The following issues are scheduled for discussion at the Government meeting on June 11, 2009 meeting:
I. Draft of the Basic Guidelines of the Customs Tariff Policy for 2010 and the Planning Period of 2011 and 2012.
The Draft Basic Guidelines of the Customs Tariff Policy for 2010 and the Planning Period of 2011 and 2012 have been prepared by the Ministry of Economic Development of Russia jointly with the Finance Ministry and the Federal Customs Service of Russia.
The Draft takes into account the provisions for the Concept of Long-Term Social and Economic Development of the Russian Federation until 2020, the Basic Guidelines of the Activities of the Government of the Russian Federation until 2020, and the Basic Guidelines of the Foreign Economic Policy of the Russian Federation until 2020.
The priorities of the customs and tariff policy for the medium term have been laid down in the Basic Guidelines of the Customs Tariff Policy for 2009 and the Planning Period of 2010 and 2011 in their entirety. At the same time, the world financial and economic crisis, the shrinking of aggregate world demand, the spread of the effects of the crisis to the Russian economy, the resulting need to develop effective anti-crisis measures, the creation of the Customs Union of Russia, Belarus and Kazakhstan, and the state of the negotiating process on Russia's accession to the World Trade Organisation prompt the need to revise the priorities of the customs and tariff policy, first and foremost for 2009 and 2010.
Considering the features of the customs and tariff policy, its implementation should pass through two qualitatively different stages in the near future.
Stage I, until the end of 2010, is tentatively expected to witness a gradual transition from the acute phase of the crisis to a mitigated phase, and the emergence of signs of economic recovery.
At that stage the customs and tariff policy will be implemented as an inalienable part of the anti-crisis economic policy. Customs and tariff regulation must be used with the aim of even-handed protection of the interests of the state budget and domestic producers and consumers.
Stage II, from 2011 to 2012, will witness the stabilisation of the economy and the beginning of progressive development. The main tasks of this stage are to restore the equilibrium between the protectionist and regulatory function of the customs and tariff policy, build up potential for sustained post-crisis economic development, and transition to full-scale implementation of the priority goals stipulated in the Basic Guidelines of the Customs Tariff Policy for 2009 and the Planning Period of 2010 and 2011.
It must be taken into account that beginning in 2010, customs and tariff regulation will proceed under the new conditions of the customs union of Russia, Belarus and Kazakhstan. This entails the transfer of some foreign trade regulatory functions from the national bodies of the participating states to the governing bodies of the customs union, first of all to the Customs Union Commission. Taking this into account, it is necessary as early as 2009 to work out the mechanisms to ensure the implementation of the goals of the customs and tariff policy of the Russian Federation with due regard for the planned procedure of decision-making by the customs union governing bodies.
II. Progress in implementing measures aimed at improving the situation in the financial sector and certain other sectors of the economy.
1. Enhancing social support for the population, providing guarantees for social and medical assistance and state support for employment
To enhance social support for the population, government allowances and social benefits financed with the federal budget and the Social Insurance Fund of the Russian Federation have been raised (Federal Laws No. 72-FZ of April 28, 2009 On Introducing Amendments to Certain Legislative Acts of the Russian Federation to Enhance the Material Well-Being of Certain Categories of Citizens, No.76-FZ On Introducing Amendments to the Federal Law On the federal budget for 2009 and the Planning Period of 2010 and 2011 and No. 78-FZ On Introducing Amendments to the Federal Law On the Budget of the Social Insurance Fund of the Russian Federation for 2009 and the Planning Period of 2010 and 2011).
As of April 1, 2009 the insurance portion of the labour pension has been increased by an additional 17.5% (Resolution of the Government of the Russian Federation No.247 of March 21, 2009). The basic portion of the old-age labour pension will be 2,562 roubles a month, as of December 1, 2009.
The persons who have received the state certificate for maternal (family) capital are entitled to a lump-sum payment in the amount of 12,000 roubles.
On April 29, 2009, the Government of the Russian Federation submitted to the State Duma draft federal laws that would abolish the unified social tax, introduce insurance contributions, and increase the size of pension rights acquired prior to January 1, 2002 by 10%, which will be increased by 1% for every year of seniority prior to January 1, 1991 (starting from January 1, 2010).
Pursuant to April 9, 2009 Resolution of the Government of the Russian Federation No.316, budget allocations for 2009 with the purpose of subventions to the budgets of the federal entities of the Russian Federation in order to finance the delegated powers of the Russian Federation in the field of employment have been increased by 33.9 billion roubles.
Resolution of the Government of the Russian Federation No.436 of May 20, 2009 establishes the extent of co-financing for measures to promote small business and self-employment of unemployed citizens at 12 times the unemployment benefit.
2. Systemic measures to support the real sector.
The federal budget has allocated 6 billion roubles (Resolution of the Government of the Russian Federation No.24 of January 14, 2009) in order to grant subsidies to Russian organisations that export industrial products to compensate for part of the cost of paying interest on the loans obtained from Russian lending institutions in 2005-2010 for the manufacture of export products.
The procedure for issuing state guarantees has been significantly simplified (Federal Law No.324-FZ of December 30, 2008). The Finance Ministry of Russia has been vested with the right to make the decision to issue state guarantees of up to 10 billion roubles on loans to defence industry organisations and organisations selected according to the procedure established by the Government of the Russian Federation. State guarantees of 300 billion roubles are stipulated for 2009, 100 billion roubles of which are for strategic defence industry organisations.
