The following issues are scheduled for discussion at the Government Presidium meeting on July 6, 2009:
1. Notification-based procedure for the start of certain types of entrepreneurial activities.
The Draft Resolution On Notification-Based Procedure for the Start of Certain Types of Entrepreneurial Activities has been submitted to the Government of the Russian Federation by the Ministry of Economic Development.
The Draft Resolution approves:
- a procedure for providing notification of the initiation of some categories of entrepreneurial activities to the authorised federal executive body and of registering said notifications;
- a list of services pertaining to certain types of activities the initiation of which a legal entity or an individual entrepreneur shall provide notification.
The draft also introduces amendments to the statutes on Rospotrebnadzor, Rostransnadzor and the Federal Medical-Biological Agency approved respectively by resolutions of the Government of the Russian Federation No.322 of June 30, 2004, No.398 of July 30, 2004 and No.206 of April 11, 2005. Said amendments would vest the federal executive bodies referred to above with the authority to accept and register notification upon the initiation of certain categories of entrepreneurial activities by business entities.
2. Draft Federal Law On Introducing Amendments to Article 13 of the Federal Law On State Registration of Rights in Immovable Property and Transactions with Same and Article 20 of the Federal Law On Mortgage (Pledge of Immovable Property).
The Draft Federal Law On Introducing Amendments to Article 13 of the Federal Law On State Registration of Rights in Immovable Property and Transactions with Same and Article 20 of the Federal Law On Mortgage (Pledge of Immovable Property) (hereinafter the "Draft Law") has been submitted to the Government of the Russian Federation by the Ministry of Economic Development of Russia.
The aim of the Draft Law is to develop the institution of mortgage crediting by reducing from thirty to fifteen days the maximum duration of the procedure for state registration of the mortgage of plots of land, buildings and structures.
The current legislation of the Russian Federation (Article 20 of the Federal Law On Mortgage (Pledge of Immovable Property) and Article 13 of the Federal Law On State Registration of Rights in Immovable Property and Transactions with Same) sets the maximum duration of state registration of mortgage at one month since the documents necessary for the registration of the mortgage have been submitted to the body of state registration of rights.
At the same time Federal Law No.264FZ of December 22, 2008 On Introducing Amendments to the Federal Law On Mortgage (Pledge of Immovable Property) and Certain Legislative Acts of the Russian Federation reduces the maximum duration of state registration of the mortgage of housing to five working days making housing mortgages more attractive and effective in civil transactions.
At present state registration of mortgage contracts for all types of immovable property on average (including residential space, plots of land, buildings and structures) is between 6 and 15 days.
The reduction of the overall duration of state registration of mortgages would enhance conditions for financing entrepreneurs and would encourage investment.
In addition, considering the impact of the system of state registration of rights on the activities of business entities, including beneficiaries of measures of state support as part of the anti-crisis measures, as well as on the accessibility of credits for participants in civil transactions, the adoption of the law will enhance conditions for the development of the institution of mortgage crediting, enhance the confidence of potential investors and promote the development of the real sector of the economy.
3. Draft Federal Laws On Introducing Amendments to Certain Legislative Acts of the Russian Federation (Sections Pertaining to Regulation of Securitisation of Financial Assets) and On Special Features of Insuring Compliance with Financial Obligations.
The Federal Financial Markets Service of Russia has submitted draft federal laws On Introducing Amendments to Certain Legislative Acts of the Russian Federation (Sections Pertaining to the Regulation of Securitisation of Financial Assets) and On Special Features of Insuring Compliance with Financial Obligations.
1. The Draft Federal Law On Introducing Amendments to Certain Legislative Acts of the Russian Federation (Sections Pertaining to Regulation of Securitisation of Financial Assets) is aimed at creating a system of legal regulation of the process of securitisation that both attracts additional financial resources into the Russian economy and expands the range of securities available to investors.
