* PRESS RELEASE *

The following issues are scheduled for discussion at the Government Presidium meeting on April 5, 2012:

1. Draft federal law On Ratifying the Agreement Between the Government of the Russian Federation and the Government of the Republic of Poland on the Procedure for Local Trans-Border Traffic

This draft law has been submitted by the Ministry of Foreign Affairs.

The Agreement Between the Government of the Russian Federation and the Government of the Republic of Poland on the Procedure for Local Trans-Border Traffic was signed in Moscow on December 14, 2011.

Under the Agreement, mutual trips by residents of both countries' border areas will require valid foreign passports, with the exception of diplomatic passports, official passports and sailors' passports, as well as permits for local border traffic being issued by consular agencies of the signatory states in line with a simplified procedure. To obtain such permits, applicants will be required to submit substantiation of the need for regular visits to border areas (family ties, economic, cultural or any other reasons). Unlike visa applicants who must obtain invitations in line with Russian and Polish legislation, no invitations will be required in these cases.

The Agreement will apply to citizens of the Russian Federation and the Republic of Poland, as well as to foreign citizens and stateless persons legally living in the border areas for at least three last years. These "residence qualifications" will not apply to the family members of the concerned individuals.

The agreement's territorial application is among its provisions having principled importance. In a cooperative effort, the Russian and Polish parties have expanded border area limits, which are stipulated for Warsaw by Regulation (EC) No 1931/2006 of the European Parliament and of the European Council of
20 December 20, 2006 laying down rules on local border traffic, to up to 30 kilometres from the border. Consequently, the agreement covers the entire Kaliningrad Region of the Russian Federation, as well as administrative entities of the Republic of Poland, which have about the same area as the Kaliningrad Region, including districts far beyond the 30-km zone.

The Russian party pledges that standard Russian multiple-entry visas will act as permits for local border traffic. The procedure for issuing such visas is contained in the Statute on Stipulating the Visa Form, Procedure and Conditions for Drawing Up and Issuing Visas, Extending and Reinstating Visas, and the Visa Annulment Procedure.

At the same time, with due account for the Agreement's provisions, visas shall be drawn up for a period of two years during initial applications and for a period of five years during subsequent applications. Visa holders shall be allowed to stay in the designated border territories for up to 30 days, starting with the date of entry. However, the total duration of their stay should not exceed 90 days during each six-month period being calculated from the date of the first entry.

Under the agreement, the above-mentioned visas stipulate no right to conduct labour or entrepreneurial activity since it requires special permits.

In order to distinguish visas being issued only for the purpose of visiting Russia's border territory from the Russian-Polish border from visas which allow their holders to visit the entire territory of the Russian Federation, the following entry shall be made in the "Special Comments" section: "Permit for local trans-border traffic, Russia-Poland Agreement."

2. Draft federal law On Amending Article 6 of the Russian Federation's Law On Organising Insurance Programmes in the Russian Federation

This draft law has been submitted by the Ministry of Finance.

The document calls for increasing foreign stakes in the statutory capital of insurance organisations from 25% to 50%.

On January 1, 2012, a requirement on increasing the minimal statutory capital of insurance organisations entered into force. The break-down for specific insurance capital volumes is as follows:

• 60 million roubles – for insurance organisations only implementing mandatory medical insurance programmes;
• 120 million roubles – for insurance organisations providing life and health insurance policies, voluntary medical insurance, property insurance, civil liability insurance and business risk insurance;
• 240 million roubles – for insurance organisations providing life insurance policies, casualty and disability insurance policies;
• 480 million roubles – for insurance organisations implementing reinsurance programmes and insurance programmes combined with reinsurance programmes.

The Federal Service for Financial Markets estimates that, as of December 31, 2011, about 31% of insurance organisations failed to meet the new statutory capital requirements, and that the total statutory capital deficit exceeded 20 billion roubles.

At the same time, the Federal Service for Financial Markets (FSFR) analyses information from insurance organisations regarding planned and current measures of insurance organisations to bring insurance capital volumes in conformity with the new requirements. Those insurance organisations, which have reached agreement with foreign investors on increasing the volume of their statutory capital, might be able to eliminate this violation in accordance with extended deadlines, rather than those stipulated by FSFR documents.

3. Draft federal law On Amending Articles 6, 8 and 16 of the Federal Law On State Regulation of Gambling Activity and on Amending Certain Legislative Acts of the Russian Federation and Article 1 of the Federal Law On State Regulation of Gambling Activity and On Amending Certain Legislative Acts of the Russian Federation

This draft law has been submitted by the Ministry of Finance.

The document was drafted with due consideration for the provisions of the Federal Law "On Amending the Federal Law 'On State Regulation of Gambling Activity and On Amending Certain Legislative Acts of the Russian Federation.'"

The document stipulates a set of requirements for gambling establishments, including the following:

The location of such establishments in buildings, structures and facilities; The area of gambling zones specifically designated for gambling;The number of gaming tables and slot machines inside gambling zones specifically designated for gambling;The content of a gambling establishment's service zone and public zone;The existence of specially equipped premises for acceptance, issue and temporary storage of cash assets and premises for organising a gambling institution's security service;Facilitating the standard registration of bets, bet processing, fixed gambling results and calculations of wins, as well as determining the events on which the outcome of bets depends.

The draft document annuls a number of provisions of the Federal Law "On State Regulation of Gambling Activity and On Amending Certain Legislative Acts of the Russian Federation" because such temporary provisions have virtually become null and void.

The draft document will make it possible to relieve the Federal Tax Service of its functions regarding oversight over compliance with standard requirements by the organisers of gambling activity. The pertinent functions have also virtually become null and void because nationwide gambling activity outside special gambling zones has been prohibited since July 1, 2009. Under current legislation, the administrations of gambling zones oversee compliance of gambling activity organisers with the pertinent requirements in such gambling zones.

