20 august 2009

Background material for the August 20, 2009 meeting

The following issues are scheduled for discussion at the Government Presidium meeting on August 20, 2009

1. Draft Water Management Strategy of the Russian Federation for the Period Until 2020 and the Plan to Implement It.

The draft Executive Order of the Government of the Russian Federation on the said issue has been submitted by the Ministry of Natural Resources and Environment of the Russian Federation. The Draft Water Management Strategy and the measures of its implementation are tied to the main documents that determine the social-economic development of the country in the medium term to 2012 and for the longer term, until 2020, and include the following areas for the development of water management:

  • coordinated development of various sectors to ensure the most effective use of water resources for the purpose of sustained economic growth;
  • more rational use of water resources by cutting the waste of water in the housing and utilities system and in the agro-industrial sector, cutting the water consumption rate in technological processes of industrial enterprises and introduction of water saving technologies;
  • eliminating water shortages in some regions through the building and reconstruction of hydro-technical facilities at water reservoirs to store additional regulating capacity and make water use more efficient, and the reconstruction of water management systems;
  • providing the public with quality drinking water, including the creation of a competitive market for water supply services, construction and reconstruction of facilities which form the network of water supply and sewage disposal , improved legal framework in the field of water supply and sewage disposal;
  • improving the ecological state of bodies of water by lowering the anthropogenic load, and measures to restore and conserve bodies of water;
  • protecting the public and economic facilities from floods and other negative effects of water by regulating economic activity on flood-prone territories, stimulating voluntary insurance of the property of individuals who live in flood-prone areas, state support for capital construction projects and more reliable operation and safety of hydro-technical facilities.

The achievement of the goals in the above-mentioned areas of the development of water management is envisaged under the measures proposed for approval. According to the Ministry of Natural Resources and Environment of the Russian Federation, the implementation of the measures of the Water Management Strategy for the Period Until 2020 would ensure:

  • reduction of the negative anthropogenic impact on the environmental systems of water resources by 2-2.5 times;
  • reduction of morbidity and increase of life expectancy of the population by 2-3 years by improving the environment and the quality of water sources used for drinking and household needs;
  • partial elimination of water shortages by increasing the capacity of a number of water reservoirs;
  • balanced development of territories and sectors of the national economy, including through more effective water management;
  • reduction of the water-intensity of the gross domestic product from 2.4 to 1.99 cubic metres per thousand roubles in 2012 and subsequently to 1.4 cubic metres per thousand roubles, which is comparable to the water consumption rate of the most developed countries at present;
  • reduction of water waste by half;
  • improved protection of the public and the territories from floods and other negative impacts of water (from 16% to 50%);
  • bringing all the hydro-technical facilities in danger of collapse to technically safe levels;
  • improved quality of hydrological forecasts.

The main practical significance of this Strategy is the conduct of an integrated government policy on the use and protection of water resources, the adoption and implementation of managerial decisions aimed at preserving water ecosystems that yield the greatest social and economic effect and creating conditions for effective interaction of all the stakeholders in the water management complex.

2. The formation of a Government Commission to Manage the Cleanup in the Aftermath of the Accident at the Sayano-Shushenskaya Hydroelectric Power Station, a Branch of RusHydro, and the organization of work to ensure a stable power supply to the users of the united Siberian power grid.

For the purpose of investigating the causes of the accident at the Sayano-Shushenskaya Hydroelectric Power Station, a Branch of RusHydro, and organizing the work to ensure a stable power supply to the users of the united Siberian power grid, eliminating its consequences, organizing work to ensure sustained power supply to the consumers of the united Siberian power grid and rendering social support to the victims and members of their families, the Ministry of Energy of the Russian Federation is introducing a draft Executive Order to create a Commission of the Russian Government. Draft Statutes on the Commission and its composition are also being submitted.