Securitisation is defined in the Draft Law as the financing or refinancing of income-generating assets of legal entities through converting such assets into traded liquidity through the issue of securities.
To ensure the legal conditions for the process of securitisation the Draft Law introduces amendments to the Civil Code of the Russian Federation, the Tax Code of the Russian Federation, the Federal Law On Joint Stock Companies, the Federal Law On Limited Liability Companies, the Federal Law On the Securities Market, the Federal Law On Investment Funds and other legislative acts.
Under the basic model of securitisation of financial assets the performance of obligations under the securities issued is secured by a pledge of rights of claim which constitute the object of securitisation. At the same time, the Russian legislation on mortgage is fragmentary and on some issues contradictory, which increases the risk to investors who use this type of property as collateral when issuing securities.
This problem is to be addressed by adopting a separate legislative act recognising the special features of securing the performance of financial obligations by pledging financial claims and the rights under a bank account contract (deposit). In this connection a new Section 2 is added to Article 334 of Part 1 of the Civil Code of the Russian Federation which envisages that the features of the pledge of movable property as collateral for certain types of obligations may be established by a separate law.
The amendments the Draft Law introduces into Part 1 of the Tax Code of the Russian Federation establish additional obligations of tax payers when opening or closing a nominal bank account as well as the special features of collecting tax from the money in the account of the tax payer which has been offered as collateral. In addition the draft law sets forth the special features of tax administration with regard to nominal bank accounts and bank accounts offered as collateral.
To enhance the effectiveness of the deals of securitisation of financial assets and to avoid double taxation of the parties to such deals the Draft Law proposes amendments to Part 2 of the Tax Code of the Russian Federation which envisage that when a monetary claim arising from the contract of the sale of goods (or services) is assigned or when the said claim passes to another person under the law, the taxable base on transactions of the sale of said goods (services) is defined as the sum of the excess of the summary income derived from the exercise of the right of claim over the value of the goods (or services) sold and in the event of further assignment of claim, over the cost of acquiring said claim.
Furthermore, the Draft Law expands the previously established special procedures for taxing the profits of mortgage agents to all specialised financial companies.
Amendments to the Federal Law On the Securities Market are aimed at regulating the activities of the specialised financial company, including the issue of bonds secured by a mortgage of claims with regard to money obligations (financial claims) and (or) securities.
The features of the legal status, the procedure of creation, reorganisation and liquidation of specialised financial companies created in the form of joint stock companies and limited liability companies are established under the amendments to the Federal Law On Joint Stock Companies and the Federal Law On Limited Liability Companies envisaged under the Draft Law.
2. The Draft Federal Law On Special Features of Securing the Performance of Financial Obligations is aimed at determining the features of securing the fulfilment of financial obligations by the mortgage of rights (claims) under financial obligations and the mortgage of rights under the bank account contract (deposit).
Under the Draft Law the mortgage of rights (claims) under financial obligations and the mortgage of rights under the bank account (deposit) contract may be used to secure financial obligations. For the purpose of this Draft Law "financial obligations" refer to the obligations to which one of the parties is a financial organisation as well as obligations certified by securities or related to the performance of obligations under securities.
The Draft Law provides detailed regulation of the issues connected to the use in the financial market of the institution of the mortgage of rights (claims) under financial obligations.
In particular, in order to ensure the performance of financial obligations, rights (claims) under financial obligations arising in the future from the existing obligation or a future obligation may be pledged. The Draft Law sets the requirements as to the content and registration of the contract on the mortgage of rights (claims) under financial obligations, determines the time when the mortgage arises as well as the duties of the mortgagor and the rights of the mortgagee.
In addition, the Draft Law establishes the provisions that allow the use, to secure performance of financial obligations, of the institution of mortgage with respect to such object of civil transactions as the right (claims) arising from the contract of bank account (deposit).
The mortgage of the right under the contract of bank account (deposit) is allowed under the Draft Law on condition that a special mortgage bank account is opened for the client on the basis of such contract.
