27 april 2009

Background material for the April 27, 2009 Government Presidium meeting

The following issues are scheduled for discussion at the Government meeting on April 27, 2009: 

1. The progress in the implementation of measures to support the labour market and provide social support with regard to changes in the labour market situation.

1) The labour market situation

From October 2008 to April 2009, the total number of unemployed persons increased from 4 million to 7.1 million, or from 5.8% to 9.5% of the economically active population. During the same period, the number of unemployed persons registered with employment agencies grew from 1.2 million to 2.3 million, thus rising 83.1%.

The upsurge in unemployment in the constituent entities of the Russian Federation has been experienced within advanced industrial production and the financial sector, whose performance is conditioned by ongoing global trends. Simultaneously, the labour market situation in those constituent entities of the Russian Federation traditionally encountering significant challenges within the employment sector (North Caucasian republics and a number of regions in the Far East) remains practically unchanged.

The highest unemployment growth rates were registered in January and February 2009 when a weekly increase reached 9%. In March and April, the growth slowed down and stabilised, standing on average at 1.7%.

Simultaneously, however, the ratio of categories of citizens made redundant for varied reasons has changed..

Out of the total number of the unemployed, the portion of those who took voluntary redundancy grew from 31.9% to 33.7%. Meanwhile, the portion of persons made redundant through reduction in force or attrition of an organisation decreased from 13.5% to 11.8%. The said processes attest to the practice used by employers of  "forcing out" employees through redundancies without distributing severance packages, envisioned by the Labour Code of the Russian Federation.

The number of jobless persons that reside in single-industry towns has more than doubled.

As of April 22, 2009, the number of discharged employees amounted to 345,400 of the total of 738,500 who were projected to be made redundant starting from October 2008. It was announced that over 370,000 employees are going to be made redundant within the next three months.

In view of diminishing production volumes and closures of companies, a transfer to a part-time employment regime serves as an alternative to dismissing employees. Since early November, the number of companies that switched to this mode multiplied, reaching over 37,000, with the total number of part-time employees growing to 1.5 million.

The conversion of a considerable number of employees to a part-time work regime in the first quarter of 2009 accounts for a wage increase slowdown. Wage arrears are growing: on April 1, 2009 they stood at 8.75 billion roubles, which is a 0.67 billion-rouble - or 8.3% - increase compared with March 1, 2009.

The Government has been monitoring the labour market situation including labour migration issues.

The findings of this monitoring report are regularly discussed at government meetings, with the Minister of Healthcare and Social Development, the head of the Federal Migration Service and other federal executive bodies' heads participating, as well as at the meetings of the Governmental Commission on Sustained Development of the Russian Economy.

Heads of 26 regions have reported on the situation in regional labour markets and on the implementation of regional programmes to ease tensions in these markets.

Issues related to employment in transport, industry and trade, agriculture, the fuel and energy complex, science and education, communications, information technology and mass media, housing and utilities were considered, with measures outlined to eliminate the causes of the destabilisation of the situation in these economic areas and in specific companies.

2) Measures in the labour market

The measures planned for 2009, as well as additional anti-crisis efforts, have been undertaken to improve the situation in the Russian labour market.

State employment agencies in the constituent entities of the Russian Federation carry out measures envisioned by the Law of the Russian Federation On the Employment of the Population of the Russian Federation. These efforts include paying unemployment benefit, rendering assistance in retraining, implementing active employment programmes, etc. A total of 42.9 billion roubles, envisioned in the federal budget for 2009, was allocated to regional budgets in the form of subventions.

With a view to boosting the labour market's efficiency, a strategic plan, approved following the Concept for Activities in the Labour Market for 2008-2010, (1193-r, adopted on August 15, 2008), is being implemented.

With a view to augmenting the efficiency of social support measures for jobless persons and of measures to protect the Russian labour market, the Law On the Employment of the Population of the Russian Federation prescribes a norm that gives people who resigned without good cause and were acknowledged as unemployed an opportunity to receive unemployment benefits in line with the established procedure for those who were laid off following their companies' dissolution, or redundancies.

