Official Website of the Government of the Russian Federation

13 october 2008

Government presidium meeting press release (October 13, 2008)

Event

The following issues are scheduled for discussion at the Government Presidium meeting of October 13, 2008:

1. Completing preparatory measures for the housing and utilities sector for the autumn and winter period of 2008-2009

The Presidium of the Government of the Russian Federation has acknowledged the report made by the Minister of Regional Development on the aforesaid issue.

The meeting determined that, generally speaking, preparatory measures for the housing and utilities for the autumn and winter period of 2008-2009 have been completed and were conducted at a higher rate than last year. At the same time it was noted that as of October 1, 2008 some regions were lagging behind in the preparation of housing and utilities. They include:

- housing stock in the Republic of Daghestan, the Republic of Mari El, the Republic of Khakassia, the Kamchatka Territory, the Astrakhan, Ryazan and Tver Regions;

- boiler rooms in the Republic of Daghestan, the Republic of Ingushetia, the Republic of North Ossetia-Alania, the Chechen Republic, the Primorye Territory, the Astrakhan, Vologda, Kursk, Moscow, Penza, Ryazan, Saratov, Tambov, Tver and Yaroslavl Regions;

- central heating networks in the Republic of Daghestan, the Republic of Sakha (Yakutia), the Chechen Republic, the Primorye Territory, the Astrakhan, Moscow, Penza, Ryazan, Saratov, Smolensk and Tver Regions and the Yamalo-Nenets Autonomous Area;

- water supply networks in the Republic of Daghestan, the Kamchatka Territory, the Amur, Kaluga, Leningrad, Novgorod, Rostov, Ryazan and Tver Regions;

- the accumulation of coal stocks in the Republic of Buryatia, the Karachayevo-Circassian Republic, the Republic of North Ossetia-Alania, the Republic of Tuva, the Stavropol Territory, the Astrakhan, Ivanovo, Kaliningrad, Kaluga, Magadan, Orenburg and Ulyanovsk Regions;

- the stocks of liquid fuel in the Republic of Adygea, the Republic of Buryatia, the Republic of North Ossetia-Alania, the Amur, Astrakhan, Volgograd, Ivanovo, Kaluga, Magadan, Nizhny Novgorod, Ulyanovsk and Yaroslavl Regions;

- the funding of corresponding work and the reserve of emergency stocks of material and technical resources in the Republic of Daghestan, the Karachayevo-Circassian Republic, the Chechen Republic, the Kamchatka Territory, the Astrakhan, Kaliningrad and Kostroma Regions.

The meeting has instructed the heads of the executive bodies of regions in question to take necessary measures to eliminate the above deficiencies and has requested the Ministry of Regional Development to report the results to the Government of the Russian Federation before November 15, 2008. The Presidium of the Russian Government has instructed the Ministry of Regional Development - after the preparatory work has been completed - to evaluate the work of the executive bodies of the Russian regions to prepare for the autumn and winter period, to report the results of the evaluation before November 25, 2008 and announce them in the media.

The Ministry of Finance, the Ministry of Regional Development, and the Ministry of Energy have been instructed to monitor the implementation of the Russian regional budgets in which heating oil (masut) is the main fuel and, if necessary, submit to the Government of the Russian Federation proposals on financial assistance to these regions.

The Ministry of Regional Development, Rostekhnadzor, jointly with the executive bodies of the Russian regions concerned, have been instructed to continue the monitoring and supervision of the preparation's final stages for the autumn and winter period of 2008-2009 of the housing and utilities and power organizations of every form of ownership in the Russian regions with mandatory drawing up of statements on the readiness of the corresponding facilities. The above mentioned agencies shall report the results to the Government of the Russian Federation before November 25, 2008.

The Ministry of Regional Development, in joint cooperation with the executive bodies concerned, has been instructed to continue, throughout the heating period in 2008-2009, to monitor and supervise the creation and maintenance of standard stocks of fuel at housing and utilities objects and at energy facility storehouses, as well as the establishment of reasonable targets and procedure of the approval thereof. The results of monitoring and supervision shall be reported by the aforesaid agencies to the Government of the Russian Federation before the tenth day of the month following the month under report. Following the termination of the ‘central heating' season, a report on the activities of the Russian regions during that period shall be submitted.

The Ministry of Regional Development, in joint cooperation with the Ministry of Energy, has been made responsible for ensuring the interaction between the Interagency Commission for the Monitoring of Progress in the Preparation of Housing and Utilities in the Russian Regions for the Autumn and Winter Period of 2008-2009, and the Government Commission on Safe Power Supply (Federal Headquarters) in accordance with the approved procedure.

The Ministry of Transport, the Ministry of Regional Development and the Ministry of Energy have been instructed to ensure compliance with the approved schedules of necessary fuel delivery to housing, utilities and power facilities in the autumn and winter period of 2008-2009. The above ministries are to submit the relevant information to the Government of the Russian Federation in the second quarter of 2009.