In addition, the draft document eliminates contradictions in the Federal Law "On State Regulation of Gambling Activity and on Amending Certain Legislative Acts of the Russian Federation" as regards the duration of bank guarantees for the organisation and conduct of gambling activity at bookmakers' offices or that involving automated "tote-board" gambling systems, with due account for the requirements of the Federal Law "On licensing certain types of activity" concerning permanent licenses.

In this connection, the draft document suggests stipulating a bank guarantee, which would be no less than a period of 12 months.

Under the draft document, the pertinent bank guarantee shall be extended (re-registered) throughout the entire validity of the license to organise gambling activity at bookmakers' offices or that involving automated "tote-board" gambling systems. The pertinent bank guarantee cannot be revoked.

The amount of the bank guarantee shall be stipulated by the pertinent agreement and shall be no less than 500 million roubles.

4. Measures to Improve the Use of Information-Communications Technology Within State Agencies

This draft resolution has been submitted by the Ministry of Communications and Mass Media.

The coordination of measures and projects to use information-communication technologies, to ensure the creation, development, modernisation, maintenance and operation of information systems and the information-telecommunications infrastructure by executive federal bodies and agencies managing state extra-budgetary funds shall be facilitated according to the provisions of the Government's resolution "On the coordination of measures to use information-communication technologies in the activities of state agencies." However, this resolution has failed to resolve the following issues:

• There is no inter-link between the process of drafting IT-introduction plans for state agencies, the federal budget and the budgets of the Russian Federation's state extra-budgetary funds for the next financial year and planning period;
• There is no inter-link between specific measures and projects included in the IT-introduction plans for state agencies, specific information systems and components of the information-telecommunications infrastructure, whose creation, development, modernisation, operation and maintenance are stipulated by IT-introduction measures and projects. This prevents the Ministry of Communications and Mass Media from effectively assessing such plans;
• There are some legal discrepancies in submitting IT-introduction documents to the Ministry of Communications and Mass Media for assessment.

The draft resolution envisions the following measures:

• To stipulate the main principles of coordinating measures and projects as regards the introduction of IT projects at state agencies;
• To specify the pertinent IT-introduction measures and projects, which should be included in specific IT-introduction plans of state agencies;
• To specify the contents of IT-introduction plans, including the compilation of IT-introduction plans for the next year and the planning period, as well as reports regarding the implementation of IT-introduction plans;
• To define specific IT-introduction assessment criteria of the Ministry of Communications and Mass Media regarding the examination of IT-introduction documents, determining the content of departmental findings being prepared after the assessment of IT-introduction documents and the specification of the process of their preparation;
• To specify the steps for drafting IT-introduction plans by the concerned state agencies and their coordination with the Ministry of Communications and Mass Media.

5. Licensing the Preservation of Cultural and Historical Landmarks of the Russian Federation's Nations

This draft resolution has been submitted by the Ministry of Culture.

The draft resolution is called on to implement the Federal Law "On Licensing Certain Types of Activity," which stipulates the issue of licenses to authorize activity as regards the preservation of cultural and historical landmarks.

This draft resolution contains a decision to approve the Statute on Licensing for the Preservation of Cultural and Historical Landmarks of the Russian Federation's Nations.

The draft resolution proposes amending the Statute on the Ministry of Culture. Such amendments are to authorize the ministry to license the preservation of cultural landmarks. They also annul powers as regards the keeping of a register of licenses ensuring the preservation of cultural landmarks and monitoring compliance with license terms and requirements during such activity.

In addition, the draft resolution proposes annulling the Government's resolution "On licensing the activity as regards the restoration of cultural and historical landmarks," as well as other governmental acts on amending this resolution.

6. Allocating to the Government of the Republic of Dagestan budget money from the Government of the Russian Federation's Reserve Fund for the Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters to compensate individuals and legal entities for losses incurred as a result of the September 21-22, 2011 terrorist acts in the city of Makhachkala (Republic of Dagestan)

This draft directive has been submitted by the Ministry for Civil Defence, Emergencies and Disaster Relief.

One person was killed, and 17 were injured as a result of the September 21-22, 2011 terrorist acts in the city of Makhachkala (Republic of Dagestan). Private individuals incurred property losses, and residential buildings were also damaged.

Under the draft directive, there are plans to allocate 6.27 million roubles to the Government of Dagestan throughout 2012, including:

• 1,000,400 roubles as a lump-sum payment to the family of the deceased individual;
• 965,500 roubles as financial assistance for the property losses incurred;
• 4.3 million roubles for conducting emergency clean-up and disaster relief operations at the damaged facilities.

7. Allocating to the Government of the Kabardino-Balkarian Republic budget money from the Government of the Russian Federation's Reserve Fund for the Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters to compensate for damage caused during the November 21, 2011 counter-terrorist operations in the city of Nalchik (Kabardino-Balkarian Republic)

This draft resolution has been submitted by the Ministry for Civil Defence, Emergencies and Disaster Relief.

The November 21, 2011 counter-terrorist operation in the city of Nalchik (Kabardino-Balkarian Republic) resulted in light bodily injury to one person, caused the loss of private property and damaged a multi-storey block of flats.

Under the draft resolution, there are plans to allocate 1.63 million roubles to the Government of the Kabardino-Balkarian Republic through 2012, including:

• 200,000 roubles as a lump-sum payment to the woman who sustained light bodily injury;
• 280,000 roubles as financial assistance for the property losses incurred;
• 1.156 million roubles for conducting emergency clean-up and disaster relief operations at the damaged facilities.

Moscow

April 4, 2012

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