Federal Tariffs Service.
In 2011, the Federal Tariffs Service conducted inspections revealing violations of legislation on state tariff regulation in practically all of the constituent entities after checking over 11,000 tariff decisions made by regional executive bodies.
The Federal Tariffs Service has sent to the executive bodies of constituent entities requests for reasonable tariffs (3,166 decisions), or requests to harmonise them with state price regulation legislation.
Some of the most common violations on behalf of the executive bodies are violations of the methodology of developing and establishing tariffs, violations of the tariff decision structure, violations of the maximum tariff level approved by the Federal Tariffs Service, the introduction of consumer groups not stipulated by law.
In the course of comprehensive inspection activities, special attention has been paid to the validity of tariffs established by the executive bodies of the RF constituent entities. .
Therefore, the executive bodies in some regions, while establishing household electricity tariffs in 2011, violated the methodology of forming tariffs and the tariff ceilings approved by the Federal Tariffs Service.
Many tariff decisions taken by regional regulators in regards to electricity, heating and power transmission services were made in violation of the tariff decision structure approved by the Federal Tariffs Service.
It is also worth noting such violations of the law as violations of the procedure for considering applications to establish tariffs, or the unreasonable refusal by regional regulators to establish tariffs for applicants.
As a result of inspection activities conducted by the Federal Tariffs Service, the relevant amendments were introduced by regional regulators to eliminate irregularities and bring electricity, heating and power transmission services in line with legislation.
It should be mentioned that household electricity tariffs in all of the constituent entities increased by no more than 10% as a result, which corresponds with the country's social and economic development forecasts for 2011 and the planning period for 2012 and 2013.
3. GLONASS system: Support, development and use in 2012-2020
The report has been submitted by the Federal Space Agency.
During the Global Navigation System (GLONASS) federal targeted programme, which ended in 2011, 24 GLONASS-M satellites were put into orbit, which ensures the navigation system's 100% accessibility.
Flight tests have started of new generation GLONASS-K satellites with improved tactical and technical characteristics and a lifespan of up to 10 years.
The priority tasks for 2012 are:
● maintaining the number of the system’s satellites in orbit;
● completing the ground control complex's planned modernisation;
● continuing the GLONASS-K satellites' flight tests;
● ensuring the coordination of the large-scale introduction of satellite navigation technologies in various spheres of the economy.
Roscosmos, jointly with the relative federal executive bodies, has developed and submitted to the Government a draft federal targeted programme for the GLONASS system's maintenance, development and use in 2012-2020.
The programme's goals are:
● expanding the system's use for special and civil (including commercial and scientific) consumers;
● developing its international use.
The programme's primary tasks are:
● maintaining the system and its guaranteed navigation characteristics at a competitive level;
● developing the system to improve its tactical and technical characteristics to ensure its parity with foreign systems;
● ensuring the use of the system inside and outside Russia.
As a result of the programme's implementation, improvements of the system's tactical and technical characteristics are expected in terms of the accuracy and accessibility of navigation data, which will contribute to:
● the system's more effective use for the armed forces;
● reducing the share of transport costs in production costs, and greater cargo and passenger carriage safety;
● improving the quality and increasing the quantity of services provided by the system, more effective geologicexploration, construction, communications, power generation and distribution and agriculture;
● the creation of new military and civilian technologies;
● the increased demand for newly produced technological products, the introduction of modern technologies in the activities of a wide range of suppliers for space industry enterprises and enhanced product competitiveness;
● the creation of new hi-tech production facilities in Russia and ensuring that products are competitive on global markets.
4. Draft federal law On Introducing an Amendment to Article 5 of the Federal Law On the Judiciary Department under the Supreme Court of the Russian Federation
The draft federal law has been submitted by the Ministry of Finance.
The Federal Constitutional Law On General Jurisdiction Courts in the Russian Federation envisages that the total number of Supreme Court judges and judges of other federal general jurisdiction courts, and the number of the staff at the Supreme Court and general jurisdiction courts are established by the federal law On the Federal Budget for the ensuing fiscal year and for the planning period.
The draft law proposes similarly regulating the issue of the number of workers of the Supreme Court's Judiciary Department and the Judiciary Department's directorates in constituent entities by introducing amendments to Article 5 of the Federal Law On the Judiciary Department under the Supreme Court of the Russian Federation.
5. Draft federal law On Introducing Amendments to Article 16 of the Law of the Russian Federation On the Status of Judges in the Russian Federation and Article 9 of the Federal Law On Operational Investigative Activities
The draft federal law has been submitted by the Ministry of Justice.
