The following issues are scheduled for discussion at the Government Presidium meeting on August 4, 2008

1. The federal targeted programme Modernisation of the Air Traffic Management System of the Russian Federation (2009-2015)

The need to develop the federal targeted programme Modernisation of the Air Traffic Management System in the Russian Federation (2009-2015) is prompted by the fact that the existing Air Traffic Management System in the Russian Federation (ATMS) falls short of ensuring the national interests of the Russian Federation in the sphere of the use and control of air space: the level of air traffic safety does not exhibit any sustained upward trend, there are no substantial improvements in the quality of air navigation services of aircraft flights, and the users of airspace are facing growing economic losses.

The aim of the implementation of the programme is enhancing flight safety and effective use of airspace through the modernisation of the ATMS, its elements, and interacting systems by creating and developing a Russian air navigation system on the basis of new technical means and technologies in accordance with the standards and recommended practices of the International Civil Aviation Organisation.

The Programme's measures form thematic clusters based on the functional principle: "Modernisation of the Air Traffic Management System", "Development of Meteorological Support of Air Navigation", "Development of a Single System of Aerospace Search and Rescue".

The main elements of the Programme are:

- creation of larger areas of air traffic management;
- introduction of a single system of planning the use of airspace;
- transition to modern technologies of air traffic control based on the introduction of CNS/ATM means and systems;
- the introduction of integrated military-civilian automatic air traffic management systems;
- technical modernisation and automation of the air navigation meteorological support system;
- development of the aerospace search and rescue system.

The expected outcomes of the implementation of the Programme are:

- improvement of air traffic safety by 1.5 times by 2015;
- increase in airspace capacity by 1.8 times;
- improved accuracy of weather forecasts for airports in the Russian Federation, to the level of 91%;
- increasing the coverage of the country's territory by aviation search and rescue resources to 100%.

The total funding of the Programme will amount to 82,128.6 million roubles (in the prices of corresponding years).

The Programme activities are to be financed out of the federal budget (72.8%) and by off-budget sources (27.2%).

The state client and coordinator of the Programme is the Federal Air Navigation Service.

The state clients of the Programme by thematic fields are:

- the Federal Air Navigation Service: thematic areas "Air Traffic Management System" and "Development of a Single Aerospace Search and Rescue System";
- the Federal Hydrometeorology and Environmental Monitoring Service: the thematic area "Development of Meteorological Support for Air Navigation".

2. Introducing Amendments to the federal targeted programme Economic and Social Development of the Far East and the Trans-Baikal Area in the Period Through 2013

This draft resolution of the Government of the Russian Federation has been prepared pursuant to the directives of the Government Presidium of June 16, 2008 on adjustment of federal targeted programmes.

The following amendments have been introduced to the federal targeted programme Economic and Social Development of the Far East and the Trans-Baikal Area in the Period Through 2013 (hereafter, the Programme):

- the funding parameters;
- state clients in connection with the changes in the system and structure of federal executive bodies;
- the mechanism of implementation of the programme reflects a new procedure for granting subsidies out of the federal budget to the budgets of the subjects of the Russian Federation approved by the Government decree of May 16, 2008 On the Formation, Granting and Distribution of Federal Budget Subsidies to the Budgets of the Regions of the Russian Federation.

The amount of funding of the Programme out of the federal budget has been reconciled with the amount of funding envisaged under the Federal Law of July 24, 2007 On the Federal Budget for 2008 and the Planning Period of 2009 and 2010 (as updated on March 3, 2008), the Draft Federal Law On Introducing Amendments to the Federal Law on the Federal Budget for 2008 and the Planning Period of 2009 and 2010 approved on the third reading by the State Duma of the Federal Assembly of the Russian Federation and the decisions of the Government of the Russian Federation.

The amendments this draft resolution introduces into the Programme constitute the first phase of its adjustment and are prompted by the need to begin financing priority programme measures required for the holding of the APEC summit on the Island of Russky (state clients are the Ministry of Regional Development, Rosavtodor, Rosaviatsia, Rosmorrechflot, and Rossvyaz), for the withdrawal of the Russian Defence Ministry facilities from areas set aside for civilian needs and the implementation of the Roszheldor project "Enlargement of the Khmylovsky Shunting Loop of the Far Eastern Railway and the Building of the Railway Infrastructure on the Kuznetsovo, Nakhodka-Khmylovsky Section".

The following amendments have been introduced into the Programme.