In addition, the Government has taken a number of decisions:

  • The Government Resolution No. 915 of December 8, 2008 On the Minimum and Maximum Value of the Unemployment Benefit for 2009, which sets the maximum unemployment benefit value at 4,900 roubles for 2009;
  • The Government Resolution No. 916 of December 8, 2008 On Introducing Amendments to the Rules of State Executive Bodies Determining the Need for Employing Foreign Workers and Foreign Workforce Quotas, which envisages a 50% reserve of the foreign workforce quota volume approved by the Government (as opposed to the 30% reserve prescribed earlier);
  • The Government Resolution No. 316 of April 9, 2009 On Additional Measures to Support the Labour Market of the Russian Federation, which suggests a 33.9 billion rouble increase in budgetary allocations for 2009 to regional budgets for paying social benefits to people acknowledged as unemployed in line with the established procedure, and for undertaking active employment measures.

The basic process to ease tensions in the labour market comprises regional programmes that envisage additional measures to mitigate such tensions.

A total of 43.7 billion roubles has been allotted from the federal budget for these purposes.

So far the Government has approved 82 regional programmes aimed at eliminating social risks connected with possible redundancies and downtime at target companies.

At the first stage of the Government's course of action, the total amount of funds to be allocated for the implementation of these programmes will amount to 25.4 billion roubles, with 23.7 billion roubles - or 93.2% of the total -allocated in the form of federal budget subsidies.

As of April 22, 9.2 billion roubles was allotted to 75 constituent entities of the Russian Federation, 40% of the total volume of subsidies.

The said programmes envisage the following measures:

  • the implementation of progressive, vocational retraining and advanced training for over 216,500 persons facing imminent redundancies, with a total of 1.9 billion roubles to be allotted to regional budgets for these purposes;
  • the creation of over 1,072,400 jobs to employ persons facing imminent redundancy, as well as the organisation of training courses for 50,200 people, with a total of 19.9 billion roubles to be allotted to regional budgets for these purposes;
  • the provision of targeted financial support to at least 15,900 persons who relocate to acquire permanent or temporary employment at companies short of workforce, with a total of 0.8 billion roubles to be allotted to regional budgets for these purposes;
  • the provision of financial support to the business initiatives of at least 52,000 people who will create at least 150,000 small and medium-sized business (SMB) jobs, with a total of 2.7 billion roubles to be allotted to regional budgets for these purposes.

The Ministry of Healthcare and Social Development, in cooperation with the federal executive bodies concerned, has prepared a draft Government resolution suggesting the redistribution of 2009 federal budget allotments in order to use them: to inform the public about the implementation of regional programmes, to automate redundancy and part-time employment monitoring, to maintain the information portal of the Federal Service for Labour and Employment (Rostrud) to assist citizens in resolving employment issues, as well as to raise allocations for unemployed persons in initiating small businesses and becoming self-employed. The value of these allocations should exceed unemployment benefits twelvefold.

It is important to note that the SMB support programme of the Ministry of Economic Development will facilitate the maintenance and support in the creation of some 500,000 jobs.

The implementation of regional programmes has enabled the reduction in the number of employees facing imminent redundancy, as well as the slowing down of unemployment growth rates.

In March and April, the Government has authorised executive bodies in the regions manifesting the most critical labour market situation (the Republic of Tatarstan, the Kemerovo, Nizhny Novgorod and Samara Regions) to draft proposals to modify as well as to develop planned and additional measures, respectively, aimed at mitigating tensions in the regional labour markets, while taking into account the challenging developments in the key economic areas, as well as in the regions' backbone organisations.

Coupled with the measures that the Government has undertaken to stabilise the situation in the labour market, the following issues require further, additional elaboration:

  • ensuring employment in municipal areas, where backbone companies, such as metallurgical, chemical, defence, mechanical engineering and road construction companies that have announced or started dismissing employees are located;
  • streamlining migration within Russia and creating favourable conditions to boost Russians' freedom of movement to effectively redistribute workforce: The existing social support measures rendered to persons who relocate (compensating business expenses (100 roubles per day whilst relocating to the future workplace), transport expenses of relocating to the future workplace, and rental expenses; these expenses are not differentiated depending on the region) are one-off and are not aimed at encouraging people to stay long in the new territory;
  • employing and retraining graduates of vocational training schools of all levels, organising their internships so that they could acquire practical skills;
  • improving state statistical supervision of job creation and elimination;
  • top regional executive body heads' tightening control over the implementation of regional programmes, as well as effective and targeted fund spending;
  • timely decision-making to avert social tensions in the regions, as well as to maintain employment and living standards.

