The following issues are scheduled for discussion at the Government Meeting on February 26, 2009

1. The draft Programme for the Development of Competition in the Russian Federation

Competition policy: goals and tasks

Competition policy is a complex of successive measures taken by the Government to ensure conditions for competition among business entities. The basis of the competition policy is the Programme for the Development of Competition prepared pursuant to the Russian Government directive of August 19, 2008 in accordance with the Main Guidelines of the Activities of the Government of the Russian Federation in the Period through 2012.

The state of competition in the markets depends on their structure, the existence of obstacles to entry, and the overall investment climate. Therefore the Programme includes measures of both antimonopoly regulation and other protective measures as well as measures to promote competition that expand the opportunities and stimuli for entrepreneurial activities.

Competition policy is the key instrument in achieving the goals of social and economic development. It is aimed at making the Russian economy more effective and competitive, namely by modernising enterprises in order to create conditions for meeting the needs of the Russian citizens for goods and services in an economically effective manner.

The competition policy is an instrument for implementing the following goals of the Concept of the Long-Term Social and Economic Development of the Russian Federation: creating an institutional environment for innovative development; curbing inflation; creating conditions for raising the quality of life and living standards of the population; development of national competitiveness. To achieve the goals of competition policy, the following tasks are to be addressed:

- general improvement of the competitive environment by reducing unreasonable domestic and external barriers and creating mechanisms for preventing excessive regulation, the development of the transport, information, financial and energy infrastructure and making it accessible for market players;
- more effective protection of competition against anti-competitive actions of executive bodies and business entities by improving anti-monopoly regulation;
- implementation of special measures to promote competition in selected sectors by removing unreasonable internal and external barriers and using the instruments of tax and non-tax incentives and support.

The programme for the development of competition in the Russian Federation identifies the priorities and main areas of competition policy for the period through 2012.

Priority measures to develop competition

The economic situation is changing rapidly due to the world financial crisis. Competition is becoming tougher and is acquiring new aspects. The competition between business entities for financial resources and for meeting the falling demand for goods and services is increasing. In the context of the world economic crisis, this situation is compounded by the fact that foreign states, faced with universal decline in demand, are introducing and will continue to introduce active measures to protect their own markets and support their export-oriented enterprises.

At the same time, the Government of the Russian Federation is implementing anti-crisis measures aimed at improving the situation in the financial sector and supporting selected sectors of the economy. The financial, human, and material-technical resources released in some sectors must be able to freely "flow" into other sectors, which is only possible if the competitive environment is favourable. Another task is to minimise the negative impact of anti-crisis measures on competition and to lay the groundwork for future development. One key task during the crisis is to preserve the environment for the development of small and medium-sized enterprises, above all by ensuring equal access to credits, reducing administrative pressure and expanding the markets to make room for the products of market participants.

When starting a new business, obtaining bank loans and government permits quickly becomes a special, sometimes decisive, factor in the crisis conditions.

Reducing unproductive business spending through various administrative and infrastructural limitations and barriers would help to increase the resources that go towards the core activities of the existing business projects and create conditions to attract new entrepreneurs into the economy.

At such times, business entities tend to appeal more frequently to the executive bodies to use the instruments of state regulation and interfere in the process of competition. This lends added importance to anti-monopoly response to illegal actions of officials in the interests of individual business entities. However, emergency support measures taken by local executive bodies in the context of the crisis may often worsen the competitive environment in the country as a whole. Thus, in some regions the local executive bodies seek to isolate "their" region by restricting the movement of goods, practicing "anti-crisis" regulation of individual enterprises, and imposing additional burdens on business.

In some spheres that are natural monopolies, the violation of the rules of access to services is not punishable, which is why compliance with such rules is monitored by an anti-monopoly agency according to procedures stipulated with regard to violations of anti-monopoly laws. Said form of monitoring is time-consuming and thus slows down decision-making in a rapidly changing situation.