Decree of the Federal Financial Markets Service No.08-59/PZ-N of December 23, 2008 (which came into force on March 6, 2009) introduced amendments to the Rules of the Activities in Organising Trade in the Securities Market that establish a simplified procedure for putting on the stock exchange roster A1 bonds from Russian issuers guaranteed by the Russian Federation, and (or) a warranty or bank guarantee of Vnesheconombank.
To intensify supervision of the work of the governing bodies of banks that have received government support, the Bank of Russia has been granted the right to appoint authorised representatives at lending institutions that have received loans, including subordinated loans, from Vnesheconombank and the Bank of Russia (Federal Law No.317-FZ of December 30, 2008).
The Government of the Russian Federation in its February 4, 2009 Resolution No.121-r has approved the draft directive of the Bank of Russia concerning the Procedure for Appointing Authorised Representatives of the Bank of Russia, Their Activities and Termination Thereof, which was approved on January 19, 2009 by the Bank of Russia Board of Directors. Executive Orders of the Bank of Russia No. R-169 of February 20, 2009 and No. R-275 of February 18, 2009 determine the list of 38 credit organisations, of which 13 are located in Moscow, to which authorised representatives of the Bank of Russia have been appointed on a priority basis.
Federal Law No.56-FZ of April 9, 2009 has abolished the licensing of financing against assignment of claim, which will help increase the volume and cut the cost of factoring services.
To stimulate the renewal of production assets, amendments have been introduced in the Classification of the Basic Assets Included in Amortisation Groups (Resolution of the Government of the Russian Federation No.165 of February 24, 2009), and the list of technological equipment for which no analogues are produced in the Russian Federation and whose import into the customs area of the Russian Federation is exempt from the Value Added Tax, has been approved (Resolution of the Government of the RF No.372 of April 30, 2009).
3. Support for specific sectors of the economy
Agro-industrial complex.
In the first quarter of 2009, the federal budget made the following allocations (Executive Order of the Government of the Russian Federation No.122-r of February 4, 2009):
A decision has been made to subsidise the interest rate on certain types of investment and short-term credits issued to agricultural goods producers and agro-industrial complex organisations in the amount of 100% of the Bank of Russia refinancing rate (Federal Law No. 318-FZ of December 30, 2008). An additional 17 billion roubles was allocated from the federal budget to subsidise the interest rates on loans obtained for the development of meat and dairy cattle breeding at 100% of the Bank of Russia refinancing rate and at 80% of the rate of refinancing in other areas (Resolution of the Government of the Russian Federation No. 140 of February 24, 2009).
Government Resolution No.90 of February 4, 2009 stipulates subsidies to compensate for part of the cost of interest on short-term loans extended for a term of no more than six months, and Government Resolution No.348 of April 22, 2009 provides for the compensation of part of the interest on prolonged long-term credit and loans.
Automobile industry
Resolution No.24 of the Government of the Russian Federation of January 14, 2009 stipulates subsidies to Russian automobile and transport machine-building organisations to compensate for part of the cost of interest on loans obtained from Russian credit organisations in 2008-2009 with the aim of technological modernisation, in the amount of 2.5 billion roubles.
To support domestic producers of automobiles, the rates of import customs duties on new and used motor vehicles have been raised (Resolutions of the Government of the Russian Federation No.903 of December 5, 2008 and No. 943 of December 10, 2008).
Budget allocations for the purchase of vehicles by federal executive bodies in 2009 have been increased by 12.5 billion roubles (Executive Order of the Government of the Russian Federation No.139-r of February 9, 2009).
The schedules for redeeming the restructured debts of the joint-stock company Avtovaz, ZIL and the joint-stock company KamAZ have been revised.
To promote the procurement of automobile and road-building technology produced within the Russian Federation, budget money has been allocated to increase, in 2009, the authorised capital of the joint stock-company State Transport Leasing Company to 10 billion roubles (Federal Law No. 76-FZ of April 28, 2009).
Rules have been approved of the issue, in 2009, of federal budget subsidies to the joint-stock company RZD to compensate for the shortfall in revenues as a result of the transport by rail of new cars produced within the Russian Federation to railway stations located within the Far Eastern Federal District free of charge, and the list of cars transported free of charge has been determined (Resolution of the Government of the Russian Federation No.194 of March 4, 2009).
Defence Industry Complex
Certain strategic enterprises have issued additional shares and bonds to be subsequently bought by authorised organisations.
Subsidies to defence industry organisations in 2008 and 2009 have been increased by 3 billion roubles to prevent bankruptcy (Executive Order of the Government of the Russian Federation No.446-r of April 2, 2009).
Transportation
For the purpose of raising money to finance the 2009-2011 investment programme for the joint-stock company RZD in 2009, seven issues of the company's infrastructure bonds worth 100 billion roubles have been registered.
It has been decided to grant federal budget subsidies to air transport services that have carried the passengers of other airline whose operation certificates have been suspended (Resolution of the Government of the Russian Federation No.321 of April 13, 2009). The said subsidies are granted on the condition that the date of the departure stated in the passenger's air ticket is within ten days of the day when the operator's certificate was suspended and up to 45 days after said date.
4. State support for small and medium businesses (SMEs)
Beginning May 1, 2009 a new procedure for the inspections of legal entities and individual entrepreneurs has been in force. Inspections will not be more frequent than once every three years, while unscheduled inspections can only be carried out with the sanction of the prosecutor.