The amendments proposed by the draft law will make possible the consideration of operational-investigative activity materials with regard to district, specialised court judges and justices of peace. This will be achieved not only by the court where the operational-investigative measures are implemented, or where the competent body commissioning these measures is located, but also by another court of the same instance. This court will be determined upon the decision of the Supreme Court's chairman or his deputy if there are reasonable fears that the principle of secrecy of the planned operational -investigative measures may be violated.
6. Draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan for the Provision of Medical Services to the Personnel of the Baikonur Space Launch Site, the Residents of the City of Baikonur, and the Villages of Toretam and Akai under the Russian Federation’s Lease of the Baikonur Complex
The draft federal law has been submitted by the Ministry of Foreign Affairs and the Ministry of Healthcare and Social Development.
The draft law seeks to ensure compliance with earlier assumed treaty obligations contained in bilateral documents aimed at the further development and improvement of the interaction between Russia and Kazakhstan in providing medical services to the Baikonur Space Launch Site's personnel and the residents of the city of Baikonur and the villages of Toretam and Akai under the Russian Federation’s lease of the Baikonur complex.
The agreement between these two countries' governments On the Provision of Medical Services to the Personnel of the Baikonur Space Launch Site, the Residents of the City of Baikonur and the Villages of Toretam and Akai under the Russian Federation’s lease of the Baikonur complex was signed in Moscow on November 17, 2009.
The authorised agency under the agreement on the Russian side is the Federal Medical Biological Agency. The authorised agency under the agreement on the side of Kazakhstan is the Ministry of Healthcare. The healthcare organisations located at the Baikonur complex are financed by Russia and the healthcare organisations in the villages of Toretam and Akai are financed by Kazakhstan.
7. Introducing Amendments to the Statute on the Federal Agency for the Press and Mass Media
The draft resolution has been submitted by the Ministry of Communications and Mass Media.
The draft resolution formulates more precisely the powers of the Agency for the Press and Mass Media in rendering state support to organisations that produce,distribute and multiply socially significant media projects, and the creation and maintenance of websites with social or educational significance.
8. Forming an organising committee to prepare for and to hold the Eighteenth General Assembly of the Association of National Olympic Committees and the Second World Olympic Sport Forum in Moscow in 2012
The draft executive order has been proposed by the Ministry of Sport, Tourism and Youth Policy.
The draft envisages the formation of an organising committee for the preparation and holding of the assembly and the forum, and the approval of its composition.
The organisational and technical support of the committee’s activities will be provided by the Ministry of Sport, Tourism and Youth Policy.
The federal executive bodies concerned will provide all of the required support to the committee in preparing and holding the assembly and the forum.
9. Allocating from the federal budget to the Chelyabinsk Region in 2012 a 2 billion rouble subsidy supporting measures to balance the budgets of constituent entities of the Russian Federation to finance activities related to relocating citizens from the active landslide zone
The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
The draft envisages the allocation of up to 2 billion roubles in federal funds to the Chelyabinsk Region to finance the relocation of citizens from the zone of active landslide processes at the Korkinsky Coal Seam.
The meeting took note of the decision made by the regional government and the Chelyabinsk Coal Company (open joint stock company) to allocate 2 billion roubles and 1 billion roubles, respectively, to this end.
The draft also directs the Ministry of Regional Development, the Ministry of Finance and the Government of the Chelyabinsk Region to monitor the use of the above-mentioned funds and the performance of the relevant work.
10. Allocating 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 and Disaster Relief to liquidate the aftermath of a flood in spring 2010 on the Territory of the Republic of Sakha (Yakutia)
The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
In 2010, as a result of the Lena River's spring flooding in the Republic of Sakha (Yakutia), over 9,000 people were affected, and roads, utilities and social amenities were damaged.
The Government of the Republic of Sakha (Yakutia) estimates the damages caused by this emergency at more than 1.5 billion roubles.
To finance the elimination of the aftermath of the flooding, budget allocations were made to the Government of the Republic of Sakha (Yakutia) in 2010 and 2011, including 640.15 million roubles to pay lump sum allowances and provide financial assistance to those who have lost their basic living necessities. Additionally, 136 state housing certificates were issued.
As some victims were not registered at their place of residence, they were not included in the list of individuals eligible for lump sum allowances and financial assistance after having lost their basic living necessities. The courts later recognised that these citizens were eligible for the above-mentioned relief.