In some spheres, the current access procedure violates the principle of non-discrimination and needs to be improved.

It should be noted that elsewhere in the world, transactions, mergers, and takeovers now take much less time. In 2008 alone, the time of effecting such transactions dropped by half, from 142 to 80 days, experts estimate. Not infrequently, an alternative to merger is bankruptcy. In connection with this, an excessively long approval procedure is highly undesirable and may undermine the competitiveness of Russian enterprises vis-à-vis foreign companies.

An important anti-crisis support measure for the domestic economy is boosting demand by increasing procurement for government needs and for the needs of state-owned corporations and natural monopolies. However, that measure will only be effective if government money is allocated through a transparent and competitive procedure that is easily accessible even for small businesses.

Competition policy in times of crisis must ensure the implementation of the following measures:

- the cost of entering the market must be cut substantially, including by lowering the administrative barriers and taking "spot" measures in sectors where there are obvious obstacles to entry;
- in exercising anti-monopoly and other measures of control, the stress must be shifted from monitoring the business entities towards closer control of the actions of the executive bodies. The anti-monopoly agency should carry out a series of control measures to reveal improprieties such as the creation of unreasonable obstacles to business by the executive bodies;
- access to the infrastructure of natural monopolies must be simplified. To this end, it is necessary, among other things, to introduce a fast-track procedure for examining the violations of the rules of non-discriminatory access to the services of natural monopolies, in order to establish liability for violations of these rules in the form of disqualification of the officials guilty of such violations;
- approve the rules of non-discriminatory access to the system of trunk and distribution gas pipelines.
- to improve the supply of aviation fuel, a ban should be imposed on combining the activities of selling aviation fuel with other activities of providing aviation fuel; rules of access to the services of refuelling complexes at airports should be developed.
- broader support of small businesses should be made available through:
* easing the administrative pressure on small businesses, including a partial moratorium on inspections pending the adoption of the laws on lifting administrative restrictions, as well as a moratorium on the tax audits of loss-making companies based on the results of 2008 (tax agencies use the performance indicators of a company as an important criterion for ordering a tax audit);
* providing access for small businesses to credit resources and project-tied loans. That measure can only be effective if the government allocates resources in a way that is transparent, competitive and accessible also for small businesses;
* easing access to the infrastructure, including a reduction in the cost of hookups to power grids and a simplified hookup procedure;
* expanding the market for the products of small enterprises by giving them greater access to specialised government procurement tenders (increasing the size of the maximum lot).
- reducing the number of transactions subject to prior approval by the Federal Anti-Monopoly Service, first by dropping the requirement of mandatory approval of transactions within a group of persons.
- the formation of an effective, highly accessible, and transparent tender system for the placing of state orders, as well as orders by state-owned corporations and natural monopolies including through wider practice of placing orders by electronic auction, making it mandatory to award orders for the delivery of goods and services for state-owned corporations and natural monopolies by tender.
- the development and implementation of a set of measures to enhance the mobility of the able-bodied population between territories and sectors of the economy, including:
* lowering the administrative barriers that impede labour mobility (simplifying the procedure for registration in the place of residence and access to mandatory medical insurance services);
* creating the necessary infrastructure services in the field of transport and housing rent;
* developing the system of personnel retraining (forming a state order for retraining and its award in accordance with the law on the placing of the state order);
* rendering financial support to employers in creating additional jobs for the unemployed citizens.
- to develop competition in the sphere of railway transport, it is necessary to create a specialised information and trade centre ("exchange") of rolling stock. On the basis of information from the unified centre, the operators of rolling stock will be able to effect contracts (swaps) of rolling stock that will make transportation logistics more effective.