As of July 1, 2009, starting a private business in 13 areas of activity will require mere notification of the authorities (Federal Law No.294 FZ of December 26, 2008 in the version of Federal Law No.60-FZ of April 28, 2009).
Pursuant to Resolution of the Government of the Russian Federation No.1102 of December 31, 2008, the federal budget has allocated an additional 6.2 billion roubles to support small enterprises, including private farms.
On February 5, 2009, the Supervisory Board of Vnesheconombank approved the Procedure for Financial Support of Small and Medium Businesses by the State Corporation Bank of Development and Foreign Economic Activity (Vnesheconombank), which stipulates, among other things, the refinancing of the SME credit portfolios created by Russian banks, by granting partner banks loans on security of claims under credit agreements concluded by the partner banks with SMEs.
As a follow-up to the said Rules, the Supervisory Board of the Russian Development Bank on April 13, 2009 approved the Statute on the Standard of Crediting by the Russian Development Bank of Small and Medium Enterprises and the Statute on the Procedure of Support by the Russian Development Bank of Small and Medium Enterprises and selection of support recipients.
5. Enhancing the stability of the national financial system.
To increase the liquidity of commercial banks the terms of loans secured by non-market assets, including IOUs, guarantees and claims have been prolonged.
Mechanisms that diminish risks of abuse on the part of owners and managers of organisations facing bankruptcy and during the course of bankruptcy have been improved (Federal Law No.73-FZ of April 28, 2009).
To expand the opportunities to borrow money and strengthen investor confidence in Russian corporate bonds the Presidium of the Government of the Russian Federation on May 25, 2009 approved the draft federal laws On Introducing Amendments to Certain Legislative Acts of the Russian Federation (the sections dealing with lifting of restrictions on companies in the formation of authorised capital, expanding the opportunities for companies to issue bonds, revising the existing methods of protecting the rights of creditors of companies) and On Introducing Amendments to the Federal Law on the Securities Market (in the section On the Creation of Mechanisms Aimed at Protecting the Rights of Bond Holders).
III. The concept of creating an integrated federal system of state registration of rights in real estate and state cadastre registration.
1. General description of the materials on the issue.
The materials pertaining to the concept of creating an integrated federal system of state registration of rights in real estate and state cadastre registration of real estate have been submitted to the Government of the Russian Federation by the Ministry of Economic Development of Russia.
The draft concept identifies the following priorities:
In the light of the above priorities, the draft concept stipulates organisational, institutional and information-technological measures.
The concept establishes a 4-level (federal, regional, inter-municipal and municipal) organisational structure of the unified system of the registration of rights and cadastre registration, which includes:
In accordance with the concept, FAUs are created by Rosreyestr by transforming the federal institutions Land Cadastre Chambers for corresponding regions of the Russian Federation under its jurisdiction (hereinafter, FGUs) and perform the functions of state registration, maintenance of the cadastre and provision of information services.
These goals are to be achieved through phased implementation of the plan of the issue of legal acts and the plan of activities developed by the Ministry of Economic Development of Russia.
At the first stage (before January 1, 2010) the central staff of Rosreyestr is to be formed, organisational measures to merge the territorial bodies of Rosreyestr are to be carried out (approval of model regulations, temporary rules of interaction of its divisions).
Within the stipulated timeframe the opportunity will be ensured for simultaneous filing of applications for registration of rights and the application for being entered in the cadastre.
At the second phase (before January 1, 2011) the territorial bodies of Rosreyestr are to be merged (without staff cuts), and the functions of state cadastre registration are to be transferred to the subordinate FGUs.
Before January 1, 2012 (third stage) the transfer of the powers to register rights, maintain the cadastre and provide information services to FAUs is to be completed. That stage will see the final creation of a Unified Federal Real Estate Information System which will make it possible to introduce uniform accounting and registration procedures, rule out duplication of information in the Unified State Register of Rights in Real Estate and Transactions Therewith (hereinafter, EGRP) and the State Cadastre of Real Estate (hereinafter GKN) and make it possible to render comprehensive services, including the provision of data.
2. Description of the problem that the draft concept is called upon to solve. Validation of proposed solutions and expected results of their implementation.
At present the system of state registration of rights in real estate and transactions with the same and the system of state cadastre registration of real estate function as autonomous departments. In parallel there is also a system of technical inventory of capital construction objects.
Under Decree No. 1847 of the President of the Russian Federation of December 25, 2008 On the Federal Service of State Registration, Cadastre and Cartography, the functions of Rosnedvizhimost and Roskartografia, which were abolished, were transferred to Rosreyestr. Rosreyestr has been charged with organising a unified system of state cadastre of real estate and state registration of rights in real estate and transactions with the same as well as the infrastructure of spatial data of the Russian Federation.
The draft concept stipulates organisational, institutional and information-technological measures. It also proposes measures aimed at providing the human resources for implementing the reform in the above sphere.
The implementation of the concept is expected to yield the following results:
IV. Reform of the system of inland waterway management in the Russian Federation.
The draft concept of reforming the system of inland waterway management in the Russian Federation has been submitted by the Transport Ministry of Russia.
Inland waterways in the Russian Federation and navigable water engineering structures on them, which are federal property, constitute key structural and technological elements of inland water transport.
The infrastructure of inland waterways is marked by a high degree of wear and tear, requires massive spending on current maintenance and repair to preserve the stability of inland water transport, and is very capital-intensive, which spells the need for considerable investments.
