19 april 2012
Background material for the April 19, 2012 meeting of the Government Presidium (press release)
PRESS RELEASE*
The following issues are scheduled for discussion at the Government Presidium meeting on April 19, 2012:
1. Progress in Developing Draft Government Programmes of the Russian Federation
To date, the Government has approved the Accessible Environment for 2011 - 2015 and Information Society (2011 – 2020) programmes and has also developed most of the draft programmes.
The Ministry of Economic Development proposes the following procedure for developing government programmes.
1. Programmes agreed by the Ministry of Economic Development and the Ministry of Finance, or ones which require methodological clarification can be finalised and approved in the near future (Environment Protection, Reproduction and Use of Natural Resources, Forestry Development, Development of the Nuclear Power Industry).
2. Programmes containing a significant amount of financial commitments which depend strongly on long term scenarios and the budget strategy, as well as programmes requiring institutional decisions to be taken by the Government, should be finalised after the approval of scenarios and the long-term strategy by the Government (Development of Healthcare, Development of Education, Social Support for Individuals, Development of the Pension System, Providing Quality Housing and Utilities Services in Russia, Promotion of Employment, Development of Science and Technology, Development of the Transport System, Strengthening National Defence and Federal Property Management).
3. Programmes designed to develop and expand certain industries and economic sectors should be finalised during 2012 and include long-term predictions and the outcome of work on clarifying targeted federal programmes (Development of Industry and Increasing Industrial Competitiveness, Development of the Aviation Industry, Development of the Electronic and Radio-electronics Industry, Development of the Shipbuilding Industry, Development of the Pharmaceutical and Medical Industries, Russia’s Space Programme, the Government Programme for Developing Agriculture and Regulating Markets for Agricultural Products, Commodities and Food, Development of the Fisheries Sector, Energy Efficiency and the Development of the Power Industry).
4. Programmes of predominantly institutional nature that do not require significant financial resources can also be finalised in 2012 (Securing Public Order and Combating Crime, Combating Illegal Drug Trafficking, the Protection of People and Territory against Emergencies, Fire and Water Safety, the Culture of Russia , Promotion of Physical Culture, Sport, Tourism and Improved Implementation of Youth Policy, Economic Development and Innovation-Driven Policy, Promotion of Foreign Economic Activity, Strengthening National Security, Regional Policy and Federative Relations, Managing Public Finances and Public Debt, Development of Financial and Insurance Markets, the Creation of an International Financial Centre, Foreign Policy, Justice, Facilitating Effective and Responsible Management of Regional and Municipal Finances, Improving the Stability of the Budgets of the Constituent Entities of the Russian Federation).
The Ministry of Economic Development deems it necessary to have the structure of government programmes completed in 2012 by focusing on priority government programmes, whose implementation is required for innovation-driven growth in Russia (including high-tech industries, aerospace and telecommunications systems, medical and power engineering techniques), development of transport infrastructure and social services (utilities, health care and education), improving the effectiveness of state regulation of the socio-economic development of the Russian Federation.
2. Draft Federal Law On Introducing Amendments to Certain Legislative Acts of the Russian Federation
This draft federal law has been submitted by the Ministry of Economic Development.
The draft law is designed to improve legal regulations governing the preparation and conduct of all-Russian censuses and federal statistical surveys with regard to hiring census and survey takers.
The draft law stipulates that the government can delegate the authority to federal executive bodies to approve regulations that establish training procedures and terms of remuneration paid to individuals engaged in collecting information about the population and objects of the agricultural census, respectively, and the payment of compensation to these individuals.
The draft law also proposes to add a regulation to the Federal Law On Official Statistical Accounting and the Public Statistical System in the Russian Federation. This regulation is not currently included in the federal law and stipulates that a government-authorised federal executive body must approve the terms of remuneration paid to individuals engaged in conducting federal statistical surveys and the payment itself.