2. The Draft Federal Targeted Programme Improving the Stability of Residential Buildings, Main Facilities, and Life Support Systems in Seismic Regions of the Russian Federation between 2009 and 2013

The Federal Targeted Programme Improving the Stability of Residential Buildings, Main Facilities, and Life Support Systems in Seismic Regions of the Russian Federation between 2009 and 2013, prepared by the Ministry of Economic Development of Russia in cooperation with the federal executive bodies concerned, envisages a complex of interconnected and coordinated measures to reduce seismic risks and generally improve security.

The Programme envisages work to enhance the stability of a number of federal facilities under the jurisdiction of the Ministry for Civil Defence, Emergencies, and Disaster Relief, the Ministry of the Interior, the Ministry of Defence, and the Federal Security Service, as well as subsidies to the budgets of 28 Russian regions for measures to improve the stability of residential houses and the main life support facilities that constitute regional, municipal, or private property.

All of the Programme measures are formed and funded as part of research and development and capital investments budget items and will be carried out in two stages.

The first stage (2009-2010) is essentially preparatory and includes measures whose results will make it possible to objectively assess the current situation and create conditions for seismic strengthening of buildings and structures.

The first stage will see the preparation of corresponding regulatory and methodological documents, some priority research and development work and the start of their introduction in practice, the necessary measures of seismic zoning, the study and description of buildings and structures according to a uniform methodology, analysis of the activities and expansion of the network of seismological stations, decisions on the practicability of seismic strengthening of concrete facilities, determination of the amount of resources, including those allocated out of the federal budget, to fund the abovementioned activities.

The first stage will also see priority measures on seismic strengthening of facilities in the most earthquake-prone areas for which project documentation has been approved and tested by the Government.

Pursuant to directive of the President of the Russian Federation No.Pr-2191 of October 16, 2008, the Programme envisages the allocation of 6 billion roubles in the form of subsidies to the budgets of the Kamchatka Territory and the Sakhalin Region to finance measures to enhance the seismic stability of residential houses.

In connection with this, measures to enhance the stability of facilities under the jurisdiction of federal executive bodies are to be launched and subsidies to the budgets of the remaining 26 regions of the Russian Federation under the Programme are to be commenced beginning in 2010.

The second stage (2011-2013) is the main stage and will see the full-scale implementation of the measures to improve the stability of existing residential houses, main facilities, and life-support systems that are not sufficiently seismic-proof.

The use of the targeted programme method will ensure a methodological and uniform approach and, on that basis, the concentration and rational use of budgetary and borrowed money.

The Programme has been allocated 71,678.5 million roubles, of which 48,000 million roubles from the federal budget, 21,678.5 million roubles from the budgets of the Russian regions and local budgets and 2000 million roubles from off-budget sources.

Amount of funding under the item:
* "Capital investments" (seismic strengthening), 71,369.5 million roubles;
* R/D, 309 million roubles.
The estimated economic effect from the complex of measures under the Programme that reduce material damage, including the cost of these measures, will be 1.5 trillion roubles.

3. The Draft Federal Law On Introducing Amendments to Chapters 21 and 25 of Part 2 of the Tax Code of the Russian Federation

The Draft Federal Law On Introducing Amendments to Chapters 21 and 25 of Part 2 of the Tax Code of the Russian Federation is aimed at improving the legal regulations on the taxation of the financial instruments of term transactions.

Considering that the Russian financial market is relatively mature, forming a regional financial centre in the Russian Federation is becoming a relevant task. In the context of deepening processes of globalisation and competition among world financial centres, the formation of such a centre calls for a complex of measures, including the improvement of tax legislation.

The current tax legislation does not always match the realities of the rapidly developing financial market, which impedes the creation of a regime of taxing transactions with financial instruments of term transactions comparable to the analogous regimes existing in the countries with a developed financial system and prevents transactions with financial instruments.

In addition, in the context of a deepening financial and economic crisis, the proposed measures would make it substantially easier to combat the crisis in various sectors of the Russian economy by offering additional opportunities to borrow capital, compensating for possible taxpayer losses, and generating an additional impetus for the development of commodity market trade in commodities that are sold over the counter (oil, petroleum products, etc).