The system of inland waterway management, including the distribution of functions and powers between the relevant managing bodies is not effective enough and falls short of modern requirements, standards and tasks. The regulatory legal framework of management and maintenance of inland waterways and state regulation of their activities is in need of change in order to more clearly define the functions and powers of the players involved.
The current remuneration of the workers in the inland waterway organisations (the pay rate is based on the sectoral system of remuneration out of the federal budget) creates a dangerous trend of outflow of highly qualified experts from the sector. These pressing problems spell the need for and the possibility of reforming the system of inland waterway management in the Russian Federation.
The draft concept stipulates the institutional reform of the sector and the system of its state management, its integration in the system of European economic ties and utilisation of the transit potential of the Russian Federation in the framework of international transport corridors.
The strategic goal of the draft concept is to form a system of inland waterway management that make the infrastructure of inland water transport attractive commercially and investment-wise, including on the basis of public-private partnership and private investments.
To achieve the above goal the draft concept stipulates a complex of measures the most important of which are the separation of the functions of state regulation and economic management of inland waterways, the separation of federal property in operational management of state basin authorities of waterways and navigation into property that is necessary for discharging the functions of state regulation of inland waterways and the maintenance and operation of navigable water engineering structures, on the one hand, and the property under economic management for the performance of the functions of maintenance of inland waterways and work on inland water transport infrastructure, the restructuring of the ports and piers that are federal property in order to isolate the property involved in the exercise of the powers of the regions of the Russian Federation to provide transport services to the population and the transfer of the said property to the regions of the Russian Federation, the creation of equal and economically favourable conditions of commercial activities on inland water transport and the development of river port infrastructure.
The system of managing inland waterways and river ports is to be organised around the federal state institutions: administrations of river basins formed on the basis of existing state basin waterway and navigation authorities to exercise the functions of state regulation of inland waterways and river ports as well as a federal state unitary enterprise with branches in the inland waterway basins in order to maintain inland waterways and run the water transport infrastructure, maintain piers and port structures that are federal property.
The above would solve the following tasks: redistribution of federal property; more effective use of hydro-engineering infrastructure; the creation of equal and economically favourable conditions for commercial activities on inland water transport; improvement of the system of managing navigation and river port activities; a cut of the total cost of carrying cargoes and passengers by inland water transport; meeting the demand for the services provided to the users of inland waterways; preservation of a unified infrastructure of inland waterway network and integrated information services; improvement of the tariff policy in providing services for natural monopolies that use the inland waterway infrastructure; providing material incentives for the workers in inland waterway organisations and providing the sector with highly qualified human resources.
In the opinion of the Transport Ministry of Russia, the reform of the inland waterway management system would make it possible to solve the main problems of maintaining the infrastructure of inland waterways and the functioning of river ports and lay the groundwork for the sector's further development.
The separation of the functions of state regulation and economic management would also enhance the motivation and productivity of the workers in inland waterway organisations.
The economic effect from the implementation of the proposed measures to reform the system of inland waterway management is as follows:
By 2015 cargo carriage is to increase to 180 million tonnes, the handling of cargoes in river ports to 300 million tonnes a year and of passenger carriage to 28 million.
V. The National Report on the Progress and Results of the Implementation in 2008 of the State Programme of the Development of Agriculture and Regulation of the Markets of Agricultural Products, Raw Materials and Food for 2008-2012.
Pursuant to Article 8 of the Federal Law On the Development of Agriculture and paragraph 4, Section X of the State Programme of the Development of Agriculture and Regulation of the Markets of Agricultural Products, Raw Materials and Food for 2008-2012 approved by Government Resolution No. 446 of July 14, 2007, the Agriculture Ministry of Russia has duly submitted for discussion at a meeting of the Government of the Russian Federation a National Report on progress of implementation in 2008 of the State Programme of the Development of Agriculture and Regulation of Markets of Agricultural Products, Raw Materials and Food for 2008-2012 (hereinafter respectively the National Report and State Programme). The National Report contains the results for 2008 on the whole and in different areas, the forecast of the development of agriculture in 2009 and proposed amendments of certain provisions and indicators of the State Programme with due account of the Government Programme of Anti-Crisis Measures for 2009.
In the production sphere the main targets of agricultural development set under the State Programme were fulfilled and overfulfilled in 2008 (with the exception of the production of livestock products and the physical volume of investments in basic assets).
In 2008 agricultural produce increased by 10.8%, which is 7 percentage points above the target. Most of the increase of agricultural produce was due to the growth of plant growing (14.7% above target) whereas the output of the livestock industry turned out to be 1.4% below target.
In 2008 the profits of agricultural organisations increased by 11.7 billion roubles on 2007 (to 117.5 billion roubles) and the profitability dropped from 17.2% to 15.3%.
In plant growing the profitability of agricultural organisations from the sale of grain dropped from 46.6% in 2007 to 35.4% in 2008.
In livestock breeding the profits from the sale of pork increased by 1.1 billion roubles between 2007 and 2008 to 6.7 billion roubles; from the sale of poultry meat, in spite of the rapid growth of its output, profits dropped from 10.6 billion roubles to 8.3 billion roubles. The sale of beef was loss-making, as in the previous years.
In 2008, under the State Programme, the federal budget earmarked 118.3 billion roubles to support agricultural producers and agro-industrial organisations.
The volume of short-term credits to agricultural producers and agro-industrial organisations increased by 20% in 2008 compared with 2007 to exceed the State Programme target by 1.9 times.