2. The project Development of the Pension System from the list of projects for the implementation of the Basic guidelines for the activities of the government of the Russian Federation  up to 2012.

The Ministry of Healthcare and Social Development submits the draft of the project The Development of the Pension System.

The Ministry of Healthcare and Social Development has submitted the blueprint of the project The Development of the Pension System (hereafter cited as the Project). (see Point 19 of the list of projects for the implementation of the Guidelines for the Activities of the Government of the Russian Federation up to 2012, approved by the Government Resolution No. 1663-r of November 17, 2008.)

The Project aims at securing the rights of insured people to adequate long-term pension provision by means of improving the mandatory pension insurance system and a more thorough implementation of insurance principles - the equivalence and solidarity of commitments.

In the long term perspective, the preservation of the basic parameters of the mandatory pension insurance system, introduced in 2002, which is based on the tax source of financing, will lead to a shortfall in pension insurance growth rates against wage growth rates, resulting in the Pension Fund's unbalanced budget.

At the current insurance premiums, which are registered on insured people's personal pension accounts, many insured people will be unable to claim their retirement pension which must amount to at least 40% of his/her former salaries, when their pensionable service reaches 30 years.

The project aims at:

  • the increase by 2024 of the average retirement pension to the value sufficient to cover a pensioner's minimum consumer expenses (2.5 times the subsistence level for pensioners);
  • the eradication of poverty among pensioners since 2010;
  • the augmentation of the mandatory pension insurance system's funds.

Based on the said aims, corresponding target values were defined for 2009-2012.

The Project's objectives and corresponding measures were outlined, with managing organisations and time frame also determined.

According to estimates from the Ministry of Healthcare and Social Development, the Project implementation will result in an increase in pensioner's living standards, which will total 70-75% of the working population's living standards. The average pension will grow 2.19 times in 2012, compared with 2008; the insurance part of the pension will have grown 1.6 times by late 2012, compared with late 2008, and the social pension will grow by 2.11 times.

It is envisaged to increase the monetary estimation of pension rights acquired before January 1, 2002, and to carry out the annual indexation of the insurance part of the pension in accordance with the Pension Fund's income growth, as well as the indexation of social pensions in accordance with the pensioner's subsistence level increase.

A social copayment to pensions from the federal budget will ensure a minimum level of financial support rendered to pensioners, so as to not drop below the subsistence level in their respective constituent entity. In 2010, 3.2 million of pensioners will receive the corresponding copayments. Regional governments must set social copayments to raise pensioners' financial support to a standard of living higher than the subsistence level of the Russian Federation; this applies to 670,000 pensioners in 28 constituent entities.

The mandatory pension insurance system's financial maintenance will be augmented, and the need to subsidise pensions at the expense of the federal budget will be diminished.

It is envisaged to introduce insurance premiums, as applied to mandatory pension insurance, with the Pension Fund controlling their charging, and to carry out a gradual transition to the quarterly registration of personal insurance payments. These measures applied, insurance premium collection level should reach at least 97%.

The deterioration of the economic situation has affected the Project's target values. For example, in 2012 the ratio of the average pension to the pensioner's subsistence level will stand at 1.71, instead of the planned 1.96.

It has been planned to complete the creation of the normative legal base in 2009 and to start addressing the project's objectives on January 1, 2010. The Ministry of Healthcare and Social Development has drafted the requisite bills and submitted them to the Government.

3. The draft federal laws On Insurance Payments to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation and Mandatory Medical  Insurance Funds, and On Introducing Amendments to Certain Legislative Acts of the Russian Federation and Acknowledging the Expiration of Certain Legislative Acts (Provisions) of the Russian Federation Following the Adoption of the Federal Law On Insurance Payments to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation and Mandatory Medical  Insurance Funds.