Amendments are proposed to Chapters 21 and 25 of the Tax Code of the Russian Federation in order to implement the goals of the draft law.

In particular, amendments to Chapter 21 of the Code envisage transactions with settlement financial instruments as well as the supply financial instruments without charging the VAT until delivery.

The procedure of determining the taxable base in the use of basic assets of term transaction financial instruments has been reviewed.

Amendments to Chapter 25 of the Code exclude transactions with financial instruments effected by clearing organisations that ensure clearing and settlements for such transactions from the profit taxable base of organisations.

The market value of over-the-counter financial instruments is to be determined based on the maximum deviations of the price of the deal from the estimated price, which will be calculated according to the methods determined by the federal executive body for the securities market.

The concept of a financial instrument of term transactions is sealed in accordance with the definition contained in Clause "b" of Article 512 of Federal Law On the Securities Market No.39-FZ of April 22, 1996.

Identical taxation regimes are established for exchange and over-the-counter financial instruments and the possibility of including losses from such deals in the financial results, regardless of whether or not these transactions constitute hedging, is envisaged.

The adoption of this draft law will accelerate the development of the market of financial instruments in Russia, will make it more attractive for all categories of investors as well as goods providers, and will contribute to an all-around development of the Russian economy and the formation of a regional financial centre in Russia.

4. The Draft Federal Law On Introducing Amendments to Articles 138 and 325 of the Tax Code of the Russian Federation

The aim of the draft law is to improve the Customs Code of the Russian Federation and eliminate the shortcomings of the simplified declaration procedure, including periodic temporary declaration of Russian goods, revealed in the course of applying the Code.

At present, the exporters of oil and its byproducts are able to analyse in advance the rates of export customs duties for the period ahead and decide to declare the exported goods at the current rates or the rates that will be introduced in 15 days' time and will take effect when the goods are actually exported.

The draft law establishes a timeframe for the actual removal of such goods from the customs territory and a timeframe of submitting complete and properly filled out customs declarations. The export customs duties are paid simultaneously with the submission of the temporary customs declaration based on the rates as of the day the temporary customs declaration has been accepted. The sums of export customs duties are to be recalculated after their verification in the complete customs declaration of the data contained in the temporary customs declaration, proceeding from the rates of customs duties as of the day of the actual removal of goods from the customs territory of the Russian Federation.

The draft law effectively does not change the total timeframe for the removal of goods, but merely more precisely regulates the timeframe of shipment and actual removal of goods from the customs territory of the Russian Federation.

The amendments under the draft law would improve the simplified declaration procedure and rule out the risk of losses for the federal budget while preserving favourable conditions for good-faith foreign trade agents.

5. The Draft Federal Law On Introducing Amendments to Articles 209 and 211 of the Labour Code of the Russian Federation

The Draft Federal Law On Introducing Amendments to Articles 209 and 211 of the Labour Code of the Russian Federation has been submitted to the Government of the Russian Federation by the Ministry of Healthcare and Social Development.

The proposed amendments make it possible to determine the occupational safety standards that are not covered by the legislation on technical regulation, and to preserve their place in the existing system of regulatory acts that contain government occupational safety norms. The above amendments will further promote the development of regulations in the field of occupational safety.

The legal provision whereby the Government of the Russian Federation, with due account of the opinion of the Russian Tripartite Commission on the Regulation of Social and Labour Relations, establishes the procedure of the development, approval, and amendment of supporting regulatory acts containing government occupational safety requirements, is preserved.

The amendments introduced under the draft law will not change the existing structure of the regulatory acts on occupational safety and technical rules.

6. The Draft Federal Law On Introducing Amendments to the Administrative Offenses Code of the Russian Federation

The Draft Law developed by the Ministry of Transport of the Russian Federation toughens the liability for administrative offenses and for introducing administrative liability on issues of federal importance, including administrative liability for violating the procedure of placing objects in the area of an airfield, a heliport, or helipad established by the Federal Rules of the Use of Airspace in the Russian Federation, approved by Government Resolution No. 1084 of September 22, 1999.

