The following issues are scheduled for discussion at the Government meeting on November 13, 2008:
1. Overhauling the railway transport network
Railway transport accounts for 82.5% of the national transport network's total freight turnover (not including pipeline transport).
In 2008, Russian railways transported 1.8% more freight than in 2007, including 3.7% more ferrous metals, 4.3% more construction-industry consignments, 4.8% more bituminous coal, and 5.9% more container consignments.
Most qualitative parameters of the railway network's performance have improved throughout 2008. For instance, the freight-car turnover has been expedited by 2.16 hours, freight-train weight has increased by 50 tonnes and gross locomotive productivity has increased by 27,000 tonne-kilometres.
Passenger-traffic volumes continue to expand and passenger-service quality continues to improve. From January to September 2008, the nationwide passenger turnover reached 137.4 billion passenger-kilometres, a 1.2% increase from the same period in 2007. The long-distance passenger turnover has increased by 1.1%.
New international routes linking Kaliningrad with Malbork, Poland, and Berlin, Germany, have been opened. The Moscow-Warsaw train has started departing and arriving every day. Non-stop coaches operate between Moscow and Venice, Moscow and Amsterdam, Basel and Munich.
Terminals in Svetlogorsk and Chelyabinsk have been opened on the Kaliningrad Railway and the South Urals Railway.
In 2008, train traffic was opened along the renovated Korshunovsky tunnel on the East Siberian Railway and the renovated tunnel No. 1 between Tuapse and Adler on the North Caucasian Railway. Synchronised commuter-train traffic has opened along the Moscow - Savyolovskaya - Sheremetyevo airport stretch. Other important infrastructure projects have been implemented.
From January to September 2008, transport monopoly Russian Railways received 838.4 billion roubles' worth of proceeds from its core activities, a 15.1% increase from the same period in 2007.
The latest forecasts show that Russian Railways hopes to receive 1,112 billion roubles' worth of proceeds in 2008, including 1028.2 billion roubles from freight traffic and long-distance passenger and commuter-train traffic. 2008 net profits will reach 5.6 billion roubles.
The 2007 Russian Railways investment programme, financed from all sources, totalled about 255.5 billion roubles, including about 253.5 billion roubles of corporate assets.
Russian Railways will invest 388 billion roubles (minus value-added tax) throughout 2008, a 50% increase from 2007.
Apart from increased funding volumes, the corporate investment budget's sources changed considerably through 2008. The company implements additional strategic projects aimed at improving the quality of Russian Railways services - namely, increasing the speeds of freight and passenger trains, enhancing railway-traffic safety, introducing new rolling stock and new managerial concepts, and accomplishing state objectives. Moreover, the company is moving to provide transport support for the upcoming 2014 Winter Olympics in Sochi.
2. The Russian Railways draft investment programme and financial plan for 2009 and the planning period of 2010-2011
The 2008 global financial crisis is expected to negatively affect total railway-traffic volumes and freight-traffic proceeds.
Russian Railways proposes a modified 2009-2011 financial plan for examination.
A description of 2009-2011 parameters
The total railway freight turnover is expected to reach 2,490.2 billion tonnes/km in 2009, 2,545.3 tonnes/km in 2010, and 2,604.5 tonnes/km in 2011.
The passenger turnover is expected to reach 177.3 billion pass. km in 2009, 178.7 billion pass. km in 2010, and 179.2 billion pass. km in 2011.
Planned 2009 proceeds
Revised freight-traffic proceeds are estimated at 1,016.2 billion roubles.
Considering the revised passenger-turnover volume and tariff-indexation levels, long-distance passenger-traffic proceeds are estimated at 153.2 billion roubles.
Commuter-train traffic proceeds are estimated at 18 billion roubles.
Total railway-traffic proceeds are estimated at 1,207.9 billion roubles.
Planned 2010 proceeds
Revised freight-traffic proceeds are estimated at 1,160.6 billion roubles.