The volume of investment credits under the State Programme in 2008 increased by 8.4% compared with 2007. The main recipients of investment credits were agricultural organisations.
In the second half of 2008 accessibility of credits for agricultural producers diminished substantially. Interest rates on credits increased to 18-20%, the coefficient used in evaluating the collateral dropped to 0.5%, the cost of opening a credit line went up to 1% and additional expenditure was introduced for mandatory insurance of the collateral for short-term credits. Such credit policy increased the costs incurred by agricultural producers to obtain and service credits and had an adverse impact on their economic and financial status.
In the social sphere in 2008 the funding of the costs of the development of the social and engineering rural infrastructure amounted to 43.7 billion roubles, 43.1% above the target. The funding of these activities increased due to additional budget and off-budget contributions of the regions of the Russian Federation whereas the share of the federal budget dropped to 18.8% compared with the original target of 26.7%.
The network of rural social infrastructure continues to shrink, social services are still out of reach of the mass of the rural population, the rural residential stock is largely substandard and the share of decrepit residential stock deemed to be unfit for living is growing.
Although the State Programme indicator of the growth of disposable incomes of rural households (per member of a household per month) was exceeded by 9.4% in 2008, that rate of growth is not enough to motivate labour, overcome widespread poverty and address the demographic problems in rural areas.
The draft National Report was considered by the Expert Commission on April 22, 2009 and was approved in principle on May 29, 2009 at the meeting of the Government's Agricultural Commission.
In forecasting the development of agriculture in 2009 the Agriculture Ministry took into account the following risks:
The statement of the Expert Commission on the Progress in the Implementation of the State Programme also includes among the main risks the slowdown of the rate of growth of gross agricultural output in January-April, 2009, a dramatic increase of the total arrears on the credits obtained by agricultural organisations, the weather factor, which has already affected the crops in the southern regions of Russia.
Proceeding from the analysis of the results of implementation of the State Programme in 2008 as well as the situation due to financial and economic crisis the Agriculture Ministry proposes a number of amendments to its provisions.
VI. Draft federal law On Ratification of the Convention between the Government of the Russian Federation and the Government of the Kingdom of Saudi Arabia on Avoiding Double Taxation and Preventing Income and Capital Tax Evasion
The aim of the Convention is to ensure conditions in which the legal and natural persons of the Signatory States will not pay taxes on the same income and capital twice, in their own state and in the partner state. The solution of that issue makes it possible for each of the Signatory States to attract foreign investments on mutually beneficial terms and eliminate double taxation of legal and natural persons.
In preparing the Convention the Russian Party proceeded from the draft model Agreement on avoidance of double taxation of the incomes and property approved by the Russian Government's Resolution No. 352 of May 28, 1992 On Concluding Intergovernmental Agreements on Avoiding Double Taxation of Incomes and Property, and the Signatory States were also guided by the models recommended by the Organisation of Economic Cooperation and Development and the United Nations.
The Convention covers the taxes on income and capital of natural and legal persons who have residence, permanent location, management location, the place of registration in the Russian Federation or in the Kingdom of Saudi Arabia.
Pursuant to subclause "a", Clause 1, Article 15 of Federal Law No. 101-FZ of July 15, 1995 On International Treaties of the Russian Federation, the Convention is subject to ratification. The Convention comes into force from the first of the month following the month when the last notification of compliance by the Signatory States with internal state procedures required for its coming into force has been served. The Convention is effective for ten years and will remain in effect until one of the Signatory States terminates the same by sending a written notification through diplomatic channels twelve months before its term expires.
VII. Draft federal law On Introducing Amendments to Article 39 of the Law of the Russian Federation On Education and Article 27 of the federal law On Higher and Post-Graduate Professional Education.
The main purpose of the Draft Federal Law On Introducing Amendments to Article 39 of the Law of the Russian Federation On Education and Article 27 of the Federal Law On Higher and Post-Graduate Professional Education (hereinafter the Draft Law) is to secure compliance with Article 80 of the Federal Constitutional Law on the Constitutional Court of the Russian Federation whereby the Government of the Russian Federation, not later than three months after the promulgation of the decision of the Constitutional Court of the Russian Federation, introduces at the State Duma of the Federal Assembly of the Russian Federation a new draft federal constitutional law, a federal law or a series of interconnected draft laws or a draft law on introducing amendments and (or) additions to a law part of which has been declared to be unconstitutional.
The Draft Law is being developed to harmonise the provisions of the Law of the Russian Federation On Education and the Federal Law On Higher and Post-Graduate Professional Education with parts 1 and 2 of Article 19 as well as parts 2 and 3 of Article 55 of the Constitution of the Russian Federation.
The proposal is to amend Article 39 of the Law of the Russian Federation On Education and Article 27 of the Federal Law On Higher and Post-Graduate Professional Education to eliminate the ban on the privatisation of residential stock in rural areas under the jurisdiction of federal and municipal education institutions as well as higher education institutions.
The adoption and implementation of the Draft Law would eliminate the discrepancies between the provisions of the Law of the Russian Federation On Education and the Federal Law On Higher and Post-Graduate Professional Education, on the one hand, and the provisions of the Constitution of the Russian Federation (Articles 19, 55), on the other hand.