The draft executive order allocates to the Government of the Republic of Sakha (Yakutia) in the first quarter of 2012 23.63 million roubles, including 5.78 million roubles for lump sum relief payments and 17.85 million roubles for financial assistance to citizens who have lost their basic living necessities.
11. Allocating 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 and Disaster Relief and issuing state housing certificates as compensation for damage caused by legitimate actions to stop a terrorist attack in the village of Kirovaul (Kizilyurt District, Republic of Dagestan) on September 23-24, 2010
The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
As a result of the actions to stop the terrorist act in the village of Kirovaul (Kizilyurt District, Republic of Dagestan) on September 23-24, 2010, a residential house was destroyed completely and one family's household goods were destroyed partly.
According to the Government of the Republic of Dagestan’s estimations, the total material damages caused during the counterterrorist operation amounted to 3.5 million roubles.
The draft executive order envisages:
● allocating to the Republic of Dagestan 50,000 roubles in 2012 to provide financial assistance to the family that has lost their household property;
● ordering the Ministry of Finance to issue to the Government of the Republic of Dagestan in 2012 a state housing certificate for a citizen who lost his housing unit as a result of actions to stop a terrorist attack.
12. Allocating 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 and Disaster Relief to finance compensation for the damage caused by legitimate actions to stop a terrorist act in the city of Izberbash (Republic of Dagestan) on January 30, 2011
The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
As a result of the actions to stop a terrorist act in the village of Izberbash (Republic of Dagestan) by destroying improvised explosive devices, which had to be demined inside buildings, 15 houses were damaged, as was the household property of residents.
The Government of the Republic of Dagestan estimates the total damages caused during the counterterrorist operation at 6.5 million roubles.
The draft executive order envisages allocating to the Government of the Republic of Dagestan 1.52 million roubles, including 254,000 roubles in financial assistance to the citizens who lost their property and 1.267 million roubles for urgent restoration work in 13 homes in the village of Izberbash.
13. Allocating 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 and Disaster Relief and issuing state housing certificates to liquidate the aftermath of a terrorist act in the village of Gubden (Karabudakhkent District, Republic of Dagestan) on February 14, 2011
The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
As a result of a terrorist attack in the village of Gubden (Karabudakhkent District, Republic of Dagestan) on February 14, 2011, a residential home was totally destroyed, two were damaged and the household property of the residents was partly destroyed.
The Government of the Republic of Dagestan estimates the total material damages caused by the terrorist act at over 2 million roubles.
The draft executive order:
● allocates 50,000 roubles to the Government of the Republic of Dagestan in financial assistance to a citizen who has lost his property;
● orders the Ministry of Finance to issue to the Government of the Republic of Dagestan in 2012 a housing certificate for a citizen who lost his home as a result of the terrorist act.
14. Allocating to the Cabinet of Ministers of the Republic of Tatarstan budget money from the Reserve Fund of the Government of the Russian Federation for the Prevention and Liquidation of Emergencies and Disaster Relief to eliminate the aftermath of ammunition explosions at Russian Defence Ministry dumps in the village of Pugachyevo (Malopurgynsky District, Republic of Udmurtia) on June 2-3, 2011
The draft executive order has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
As a result of explosions at Russian Defence Ministry dumps (the village of Pugachyovo, Malopurgynsky District, Republic of Udmurtia) about 250 social amenities and utilities and 329 private homes have been damaged and normal life has been disrupted in the certain communities of the Republic of Tatarstan. About 3,000 people have been evacuated from the danger zone.
According to the Cabinet of Ministers of the Republic of Tatarstan, the total damages caused by the emergency exceed 775 million roubles.
The draft executive order envisages allocating 79.483 million roubles to the Cabinet of Ministers of the Republic of Tatarstan in the first quarter of 2012, including 30,700 roubles for restoration work, 2.616 million roubles for deploying and maintaining temporary accommodation and catering centres for evacuated citizens and 76.836 million roubles for urgent restoration activities.
Under the executive order of the Government of the Russian Federation, 73.61 million roubles had been already allocated to the Cabinet of Ministers of the Republic of Tatarstan, of which 13.61 million roubles were to be distributed to the victims as a lump sum and 60 million roubles were to be provided as financial assistance to the citizens who have lost their basic living necessities.
Moscow
February 8, 2012
* Press releases by the Department of Press Service and Information contain materials submitted by the executive federal bodies for discussion by the Government Presidium