Long-distance passenger-traffic proceeds are estimated at 174.4 billion roubles.
Commuter-train traffic proceeds are estimated at 19.4 billion roubles in 2010, provided that tariffs are indexed by 11% starting January 1, 2010.
Total railway-traffic proceeds are estimated at 1,377.3 billion roubles.
Planned 2011 proceeds
Freight-traffic proceeds are estimated at 1,331.1 billion roubles.
Long-distance passenger-traffic proceeds are estimated at 198.1 billion roubles.
Commuter-train traffic proceeds are estimated at 20.8 billion roubles.
Total railway-traffic proceeds are estimated at 1,575.8 billion roubles.
Other types of activity
Corporate proceeds from other types of activity will annually increase by 8 billion roubles.
Planned proceeds from other sales will total:
* In 2009 - 85 billion roubles, a 2.4% increase from 2008;
* In 2010 - 93.3 billion roubles, a 9.7% increase from 2009;
* In 2011 - 101.9 billion roubles, a 9.3% increase from 2010.
Due to said factors, Russian Railways will be in the black. In 2009, 2010, and 2011, net corporate profits will total 3 billion roubles, 39.8 billion roubles (including the sale of subsidiary and affiliated-company stocks), and 1.4 billion roubles, respectively.
Factors substantiating state support in 2009
Russian Railways has begun the implementation of its 2009-2011 investment programme in a complicated financial situation. Considering the fact that part of the investment programme will have to be financed by loans, distinctly possible financial risks may prevent the company from attracting sizeable credit resources on the capital market.
As far as the current financial-markets situation is concerned, Russian Railways can attract only 52.4 billion roubles on capital markets. There are plans to attract another 100 billion roubles in the form of state support by issuing infrastructure bonds.
The draft Russian Railways investment budget for 2009-2011
The draft budget is based on the 2008-2010 budget, approved by the corporate board of directors, and heeds financial planning parameters, corporate restructuring, and the influence of projected negative consequences of the situation on financial markets.
The following are the corporate investment volumes (not including capitalised interest on 2009 loans - 7.5 billion roubles, on 2010 loans - 10.5 billion roubles, on 2011 loans - 21.7 billion roubles).
* 2009 - 434.2 billion roubles (plus 4.5 billion roubles of external target investment);
* 2010 - 536.1 billion roubles (plus 5 billion roubles of external target investment);
* 2011 - 624.3 billion roubles (plus 5 billion roubles of external target investment).
Mandatory corporate investment projects
The draft Russian Railways investment budget for 2009-2011 contains sections prioritising projects linked with the development of the railway infrastructure for holding the 2014 Winter Olympics in Sochi and the co-financing of projects under the federal target programme "The Development of the Russian Transport Network from 2010 to 2015".
There are plans to start implementing the following new projects with Russian Railways involvement:
* building the Prokhorovka - Zhuravka - Chertkovo - Bataisk railway;
* expanding the Moscow transport junction.
These projects will be implemented at the expense of freight-traffic tariffs' investment component (9.1 billion roubles in 2009, 39.7 billion roubles in 2010, and 76.7 billion roubles in 2011) and corporate assets.
The funding derived through the additional target indexing of freight-traffic tariffs by an average of 1% (over 7 billion roubles in 2009, over 8 billion roubles in 2010, and 10 billion roubles in 2011) and assets contributed to the corporate statutory capital will be used to finance Sochi projects.
The following investment volumes are needed to implement these projects: 58.7 billion roubles in 2009, 125.2 billion roubles in 2010, and 187 billion roubles in 2011.
3. The results of work assessing the effectiveness of executive power agencies of the Russian Federation's constituent entities and issuing grants to constituent entities rated as the best performers in 2007
The Russian Federation's Ministry of Regional Development has assessed the effectiveness of executive power agencies of the Russian Federation's constituent entities through 2007.