3. Draft Federal Law On Introducing Amendments to the Labour Code of the Russian Federation
This draft federal law has been submitted by the Ministry of Healthcare and Social Development.
The draft law proposes:
4. Draft Federal Law On Introducing Amendments to Article 261 of the Labour Code of the Russian Federation
This draft federal law has been submitted by the Ministry of Healthcare and Social Development.
The draft law introduces amendments to Article 261 of the Labour Code establishing a ban on the termination at the employers' initiative of labour contracts with fathers who are the only breadwinners in a family with many children, where one or more are under the age of three, if the mothers of these children are not part of the workforce and are engaged full-time in child care.
5. Draft Federal On Introducing Amendments to Article 20.3 of the Code of Administrative Offences of the Russian Federation and Article 1 of the Federal Law On Countering Extremist Activities
This draft federal law has been submitted by the Ministry of the Interior.
The draft law is designed to establish responsibility for the public display of attributes or symbols of organisations with regard to which the court has issued a ruling that came into force on liquidating or banning activities in connection with extremist activities, as well as increasing responsibility for propaganda and the public display of Nazi attributes or symbols.
The draft law introduces changes to Article 20.3 of the Code of Administrative Offences which stipulate increased administrative responsibility (it is proposed to increase fines of 500 to 1,000 roubles, those of 1,000 to 2,000 roubles for individuals, those of 1,000 to 4,000 roubles for officials and fines of 10,000 to 50,000 roubles for legal entities) not only for promotion or public demonstration of Nazi attributes or symbols, but also for the public display of symbols or symbols of extremist organisations.
In addition, given that the current legislation does not define the term “symbols of extremist organisations,” the draft law provides for amending the Federal Law On Countering Extremist Activity accordingly.
6. Draft Federal Law On the Ratification of the Convention between the Government of the Russian Federation and the Government of the Argentine Republic on the Avoidance of Double Taxation with Respect to Taxes on Income and Capital
This draft federal law has been submitted by the Ministry of Foreign Affairs and the Ministry of Finance.
The Convention between the Government of the Russian Federation and the Government of the Argentine Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital was signed in Buenos Aires on October 10, 2001.
The Convention guarantees the prohibition of tax discrimination, regulates the procedure for reviewing complaints and requests from taxpayers and the resolution of disputes, as well as the exchange of information between the competent authorities of the Contracting States, and also defines the ways to avoid double taxation.
The Convention was developed on the basis of the Model Agreement for the Avoidance of Double Taxation of Income and Assets; the Contracting States were guided by standard model agreements recommended by the Organisation for Economic Cooperation and Development and the United Nations
The purpose of the draft law is to ratify the Convention in accordance with the Federal Law On International Treaties of the Russian Federation, because it contains rules other than those stipulated by the legislation of the Russian Federation.
7. Draft Federal Law On the Ratification of the Protocol on Changing the Agreement between the Russian Federation and the Swiss Confederation on the Avoidance of Double Taxation with Respect to Taxes on Income and Capital signed in Moscow on November 15, 1995
This draft federal law has been submitted by the Ministry of Foreign Affairs and the Ministry of Finance.
The protocol on amending the Agreement between the Russian Federation and the Swiss Confederation for the avoidance of double taxation with respect to taxes on income and capital signed in Moscow on November 15, 1995 was signed in Washington, D.C. on September 24, 2011.
The purpose of the draft law is to ratify the Protocol in accordance with the Federal Law On International Treaties of the Russian Federation because it contains rules other than those stipulated by the legislation of the Russian Federation.
8. Draft Federal Law No. 66-2 On Adopting Amendments to the Articles of Agreement of the International Monetary Fund Approved by the Board of Governors of the International Monetary Fund on December 15, 2012
This draft federal law has been submitted by the Ministry of Finance.
On December 15, 2010, the Board of Governors of the International Monetary Fund approved Resolution № 66-2 which stipulates doubling the IMF's total capital (quota resources) and the simultaneous redistribution of the IMF members’ quotas in favour of several developing and emerging markets, as well as several developed countries. Relative quotas were calculated according to the formula agreed upon in the course of adopting the package of reforms in 2008.