The name of the Roszheldor project, "Enlargement of the Khmylovsky Shunting Loop of the Far Eastern Railway and the Building of the Railway Infrastructure on the Kuznetsovo, Nakhodka-Khmylovsky Section" has been reconciled with the project approved by the Main Government Expert Authority of Russia on March 28, 2008. Pursuant to the Russian Government's directives of February 12, 2008, the expenditure commitments of the Russian Federation and off-budget sources have been changed to ensure that the project implementation begins in 2008. Budget allocations in the amount of 4.5 billion roubles for the period of 2011-2013 have been put forward to be disbursed in 2008 (1.0 billion roubles) and 2009 (3.5 billion roubles). The off-budget funding that was to be disbursed in 2010 in the amount of 500 million roubles to finance design work have been put forward for 2008 (in the amount of 350 million roubles).

The amount of funding out of the federal budget has been increased for Rossvyaz activities, "the building of a mobile radio communications network", from 93 million roubles (as envisaged under the subprogramme "Development of the City of Vladivostok as a Centre of International Cooperation in the Asia-Pacific Region") to 126.5 million roubles. The additional requirement is 33.5 million roubles, 2.9 million roubles of which is to be disbursed in 2009 and 30.6 million roubles in 2010.

The increased cost of the project is due to the need to establish additional stations to ensure complete radio coverage of territories with rugged terrain intended as the venue for the APEC summit.

The number of such stations will increase from 7 to 20. The number of subscribers who have access to mobile radio communications services will increase from 1,000 to 2,250.

Amendments have been introduced to the Subprogramme to increase the funding of the Russian Defence Ministry activities by 2,000 million roubles in 2008, including mine-clearing of the zone where the APEC summit events are to be held, the withdrawal of facilities by 1,530 million roubles and the building and purchase of housing for servicemen in the amount of 470 million roubles.

Budget allocations for the reconstruction and building of motorways and bridges under the Subprogramme are to be increased by 17,280.5 million roubles in 2009, by 13,628.5 million roubles in 2010, and 5,720.8 million roubles in 2011. The above increase has been prompted by the updated cost estimate in connection with the development of project documentation for a number of facilities: approval has been obtained from the Main State Expert Examination Authority of Russia of May 14, 2008 of the project "The Building of a Bridge to the Island of Russky across the Bosfor-Vostochny Strait in Vladivostok", an approval has been received from the Main State Expert Examination Authority of April 30, 2008 for the project "The Building of a Bridge Across the Zolotoy Rog Harbour in Vladivostok to Link the M6 Khabarovsk-Vladivostok Federal Road with the Island of Russky", and project documentation on the remaining road facilities is currently being prepared.

The Subprogramme includes some new activities required to ensure the holding of the APEC summit, including the utilities infrastructure on the Island of Russky, generating facilities for heating and power supply of the island with a fuel storage facility as well as measures to buy out real estate and land and the cost of the development of documents on the territorial layout of the island.

The Subprogramme envisages the construction of the following utilities: a long-distance water pipeline to the Island of Russky, sewage networks, purification facilities, drainage, burial of the existing and the building of a new area for solid waste on the island.

The estimated cost of the utilities infrastructure has been determined on the basis of expert assessments and with due account of the cost of analogous facilities. The cost is as follows: 857.9 million roubles in 2009, 1,653.55 million roubles in 2010 and 592.25 million roubles in 2011.

The design of said facilities is to begin in 2009, after the technical and economic parameters of the main construction projects on the Island of Russky have been approved. The request for a proposal to develop documentation on the layout of the territory of the Sapyorny Peninsula on the Island of Russky was approved on June 19, 2008.

The event will primarily be financed out of the federal budget in the form of a contribution to the authorised capital of Eastern Energy Systems. Federal budget allocations will be as follows: 945 million roubles in 2009, 630 million roubles in 2010, and 535.5 million roubles in 2011.

Pursuant to the Decree of the President of the Russian Federation of May 7, 2008 On Federal Universities, the item "Building of the Far Eastern Federal University" (hereafter FEFU) has been included in the Subprogramme.

During the APEC summit in 2012 on the Island of Russky, the FEFU buildings and structures will be used by the summit as follows:

- the residential area will be used for hotel accommodation. During the APEC summit events, the residential stock intended for the University's staff, with a total floor space of at least 110,000 square metres, will be used as four-star hotel rooms and the hotels and dormitories, with a total floor space of 540,000 square metres, will be used as three-star hotel rooms;
- the natural sciences study building will be used as an international press centre;
- the University's international conference centre and classrooms are to be used as the conference centre.

The above facilities have high priority.
The construction of the FEFU will cost 41,669.0 million roubles: 1,590.0 million roubles in 2008, 10,552.5 million roubles in 2009, 18,559.6 million roubles in 2010, and 10,966.9 million roubles in 2011.