VIII. Submitting to the President of the Russian Federation the proposal to sign the Anti-terrorist Convention of the Shanghai Cooperation Organisation
The draft Convention of the Shanghai Cooperation Organisation against Terrorism (hereinafter the draft Convention) has been prepared pursuant to Section 2 of the Programme of Cooperation of the Member States of the Shanghai Cooperation Organisation in Combating Terrorism, Separatism and Extremism for 2007-2009 approved by DECISION No.5 of the Council of the Heads of State of the Shanghai Cooperation Organisation of June 15, 2006 and Section 3 of Decision No.50 of the Council of the Regional Anti-Terrorist Structure (RATC) of the Shanghai Cooperation Organisation of September 24, 2005.
The text of the Draft Convention has been agreed with the representatives of the competent bodies of the member states of the Shanghai Cooperation Organisation (hereinafter the SCO) responsible for combating terrorism.
The need to develop a new anti-terrorist international legal document within the SCO has been prompted by the following factors:
The subject matter of the draft Convention has been predetermined by the Decision of the RATC SCO Council, which says that a draft international legal document against terrorism, along with other issues, should envisage criminalisation of the activities of natural and legal persons in recruiting, training, using and financing terrorists, public calls for terrorist activities or public justification of terrorist acts, the financing of terrorist activities as well as issues of legal assistance, extradition, cooperation in the confiscation of property and financial assets.
In developing the draft Convention the appeal of the UN Security Council to states to cooperate to prevent and stop terrorist attacks, incitement to terrorist acts and attempts to justify or glorify (apologia of) terrorism which induce fresh terrorist acts and take measures against those guilty of such actions, above all in the framework of bilateral and multilateral mechanisms and agreements (UN SC resolutions No.1624 (2005) and No.1373 (2001)) as well as other anti-terrorist requirements of the UN were taken into account.
With due account of the requirements of UN Security Council Resolution No. 1624 (2005) and section "b" Part 3, Article 19 of the International Pact on Civil and Political Rights of 1966, the draft Convention provides a social and political definition of terrorism as an ideology of violence and a practice of influencing the decisions of governing bodies or international organisations by perpetrating or threatening violent and/or other criminal actions involving the intimidation of the population and aimed at causing harm to the individual, society or the state.
The social-political interpretation of terrorism will make it possible to concentrate on eliminating one of the key causes that engender terrorism, the ideology that proclaims that it is possible and necessary to use violence and other intimidating actions to achieve political, social and other goals.
The draft Convention's use of the term "terrorism" in a broader meaning than that in the Shanghai Convention corresponds to section 2, Article 1 of the Shanghai Convention whereby other international treaties or national legislation of the Parties may contain provisions with a broader application of the terms used in the Shanghai Convention. Consequently without detriment to the Shanghai Convention and national legislations the Convention may contain the term "terrorism" in a broader interpretation.
In preparing the draft Convention due attention was paid to the peculiarities of the legislation of the SCO member states, including the responsibility of legal entities, the structure of "terrorist crimes", the civil-legal, criminal-legal and criminal-procedural confiscations of property.
The draft Convention proposes to interpret the concept of "terrorist act" as a deed involving intimidation of the population and posing a danger to the life and health of the individual, aimed at causing significant damage to property or the onset of an environmental disaster or other dire consequences as well as the threat of perpetrating the said actions to achieve political, religious, ideological and other goals by influencing the decision-making of power bodies and international organisations.
This approach promotes more effective international cooperation in the fight against terrorism and brings the definition of a terrorist act in line with the national legislations of SCO member states. Practice has shown that in modern conditions an indispensable condition for perpetrating acts of terrorism is the material and technical base. Therefore the international community recognises that depriving terrorism of its material base is an effective measure to counteract it. The draft Convention seals the provisions on cooperation among states in the arrest and confiscation of proceeds from perpetrating at least one of the crimes covered by the draft Convention as well as the property intended to be used as an instrument of perpetrating at least one of the crimes covered by the draft Convention or to finance an organised criminal group or one of the crimes covered by the draft Convention.
The Convention is subject to ratification pursuant to subclause "d", Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation because it regulates issues of international security.
Pursuant to Article 9 of the Federal Law On International Treaties of the Russian Federation the proposal on signing the Convention is to be submitted to the President of the Russian Federation after it has been discussed by the Government of the Russian Federation.
The signing of the Convention meets the interests of the Russian Federation because it is aimed at promoting cooperation within the SCO, strengthening the interaction between the relevant bodies in order to counteract the new challenges and threats to international and regional security.
IX. Introducing an amendment to the Statute on the Ministry of Economic Development of the Russian Federation
The draft Resolution of the Government of the Russian Federation on introducing an amendment to the Statute on the Ministry of Economic Development of the Russian Federation has been developed to implement the provision of Part 4, Article 10 of Federal Law No. 8-FZ of February 9, 2009 On Providing Access to Information on the Activities of State Bodies and Local Government Bodies. In accordance with that provision, the requirements to the technological, software and linguistic support of official sites of the federal executive bodies are established by the federal executive body authorised by the Government of the Russian Federation.
In this connection the draft Resolution would introduce amendments to the Statute on the Ministry of Economic Development of the Russian Federation approved by Resolution No. 437 of the Government of the Russian Federation of June 5, 2008 that vests the Ministry with authority to approve the requirements to the technological, software and linguistic support of the use of official sites of federal executive bodies.
Section 2 of the draft Resolution determines that it is implemented without increasing the central staff of the Ministry of Economic Development determined by the Government of the Russian Federation and the budget allocations to the Ministry of Economic Development under the federal budget for the purpose of management and control within the established functions.