It assessed the quality of managing the socio-economic development of constituent entities in the following spheres: economic growth, popular incomes, the population's health, general education, primary and secondary professional education, the housing/municipal utilities sector, housing construction, public safety, the organisation of state and municipal administration, and the effectiveness of budgetary spending.
On September 16, 2008, an expert group comprised of representatives from the Presidential Executive Office, the Government Staff, the Ministry of Healthcare and Social Development, the Ministry of Education and Science, the Ministry of Regional Development, the Ministry of Finance, the Ministry of Economic Development, and a number of independent analysts examined and approved expert-check results and proposals on modifying specific parameters of the work of executive power agencies in the relevant areas.
The Ministry of Regional Development has drafted and is submitting a governmental executive order on issuing grants to the constituent entities rated as the best performers in 2007.
Under the draft executive order, it is proposed to issue grants to 20 constituent entities. The following constituent entities were selected depending on grant volumes.
1. The Tyumen Region;
2. The Chuvash Republic - Chuvashia;
3. The Krasnodar Territory;
4. The Samara Region;
5. St Petersburg;
6. The Republic of Tatarstan (Tatarstan);
7. The Rostov Region;
8. The Perm Territory;
9. The Khanty-Mansi Autonomous Area - Yugra;
10. The Kaliningrad Region;
11. Moscow;
12. The Tomsk Region;
13. The Krasnoyarsk Territory;
14. The Belgorod Region;
15. The Kemerovo Region;
16. The Moscow Region;
17. The Sverdlovsk Region;
18. The Stavropol Territory;
19. The Vladimir Region;
20. The Leningrad Region.
Constituent entities will receive grants in the form of subsidies totalling 2 billion roubles under Federal Law No. 198-FZ On The Federal Budget for 2008 and the Planning Period of 2009-2010 dated July 24, 2008.
4. Approving the Regulations of the Rosatom Nuclear Energy State Corporation
The Corporation's Regulations, approved by the Government, stipulate the relevant procedure and regulations for exercising state prerogatives granted to the Corporation by the Law.
Under the law, the Corporation is an authorised agency responsible for managing nuclear energy with regard to its organisations and other legal entities conducting various operations in the sphere of nuclear energy under the Federal Law On The Use of Nuclear Energy, as well as specific types of activity not related to the development, manufacturing, and scrapping of nuclear weapons and military nuclear power units.
The Corporation is duly authorised on behalf of the Russian Federation under the Convention on the Physical Protection of Nuclear Material to act as an official state agency for nuclear and radiation safety during transportation of nuclear materials, radioactive substances, and related products. Moreover, the Corporation has the status of a central state agency, liaison point, and official national agency responsible for facilitating the physical protection of nuclear materials at the International Atomic Energy Agency and other international organisations.
The law stipulates a number of other state prerogatives for facilitating the safe use of nuclear energy, control over nuclear materials, international cooperation, protecting state secrets, and some other prerogatives.
The Regulations are comprised of the following sections:
* general provisions regulating the Corporation's activities;
* the relevant procedure for fulfilling executive orders of the President and the Government by the Corporation;
* the relevant procedure for the Corporation's cooperation with federal executive-power agencies, institutions of state authority of the Russian Federation's constituent entities, and local self-government bodies of municipal entities during the exercising of the Corporation's functions;
* the relevant procedure for dealing with private individuals' appeals;
* the relevant procedure for submitting information in the Corporation's sphere of activity;
* the main regulations for organising the corporate document turnover;
* the specifics of exercising proprietor rights by the Corporation on behalf of the Russian Federation.
The Regulations contain provisions on the procedure for fulfilling presidential and governmental executive orders by the Corporation, the procedure and rules for the Corporation's cooperation with institutions of state authority and local self-government bodies.
While exercising its functions and prerogatives under the law and other legal acts, the Corporation cooperates with federal executive-branch agencies, regional institutions of state authority, and local self-government bodies of municipal entities in line with rules stipulated by the Regulations of the Government and the Government Staff, and framework regulations for federal executive-branch agencies whose activities are overseen by the President or the Government, as well as under agreed-upon or joint acts of the Corporation and the abovementioned federal executive-branch agencies.