The above issues of administrative legislation, pursuant to Clause 1, Article 1.3 of the Code on Administrative Offenses of the Russian Federation, fall under the jurisdiction of the Russian Federation and do not require the approval of the regions of the Russian Federation.

Given the increased volume of carriage and aviation work, as well as general-purpose aviation activities, additional measures are required to improve state supervision of the activities in the sphere of civil aviation to ensure the necessary level of flight safety and aviation safety.

The Ministry of Transport of the Russian Federation, in cooperation with the law enforcement bodies, is identifying and eliminating violations of air legislation.

Violations of air legislation occur when the rules of passenger and cargo carriage are broken, when the limits of the flight weight or balance are exceeded, when commercial passenger traffic is carried by cargo aircraft, when unauthorised changes are made to the design of the aircraft, when the aircraft crew is undermanned, when aircraft are unregistered or do not have the necessary onboard documents, and when aircraft are piloted by pilots under the influence of alcohol.

As a rule, there have been more frequent offenses committed by passengers, including on-board aircraft, while under the influence of alcohol.

According to the Ministry of the Interior, 245 passengers have been subject to administrative proceedings for minor hooliganism in a public place, i.e. on board aircraft or at the airport, and 483 passengers have been disciplined for drinking alcohol and being under the influence of alcohol on board an aircraft. In the first quarter of 2008, minor acts of hooliganism on board an aircraft were committed by 128 passengers, who have been disciplined, while 126 passengers have been disciplined for drinking alcohol and being under the influence of alcohol.

A contributing factor is the lack of effective administrative instruments that can be applied to those who violate air legislation.

The increase in the rate of hooliganism on board aircraft poses a threat to flight safety; this has been confirmed by repeated submissions by air companies to the Ministry of Transport seeking tougher regulations on the punishment of such actions.

The administrative measures proposed under the draft law are differentiated according to the degree of danger posed by the violations.

The draft law would impose tougher punishment:

- for actions that threaten flight safety;
- for violation of aviation safety rules;
- for violation of the rules of the use of airspace;
- for violation of the rules of safe operation of aircraft;
- for non-compliance by persons on board an aircraft or a seafaring or inland waterway vessel with the legitimate orders of the commander (captain) of the vessel, and for drinking alcohol and alcohol-containing products with ethylated alcohol content of 12 percent or more in the finished products in streets, stadiums, public gardens, and on public transport;
- for violating the regime of the State Border of the Russian Federation.

A more precise definition has been given, in accordance with the degree of liability, of administrative violations of flight safety and safety of aircraft operation which envisage administrative liability:

- for the violation of federal aviation rules regulating the procedure for clearance of aircraft for flights or rules of in-flight operation and technical maintenance of the aircraft if such actions have led, through negligence, to minor or moderate damage to health;
- for flying aircraft with malfunctions that preclude its operation without a permit issued under established procedure by an authorised body or carrying more passengers than the aircraft capacity allows;
- for the piloting of an aircraft by a person without a piloting license;
- for piloting an aircraft that has not passed state registration or state accounting under established procedure, or has no state and registration identification marks or accounting identification marks, or with knowingly falsified state and registration identification marks or accounting registration identification marks;
- for piloting an aircraft without the onboard and flight documentation envisaged under the laws of the Russian Federation or by a member of the flight crew who has no documents confirming his license to pilot the given type of aircraft;
- for piloting an aircraft under the influence of alcohol or for the refusal of the person piloting an aircraft to have the standard breathalyser test, or handing over control of an aircraft to a person under the influence of alcohol;
* for clearing an aircraft for flight that has not passed through the standard state registration or state accounting procedure, has no state registration identification marks or accounting identification marks, has knowingly falsified state and registration identification marks or accounting identification marks, has no onboard and flight documentation stipulated under the laws of the Russian Federation, has an understaffed flight or cabin crew, has malfunctions that prevent the aircraft from being operated without a permit issued under established procedure by the special authorised body, or violates the norms of passenger (cargo) capacity, including restrictions on flight weight or aircraft balancing, allowing unauthorised persons or persons under the influence of alcohol to pilot or service the aircraft, or servicing of the aircraft by an unauthorised person or a person under the influence of alcohol.
* for flights by aircraft that have no search and emergency rescue equipment as stipulated under the laws of the Russian Federation.