The Ministry of Healthcare and Social Development has submitted federal draft laws that envisage measures to develop the pension system, as well as the enhancement of the pension coverage level and the pension system's financial stability in the long-term perspective.

1) The draft law On Insurance Payments, in regard to the abolition of the unified social tax (hereafter cited as the UST) and a transition to insurance principles of filling the budgets of state extra-budgetary funds, envisages the regulation of issues relating to paying insurance premiums to the Pension Fund of the Russian Federation (hereafter cited as the PF) for mandatory pension insurance, the Social Insurance Fund of the Russian Federation (hereafter cited as the SIF) for mandatory social insurance in the event of temporary incapacity and maternity, the Federal Mandatory Medical Insurance Fund and local mandatory medical insurance funds (hereafter cited as MMI funds) for mandatory medical insurance, as well as issues that arise in the course of administrating these payments.

The draft law On Insurance Payments is not applied to legal relations connected with mandatory social insurance premiums to insure against industrial accidents and occupational illnesses , as well as non-working population's mandatory medical insurance premiums.

The draft law outlines the range of insurance premium payers, insurance premium units, an insurance premium charge base, sums that are not subject to charging insurance premiums, insurance premium tariffs, the payroll and accounting periods, as well as insurance premium calculating principles, payment order and timeline.

The draft law envisages that payments and other compensations on labour and commercial contracts, as well as commissioning contracts to the benefit of foreign citizens and stateless people, who temporarily stay on the territory of the Russian Federation, are not subject to insurance premium charges.

This excludes foreign citizens and stateless people who are employed in the Russian Federation under labour contracts from the mandatory medical insurance system, highlighting that the draft law needs additional development with executive bodies concerned, including the Ministry of Foreign Affairs.

The draft law envisages the obligation of employers to contribute 26% of an employee's salary to the PF, 2.9% to the SIF and 5.1% to MMI funds starting from January 1, 2011.

In 2010, insurance premium tariffs to the said state non-budgetary funds will be the same as current UST rates, which is 20.0%, 2.9% and 3.1%, respectively.

The draft law suggests setting fixed insurance premiums, based on insurance year cost, for insurance premium payers who do not pay premiums to the benefit of individuals (self-employed entrepreneurs, lawyers and others). Insurance year cost is calculated by the following formula: minimum wage х 12 months х insurance premium tariff.

In 2010, reduced insurance premium tariffs will remain valid for certain categories of payers (agricultural commodity producers, organisations and self-employed entrepreneurs having the status of residents of, special economic zone of technology development; organisations that employ people with disabilities, public organisations of people with disabilities, companies and establishments of public organisations of people with disabilities and others), and will be raised from 2011to 2014. The shortfall in revenues of state extra-budgetary funds' budgets will be compensated with transfers from the federal budget.

In 2010, an additional transfer on this compensation will be provided to the PF from the federal budget.

The ceiling value of an individual's salary, subject to mandatory social insurance premium charges contributed by insurance premium payers (employers), should not exceed  415,000 roubles in 2010. In the future, this sum will be indexed in line with the average wage growth. Insurance premiums will not be charged from payments and remunerations to the benefit of individuals exceeding 415,000 roubles.

The draft law suggests granting powers to control insurance premium charges, as well as powers to bring to account insurance premium payers for violating payment order (except for powers to terminate operations on a payer's banking accounts and to attach a payer's property and documents) to the PF in what concerns mandatory pension insurance and mandatory medical insurance premiums, and to the SIF in what concerns mandatory social insurance premiums in case of temporary disability and maternity.

The draft law contains transitional provisions to transfer control functions from taxation agencies to the PF and the SIF, and outlines the order of recovery of UST and mandatory pension insurance premium debts as of January 1, 2010.

2) The draft federal law On Introducing Amendments to Certain Legal Acts of the Russian Federation and Acknowledging the Expiration of Certain Legal Acts (Provisions) of the Russian Federation Following the Adoption of the Federal Law On Insurance Payments (hereafter cited as the draft law) introduces the means of increasing the monetary value of pension rights of insured people (valorisation).

On January 1, 2010 all labour pensions will be increased irrespective of their category. The determination of their value is based on the means of monetary valuation of pension rights acquired before January 1, 2002. It is envisaged to increase the notional pension capital of insured people by 10% and, moreover, by 1% for each year of work experience accumulated before January 1, 1991.