4. Draft Federal Law On Introducing an Amendment to Article 32 of the Federal Law On the Power Industry.
The Draft Federal Law On Introducing an Amendment to Article 32 of the Federal Law On the Power Industry has been submitted by the Ministry of Energy.
The aim of this Draft Law is to confirm the rules that regulate the relations when establishing priorities for the acceptance by the wholesale power market of the volumes of electrical energy generated by gas turbine and gas piston thermal power stations, which use associated petroleum gas and its processing byproducts as the main fuel.
The object of legal regulation under the Draft Law is the social relations in the sphere of regulation of priorities of acceptance by the wholesale market of electrical energy generated by the subjects of the electrical industry, the owners of various types of generating capacities.
Associated petroleum gas is a highly valuable chemical raw material and an efficient organic fuel. Under Government Resolution No 210 of April 2, 2002 associated petroleum gas is a strategic mineral.
As distinct from natural combustible gases, which mainly consist of methane, associated petroleum gas contains significant quantities of ethane, propane, butane and other saturated hydrocarbons used in the chemical and petrochemical industries. Associated petroleum gas flaring leads to significant losses in valuable chemical raw materials and to significant emissions of solid pollutants and therefore the degradation of environmental conditions in oil producing areas.
An important use of associated petroleum gas and the byproducts of its separation is the fuel to generate electricity at gas turbine and gas piston power plants, which require the distribution of power into the existing grid and, consequently, the regulation of access of such power stations to the wholesale market.
One reason for the ineffective use of associated petroleum gas is a lack of confidence in the wholesale electricity (power) market to accept the power generated at the stations that burn associated petroleum gas, which is a serious deterrent to the implementation of the projects aimed at the efficient use of associated petroleum gas.
The utilisation of associated petroleum gas by converting it into electricity and ensuring priority access to the wholesale market of power generated by gas turbine and gas piston thermal power plants that use associated petroleum gas or the processing by products as the primary fuel, will yield significant economic effect.
5. Draft Federal Law On Introducing Amendments to the Federal Laws On the Continental Shelf of the Russian Federation, On Inland Sea Waters, the Territorial Sea and the Adjacent Zone of the Russian Federation and On the Exclusive Economic Zone of the Russian Federation.
The introduction of proposed changes to the abovementioned federal laws is prompted by the need to define more clearly the functions of the federal and regional executive bodies in the field of the use, conservation, reproduction, exploration and exploitation of natural resources.
The Draft Law introduces restrictions on the list of users of areas of the subsoil in the inland sea waters, the territorial sea and adjacent zone of the Russian Federation and the continental shelf of the Russian Federation.
The Draft Law would include in the license to use an area of subsoil, requirements for drilling, the creation, operation and use of artificial islands, structures, plants, the laying of underwater cables and pipelines without a special license if such works are a necessary part of the use of subsoil resources. Under the Draft Law, earth-moving on the continental shelf should be included in the project documentation for the creation of artificial islands, structures and plants, the laying of underwater cables and pipelines without special permission to conduct such work.
Under the Draft Law decisions on the issue of permits to carry out scientific marine research, suspend parts of such research conducted on shore and resume the same are to be agreed to with the executive bodies of the constituent entity of the Russian Federation on whose territory such onshore research is conducted or whose coastal infrastructure is used.
The Draft Law would also harmonise some provisions of said federal laws with the current legislation of the Russian Federation.
The provisions of the Draft Law are aimed at ensuring the integrity of state management of marine activities as well as at regulating the procedure for burying waste, dredging, moving and dumping earth on the seabed in line with the provisions of the December 29, 1972 Convention on the Prevention of Marine Pollution by the Dumping of Waste and Other Matter.