The Subprogramme earmarks 300.0 million roubles for the development of documentation on the territorial layout of the Island of Russky for the construction of the facilities for the APEC 2012 summit and the Far Eastern Federal University. All the money is to be spent in 2008.

The Subprogramme also includes the buyout from legitimate owners of real estate and land in order to vacate areas for development (800.0 million roubles) and the cost of legal and investment advice and PR support to attract off-budget financing for the construction of hotels on the island (32.0 million roubles).

The Subprogramme has been amended in terms of management costs. Outlays are to be increased for the directorates under the jurisdiction of government commissioners who will perform the functions of directors of the construction projects. The increase is due to the increased funding for the Programme activities and the implementation of additional functions with which the Far Eastern Gosstroi Directorate has been charged in coordinating the design and exploration work, expert assessment of project documentation of the Subprogramme facilities, expert and scientific support of the Subprogramme projects, and monitoring of timely completion of the work on the Subprogramme facilities.

The total federal budget spending to implement the Programme from 2008 to 2013 is to be 528,511.4 million roubles, an increase of 102,240.2 million roubles from the current allocations.

3. The draft Federal Law On Introducing Amendments to the Law of the Russian Federation On Veterinary Services

The draft Federal Law On Introducing Amendments to the Law of the Russian Federation on Veterinary Services (hereafter the Draft Law) has been developed by the Ministry of Agriculture of Russia to implement activities to form an effective system and structure of federal executive bodies.

Article 31 of the Federal Law of August 22, 2004 On Introducing Amendments to the Legislative Acts of the Russian Federation and Annulment of Some Legislative Acts of the Russian Federation in Connection with the Adoption of Federal Laws On Introducing Amendments and Additions to the Federal Law On the General Principles of Organisation of the Legislative (Representative) and Executive Bodies of the Subjects of the Russian Federation and On the General Principles of the Organisation of Local Government in the Russian Federation, as well as Article 4 of the Federal Law of December 31, 2005 On Introducing Amendments to Some Legislative Acts of the Russian Federation in Connection with Improved Delimitation of Powers, introduce amendments to the Law of the Russian Federation of May 14, 1993 On Veterinary Services (hereafter, the Law) pertaining to the structure of the State Veterinary Service of the Russian Federation, the sources of its funding, and the powers of the federal executive bodies and the executive bodies of the regions of the Russian Federation in the veterinary field. Nevertheless, the current version of the Law does not correspond to the Federal Constitutional Law On the Government of the Russian Federation, the Federal Law On Technical Regulation, the Federal Law On the General Principles of Organisation of Legislative (Representative) and Executive Bodies of the Regions of the Russian Federation, and takes no account of the distribution between the executive bodies of the Russian Federation of powers to develop government policy and regulatory norms, to supervise and render public veterinary services established under the regulatory acts of the Russian Federation. The Law also has some internal inconsistencies.

The development of the Draft Law is prompted by the need to reconcile the legislation of the Russian Federation in the field of veterinary services with international requirements in order to enhance the authority of the State Veterinary Service of the Russian Federation.

In accordance with the Concept of the Administrative Reform in the Russian Federation from 2006 to 2008, the Decree of the President of the Russian Federation On the System and Structure of Federal Executive Bodies, as well as the Statute On the Federal Service for Veterinary and Phytosanitary Supervision, the control and supervision of compliance by government bodies, local government bodies, their officials, legal entities, and citizens with the general rules of behaviour in the veterinary field established by the Constitution of the Russian Federation, the federal constitutional laws, the federal laws, and other legal acts shall be supervised by the Federal Service for Veterinary and Phytosanitary Supervision. However, considering the need to exercise veterinary supervision at certain facilities under the jurisdiction of federal executive bodies in the field of defence, internal affairs, the penitentiary system, state guard duty and security, the Draft Law stipulates that veterinary (veterinary-sanitary) services of the abovementioned federal executive bodies perform certain functions of supervising compliance with the requirements of the laws of the Russian Federation in the veterinary field at the facilities under their jurisdiction.

In addition, for the purpose of scientific and methodological support of the State Veterinary Service of the Russian Federation, the Draft Law includes the institutions under the jurisdiction of the Russian Government that are reference laboratories and centres of such bodies, in the system of the State Veterinary Service of the Russian Federation.

The Draft Law is aimed at delimiting the powers of government bodies of the Russian Federation in the veterinary field, more precise definition of the functions and powers of the government bodies of the Russian Federation, the rights and duties of organisations and citizens engaged in veterinary activities, harmonisation of the provisions of the Draft Law with the legal framework of the Russian Federation and international norms, improvement of the protection of the territory of the Russian Federation from the spread of contagious animal diseases.