The basic part of the labour pension will be replaced by a fixed base value, which is a component of the insurance part of the labour pension; the fixed base value is subject to indexation in line with the indexation rules applied to the insurance part. Starting from January 1, 2015, the fixed base value will be increased by 6% for each year of pensionable service exceeding 30 years.

The draft law introduces the concept of a minimum level of pension coverage. Starting from January 1, 2010 the value of the pension, coupled with other measures of a pensioner's social support in the form of additional financial (social) maintenance and monthly payments, will not be lower than a pensioner's subsistence level in  a constituent entity.

If the total value of a pensioner's pension and said payments is lower than a pensioner's subsistence level in a  constituent entity, he/she will receive additional payments to cover the margin deficiency. This social surcharge will not be paid while a pensioner is employed.

It has been proposed to introduce an expected period of paying the funded part of the old-age retirement pension, similar to the period of paying the insurance part of the old-age retirement pension, as well as a possibility of paying in a lump sum pension savings to state pension recipients, and disability retirement pensions or survivor's pensions on reaching retirement age (unless the recipients acquired the right to an old-age retirement pension).

Starting from January 1, 2010 the value of state pensions (paid to disabled people who have experienced military trauma, Great Patriotic War veterans, victims of the Chernobyl disaster and others), as well as the value of other payments which are currently calculated proceeding from the value of the basic part of the old-age retirement pension will be prescribed depending on the value of the social old-age pension.

A new order will be phased in to index social pensions and all other payments whose value will be calculated taking into account the social pension value adjusted to inflation.

On January 1, 2010 two new categories of state pensions will be introduced, namely, long-service pensions for cosmonauts and test pilots.

In view of the new terms of granting labour pensions, a fixed base value of old-age pensions is set at 2,562 roubles, differentiated for other categories of labour pensions depending on the recipient category and the pension category.

It has been proposed to index the insurance part of the labour pension in line with new norms in 2010, increasing it by 13.6%. In 2010, the average monthly value of the labour pension will thus total 7,946 roubles.

Payments of non-insurance character (including certain categories of benefits to a number of categories of dismissed and unemployed persons, payments for children's health improvement, compensation of tour vouchers for employees' therapeutic resort after-treatment, compensation of four additional days off a month to take care of disabled children) will be compensated not from  mandatory social insurance funds but from the federal budget.

With these purposes in view, changes are introduced to the federal law On Providing Temporary Incapacity Allowances and Maternity Benefits to People Subject to Mandatory Social Insurance.

The draft law specifies the following: categories of insurance coverage, namely, temporary incapacity benefits, maternity benefits, allowances for those who registered with clinics at early gestation periods, birth grants, child care allowances, and funeral grants; and the order of calculating and paying insurance premiums.

Setting the maximum value of benefits that compensate an insured employee, the income lost will be replaced with the principle of calculating the value of these benefits basing on his/her actual salary, with account taken of the ceiling value of an individual's salary that is subject to insurance premium charges for every individual (415,000 roubles).

In addition, the value of temporary disability benefit will depend on an employee's pensionable service, amounting to 60% of his/her salary if pensionable service is less than five years; 80% - if it is between five and eight years; and 100% - if it is over eight years. In 2010 the maximum value of this benefit can total 20,750, 27,660 and 34,583 roubles, respectively (it was 18,720 roubles in 2009), calculated for a full calendar month.

In 2010, the maximum value of maternity benefits will total 100% of an employee's salary irrespective of work experience, but will not exceed 34,583 roubles (25,390 roubles in 2009).

The following amendments are introduced to the federal law On State Benefits for Child-rearing Citizens: it is suggested that people who are subject to mandatory social insurance should receive a monthly childcare allowance, whose value totals 40% of an average salary, from which insurance premiums are charged to the SIF, without limiting this benefit's maximum value to 6,000 roubles (7,492 roubles after indexation on January 1, 2009), which is valid currently.

Taking into account the setting of the ceiling value of an individual's salary that is subject to insurance premium charges, the maximum value of monthly childcare allowance will total 13,833 roubles for insured persons.