Administrative liability is established for deliberate concealment of an aviation accident or incident that envisages administrative liability for deliberate concealment of an aviation accident or incident, information about them, as well as distortion of the information by an official or legal official whose duty is to apprise the authorized bodies thereof, as well as damage or destruction by the person responsible for the safety of onboard and ground control means and other material evidence connected with the aviation accident or incident.

Administrative liability earlier entailed by actions threatening flight safety or by violation of aviation safety measures that are allowed in the area or on the territory only of the airfield (airport), is extended under the new draft law to analogous actions committed in the area or on the territory of a heliport or helipad.

7. The Draft Federal Law On the Ratification of the Agreement between the Government of the Russian Federation and the Government of the Lithuanian Republic on Shipping in the Curonian Bay and the Waterways in the Kaliningrad Region of the Russian Federation and in the Lithuanian Republic

The Agreement between the Government of the Russian Federation and the Government of the Lithuanian Republic on Shipping in the Curonian Bay and the Waterways in the Kaliningrad Region of the Russian Federation and in the Lithuanian Republic was signed in Svetlogorsk on December 4, 2007.

The Agreement has provided a legal framework for the regulation of:
- navigation of the vessels of both countries in the internal waterways in the Kaliningrad Region of the Russian Federation and in the Lithuanian Republic as part of communications between states;
- navigation of Russian vessels through the waterways of the Lithuanian Republic to the Baltic Sea and back.

The Agreement contains provisions other than those envisaged by the laws of the Russian Federation and therefore is subject to ratification under Subclause A, Clause 1, Article 15 of the Federal Law On the International Treaties of the Russian Federation.

8. The signing of the agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on granting a state loan to the Republic of Belarus

9. The signing of the treaty between the Russian Federation and the Republic of Bulgaria on social security
The draft treaty is a balanced document that will provide a legal framework for Russian-Bulgarian cooperation in the field of social security.

The Treaty will cover persons who are citizens of the Russian Federation and the Republic of Bulgaria living on the territory of the Parties as well as members of their families who were or are covered by the legislation of the Contracting Parties.

Social insurance allowances and pensions granted under the Treaty will take into account the insured (labour) length of service on the territory of the Russian Federation and the Republic of Bulgaria with the exception of cases when such periods coincide in time.

Under the Draft Treaty, each Party calculates the size of the pension corresponding to the insured (labour) length of service acquired on its territory in accordance with its own legislation. This procedure of pension provision meets the interests of the Russian Federation because it allows the citizens of the Russian Federation with a length of service on the territory of the Russian Federation but who now live in the Republic of Bulgaria to include the length of service acquired in the Russian Federation and draw pensions for that period under the laws and at the expense of the Russian Federation. Likewise, the citizens of the Republic of Bulgaria who have a length of service on the territory of the Republic of Bulgaria but live on the territory of the Russian Federation will have their length of service acquired on the territory of the Republic of Bulgaria determined and paid for under the laws and at the expense of the Republic of Bulgaria.

The Treaty contains other rules than those envisaged under the laws of the Russian Federation. This applies, among other things, to the procedure of determining the eligibility for a pension or allowance (Articles 2, 3, 6, 10, and 11 of the Treaty). Thus, under Subclause A, Clause 1, Article 15 of the Federal Law On the International Treaties of the Russian Federation, the Treaty is subject to ratification.