As a result, the overall share of votes of BRIC countries will increase from 10.71% to 14.18%, which will bring them closer to a blocking stake (15%). These states will be included in the top ten, in terms of the quota size. As a result of these changes, Russia’s relative quota will increase from 2.49% to 2.71% compared with the 2008 decision and will amount in absolute terms to 12, 903.7 million SDRs, an increase of 117%.
Resolution No. 66-2 also stipulates the adoption of amendments to the Articles of Agreement of the IMF, repealing the so-called institute of “appointed” executive directors, and sets forth the agreement that from 2012, the developed European countries will reduce their representation in the Executive Board by two seats in favour of developing and emerging markets.
Currently, the IMF's Articles of Association stipulate that the Executive Board consists of 20 members. Five executive directors from the countries with the largest quota are appointed by the authorities of these countries, and fifteen other directors are elected by member countries. In addition to the five appointed directors (United States, Japan, Germany, France and the United Kingdom), three more countries enjoy single-state constituency and have their own Executive Director’s office: China, Russia and Saudi Arabia (on a voting basis).
In accordance with the standard procedure for paying increased quotas, the Russian Federation will need to cover the 25% change in the quota in SDRs or in one of the reserve currencies used by the IMF in its calculations. The remainder of the subscription (75%) is payable in local currency of the member or in cash to the IMF account with the Central Bank of the member country, or replaced by an equivalent promissory note that is deposited with a depository (Bank of Russia) and is payable at par value (in full or in part) at the request by the IMF.
In accordance with the Federal Law On Amending the Federal Law on the Central Bank of Russian Federation (Bank of Russia) and Certain Legislative Acts of the Russian Federation, the commitments of the Russian Federation regarding participation in transactions and operations provided for the IMF Articles of Association, including payment of the quota by the Russian Federation to the IMF, shall be made by the Bank of Russia.
Thus, the increase in Russia’s quota by 6,958.3 million SDRs proposed by the IMF’s Board of Governors must be financed from the international reserves of the Bank of Russia. In accordance with the current practice, the payment of 25% of the increased quota must be paid in SDRs or in one of the reserve currencies, with the remainder payable in local currency.
The procedure for adopting amendments is regulated by Article XXVIII of the IMF Articles of Association. The redistribution of quotas shall take effect after the entire package of amendments is approved, i.e., after approval by at least 60% of members having 85% of the votes, and the IMF is officially notified thereof. For all other members, these amendments shall take effect automatically, regardless of whether they voted for or against it.
Pursuant to the Constitution of the Russian Federation, the IMF Articles of Association are part and parcel of the Russian legal system and take precedence over Russian legislation.
Therefore, in accordance with the provisions of the Federal Law On International Treaties of the Russian Federation, the adoption of amendments to the IMF Articles of Association approved by Resolution of the Board of Governors of the International Monetary Fund on December 15, 2010 No. 66-2, must be effected in the form of a federal law.
9. Allocating Budget Funds to the Government of the Chechen Republic from the Reserve Fund of the Government of the Russian Federation for Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters for Paying Out Compensation to Individuals and Corporations Affected by the Act of Terrorism in Grozny, the Chechen Republic, on August 30, 2011
This draft directive has been submitted by the Ministry of Civil Defence, Emergencies and Disaster Relief.
The act of terrorism perpetrated on Bogdana.Khmelnitskogo Street in Grozny on August 30, 2011 damaged property owned by Russian citizens. A two-storied building used by the commercial agro-industrial firm Seda suffered significant damage as well.
The draft directive stipulates allocating 6,622,800 roubles to the Government of the Chechen Republic in 2012 to be paid as compensation to individuals and legal entities whose property was damaged as a result of this act of terrorism.
Moscow,
April 18, 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.