The monthly childcare allowance will not exceed 6,000 roubles (7,492 roubles after indexation on January 1, 2009) for persons performing military service and service equated to it, civil personnel of military units on the territory of foreign countries in the cases envisaged by international treaties, and people laid off during maternity leave due to the liquidation of their companies.

4. The draft federal law On Introducing Amendments to Article 23 of the Federal Law On the Bodies of the Judicial Community in the Russian Federation.

The Ministry of Justice introduces the draft federal law On Introducing Changes to Article 23 of the Federal Law On the Bodies of the Judicial Community in the Russian Federation.

The draft law aims at implementing the requirements of Resolution No. 3-P of February 8, 2008 of the Constitutional Court of the Russian Federation on the verification of the constitutionality of certain provisions of Articles 61 and 121 of the Law of the Russian Federation On the Status of Judges in the Russian Federation, and Articles 21, 22 and 26 of the federal law On the Bodies of the Judicial Community in the Russian Federation.

The said resolution of the Constitutional Court prescribes introducing amendments to the federal law On the Bodies of the Judicial Community in the Russian Federation (hereafter cited as the Federal Law), envisaging a secret ballot for members of a qualification board of judges when deciding on imposing a disciplinary sanction on a judge in the form of early termination of his/her powers.

Article 23 of the Federal Law establishes the order of voting and passing a verdict by qualification boards of judges, but it does not envisage a secret ballot.

Taking into account the requirements of the Constitutional Court, it is proposed to add Point 21 to Article 23 of the Federal Law, prescribing that a substantiated decision on imposing a disciplinary sanction on a judge in the form of early termination of the judge's powers or on the judge's resignation due to his/her carrying out of activities incompatible with his/her position, or acts that discredit him/her, must be made following the results of a secret ballot.

It is proposed to establish the order of holding a secret ballot in the provisions on the working order of qualification boards of judges, intended for approval by the Higher Qualification Board of Judges.

5. The draft federal law On Introducing Amendments to Article 5 of the Federal Law On Science and State Science and Technology Policy.

Following Point 1 of the Action Plan for boosting the efficiency of the public research sector for 2005-2006, adopted by a government executive order No.1993-r of November 21, 2005, the Ministry of Education and Science has developed the draft federal law On Introducing Amendments to Article 5 of the Federal Law On Science and State Science and Technology Policy.

The draft law is aimed at regulating relations in research, science and technology, as well as pursuing the state science and technology policy. The draft law is a special-purpose, legislative act that regulates legal relations of state research centres of the Russian Federation. The draft law applies to federal executive bodies and scientific and/or science and technology organisations.

The draft law specifies the provisions of Point 2, Article 5 of the Federal Law No. 127-FZ of August 23, 1996 On Science and State Science and Technology Policy to guarantee the possibility of research institutions to receive the status of a state research centre of the Russian Federation (hereafter cited as the SRC) irrespective of their organisational and legal position and pattern of ownership.

SRCs have no analogues in international law enforcement practice. Currently, so-called "centres of excellence" are being created in many countries to focus all efforts on one of the bottom-line priorities, for example, to rapidly achieve global standards in one of the areas of fundamental or applied science or technology. The SRC system in Russia is aimed at addressing similar objectives in the corresponding priority areas of science and technology development.

The Interdepartmental Commission on Science and Innovation Policy has approved the following obligatory criteria for an organisation to qualify for SRC status:

1. the orientation of the organisation's research and (or) science and technology activity towards

I. the implementation of

a. the Guidelines for the development of science and technology,

b. and the List of critical technologies of the Russian Federation;

and / or

II. ensuring the implementation of Russia's strategic defence and national security interests,

2. the circumstances facilitating the organisation in

a. holding the lead in the application of at least one critical technology

and / or

b. being the head organisation in charge of the development of research (science and technology) projects of national importance in defence and national security.

With due account taken of:

1. the accelerated rate of the corporatisation of federal state unitary enterprises,

2. the growing importance of joint-stock companies, which make a considerable contribution to the application of critical technologies of the Russian Federation,

3. and the need to support their science and technology-based activity in modern conditions,

it is manifestly possible not to limit the right of research organisations, which implement objectives of national importance and in the interests of the state, to apply for SRC status if they are under the jurisdiction of a federal executive body, a state academy of sciences or its regional branches.