In connection with the deteriorating epizootic situation on the territory of the Russian Federation and in the neighbouring states (including bird flu and foot-and-mouth disease) and lack of regulation of some issues pertaining to the prevention of the spread and liquidation of hotbeds of infectious and mass non-infectious animal diseases, the need has arisen to introduce amendments to Article 17 of the Law on the powers of government bodies of the Russian Federation.

Throughout the text of the Draft Law, uniformity has been ensured of the term "animal products" in line with Clause 4, Article 4 of the Federal Law On Introducing Amendments to Some Legislative Acts of the Russian Federation in Connection with Improved Delimitation of Powers. The term "animal products" has a broader meaning than the term "livestock products", because it includes not only the products of livestock breeding, but also products from the killing of animals that are not agricultural animals (for example, hunter's trophies) as well as fish and other marine bio-resources and apiculture products. In addition, Article 1 of the Law determines that veterinary specialists implement measures to prevent and liquidate quarantined and very dangerous diseases of all animals including farm and domestic animals, animals in zoos, mammals, birds, fishes, bees and other animals.

The need to introduce amendments to the Law is also prompted by the fact that its provisions affect the interests of a large number of legal entities, individual entrepreneurs, and individuals who keep animals and sell animal products.

The adoption of the Draft Law will enhance the responsibility and professional training of veterinary specialists, which would contribute to more effective work in ensuring epizootic and veterinary-sanitary well-being in the Russian Federation.

Implementation of the Draft Law will not entail additional spending for the federal budget.

4. The draft Federal Law On Introducing Amendments to Article 26 of the Federal Law On the Judicial Community Bodies in the Russian Federation

The aim of the Draft Law is to comply with the requirements of the Ruling of the Constitutional Court of the Russian Federation of February 2, 2006 On the Complaints of Citizens S.V. Semak and V.P. Sokotov over the Violation of their Constitutional Rights under Para 2, Clause 2, Article 26 of the Federal Law On the Judicial Community Bodies in the Russian Federation (hereafter the Ruling).

According to the Ruling, the provision of Para 2, Clause 2, Article 26 of the Federal Law On the Judicial Community Bodies in the Russian Federation (hereafter the Federal Law) that allows appeals against the decisions of Judge Qualification Boards of the regions of the Russian Federation to suspend or terminate the powers of a judge or terminate his/her retirement with corresponding supreme courts of the republics, territorial, and regional courts, the courts of cities of federal importance, and the courts of autonomous regions and autonomous areas are not to be applied because they contradict Part 1 of Article 47 of the Russian Constitution.

Under Para 2, Clause 2, Article 26 of the Federal Law, the decisions of the Judge Qualification Boards of the regions of the Russian Federation to suspend or terminate the powers of a judge may be challenged with corresponding supreme courts of the republics, territorial, regional courts, the courts of cities of federal importance, and the courts of autonomous regions and autonomous areas.

Meanwhile, Clause 3, Part 1, Article 27 of the Civil Procedure Code of the Russian Federation (hereafter CPC) establishes that only the Supreme Court of the Russian Federation has jurisdiction over such cases.

Thereby the provisions of Clause 2, Article 26 of the Federal Law contradict the provisions of Clause 3, Part 1, Article 27 of the CPC, which violates the principle whereby a legal norm must be unambiguous.

On the strength of the above, a corresponding amendment shall be introduced to Article 26 of the Federal Law On the Judicial Community Bodies in the Russian Federation.

5. The participation of the Russian Federation in increasing the authorised capital of the Black Sea Trade and Development Bank

The intergovernmental agreement on the creation of the Black Sea Trade and Development Bank (hereafter BSTDB) was signed in December 1994 and took effect on January 24, 1997. Its participants are the Republic of Azerbaijan, the Republic of Albania, the Republic of Armenia, the Republic of Bulgaria, the Greek Republic, Georgia, the Republic of Moldova, the Russian Federation, Romania, the Turkish Republic, and Ukraine. The main task of the BSTDB is to provide loans to projects on the territories of the member states.

The Russian Federation is one of the Bank's main shareholders (16.5% of its equity).

From the time the BSTDB was formed, our country, having contributed paid-up capital of about 50 million SDRs (Special Drawing Rights), obtained funding for investment projects to the tune of 230 million SDRs. The Bank's current country strategy for Russia includes several important infrastructure projects, including a $36 million loan for the construction of the Western high-speed road in St Petersburg and another $36 million loan for the construction of the Oryol tunnel, which confirms that the BSTDB is committed to being involved in the financing of that sector.