The draft Statute on the Commission determines the range of its tasks including: investigation of the causes of the accident, managing the cleanup of the consequences, organizing measures of social support for the victims and their families, organizing measures to prevent the deterioration of the living conditions of the public as well as assessment of the impact of the accident on ensuring sustained power supply to consumers in Siberia. 

3. Draft Technical Regulations on the Safety of Machines and Equipment

These Technical Regulations set the minimum safety requirements for machines and equipment during the design, manufacture, transport and storage stages.

The implementation of the minimum requirements set by the regulations is aimed to ensure the following types of safety in accordance with the degree of potential risk: biological, mechanical, flammable, thermal, chemical, electrical, radiation and combustion safety.

The objects of technical regulation under these Regulations include machines and equipment, including household appliances. The lists of machines and equipment subject to mandatory certification and declaration are to be approved by the Government of the Russian Federation simultaneously with the approval of these Technical Regulations. The lists are based on the list of machines and equipment subject to mandatory certification and declaration under the current certification systems.

The Regulations do not cover the following types of machines and equipment:

  • machines and equipment used in ensuring the integrity and sustained operation of the communications system of the Russian Federation and used for radio frequency transmission (radio and television transmitting equipment, equipment for wire and wireless communications);
  • machines and equipment used for medical purposes and in direct contact with the patient (X-ray, diagnostic, therapeutic, orthopedic, dental and surgical equipment);
  • machines and equipment specially designed for use in the nuclear energy field. However, these Regulations do cover non-nuclear-specific industrial machinery used in the nuclear power industry as well as the processes of their design, manufacture, transport, storage and installation inasmuch as they comply with the requirements of nuclear and radiation safety;
  • motor vehicles;
  • marine and river craft (vessels and watercraft, drilling platforms) and the machines and equipment used on them;
  • aircraft and spacecraft;
  • railway rolling stock and the technical means specially designed for use in railway transport;
  • entertainment facilities;
  • weapons and military equipment.

The above categories of machines and equipment are not covered by the Regulations because their design and operation should meet other requirements that differ from those established under these Regulations.

These Technical Regulations have been developed on the basis of the results of an analysis:

  • of the laws and other regulatory acts in industrialized countries that regulate the safety of machines and equipment, technical devices and articles;
  • European directives establishing requirements for the safety of machines, mechanisms and equipment and ensuring the protection of life and health in the European Economic Community countries;
  • legislation of the Russian Federation on the safety of machines and equipment;
  • international standards and national standards of foreign countries, domestic and foreign regulatory documents, scientific publications on the safety of machines and equipment as well as the documents determining the interaction between Russia and the WTO member states;
  • current rules and standards of government control (supervision) in the field of machine and equipment safety.

The requirements set under these regulations are consistent with the basic provisions of the European Machinery Safety Directive 98/37 which is the basis of safety in this area in the EU countries.

To meet the requirements set under these Technical Regulations the manufacturers of specific machines and equipment need certain technical solutions that meet the provisions of the regulations. The requirements of these Regulations can be met by implementing national standards whose use is voluntary.

Thus, the proposed technical regulation system has two tiers:

1) the Regulations On the Safety of Machines and Equipment containing mandatory safety requirements established on the basis of risk assessment;

2) national standards containing concise technical solutions to meet the requirements of the regulations for specific types of machines and equipment.

The standards have been set for voluntary and multiple use.

The regulations have been in such a way as to ensure the necessary level of safety at all stages in the life cycle of machines and equipment without exceeding the necessary minimum level to rule out excessive barriers to economic activity. The optimum balance of these requirements is ensured at the design stage of machines and equipment.

That stage also includes the development of a document, "Validation of Safety" that determines the principles and design features which must be complied with to ensure the necessary safety level, and the need to conduct risk assessment.

For the manufacturing stage, the provisions have been developed to ensure that the design requirements are implemented in such a way as to provide the necessary level of safety of all the manufactured devices included in the machines and equipment with consideration of the further stages of the life cycle.