The Corporation is covered by the provisions of legal documents of the Government and federal executive-branch agencies regulating the procedure for drafting the federal budget and the federal budget's long-term financial plan.
Due to the approval of corporate regulations, the Regulations of the Government and the Government Staff will be amended accordingly.
5. The draft Federal Law On Amending Separate Legal Acts of the Russian Federation In Order to Improve Living Standards of Certain Categories of People
This document aims to improve private individuals' living standards by stipulating higher basic retirement, disability, survivors' pensions, and higher monthly benefits to private individuals affected by radiation as a result of the Chernobyl nuclear power plant disaster, nuclear tests at the Semipalatinsk nuclear testing site, the 1957 nuclear accident at the Mayak production association, and the dumping of radioactive waste into the Techa River.
This category of private individuals receives monthly benefits stipulated for Chernobyl clean-up workers, the relevant categories of veterans receiving monthly benefits under the Federal Law On Veterans, including disabled children, Heroes of the Soviet Union, Heroes of the Russian Federation, Heroes of Socialist Labour, and Full Cavaliers of the Order of Glory in lieu of benefits under Federal Law No. 122-FZ dated August 22, 2004, and other legal acts.
The document stipulates subsequent measures to index basic retirement pensions in excess of price hikes. Under its provisions, articles 14, 15, and 16 of the Federal Law On Retirement Pensions in the Russian Federation, which stipulates the relevant procedure for calculating old-age pensions, disability, and survivors' pensions, will be amended accordingly.
When approved, the document will index basic retirement, disability, and survivors' pensions, and will stipulate higher cash benefits dependant on basic retirement pensions.
The document aims to index basic retirement pensions as of March 1, 2009 and December 1, 2009.
As of March 1, 2009, basic monthly retirement pensions will total 1,950 roubles. Consequently, standard retirement pensions will be indexed by 156 roubles. Individuals who are 80 years of age, along with third-category disabled persons, will receive 3,900 roubles per month, a 312-ruble increase.
Depending on the extent of disability, the following basic monthly disability pensions are stipulated:
* third-degree disability - 3,900 roubles;
* second-degree disability - 1,950 roubles;
* first-degree disability - 975 roubles.
People supporting disabled family members will receive higher basic retirement and disability pensions, depending on the number of family members (from one to three). Basic pensions will be indexed by 650 roubles for each dependent.
The following basic survivors' pensions are stipulated:
* for children who have lost both parents or the children of a deceased single mother (absolute orphans) - 1,950 roubles per child a month;
* for other disabled members of a deceased breadwinner's family - 975 roubles per family member a month.
As of December 1, 2009, basic monthly retirement pensions will total 2,460 roubles, a 510-ruble increase.
The document also stipulates 2009 per-capita spending norms for persons receiving state social-security aid in the form of medical prescriptions issued by doctors or paramedics, specialised medical foods for handicapped children, and other medical items.
6. The draft Federal Law On Amending Article 10 of the Federal Transport Safety Law
The draft Federal Law On Amending Article 10.2 of the Federal Transport Safety Law aims to exclude the words "occupations and positions" from Article 10.2, Restrictions During Acceptance of Transport-Safety Personnel of the Federal Transport Safety Law.
This amendment is motivated by the fact that virtually all employees of the transport industry and its network facilitate transport safety, and that the approval of a list of occupations and positions of employees directly facilitating transport safety will duplicate existing legal documents.
7. The draft Federal Law On Ratifying the Agreement on Export Duties with Regard to Third Countries
The Agreement on Export Duties with Regard to Third-Party Countries, signed January 25, 2008 in Moscow, is aimed at creating the legal framework of the Eurasian Economic Community's Customs Union.