The executive bodies of the Russian regions, in joint cooperation with the local government bodies, have been instructed to take measures to secure reliable operation of energy facilities, the housing stock and utilities during the autumn-winter period of 2008-2009; to transfer federal budget resources earmarked for compensating the outlays of housing and utilities organizations due to the increased price of fuel in settlements with the creditors in proportion to the accumulated debts.

The relevant information shall be submitted to the Ministry of Regional Development in the second quarter of 2009.

2. Reforming the housing and utilities sector of the Russian Federation

The Presidium of the Government of the Russian Federation has acknowledged the report by the Ministry of Regional Development of the Russian Federation on the above issues.

The meeting noted that the Ministry of Regional Development, in joint cooperation with the federal executive bodies concerned, has performed some work to reform the housing and utilities sector in the Russian Federation .

The Ministry of Regional Development, in joint cooperation with the executive bodies concerned, has been instructed to develop and approve in the 4th quarter of 2008 a complex of measures to reform the housing and utilities sector in the Russian Federation for 2009-2011, with particular attention to:

- reducing residential stock deemed to be decrepit and unsafe;

- timely measures of repair and reconstruction of the utilities infrastructure objects and reducing losses in engineering networks;

- improving the system of targeted support of low-income social strata, in light of the transition to the new principles of tariff regulation;

- support of the creation and functioning of House Owners' Partnerships and other forms of citizens' voluntary organisation in the housing sector;

- establishing federal standards for delivery of housing and utilities services to citizens;

- improving the system of contractual relations in the housing and utilities sphere;

- determining the targets, deadlines and volume of financing.

The relevant information is to be submitted to the Government of the Russian Federation before December 20, 2008.

The Ministry of Regional Development , in joint cooperation with the federal executive bodies concerned, shall, before November 1, 2008 duly submit to the Government of the Russian Federation proposals on introducing amendments to the Federal Law On the Fund for Reform of the Housing and Utilities Sector, envisaging, starting from January 1, 2009, subsidies to the Russian regions if they have regional programmes of phased transition to the delivery of communal resources to consumers according to meters. The Ministry of Regional Development, the Ministry of Economic Development and the Ministry of Finance, in joint cooperation with the state power bodies concerned which have under their jurisdiction institutions financed out of the federal budget, have been instructed to develop proposals on providing such organizations with meters of communal service consumption, as well as on the timeframe of transition to the payment for services in accordance with the readings of these meters.

The agencies concerned shall report the results to the Government of the Russian Federation in December 2008.

To stimulate private investments in the utilities sector, the Russian Government has issued the following instructions:

- (to the Ministry of Economic Development, the Ministry of Regional Development and the Federal Tariffs Service:) to consider the possibility of having local government bodies set the tariffs for utilities services of power, heat and gas supply, while the regions would establish maximum limitations, as long as corresponding programmes of comprehensive development in the utilities sphere are in place;
- (to the Ministry of Economic Development, the Ministry of Regional Development and the Federal Tariff Service:) to arrange proposals for altering the system of setting tariffs for utilities organisations aimed at introducing long-term methods of regulation to ensure the necessary profitability in implementing the programme of comprehensive development in the utilities sphere, especially in large and medium-sized cities, as well as liquidation of cross subsidies;

- (to the Ministry of Economic Development, the Ministry of Regional Development and the Ministry of Finance: to develop proposals on amendments to current legislation to simplify the procedure of drafting, concluding and implementing concession agreements for utilities objects, as well as measures to stimulate concessioners.

The agencies referred to above are due to report back to the Government of the Russian Federation before December 1, 2008.

The Ministry of Regional Development, the Ministry of Economic Development and the Ministry of Finance, in correspondence with the State Corporation - Fund for Reform of the Housing and Utilities Sector, have been instructed to prepare and duly submit to the Government of the Russian Federation before December 1, 2008 proposals on introducing amendments to the current legislation of the Russian Federation with regard to:

- vesting the State Corporation - Fund for Reform of the Housing and Utilities Sector with additional powers in the domain of current monitoring and supervision of compliance with the terms of granting subsidies, targeted spending by the Russian regions and/or municipal entities of the resources directed to finance the measures envisaged under the federal law On the Fund for Reform of the Housing and Utilities Sector;

- the establishment of financial monitoring by federal state control (supervision) of the spending by the Russian regions and/or municipal entities of the resources earmarked to finance the measures under the Federal Law On the Fund for Reform of the Housing and Utilities Sector and the activities of the State Corporation - Fund for the Reform of the Housing and Utilities Sector;

- exemption from profit income tax earned by the State Corporation - Fund for Reform of the Housing and Utilities Sector from investment of temporarily free assets.