The requirements of the transportation and storage of machines and equipment, their units and parts have been established with a view to implementing all these stages safely and without lowering the allowable risk level.

Attention has been paid to establishing safety requirements for the operation stage, including the necessary provisions for various types of repair, modification and categories of maintenance, if any.

The procedure for mandatory confirmation of compliance set under the regulations emulates the similar procedure under the EU 98/37 Directive. These Regulations determine the procedure for state control (supervision), envisage final and transitional provisions for its coming into force.

The sealing of mandatory requirements in the Technical Regulations will improve the safety and quality of machines and equipment, bridge the gap between the regulations of the EU and Russia in this respect, simplify the procedure for preparing customs documents, stimulate entrepreneurial activities, reduce the cost of compliance confirmation and improve the economic and investment climate.

Because the Technical Regulations have been agreed upon with European experts through direct discussion and are effectively aligned with the European technical regulation legal documents, their coming into force will substantially reduce the cost of export-import operations.

4. Introducing amendments to the Decree of Government of the Russian Federation concerning the Federal Anti-Monopoly Service

The FAS of Russia has submitted to the Government of the Russian Federation a draft decree of the Government of the Russian Federation on the above issue.

The draft decree is aimed at bringing the scope of authority of the FAS of Russia in line with the federal law On the Procedure of Foreign Investment in Companies which have Strategic Significance for the Defence of the Country and the Security of the State; the Federal Law On Protecting Competition, the Federal Law On the Placing of Orders for Supply of Goods and Delivery of Services for State and Municipal Needs and the Federal Law On the Power Industry.

The Draft Decree would vest the FAS of Russia with additional authority in overseeing foreign investment in companies which have strategic importance for the defence of the country and the security of the state.

In this connection the FAS of Russia will have discretionary authority to pass the following regulatory acts in the given sphere of activity:

  • the form of the draft business plan of a strategic company;
  • approximate form of an agreement on compliance with certain obligations with a foreign investor or a legal or physical person belonging to a group of persons which includes a foreign investor if they intend to make a contract or establish control over a strategic company.

The draft decree would also vest the FAS of Russia with authority to:

  • monitor the actions of the market council and organizations of commercial and technological infrastructure of the wholesale market of electrical energy (capacity), compliance with the standards of information disclosure by agents in the wholesale and retail electricity markets as well as the actions of the agents in the wholesale and retail markets of electrical energy (capacity) to establish the cases of manipulation of electricity (capacity) prices in the wholesale and retail markets of electrical energy (capacity);
  • monitor compliance by a foreign investor of the obligations assumed under the Law On Foreign Investment in strategic sectors;
  • based on a client's application, determine the feasibility of placing orders for the supply of food, ambulance and emergency medical assistance, drugs, fuel required for typical daily use by requesting quotations or checking the market regardless of the price of the contract;
  • consider petitions by foreign investors for tentative approval of an agreement with strategic companies or for agreeing on control of such companies;
  • consider notification (information) by foreign investors on the acquisition of 5% or more of the shares (stake) constituting the authorized capital of strategic companies;
  • make proposals on issues that require consideration at meetings of the Government Commission on Control of Foreign Investments in the Russian Federation;
  • provide information and analytical support for the activities of the Commission and, proceeding from its decision on preliminary approval of agreements or approval of establishing control or on withholding such approval, and execute a ruling to be sent to the applicant;
  • prepare and sign in accordance with the ruling of the Commission an agreement with a foreign investor who intends to make a contract with or establish control over a strategic company;
  • take part in the procedure of agreeing investment programmes of electric power engineering entities with a government stake in their authorized capital as well as of network organizations, that meet the criteria established by the Government of the Russian Federation.

In addition, under the federal law on the placing of orders the number of entities under the control of the FAS of Russia has been increased.

