Background material for the 8 November 2012 Government meeting
The following issues are scheduled for discussion at the Government meeting on 8 November 2012:
1. The draft state programme Shipbuilding Development
The draft programme lists major areas for developing promising military equipment and armaments and competitive civil production (science intensive ships, marine engineering for researching and developing the continental shelf, principally new reinforced ice-class heavy-tonnage vessels, and research ships).
2. Russian Railways investment programme projects and the financial plan for the 2014-2015 planning period
The draft investment programme and financial plan have been prepared based on the major parametres of the proposed Russian socio-economic development for 2013 and for the 2014-2015 planning period. They establish a foundation for the sustainable operation of Russian Railways in 2013.
3. The automotive sector's development given Russia’s accession to the WTO
The major consequences of Russia’s accession to the WTO are primarily due to the reduced import duties on new and used equipment. They also concern reducing the possibilities for incentivising production development, including via subsidies.
Given the lack of the measures backing the national automotive industry, the primary consequences will be:
- A reduction of price competitiveness for national production;
- A reduction of investment attractiveness for the sector;
- A reduction of possibilities for promptly responding to crisis phenomena, similar to those that took place in 2008-2010;
- An increased number of used cars on the market, indirectly affecting road safety;
Measures for supporting the domestic automotive industry
To protect the market against used cars, a car recycling tax was introduced on 1 September 2012 – the On the Car Recycling Tax resolution sets the tax rate.
To improve the sector's investment attractiveness and to incentivise production equipment modernisation , the Government will launch up until 2020 a programme to subsidise those car makers who use loans extended to implement investment and innovation projects, and/or coupon profit payments on bonds issued for investment expenses. There is a programme for subsidising the rail transportation of Russian-made cars to the Far Eastern Federal District and back (as of 2013 the programme will support only those cars that are produced in the Far Eastern Federal District). The Government has also introduced changes to the industrial vehicle assembly concept. The changes seek to expand production capacities and increase production localisation. The new version includes the option to sign a new contract for industrial vehicle assembly for an eight-year period on condition that new additional commitments had been made.
4. Transition of Russian organisations to the International Financial Reporting Standards (IFRS)
The International Financial Reporting Standards (IFRS) is a set of documents outlining and presenting the general principles and requirements of financial reporting.
The IFRS are not international acts in a legal sense. They are only meant for one type of reporting – reporting on the financial situation and the financial results of an organisation's operation, mostly for the financial reporting by public organisations. The Government has established the necessary infrastructure to apply the IFRS in Russia. Its major elements are the law, the IFRS recognition procedure to be used in Russia, the right to use the Russian translation of the IFRS text, the official translation of the IFRS into Russian, the system to control IFRS-based financial reporting, participation in the IFRS Foundation’s activity, and the mechanism for generalising experiences in the field of IFRS application. IFRS recognition procedure adopted in Russia is similar to the procedure adopted in other countries and areas, such as the EU, China and Japan.
5. The draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation on the Baikal Nature Territory
To preserve Lake Baikal's environmental system and to protect it from the adverse effects of economic and other activities, the draft law proposes banning the construction, expansion and reconstruction of economic facilities without having received a positive conclusion from the state environmental expertise.
Under the draft law, the borders of the Baikal water and fishery conservation zones are established by the Government.
The draft law proposes to ban dumping 1st-3rd class danger production and consumption waste in the Baikal nature territory's central environmental zone and waste burial in the water conservation zone surrounding Lake Baikal.
6. The draft federal law On the Standard Monthly Financial Expenses Per Citizen Receiving Public Social Support as Social Services Offering Medication, Medical Products and Specialised Health Food for Children with Disabilities for 2013
The draft law establishes in 2013 the standard financial expenses per citizen receiving public social support in healthcare with a doctor’s prescription, including medication and medical products, as well as health food for children with disabilities.
7. The draft federal law On Introducing Amendments to the Federal Law On the Budget of the Federal Fund of Mandatory Medical Insurance for 2012 and the 2013-2014 planning period
The draft law proposes to increase the Federal Mandatory Medical Insurance Fund's total incomes in 2012.
The draft law channels the additional incomes:
Additional allocations will make it possible to increase the wages of doctors and nurses, and to improve the drug support of hospitals and clinics.