The Ministry of Regional Development and the Ministry of Finance have been instructed to examine the issue of additional federal budget allocations for subsidies to Russian regions for the development and modernization of engineering infrastructure facilities beginning from January 1, 2010; the results are to be reported to the Government of the Russian Federation before November 1, 2008.

The State Corporation - Fund for Reform of the Housing and Utilities Sector has been instructed to monitor the ongoing reforms in the housing and utilities sector of the Russian Federation, focusing particular attention to:

- completing the monetization of benefits and subsidies related to the payment for housing and utilities services;

- implementation of the measures stipulated under the law to promote competition in the sphere of management and maintenance of residential stock by developing the market of private managing companies;

- development of the system of managing the utilities property with the use of concession agreements and other public-private partnership mechanisms.

The State Corporation is due to provide a report on the results of the work carried out in 2008 to the Government of the Russian Federation. The meeting has instructed the executive bodies of the Russian regions, jointly with the local government bodies, to take necessary measures to:

- eliminate administrative methods of managing the sector and enhance responsibility for the matters connected with the reform of the housing and utilities sector;

- establish the work to develop competition in the sphere of management and maintenance of the residential stock;

- develop the system of management of the property of the utilities sector through the use of concession agreements and other public-private partnership mechanisms. The results of the measures taken are due to be reported to the Ministry of Regional Development in the first quarter of 2008.

3. The federal targeted programme National System of Chemical and Biological Security of the Russian Federation (2009-2013)

The Presidium of the Government of the Russian Federation , in light of the discussion held, adopted a draft resolution of the Government of the Russian Federation on the above issue.

4. Progress in preparatory measures for legal regulation acts aimed at the implementation of the Federal Law on the Objects of Cultural Heritage (Monuments of History and Culture) of the Peoples of the Russian Federation

The Presidium of the Government of the Russian Federation has acknowledged a report from the Ministry of Culture on the above issue. The meeting declared unsatisfactory the work of the federal executive bodies responsible for the drafting and approvals of legal regulation acts envisaged under the federal law On the Objects of Cultural Heritage (Monuments of History and Culture) of the Peoples of the Russian Federation.

The Ministry of Culture, the Ministry of Regional Development, the Ministry of Economic Development, the Ministry of Finance and the Ministry of Justice have been instructed to take all the necessary measures to develop legal regulation acts stipulated under the Federal Law on the Objects of Cultural Heritage (Monuments of History and Culture) of the Peoples of the Russian Federation, including the provisions on state historical and cultural expert examination and submit the same under established procedure to the Government of the Russian Federation before December 1, 2008.

The Ministry of Culture has been instructed to approve until March 1, 2009 the acts to be adopted by the federal executive body authorized by the Government of the Russian Federation, with priority given to adopting the statute on the Single State Register of the Objects of Cultural Heritage (Monuments of History and Culture) of the Peoples of the Russian Federation, and the provision on the issue of permits (open lists) to conduct work to identify and study archeological heritage objects. The Ministry of Culture, in joint cooperation with the Ministry of Economic Development, has been instructed to finalize and duly submit to the Government before April 1, 2009 a draft legislation on approving the list of cultural heritage objects in federal ownership which the Russian Federation has the authority to preserve, utilize and popularize, and the list of federal-level cultural heritage objects protected by the Russian Federation. The Ministry of Culture, the Ministry of Regional Development and the Ministry of Finance have been instructed to submit until May 1, 2009 to the Government of the Russian Federation under established procedure a draft legislation approving the methodology of determining the amount of resources made available as subventions from the federal budget to the budgets of the Russian regions for the exercise of the delegated powers to preserve, utilize and popularize cultural heritage objects in federal ownership, as well as to protect the objects of cultural heritage of federal significance.

The Ministry of Culture and the Ministry of Economic Development have been instructed to study the issue of improving the activities of the federal restoration organizations and submit the relevant proposals to the Government of the Russian Federation before December 1, 2008.

5. Draft Federal Law On Ratification of the Protocol on Introducing Amendments to the Agreement Between the Russian Federation and the Kingdom of Spain on the Activities of Cultural Centres of November 15, 2001

The Presidium of the Government of the Russian Federation has approved the Draft Federal Law On Ratification of the Protocol on Introducing Amendments to the Agreement Between the Russian Federation and the Kingdom of Spain on the Activities of Cultural Centres of November 15, 2001 and has submitted it to the State Duma under established protocol.

6. Submitting to the President of the Russian Federation proposals on signing the Agreement between the Government of the Russian Federation and the Government of the Kingdom of Spain on the transit of military material and personnel across the territory of the Russian Federation, in connection with the participation of the Armed Forces of the Kingdom of Spain in the efforts to stabilize and restore the Islamic Republic of Afghanistan.