In addition, the Bank is already implementing major operations, such as a $36 million loan to the company Sedmoy Kontinent, a $20 million loan to the Kalina enterprise, a $20 million loan to Severstal, a $20 million loan to the Teleset company, a $18.5 million loan to the Alrosa company, a $15 million loan to the Tolyattiazot enterprise, and others.

The positive dynamics of the growth of the BSTDB crediting activities in the Black Sea region warrant the conclusion that by 2012, the Bank's credit portfolio may equal the total sum of its authorised capital and accumulated reserves. This would deprive the Bank of the possibility to expand its credit activities, which will affect its image and rating and make it significantly less competitive.

In connection with this, the Bank's management has prepared a strategy to increase its authorised capital. The adoption of the strategy would automatically raise the limits for investment, financial, and other transactions.

During the meeting of the Bank's Board of Governors on December 2, 2007, the majority voted to increase the authorised capital of the BSTDB from 1 billion SDRs to 2 billion SDRs.

In accordance with the country strategy of capital increase, the total payments of the Russian Federation to the paid-up part of the BSTDB will amount to 49.5 million SDRs, of which 16.5 million SDRs are to be paid in 2010 and the remaining sum to be paid in equal annual instalments of 4.125 million SDRs until 2018.

Participation in the programmes to enlarge capital will enable Russia to preserve its position in the Bank and count on a substantial increase in support for Russian projects in the Black Sea region.

6. Submitting to the President of the Russian Federation of the Agreement on the Creation of the System of Control of the Forces and Assets of the Collective Security Treaty Organisation System

The Agreement on the Creation of the System of Control of the Forces and Assets of the Collective Security Treaty Organisation System (hereafter, the Agreement) was signed in Dushanbe on October 6, 2007.

The Agreement regulates the issues of the formation and functioning of the system of control of the forces and assets of the Collective Security Treaty Organisation (hereafter, the CSTO), which represents a combination of interconnected control bodies, control centres, and control assets that form the organisational and technical basis of control over the coalition (regional) groups of forces.

The system of control over the forces and assets of the CSTO's collective security is based on elements of the existing systems of control over the armed forces of the CSTO member states in the regions of collective security, with due account of the existence of the common defence space, operational equipment, and infrastructure of the collective security regions.

The system of control over the CSTO forces and assets is being created to ensure effective functioning of the forces and assets of the CSTO collective security system in both peacetime and wartime for the purpose of adequate response to the modern challenges and threats to the national and collective security of the Parties; optimal use of the forces and assets in regrouping and during the conduct of military operations in the collective security region; to maintain permanent interaction among the control bodies of the coalition (regional) groups of forces with the defence ministries of the Parties; for interregional interaction of coalition (regional) groups of forces; to bring the military control and warning signals to the bodies controlling these troops and integrated military systems.

The tasks, composition of the forces and assets of the system of control of the CSTO forces and assets are determined by the CSTO Collective Security Council, and the creation, development, and improvement of that system is organised and carried out by the Council of CSTO Defence Ministers.

The forces and assets of the CSTO Collective Security System include the control systems of coalition (regional) groups of forces in the Central Asian, Eastern European, and Caucasus Collective Security regions.

In creating and operating the system of control of the CSTO forces and assets, the Parties will take all the necessary measures to ensure a regime of secrecy and protection of secret information in accordance with the laws of the Parties and the international obligations of the CSTO member states.

The ratification of the Agreement meets the interests of the Russian Federation and does not contain any rules that differ from those envisaged under the laws of the Russian Federation.

Implementation of the Agreement will not entail additional spending for the federal budget.

Because the provisions of the Agreement are related to the issues of Russia's defence capability and ensuring international peace and security, the Agreement is subject to ratification in accordance with subclause d of Clause 1, Article 15 of the Federal Law On International Agreements of the Russian Federation.

7. On the organisation and approval of the composition of the Organising Committee for the Preparation and Holding of the Eurovision-2009 Song Contest

Pursuant to the instructions of the Government of the Russian Federation of June 24, 2008, the Russian Ministry of Communications and the Media is proposing to create the Organising Committee for the Preparation and Holding of the Eurovision-2009 Song Contest (hereafter the Organising Committee) and to approve its composition.

The draft executive order of the Russian Government on the creation of the Organising Committee is aimed at ensuring the coordination of the activities of the federal executive bodies and the Government of Moscow in preparing and carrying out the measures connected with the holding of the Eurovision-2009 Song Contest.

Creation of the Organising Committee will not entail additional spending for the federal budget.

August 2, 2008
Moscow

* Press releases by the Department of Press Service and Information contain the materials submitted by the federal executive bodies for discussion by the Presidium of the Government of the Russian Federation.