The Agreement regulates relations between states that are parties to the Customs Union during the establishment of customs duties on products being supplied to third-party countries. Under the agreement, the Customs Union's commission will compile a list of all products covered by export duties during trade operations between states, parties to the Customs Union, and third-party countries.
The Agreement's regulations for establishing export duties and the list of products covered by such duties differ from those stipulated by the Russian Federation's legislation and are subject to ratification under Article 15.1.a of the Federal Law On International Agreements of the Russian Federation.
8. The draft Federal Law On Ratifying the Agreement on Joint Non-Tariff Regulation Measures with Regard to Third Countries
The Agreement on Joint Non-Tariff Regulation Measures with Regard to Third Countries, signed January 25, 2008 in Moscow, is aimed at creating the legal framework of the Eurasian Economic Community's Customs Union.
The Agreement stipulates joint non-tariff regulation measures and joint approaches to state regulation of foreign-trade operations between states, parties to the Customs Union, and third countries.
The Agreement contains provisions on transferring part of the Russian Federation's prerogatives to Customs Union agencies. The Agreement, which notes the legally binding nature of Customs Union agencies' decisions for the Russian Federation, is subject to ratification under Article 15.1.d of the Federal Law On International Agreements of the Russian Federation.
9. The draft Federal Law On Ratifying the Agreement on Joint Regulations for Determining the Country of Origin of Products
The Agreement on Joint Regulations for Determining the Country of Origin of Products, signed January 25, 2008 in Moscow, is aimed at creating the legal framework of the Eurasian Economic Community's Customs Union.
The Agreement is meant to simplify and harmonise customs-clearance proceedings of states that are parties to the Customs Union during their trade with third-party countries. The Regulations for Determining the Country of Origin of Products, due to be applied on the entire territory of the Customs Union, are an inalienable part of the Agreement.
The Agreement will not apply to products originating from developing or the least-developed countries, or from countries that have concluded free-trade agreements with the concerned states.
The Agreement contains rules pertaining to sufficient product-processing criteria other than those stipulated by Russian legislation, as well as provisions delegating part of the Russian Federation's prerogatives to Customs Union bodies. The Agreement, which notes the legally binding nature of Customs Union agencies' decisions for the Russian Federation, is subject to ratification under Articles 15.1.a and 15.1.d of the Federal Law On International Agreements of the Russian Federation.
10. The draft Federal Law On Ratifying the Agreement on Joint Customs-Tariff Regulation
The Agreement on Joint Customs-Tariff Regulation signed January 25, 2008 in Moscow, is aimed at creating the legal framework of the Eurasian Economic Community's Customs Union.
The Agreement stipulates the relevant procedure for formulating and applying common customs tariffs, a trade-policy instrument.
The Agreement lists import-duty rates, factors heeded during the formulation of common customs tariffs, the relevant terms for granting tariff privileges, and the procedure for exempting companies and private individuals from customs-duty payments during the importation of third-party products into the Customs Union.
The Agreement contains provisions delegating part of the Russian Federation's prerogatives to Customs Union bodies. The Agreement, which notes the legally binding nature of Customs Union agencies' decisions for the Russian Federation, is subject to ratification under Article 15.1.d of the Federal Law On International Agreements of the Russian Federation.
11. Signing the Convention on the Legal Status of CIS Migrant Workers and Their Families
Russia's Federal Migration Service and the concerned federal executive-branch agencies have drafted a Convention on the Legal Status of CIS Migrant Workers and Their Families based on the June 20, 2000 decision of the Council of CIS Heads of Government concerning the Action Programme to Develop the Commonwealth of Independent States Through 2005.
The Convention is meant to eliminate a discrepancy in regulating the legal status of migrant workers and their families and to guarantee equal living and working conditions for migrant workers and receiving-country citizens.
The decision to draft this Convention is motivated by expanding labour migration on the territory of CIS states. For instance, 358,900 and 1,152,800 CIS workers arrived in the Russian Federation through 2006 and 2007, respectively. From January to June 2008, 1,364,000 CIS workers arrived in the Russian Federation, making up 51%, 62%, and 74% of the foreign workers employed by this country.