In accordance with the Order of conferring the status of a state research centre of the Russian Federation, adopted by the Presidential Decree No. 939 of June 22, 1993, SRC status can be conferred on research centres, institutions and higher schools that have unique pilot equipment and employ highly skilled personnel, whose scientific findings received international recognition (hereafter cited as organisations).

50 research centres currently hold SRC status.

With account taken of the high requirements imposed on the organisations that apply for SRC status, in 2009 three organisations lost this status (see Government Executive Order No. 252-r of February 28, 2009).

6. The draft federal law On the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Democratic People's Republic of Korea On Temporary Labour Activity of Citizens of One State on the Territory of the Other State.

On August 31, 2007 the Government of the Russian Federation and the Government of the Democratic People's Republic of Korea signed in Moscow the Agreement on Temporary Labour Activity of Citizens of One State on the Territory of the Other State.

The Agreement aims at regulating labour practices for citizens of the Russian Federation in the Democratic People's Republic of Korea and vice versa.

The Democratic People's Republic of Korea currently ranks fourth among non-CIS countries with regard to the number of people that come to the Russian Federation for employment.

Official statistics hold that in 2004 over 14,700 North Koreans were employed in the Russian Federation, in 2005 - over 20,000, and in 2006 - over 27,600. In 2007, this number exceeded 32,600.

The implementation of the Agreement will allow structuring the process of recruiting and employing North Koreans and Russians in either state, as well as enhancing their social security and the guarantees of the observation of their rights while employed. The agreement lays the legal groundwork to counter illegal recruitment and employment of North Korean workforce in the Russian Federation.

The agreement is subject to ratification basing on Subparagraphs "a" and "b", Point 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.

Article 10 of the Agreement contains rules different from those envisaged by the Russian law. It obliges the employer to transport the  remains of a deceased employee to his/her area of residence.

The Agreement's subject is basic human rights and freedoms.

The Agreement's ratification will promote joint efforts to address migration-related issues at the state level.

7. Introducing Amendments to the Provisions on the Ministry of Economic Development of the Russian Federation.

The government resolution On Introducing Amendments to the Provisions on the Ministry of Economic Development of the Russian Federation was developed with a view to implementing a government directive and the Federal Law No. 294-FZ of December 26, 2008 On Protecting the Rights of Legal Persons and Entrepreneurs When Exercising State Control (Supervision) and Municipal Control.

The implementation of this draft executive order will require neither hiring additional staff for federal executive bodies nor budgetary financing.

8. The formation of an organising committee to prepare and hold celebrations of the 1,000th anniversary of the unity of the Mordovian people and the peoples of Russia, and the approval of its composition.

The draft government executive order on approving the composition of the organising committee to prepare and hold celebrations of the 1,000th anniversary of the unity of the Mordovian people and the peoples of Russia (hereafter cited as the draft executive order), prepared following Paragraph 2, Point 2 of the Presidential Decree No. 46 of January 11, 2009 On Celebrating the 1,000th Anniversary of the Unity of the Mordovian People and the Peoples of Russia, envisages approving the composition of an organising committee to prepare and hold the celebrations of this day.

The implementation of this draft executive order will not require any federal budget allocations.

The implementation of this government executive order will not require adopting extra legal government acts.

9. The formation of an organising committee to prepare and hold celebrations of the 350th anniversary of Buryatia's voluntary annexation with Russia, and the approval of its composition. The draft government executive order on approving the composition of the organising committee to prepare and hold celebrations of the 350th anniversary of Buryatia's voluntary unification with Russia (hereafter cited as the draft executive order), prepared following the Presidential Decree No. 170 of February 16, 2009 On Celebrating the 350th  Anniversary of Buryatia's Voluntary annexation with Russia, envisages approving the composition of an organising committee to prepare and hold the celebrations of this day.

The implementation of this draft executive order will not require any federal budget allocations.

The implementation of this government executive order will not require adopting other legal government acts.

Moscow,

April 25, 2009

* 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.