The implementation of the Treaty would require financial outlays for the provision of pensions to people who have left the territory of the Russian Federation for the territory of the Republic of Bulgaria. The outlays are estimated at 144.88 million roubles in 2009, of which 73.54 million roubles will come from the federal budget and 71.34 million roubles will be covered by the insurance premiums under the mandatory pension insurance scheme; 192.44 million roubles in 2010, of which 102.48 million roubles will come from the federal budget and 89.96 million roubles will be covered by insurance premiums under the mandatory pension insurance scheme; 215.67 million roubles in 2011, of which 112.33 million roubles will come from the federal budget and 103.34 million roubles will be covered by insurance premiums under the mandatory pension insurance scheme; 239.09 million roubles in 2012, of which 121.98 million roubles will come from the federal budget and 117.11 million roubles will be covered by insurance premiums under the mandatory pension insurance scheme.

The outlays for pensions will be financed by the money earmarked in the budget of the Pension Fund of the Russian Federation for the payment of the insured and the basic parts of the labour pension in accordance with federal laws No.204-FZ of November 24, 2008 On the Federal Budget for 2009 and the Planning Period of 2010-2011 and No.214-FZ of November 25, 2008 On the Budget of the Pension Fund of the Russian Federation for 2009 and the Planning Period of 2010 and 2011.

10. The procedure for export of narcotics and psychotropic substances intended for humanitarian assistance or emergency relief

The draft resolution of the Russian Government On the Procedure for Export of Narcotics and Psychotropic Substances Intended for Humanitarian Assistance or Emergency Relief has been developed pursuant to Clause 81, Article 28 of Federal Law No.3-FZ of January 8, 1998 On Narcotics and Psychotropic Substances as part of the implementation of the provisions of Federal Law No.136-FZ of July 22, 2008 On Introducing Amendments to Articles 5 and 28 of the Federal Law On Narcotics and Psychotropic Substances.

Under the resolution, narcotics and psychotropic substances may be taken out of the country for the purpose of humanitarian assistance or emergency relief on a case-by-case basis by decision of the Government of the Russian Federation.

The resolution identifies the circle of legal entities authorised to export narcotics for the purpose of humanitarian assistance or emergency relief.

It should be noted that the circle of legal entities is determined with due account of the current practice of the export of narcotics as humanitarian and emergency relief.

Thus, narcotics used to deliver urgent medical assistance to victims in an emergency area are exported by legal entities under the jurisdiction of the Ministry of Healthcare and Social Development, namely FGU (Federal State Institution) All-Russia Disaster Medical Centre Zashchita and the Russian Emergencies Ministry, namely FGU Central State Air Mobile Rescue Unit.

Narcotics are exported as part of regulation property of the medical divisions of the legal entities referred to above.

The export of narcotics as humanitarian relief intended as a gift to the party that has requested the relief is effected by the legal entity under the jurisdiction of the executive body of the region of the Russian Federation that is geographically located in the immediate proximity of the requesting side.

Under the resolution, only narcotics registered in the Russian Federation as medicinal preparations can be exported as humanitarian assistance or relief to victims of emergencies.

Under the resolution, the legal entity exporting narcotics for the purpose of humanitarian assistance or emergency relief must have a corresponding letter confirming the purpose of the export.

Because the exported items are narcotics registered in the Russian Federation as medicinal preparations, the letter is issued and the procedure of its issue is determined by the federal executive body in the field of healthcare and social development, the Ministry of Healthcare and Social Development.

The resolution lays down the procedure to be followed by the legal entities that export narcotics for the purpose of humanitarian assistance or emergency relief in reporting to the Ministry of Healthcare and Social Development and the Federal Drug Control Service on the quantities of actually exported narcotics as well as the consumption thereof during the delivery of relief services.