X. Introducing an amendment to the Statute on the Ministry of Agriculture of the Russian Federation.
The draft Resolution of the Government of the Russian Federation On Introducing an Amendment to the Statute on the Ministry of Agriculture of the Russian Federation has been developed to harmonise the Statute on the Ministry of Agriculture of the Russian Federation approved by Resolution No. 450 of the Government of the Russian Federation of June 12, 2008 with the provisions of the Urban Development Code of the Russian Federation in the sections that harmonise state scrutiny of pre-project and project documentation for the construction and reconstruction of land reclamation systems and stand-alone hydro-engineering structures to secure the compliance of pre-project and project documentation with the original data, technical conditions and requirements of regulatory documents on the design and construction of land reclamation systems and stand-alone hydro-engineering structures and approvals of the said documentation.
Pursuant to Part 4.1, Article 49 of the Code the state examination of project documentation of the objects referred to in Section 5.1, Article 6 of the Code and state expert examination of the results of engineering studies carried out in preparation of such project documentation shall be conducted by the federal executive body referred to in paragraph 1, part 3, Article 6.1 of the Code or a subordinate Government institution with the exception of the cases mentioned in the part referred to.
Paragraph 1 of Part 3, Article 6.1 of the Code determines that such a body is the federal executive body which performs the function of implementing state policy, of providing government services, of managing state property in the sphere of construction, urban development, construction materials industry and housing and utilities.
Under subclause 5.3 <sup> 1</sup>.1 of the Statute of the Ministry of Regional Development of the Russian Federation approved by Resolution No.40 of the Government of the Russian Federation of January 26, 2005 On Approving the Statute on the Ministry of Regional Development of the Russian Federation and On Introducing Amendments to Certain Acts of the Government of the Russian Federation, the Ministry of Regional Development of Russia shall be the federal executive body which organises state expert examination of the draft documentation for the objects referred to in Section 5.1, Article 6, of the Urban Development Code of the Russian Federation, the results of engineering studies carried out to prepare the draft documentation of the said objects.
Under Clause 2 of Government Resolution No. 145 of March 5, 2007 On the Procedure of Organising and Conducting State Expert Examination of Project Documentation and the Results of Engineering Studies, the state expert examination is organised and conducted by a Government institution subordinated to the Ministry of Regional Development of the Russian Federation.
An addition has been made to Article 49 of the Urban Development Code of the Russian Federation in the shape of Part 4.1 referred to above of Federal Law No. 232-FZ of December 18, 2006 On Introducing Amendments to the Urban Development Code of the Russian Federation and Certain Legislative Acts of the Russian Federation, which came into force on January 1, 2007.
At the same time, under subclause 5.5.6 of the Statute on the Ministry of Agriculture of the Russian Federation approved by Government Resolution No.450 of June 12, 2008, the authority to conduct state expert examination of pre-project and project documentation for the building and reconstruction of land reclamation systems and stand-alone hydro-engineering structures to determine the compliance of pre-project and project documentation with the original data, technical specifications and requirements of the regulatory documents on design and construction, designs of land reclamation systems and stand-alone hydro-engineering structures and approval of said documentation is the prerogative of the Ministry of Agriculture of Russia.
A similar rule was established under subclause 5.5.6 of the Statute on the Ministry of Agriculture of the Russian Federation approved by Resolution No.164 of the Government of the Russian Federation of March 24, 2006.
The Ministry of Agriculture of Russia has not been fulfilling the above-mentioned functions of conducting state expert examination of pre-project and project documentation for the building and reconstruction of land reclamation systems and stand-alone hydro-engineering structures since January 1, 2007 because Part 4.1 has been added to Article 49 of the Urban Development Code of the Russian Federation and this provision of the Statute on the Ministry of Agriculture of the Russian Federation does not correspond to the provisions of Part 4.1, Article 49 of the Urban Development Code of the Russian Federation.
At the same time the Ministry of Agriculture of Russia, in accordance with the Statute on the Ministry of Agriculture approved by Resolution of the Government of the Russian Federation No.450 of June 12, 2008 is a federal executive body that performs the functions of working out government policy and legal regulation in the sphere of the agro-industrial complex, including land reclamation as well as providing government services to the agro-industrial complex. Similar functions were established for the Ministry of Agriculture of Russia under Resolution No. 164 of the Government of the Russian Federation of March 24, 2006 On Approving the Statute on the Ministry of Agriculture of the Russian Federation and On Annulment of Certain Decisions of the Government of the Russian Federation.
In accordance with the regulatory acts of the Russian Federation the Ministry of Agriculture of Russia, within its frame of reference, has been exercising various powers in the sphere of land reclamation, including some from January 1, 2007, that are not expressly stated in the Statute on the Ministry of Agriculture of the Russian Federation.
Thus, in accordance with Resolution No. 99 of the Government of the Russian Federation of February 20, 2006 On the Federal Targeted Programme, Preservation and Restoration of Agricultural Soil Fertility and Agricultural Landscapes as the National Heritage of Russia in 2006-2010 (in the version of Resolution No. 158 of the Government of the Russian Federation of March 7, 2008), the Ministry of Agriculture is the state commissioner-coordinator of the said Programme and conducts activities of reconstruction and restoration of land reclamation systems, the building of anti-erosion hydro-engineering structures, the building and reconstruction of land reclamation and water management objects in accordance with the Roster of Construction Sites and Facilities for Federal Needs Financed by Government Capital Investments Intended for the Implementation of the Said Programme, which is contained in Supplement No.3 to the Programme.