The adoption of the Draft Law would not require additional outlay from the federal budget and the amendments proposed would help regulate the interaction between federal and regional government bodies in this sphere as well as remove excessive administrative barriers to the creation, operation and use of artificial islands, structures and plants, drilling work, the laying of underwater cables and pipelines in inland sea waters, in the territorial sea and on the continental shelf of the Russian Federation in accordance with the conditions set by the draft documentation for the performance of work connected with the use of such areas of subsoil for the purpose of regional geological study, exploration and development of mineral resources.
The adoption of the Draft Law would enhance the effectiveness of the use of natural resources of inland sea waters, the territorial sea, the continental shelf and the exclusive economic zone of the Russian Federation and fill in the gaps in legal regulation.
6. Draft Federal Law On Annulment of Section 2, Article 1490 of Part 4 of the Civil Code of the Russian Federation.
The Ministry of Education and Science of the Russian Federation is introducing a Draft Federal Law On Annulment of Section 2, Article 1490 of Part 4 of the Civil Code of the Russian Federation developed for the purpose of eliminating the contradiction between Articles 1232 and 1490 of Part 4 of the Civil Code of the Russian Federation (hereinafter CC RF).
Section 2 of Article 1490 of the CC RF determines that the procedure for state registration of contracts to transfer the exclusive right to a trademark, a licensing contract as well as other contracts that ensure the exercise of exclusive rights to a trademark is established by the federal executive body which regulates the sphere of intellectual property.
Under Article 1232 of the CC RF, in cases specified by the CC RF, the exclusive right to the results of intellectual activities or the individualisation means is recognised and protected on condition of state registration of such result or such means.
In the event the result of intellectual activity or means of individualisation are subject to state registration under the CC RF the transfer of the exclusive right to such result or such means under contract, the pledge of such right and granting of the right to use such result or such means under a contract as well as the transfer of exclusive rights to such result or such means without a contract are also subject to state registration. The procedure and conditions of such a state registration are established by the Government of the Russian Federation.
Thus, Article 1232 of the CC RF establishes that the rules of registration of contracts on disposal of exclusive rights and the transfer, without a contract, of the exclusive rights to all the objects of intellectual property, including trademarks, are established by the Government of the Russian Federation.
Considering that a trademark is an object of intellectual property that is most actively traded and that generates the largest number of disputes among business entities, it is deemed practicable to establish the rules of registration of contracts on the transfer of exclusive rights to all the objects of intellectual property in the cases stipulated under the CC RF and the regulatory acts of the Government of the Russian Federation.
In this connection it is necessary to introduce amendments to Article 1490 of the CC RF.
7. Draft Federal Law On Introducing an Amendment to Article 334 of the Tax Code of the Russian Federation.
The Draft Law has been developed to ensure the granting of a deferment to airline companies on the payment of customs duties for a period of up to 6 months on imported foreign aircraft and components thereof (including engines) without the need to offer collateral to secure the payment thereof.
The Draft Law proposes an amendment to Article 334 of the Customs Code of the Russian Federation that would add a provision authorising the Government of the Russian Federation to determine grounds (other than those stipulated under the Article) for granting a deferment or an instalment plan for the payment of customs duties and taxes with regard to foreign aircraft and components thereof.
Under the current version of the article a deferment or an instalment plan for the payment of customs duties and taxes is granted to the payer of customs duties and taxes under at least one of the following criteria:
- the company in question has suffered damage as a result of a natural disaster, a human-induced catastrophe or other force majeure circumstance;
- delay in the financing of the company out of the federal budget or the payment for the state order fulfilled by that company;
- the goods moved across the customs border are perishable;
- the company in question makes deliveries under intergovernmental agreements.
It follows from the abovementioned that the current version of the article does not envisage the granting of a deferment with regard to imported foreign aircraft or components for them.
One of the main elements for the survival of the aviation industry is the ability to renew the fleet of aircraft by introducing efficient (especially fuel-efficient) modern planes and helicopters.
Aircraft fleet renewal requires significant financial outlay which, given the reduced volume of air carriage due to the crisis and the preservation of high aviation fuel prices, is becoming a near insuperable task even for economically stable airlines.