Because the legal entities export narcotics as a gift or use them to treat the victims on the territory of a foreign state, the resolution stipulates certain rules to ensure the safety of narcotics en route from the Russian Federation to the foreign state and during the delivery of medical assistance on its territory such as the guarding of narcotics, escort by responsible officials, the packing of narcotics in separate containers and the sealing thereof as well as separate accounting and storage of narcotics used for medicinal purposes.

Adoption of the resolution of the Government of the Russian Federation On the Procedure for Export of Narcotics and Psychotropic Substances Intended for Humanitarian Assistance or Emergency Relief will not necessitate any amendments to other legal acts of the Government of the Russian Federation or additional spending for the federal budget.

11. Introducing amendments to the Statute on the Ministry of Industry and Trade

The Draft Resolution of the Government of the Russian Federation On Introducing Amendments to the Statute on the Ministry of Industry and Trade of the Russian Federation has been prepared to implement the provisions of Federal Law No.160-FZ of July 23, 2008 On Introducing Amendments to Some Legislative Acts of the Russian Federation as part of improving the exercise of the powers of the Government of the Russian Federation, whose Article 101 introduces amendments to Federal Law No. 184-FZ of December 27, 2002 On Technical Regulation that the procedure for forming and maintenance of the single register of declarations of compliance, the procedure for registration of declarations of compliance, of disclosure of the data contained in the said register, and the procedure for publication of national standards and national classificators be determined by the executive body authorised by the Government of the Russian Federation.

In accordance with the Statute on the Ministry approved by Resolution No. 438 of June 5, 2008 of the Government of the Russian Federation, the Ministry of Industry and Trade is the federal executive body that performs the functions of the federal technical regulation body.

In order to vest the Ministry of Industry and Trade with the powers to adopt said procedures established under the law, the draft resolution envisages the introduction of corresponding amendments to the Statute on the Ministry.

12. The provision to the Government of the Republic of Ingushetia of budgetary allocations out of the Reserve Fund for Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters

As a result of the earthquake that occurred in the Republic of Ingushetia on October 11, 2008 housing and utilities and social amenities have been damaged. The total damage from that emergency is estimated by the Government of the Republic of Ingushetia at about 1.3 billion roubles. The Government of the Republic of Ingushetia reports that it has not allocated any of its own money to liquidate the consequences of the earthquake because at the time of the earthquake the republic's financial reserve of 6.5 million roubles had been spent.

An examination of the supporting documents submitted by the Government of the Republic of Ingushetia has determined that 56,969,100 roubles will be disbursed out of the budget allocations and the Reserve Fund of the Government of the Russian Federation for the Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters for the benefit of the Government of the Republic of Ingushetia for financial support of urgent reconstruction work on the damaged housing and utilities and social amenities.

13. The provision to the Government of the Chechen Republic of budgetary allocations out of the Reserve Fund for Prevention and Liquidation of Emergency Situations and the Aftermath of Natural Disasters

As a result of the earthquake that occurred on October 11, 2008 on the territory of the Chechen Republic, housing and utilities facilities and social amenities have been damaged.

The total material damage from said emergency is estimated by the Government of the Chechen Republic at about 4.5 billion roubles. The Government of the Chechen Republic has reported spending 150 million roubles of its own money to liquidate the aftermath of the earthquake.

As a result of the examination of the supporting documents submitted by the Government of the Chechen Republic, it has been decided to allocate 416,891,800 roubles to the Government of the Chechen Republic out of the budget of the Reserve Fund of the Government of the Russian Federation for the Prevention and Liquidation of Emergency and the Aftermath of Natural Disasters, 285,050,000 roubles of which will go for lump sum payments to the victims and 131,841,800 roubles of which will go towards financial support of urgent reconstruction work on the damaged housing and utilities facilities and social amenities.

14. Introducing amendments to the regulations of the Government of the Russian Federation

February 25, 2009
Moscow

* Press releases by the Department of Press Service and Information contain the materials submitted by the federal executive bodies for discussion by the Government of the Russian Federation.