Under the Federal Targeted Programme referred to above, 160-170 land reclamation systems and stand-alone hydro-engineering structures are reconstructed every year.
Under Resolution No. 253 of the Government of the Russian Federation of April 28, 2007 On the Procedure of Maintaining the State Water Register, the Ministry, for the purpose of creating the State Water Register, prepares and duly submits data on the use of water facilities for agricultural needs and on state land reclamation systems and on state-owned stand-alone hydro-engineering structures in bodies of water.
Under Resolution No.537 of the Government of the Russian Federation of July 15, 2008 On the Federal Targeted Programme, Social and Economic Development of the Chechen Republic in 2008-2011, the Agriculture Ministry of the Russian Federation is the commissioner on behalf of the Government of the said federal targeted programme and performs the functions of the commissioner of the construction and reconstruction of agricultural facilities specified in Supplement No.3 to this Programme, which include, inter alia, land reclamation systems and structures (hydro-engineering facilities, watering and irrigation systems).
According to the federal targeted programme of the Development of the Kaliningrad Region in the Period until 2010 approved by Resolution No.866 of the Government of the Russian Federation of December 7, 2001 (in the version of Resolution No. 942 of the Government of the Russian Federation of December 10, 2008), the Ministry of Agriculture of Russia is the state commissioner of this Programme and implements the measures connected with reconstruction and construction of corresponding land reclamation systems, structures and devices.
It has to be noted that there are about 9.3 million hectares of reclaimed land in the Russian Federation of which 3.4 million hectares are federal property.
At present there are 83 functioning federal institutions for land reclamation and agricultural water supply which report to the Ministry of Agriculture of the Russian Federation and which operate corresponding land reclamation systems and stand-alone hydro-engineering structures. As regards the construction and reconstruction of these land reclamation systems and stand-alone hydro-engineering structures, the Agriculture Ministry of Russia performs the functions of the customer, prepares requests for proposal for their design, construction and reconstruction and approves the relevant project documentation.
Considering the powers exercised by the Ministry of Agriculture of Russia and the scale of work in the field of land reclamation, the draft Resolution of the Government of the Russian Federation does not envisage any cuts of the central staff of the Ministry of Agriculture of the Russian Federation.
The Ministry of Agriculture of Russia, for the purpose of eliminating the above discrepancy between the provisions of the Statute on the Ministry of Agriculture of the Russian Federation and the Urban Development Code of the Russian Federation, is submitting a draft Resolution of the Government of the Russian Federation which annuls subclause 5.5.6 of the Statute On the Ministry of Agriculture of the Russian Federation approved by Resolution No. 450 of the Government of the Russian Federation of June 12, 2008.
XI. Introducing amendments to the Statute on the Federal Service for Supervision in Education and Science.
The draft Resolution of the Government of the Russian Federation On Introducing Amendments to Certain Acts of the Government of the Russian Federation regarding the activities of the Federal Service for Supervision in Education and Science, the section on control of the activities of custody and guardianship agencies has been developed to ensure proper exercise of the powers of the Federal Service for Supervision in Education and Science in accordance with Federal Law No. 48-FZ of April 24, 2008 On Custody and Guardianship as well as Federal Law No.81-FZ of May 19, 1995 On Government Benefits to Citizens Who Have Children (with subsequent amendments and additions).
Under the draft Resolution amendments are to be introduced in Resolution No. 300 of the Government of the Russian Federation of June 17, 2004 On Approving the Statute on the Federal Service for Supervision in Education and Science and Resolution No.552 of the Government of the Russian Federation of July 21, 2008 On Introducing Amendments to Certain Acts of the Government of the Russian Federation Pertaining to the Activities of the Federal Service for Supervision in Education and Science.
The amendments being introduced are aimed to charge, under the said federal laws, the Federal Service for Supervision in Education and Science with some new functions that it did not exercise previously:
The vesting of the Federal Service for Supervision in Education and Science with new powers makes it necessary to increase the central staff of the Service.
On the strength of the above the draft stipulates an increase of the central staff of the Federal Service for Supervision in of Education and Science by 18 positions as of January 1, 2009 (not counting the security and building maintenance personnel).
XII. Creating an organising committee to prepare and hold the celebration of the 200th anniversary of the birth of Nikolai Pirogov
The draft Executive Order is being submitted pursuant to Clause 2 of Decree No.1850 of the President of the Russian Federation of December 25, 2008 On Celebrating the 200th Anniversary since the Birth of Nikolai Pirogov.
The Draft proposes for approval the composition of the Organising Committee for the Preparation and Holding of the Celebration of the 200th Anniversary of Nikolai Pirogov's Birthday.
The Organising Committee includes representatives of the federal executive bodies concerned, the State Duma of the Federal Assembly of the Russian Federation, organisations under the jurisdiction of the Ministry of Healthcare and Social Development of Russia, the Russian Academy of Medical Sciences, the executive bodies of the city of Moscow and the Moscow Region in the field of healthcare.
The expenditure on activities connected with the preparation and celebration of the 200th anniversary of Nikolai Pirogov's birth will be within the amounts stipulated in the federal budget for 2009 and the planning period of 2010 and 2011 for the federal executive bodies concerned and the Russian Academy of Medical Sciences.
The adoption of the draft executive order does not require outlays from the federal budget and annulment, suspension, amendment or adoption of new federal legislation.
June 10, 2009
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.