These now include the federal executive body authorized to maintain the official website of the Russian Federation, the organization that services the official website of the Russian Federation and maintains its operation; the federal executive body, regional executive body and local executive body and operators of electronic sites authorized to keep the registers of the placing of state and municipal orders. 

5. The powers of the Federal Space Agency in the Use of State Aviation

The draft decree of the Government of the Russian Federation on the above issue has been submitted by Roskosmos.

The draft decree has been prepared pursuant to the executive order of the Government of the Russian Federation on creating a federal state-financed institution Gagarin Research and Testing Cosmonaut Training Centre.

Roskosmos, jointly with the Defence Ministry of Russia, are conducting measures to liquidate the Gagarin Russian State Research and Testing Cosmonaut Training Centre as well as its part, the Seryogin 70th Detached Testing and Training Special Air Regiment based at Chkalovsky Airfield.

The state-owned aircraft of the above air regiment shall be transferred to the newly created federal state-financed institution Gagarin Research and Testing Cosmonaut Training Centre. Under the laws of the Russian Federation (Air Code of the Russian Federation, Article 25.2) the activities of state aviation are organized and managed by the relevant authorized agency, which has government air units.

Under the draft decree Roskosmos is to be vested with authority to organize and manage the activities of state aviation used by the organizations under the agency's jurisdiction and introduce the relevant amendments to the Statute on Roskosmos.

The adoption of the draft will enable Roskosmos to organize and manage the activities of state aviation used by organizations subordinate to Roskosmos for the training of cosmonauts and for the solution of defenc and e mobilization tasks.  

6. Draft Federal Law On Introducing Amendments to Articles 8 and 24 of the Federal Law On Higher and Post Graduate Professional Education

The draft federal law is intended to address the problems in implementing the provisions of Article 8 and 24 of the Federal Law On Higher and Post Graduate Professional Education.

Under Article 71 of the Russian Constitution the issues of defence and security are under the exclusive jurisdiction of the Russian Federation. Under Article 72 of the Russian Constitution the general issues of education are under joint jurisdiction of the Russian Federation and the constituent entities of the Russian Federation.

Proceeding from the provisions of Article 72 of the Russian Constitution, Articles 8 and 24 of the Federal Law determine that in creating, reorganizing or liquidating federal state higher education institutions under the jurisdiction of the Russian Federation as well as branches of higher educational institutions it is necessary to reconcile such decisions with the legislative and executive bodies of the constituent entities of the Russian Federation or local government bodies.

This approach, as it would seem, contradicts the provisions of Article 71 of the Russian Constitution because it means in practice that the executive bodies of the constituent entities of the Russian Federation and the local government bodies can influence the decisions related to the defence and security of the Russian Federation.

Furthermore, the educational institutions of the Federal Security Service intended to support the activities of the Federal Security Service, are bodies of the Federal Security Service under Article 2 of the Federal Law On the Federal Security Service, and the decision on their creation or liquidating is within the authority of the Director of the Federal Security Service of Russia under subclause 37 and the Statute on the Federal Security Service of the Russian Federation approved by Decree of the President of the Russian Federation.

Consequently, the duty to secure approvals of decisions on the creation or liquidation of higher education institutions or their branches is not within the scope of authority of federal executive bodies which are military bodies under federal law and which, under the laws of the Russian Federation, have discretion on the issues of organizing the activities of subordinate educational institutions and their branches, including the issues of their creation, reorganization and liquidation.

Furthermore, the Federal Law does not speak about the legal consequences of lack of approvals of the legislative and executive bodies of the entities of the Russian Federation or local government bodies of decisions on the creation, reorganization and liquidation of educational institutions under the jurisdiction of the federal executive bodies in which military service is envisaged under the Federal Law as well as branches of the said institutions.

