The Government of the Russian Federation at its meeting on May 15, 2008 made the following decisions on the issues on its agenda.

1. On scenario conditions and main parameters of the forecast of the socio-economic development of the Russian Federation for 2009 and the planning period of 2010 and 2011.

The Government of the Russian Federation took note of the report on the issue by the Minister of Economic Development of the Russian Federation.

The meeting decided to adopt the scenario conditions and the main parameters of the forecast for 2009 and the planning period 2010 and 2011 envisaging measures to make the Russian economy more competitive and ensure its transition to the innovation path of development. This will serve as the basis for the development of a forecast of the social and economic development of the Russian Federation and projections of the federal budget for 2009 and the planning period 2010 and 2011.

The Ministry of Economic Development of the Russian Federation has been given three days to inform the subjects of budget planning and the executive bodies of the regions of the Russian Federation the said scenario conditions and the main parameters of the forecast, for the purpose of preparing corresponding proposals on the forecast of the social and economic development of the Russian Federation for 2009 and for the planning period 2010 and 2011.

The Ministry of Economic Development of the Russian Federation, the Finance Ministry, the Ministry of Health and Social Development, the Ministry of Industry and Trade, the Ministry of Agriculture, the Ministry of Regions of Russia, the Ministry of Energy in collaboration with the federal bodies of executive authority concerned and the Bank of Russia shall prepare the forecast of the social and economic development of the Russian Federation for 2009 and the planning period 2010 and 2011. They will pay special attention to the issues of:

- determining targets for wage growth in the public sector, taking into account the rate of growth of wages in the economy and the introduction of new pay schemes;

- ensuring the projected slowdown in the growth of consumer prices;

- improving tax legislation to stimulate economic growth;

- developing financial markets and the banking system;

- identifying measures for social support of the population, ensuring the balance of regional and local budgets, taking into account, among other things, the growth of prices (tariffs) for the products (services) of natural monopolies;

- verifying the volume and destinations of budget investments;

- implementing measures to stimulate innovation;

- determining the pace of growth of industries and agriculture;

- reviewing of the dynamics of world oil prices;

- adjustment of the volume of oil and gas extraction and export;

- social and economic development of the regions of the Russian Federation.

-
A decision has been made to prepare the forecast of the social and economic development of the Russian Federation for 2009 and for the planning period 2010 and 2011 and submit the same to the Government of the Russian Federation on August 7, 2008.

The Finance Ministry of Russia, the Ministry of Economic Development of the Russian Federation, the Ministry of Natural Resources and Ecology of the Russian Federation, and the Ministry of Energy of the Russian Federation shall:

- within a week submit to the Government of the Russian Federation proposals on priority measures to stimulate the increase of oil extraction, including improvements to the imposition of the severance tax, and cuts in taxes on oil extraction in newly introduced fields in certain regions and on the continental shelf;

- prepare and submit before August 1, 2008 to the Government of the Russian Federation proposals on additional measures to stimulate growth in oil and gas production and better refining.

-
The Finance Ministry, the Ministry of Natural Resources and Ecology shall additionally look into the issue of financing geological prospecting work in 2009-2011 and submit the agreed proposals to the Government of the Russian Federation for discussion at a meeting of the Governmental Commission on budgetary projections for the next fiscal year and for the planning period.

The Finance Ministry, the Ministry of Economic Development, the Ministry of Industry and Trade, the Ministry of Education and Science, with the participation of the federal executive power bodies concerned and in line with earlier instructions, have been instructed to additionally review the issues of improving the amortization policy as well as the taxation of R&D and submit the relevant proposals to the Government of the Russian Federation by August 1, 2008.

2. On the draft federal law On the State Genome Registration in the Russian Federation.

The meeting approved the draft federal law On State Genome Registration in the Russian Federation. A decision has been made to submit the draft to the State Duma.

3. On the draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Lao People's Democratic Republic on the Settlement of the Ruble-Denominated Debts of the Lao People's Democratic Republic to the Russian Federation under Earlier Credits.

The meeting approved the draft federal law On Ratification of the Agreement between the Government of the Russian Federation and the Government of the Lao People's Democratic Republic on the Settlement of the Ruble-Denominated Debts of the Lao People's Democratic Republic to the Russian Federation under Earlier Credits. A decision has been made to submit the draft to the State Duma.

May 15, 2008
Moscow

* Decisions on the items on the agenda are taken with due account of the remarks and proposals made at the Government meeting and are issued as official documents of the Government of the Russian Federation.