8. The draft federal law On Introducing Amendments to Article 7 of the Federal Law On State Pension Support in the Russian Federation and to the Federal Law On the Public Civil Service of the Russian Federation
The draft law proposes to remove from the federal law On the Public Civil Service of the Russian Federation the provisions excluding civil servants from the Labour Code provision on state guarantees in the case of job displacement.
9. The draft federal law On Introducing Amendments to Certain Legislative Acts of the Russian Federation on Preventing the Illegal (Non-medical) Use of Narcotic Drugs and Psychotropic Substances
The draft law establishes the powers of the Russian Federation and its regions in preventing the non-medical use of narcotic drugs and psychotropic substances in drug addiction.
Under the draft law, the early detection of the non-medical use of narcotic drugs and psychotropic substances includes:
Additionally, the draft law authorises educational institutions to provide for the early detection of the non-medical use of narcotic drugs and psychotropic substances among students through social and psychological testing.
10. Distributing federal budget subsidies to regional budgets for co-financing the federal targeted programme Social Development of the Village to 2013
According to the draft directive, 165,429,340 roubles in federal budget subsidies will be redistributed between the regions in 2012 to implement the programme. A total of 41,412,000 roubles in subsidies that have not been used by the Republic of Ingushetia, the Republic of North Ossetia-Alania and the Kaliningrad Region due to a lack of regional budget co-funding will be redistributed to improve the housing conditions of citizens in rural areas, including young families and experts.
The above funds are additionally channelled to the Republic of Adygea (1,477,000 roubles), to the Bryansk Region (8,910,000 roubles), to the Rostov Region (15,025,000 roubles) and to the Yaroslavl Region (16,000,000 roubles)
In terms of the activities to develop the water supply in rural areas, total subsidies of 61,910,690 roubles are due for redistribution. These include subsidies that have not been used by the Republic of Buryatia, the Republic of North Ossetia-Alania, the Republic of Tyva, and the Vologda, Kaliningrad and Tver regions due to a lack of regional budget co-funding, as well as the subsidy that has not been used by the Volgograd Region as a result of saving on budget funds following the tender.
The aforementioned funds are additionally channelled to the Republic of Adygea (4,200,000 roubles), the Republic of Dagestan (21,500,000 roubles), the Chechen Republic (11,210,690 roubles), the Kursk Region (6,200,000 roubles), the Omsk Region (6,000,000 roubles), the Orel Region (2,600,000 roubles), the Saratov Region (7,900,000 roubles), and the Tomsk Region (2,300,000 roubles).
Subsidies amounting to 31,706,650 roubles will be redistributed to develop gasification in rural areas. These subsidies have not been used by the Republic of Komi, the Tver and Yaroslavl regions due to a lack of regional budget co-funding, by the Vologda Region due to the failure to implement an agreement on the procedure and conditions for extending federal budget subsidies to implement the programme, and by the Pskov Region after it saved on budget funds after work was performed under the agreement.
The aforementioned funds are additionally channelled to the Republic of Dagestan (14,100,000 roubles), the Udmurtian Republic (3,700,000 roubles), the Perm Territory (4,300,000 roubles), the Omsk Region (5,800,000 roubles) and the Orel Region (806,650 roubles).
Total subsidies of 14,300,000 roubles will be redistributed to develop a general educational institution network in rural areas. The funds have not been used due to a lack of budget co-funding by Volgograd Region. It is proposed to channel these funds to the Tambov Region.
Total subsidies of 16,100,000 roubles will be redistributed to develop the primary healthcare, physical training and sport network in rural areas. These subsidies have not been used due to a lack of co-funding from the budgets of the Republic of Altai, the Republic of North Ossetia-Alania and the Republic of Tyva.
The aforementioned subsidies will be channelled to the Republic of Adygea (2,500,000 roubles), the Republic of Dagestan (3,000,000 roubles), the Republic of Tatarstan (6,000,000 roubles) and the Leningrad Region (4,600,000 roubles).
Moscow,
7 November 2012
* Press releases by the Department of Press Service and Information are based on the materials submitted by the federal executive bodies for discussion by the Government of the Russian Federation.