It is proposed to introduce amendments to Articles 8 and 24 of the Federal Law to the effect that in the interests of defence and security of the Russian Federation decisions on the creation, reorganization and liquidation of educational institutions under the jurisdiction of federal executive bodies where military service is envisaged under the Federal Law, as well as the branches of said educational institutions, do not require approvals of the legislative and executive bodies of the constituent entities of the Russian Federation or the local government bodies.

7. Signing an Agreement between the Russian Federation and the International Bank for Reconstruction and Development on the Loan to Finance the Reform of the Housing and Utilities Sector in Russia.

The aim of the project Reform of the Housing and Utilities Sector in Russia is to enhance the effectiveness and quality of services and the financial stability of housing and utilities enterprises in pilot municipal entities selected on a competitive basis. Under the agreement the Russian Federation takes out a single-currency loan in the amount of $200 million for a term of 15 years, including a 5-year holiday.

The funding of the activities under the project, which has a total cost of $205.9 million, in addition to a loan from the IBRD, also envisages Federal Budget outlays of $5.9 million.

According to the Ministry of Regional Development of the Russian Federation, the implementation of the project would feature a new comprehensive approach to the housing and utilities reform at the regional and municipal levels.

As part of implementing the project, the institutional links throughout the housing and utilities sector are to be reformed, ranging from housing management and maintenance enterprises to utilities services enterprises, as well as attracting investments for the restoration, modernization and retrofitting of the existing infrastructure.

8. Draft Federal Law On the Ratification of the Agreement between the Government of the Russian Federation and the Government of Iceland on Simplifying the Visa Issuance Process for Citizens of the Russian Federation and of Iceland.

The agreement between the Government of the Russian Federation and the Government of Iceland on Simplifying the Visa Issuance Process for Citizens of the Russian Federation and of Iceland is aimed at easing the process required for travel.

It envisages a simplified procedure for the issue of visas for a term of up to 3 months as well as multiple visas for certain categories of citizens, it introduces uniform visa charges and sets a clear timeframe for the process of granting visas. The Agreement is subject to ratification under subclause A, Clause 1, Article 15 of the Federal Law On International Treaties of the Russian Federation.

9. Signing of the Protocol on Introducing an Amendment to the Agreement between the Government of the Russian Federation and the Collective Security Treaty Organization, signed on December 19, 2003, on the Conditions of the Stay of the Secretariat of the Collective Security Treaty Organization on the Territory of the Russian Federation.

The Protocol introduces an amendment to Article 13 of the Agreement whereby the Government of the host state provides the Secretariat of the Collective Security Treaty Organization with the premises required for the performance of its functions on the same terms as those established for federal executive bodies.

10. Introducing Amendments to the Statute on the Federal Marine and River Transport Agency, the Statute on the Federal Road Agency, the Statute on the Transport Ministry of the Russian Federation, the Statute on the Federal Railway Transport Agency, the Statute on the Federal Transport Supervision Service and the Statute on the Federal Air Navigation Service.

11. Introducing amendments to Government Decree No. 260 of June 1, 2004.

The Draft Decree would add to the Regulations on the Government of the Russian Federation and the Statute on the Executive Office of the Government of the Russian Federation new sections that regulate the procedure for access to information on the activities of the Government and its Executive Office respectively. The draft would also expand the list of the functions of the Government Executive Office by including work with requests for information on the activities of the Government and defines more clearly the procedure of providing information during the preparation of the meetings of the Government of the Russian Federation.

The Decree would ensure openness and accessibility of information on the activities of the Government of the Russian Federation and the Executive Office of the Government of the Russian Federation in keeping with the Basic Guidelines of the Activities of the Government of the Russian Federation Until 2012 (the section "Creation of an Information Society").

12. The allocation of funds to the Government of the Karachayevo-Circassian Republic from the Reserve Fund of the Government of the Russian Federation for Emergencies and Disaster Relief and the Issue of Government Housing Certificates as part of the October 11, 2008 earthquake restoration process on the territory of the Karachayevo-Circassian Republic.

Moscow, August 19, 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