The draft Convention proclaims common principles and approaches to guarantee and protect the rights of migrant workers. One of its main principles implies that a receiving country must determine the legal status of migrant workers in accordance with its legislation and the international treaties and agreements it has signed.
The draft Convention heeds changes in Russian migration legislation and does not infringe on Russian citizens' right to work. For instance, the draft Convention contains a clause stipulating restrictions on migrant workers in terms of employment categories, occupations, and access to paid labour activity for the purpose of protecting the national labour market and guaranteeing the high-priority right of Russian citizens to fill vacant positions.
The Convention stipulates the sphere of its application, lists the range of legal entities and private individuals covered by its provisions, and formalises the rights and freedoms of migrant workers and their families. The Convention matches fundamental international documents in this sphere, including the November 24, 1977 European Convention on the Legal Status of Migrant Workers and the December 18, 1990 International Convention on the Protection of the Rights of All Migrant Workers.
The Russian Federation has so far failed to join international conventions on the protection of migrant workers' rights, including the 1975 ILO Convention No. 143 on Migrant Workers, the International Convention on the Protection of the Rights of All Migrant Workers, which deals with migration abuse and guaranteeing equal opportunities to all migrant workers, passed by the UN General Assembly's Resolution 45/158, and the European Social Charter, adopted in 1961 and revised in 1996.
In connection with this, the Convention's approval would confirm the Russian Federation's commitment to mandatory fundamental international treaties and agreements in regard to the protection of migrant workers' rights and could serve as an impulse for streamlining the intra-CIS international contractual-legal base, with regard to creating a mechanism of the Convention's implementation on a bilateral and multilateral basis.
The Convention, which deals with fundamental human rights and liberties, is subject to ratification under Article 15.1.b of the Federal Law On International Agreements of the Russian Federation.
12. Signing the Agreement Between the Government of the Russian Federation and the Government of the Arab Republic of Egypt On Simplified Visa Issuing for the Citizens of the Russian Federation and the Arab Republic of Egypt
The Agreement Between the Government of the Russian Federation and the Government of the Arab Republic of Egypt On Simplified Visa Issuing for the Citizens of the Russian Federation and the Arab Republic of Egypt is aimed at simplifying the regime of mutual trips of private individuals and official representatives of both states and at creating favourable conditions for expanded bilateral contacts.
This Agreement is subject to ratification under Article 15.1.a of the Federal Law On International Agreements of the Russian Federation because it stipulates norms and regulations other than those envisioned by Russian legislation. For instance, the Agreement stipulates visa issues in line with direct written applications of receiving organisations. This procedure differs from that stipulated by Article 25 of the Federal Law On the Procedure for Entering and Leaving the Russian Federation.
13. Contributing the Russian Federation's annual voluntary 500 million rouble payment to the CIS Inter-State Humanitarian Cooperation Fund
14. The Governmental Commission for Regional Development
The Governmental Commission for Regional Development is designed to facilitate coordinated efforts of the concerned federal executive-branch agencies and cooperation between the federal executive-branch agencies and top institutions of state authority of the Russian Federation's constituent members in the sphere of their socio-economic development and that of municipal entities.
The Russian Federation's Ministry of Regional Development has drafted a Governmental Resolution On Establishing the Governmental Commission for Regional Development. The document also approves the Commission's regulations.
The draft Resolution states expressly that the Commission will hold its meeting whenever necessary but not less than once very six months, and that the Commission will be headed by the Prime Minister.
The Ministry of Regional Development will provide information and analytical support for the Commission's work, while the Government Staff will provide organisational and technical support.
November 12, 2008
Moscow
* Press releases by the Department of Press Service and Information contain the materials submitted by the executive federal bodies for discussion by the Presidium of the Government of the Russian Federation.