Urgent measures to support airlines, including the granting of a deferment on the payment of customs duties on imported aircraft and components, would enable airlines to implement fleet renewal programmes and consequently ensure the preservation and development of the air carriage business.
8. Introduction of amendments to certain acts of the Government of the Russian Federation in connection with the adoption of the Federal Law On the Sea Ports in the Russian Federation and Introducing Amendments to Certain Legislative Acts of the Russian Federation.
This Federal Law has been developed pursuant to Article 9 of the Merchant Marine Code of the Russian Federation and is aimed at comprehensively solving the basic issues of the functioning of seaports in the Russian Federation. At the same time the Federal Law contains some provisions whose implementation must be supported by corresponding acts of the Government of the Russian Federation.
Article 28 of the Federal Law determines that property located within the boundaries of a seaport may be appropriated from the owner for government needs under a procedure stipulated under the Civil Code of the Russian Federation. The Civil Code of the Russian Federation envisages that the government bodies authorised to make decisions on condemning land for state and municipal needs are determined by land legislation. The Land Code of the Russian Federation does not specify which government bodies are authorised to take such decisions.
This Draft Government Resolution would vest the Federal Marine and River Transport Agency with the powers to organise the work of condemning and reserving land for state needs for the purpose of building and expanding seaports.
Article 30 of the Federal Law expands the competence of the Federal Marine and River Transport Agency by vesting it with authority to exercise the rights of the owner with respect to the federal property assigned to the federal state unitary enterprises and federal state institutions subordinate to the Agency.
Article 31 of the Federal Law expands the competence of the Federal Marine and River Transport Agency by vesting it with the power to deliver opinions on the inseparable link between parts of the seaport infrastructure that constitute immovable property and on ensuring the technological process of rendering services in the seaport.
This Draft Resolution of the Government of the Russian Federation has been prepared for the purpose of redistributing the powers referred to above between the Federal Marine and River Transport Agency and the Federal Agency for the Management of State Property.
9. Introduction of amendments to the Statute on the Powers of the Federal Executive Bodies for the Support, Development and Use of the Global Satellite Navigation System GLONASS in the Interests of Defence and Security of the State, Social-Economic Development of the Russian Federation and Broader International Cooperation as well as for Scientific Purposes.
The Draft Resolution On Introducing Amendments to the Statute on the Powers of the Federal Executive Bodies for the Support, Development and Use of the Global Satellite Navigation System GLONASS in the Interests of Defence and Security of the State, Social-Economic Development of the Russian Federation and Broader International Cooperation as well as for Scientific Purposes (hereinafter "the Draft Resolution") has been submitted by Roscosmos. The Draft Resolution would increase the functions of Roscosmos in the area of information support of navigation activities pursuant to the Federal Law On Navigation Activities, amend and expand the functions respectively of the Transport Ministry and the Ministry of Economic Development in connection with the change in the composition and structure of Roskartografia as well as update the functions of other federal executive bodies concerned pursuant to the decisions of the President of the Russian Federation and the Government of the Russian Federation regarding the GLONASS system.
The adoption of the Draft Resolution would promote the coordination of activities of the federal executive bodies concerned in the use and development of the GLONASS system, including the large-scale and comprehensive introduction of satellite navigation technology in all the sectors of the Russian economy. The adoption of the Draft Resolution would define the scopes of authority of the Ministry of Transport of the Russian Federation, the Ministry of Economic Development of the Russian Federation, the Ministry of Industry and Trade of the Russian Federation, the Federal Air Navigation Service, the Federal Space Agency, the Federal Fishery Agency and the Federal Service for State Registration, Cadastre and Cartography in maintaining, developing and using the global satellite navigation system GLONASS in the interests of defence and security of the state, social-economic development of the Russian Federation and in broader international cooperation as well as for scientific purposes and will ensure the full exercise of the said powers.
Moscow, July 3, 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.