10 september 2009

Background material for the September 10, 2009 Government Presidium meeting

The following issues are scheduled for discussion at the September 10, 2009 meeting of the Presidium of the Government of the Russian Federation:

I. Draft Federal Law On Introducing Amendments to the Federal Law On the Federal Budget for 2009 and for the Planning Period of 2010 and 2011

The Ministry of Finance has submitted a draft law on this issue to the Government of the Russian Federation.

The draft law is designed to provide financial support for the expenditure commitments of the Russian Federation that have arisen during the current fiscal year and for additional capitalisation of bank credit organisations.

1. The draft law sets the federal budget expenditure target for 2009 at 9,845,217.6 million roubles, or 24.2% of the GDP approved under the law On the Budget (40,420 billion roubles), which is 152,998.2 million roubles (0.4% of GDP) more than the target approved under federal law On the Federal Budget for 2009 and for the Planning Period of 2010 and 2011. The increased federal budget expenditure in 2009 is met by a matching increase of the federal budget deficit, which in 2009 will amount to 3,131,396.6 million roubles (or 7.7% of GDP).

Overall federal budget expenditure has changed because the draft law, in accordance with Federal Law No.181-FZ of July 18, 2009, On the Use of Government Securities of the Russian Federation to Increase Bank Capitalisation, takes into account the proposed transactions to attain the additional capitalisation of the banking sector through the exchange of federal loan bonds of up to 150,000.0 million roubles for preferred shares in bank credit organisations.

2. All the other amendments to the law On the Budget to be introduced under the draft law relate to proposals on the redistribution of budget allocations within the total expenditure.

Federal budget expenditure will increase by 152,998.2 million roubles at the expense of the increased federal budget deficit, which will stand at 3,131,396.6 million roubles, or 7.7% of GDP (under the federal law On the Federal Budget for 2009 and for the Planning Period of 2010 and 2011 the deficit was to be 2,978,398.3 million roubles, or 7.4% of GDP).

Thus, the implementation of the draft law would increase federal budget spending in 2009 and provide financing for some priority areas because of the expected contraction of budget allocations (by 141,776.6 million roubles).

It is proposed that, of the resources referred to above: 150,000.0 million roubles will go towards the additional capitalisation of the banking sector; 10,360.7 million roubles towards the fulfilment of standard public commitments of the Russian Federation; 70,882.8 million roubles towards supporting the real sector of the economy; 29,439.8 million roubles towards social benefits for certain categories of citizens; 14,707.6 million roubles to meet any shortfall in the Social Insurance Fund of the Russian Federation on mandatory insurance should the cost of paying mandatory social insurance benefits exceed the budget allocations stipulated in the 2009 budget; as well as 8,001.6 million roubles towards budget investments.

II. Changes in the distribution of subventions between the budgets of the constituent members of the Russian Federation for 2009 for the exercise of the Russian Federation's delegated powers in promoting employment with due account of the situation on the labour market

The draft resolution of the Government of the Russian Federation on this issue has been submitted by the Ministry of Healthcare and Social Development of Russia.

In connection with the negative impact exerted by the economic crisis on employment and the situation in sectoral and regional labour markets, the Government of the Russian Federation passed Resolution No.316 of April 9, 2009 On Additional Measures to Support the Labour Market of the Russian Federation.

This resolution envisages the additional distribution of subventions between the constituent members of the Russian Federation to enable them to exercise the powers delegated to them under the laws of the Russian Federation regarding employment in the amount of 33.9 billion roubles.

The main measure that has stabilised employment is the implementation of regional programmes that envisage additional measures aimed at easing the tensions on the labour markets of the constituent members of the Russian Federation. That not only slowed the rise in unemployment, but also decreased the number of registered unemployed from 2.28 million people in late April to 2.1 million as of September 2, 2009.

The draft decree proposes to redistribute the subventions to the regional budgets of the Russian Federation and the city of Baikonur for 2009 for the exercise of the Russian Federation's delegated powers regarding employment, taking into account the updated forecast for unemployment (an increase in some regions and a drop in other regions) in order to optimise federal budget spending. The total allocations subject to redistribution amount to 8.17 billion roubles. A reserve of 350 million roubles is to be maintained for use in case of complications on the labour markets of individual regions.

The above alteration will enable regions experiencing most difficulty on the labour market (such as Chelyabinsk, Kemerovo and Sverdlovsk Regions) to stabilise the payment of unemployment benefits and pursue a proactive employment policy thanks to the redistribution of assets from the regions where unemployment is less than forecast (such as the Republic of Ingushetia, Kabardino-Balkarian Republic, Primorye Territory).

III. The framework for creating a system of information and methodological support to enforce a uniform export control procedure among EurAsEC member states

The draft executive order of the Government of the Russian Federation approving the draft concept of the inter-governmental targeted programme of the Eurasian Economic Community on creating a system of information and methodological support to enforce a uniform export control procedure among EurAsEC member states is being submitted by the Defence Ministry of Russia.

The draft executive order has been developed towards the implementation of the Agreement on the Uniform Procedure of Export Control of the Member States of the Eurasian Economic Community ratified by Federal Law No.277-FZ of November 29, 2007.

The Agreement sets out the export control regulations and contains commitments as regards information exchange between the authorised government agencies regarding export control when making decisions on foreign trade transactions involving sensitive hi-tech products.

Putting in place a rapid information exchange mechanism will help guarantee the security of the EurAsEC member states, in the context of ensuring the non-proliferation of weapons of mass destruction (WMD) and the means of their delivery, ruling out the uncontrolled transfer of products that may be used to create WMD, other types of weapons and military equipment, as well as counteracting international terrorism.

The concept being developed seeks to enhance the effectiveness of the interaction between the federal executive bodies of EurAsEC member states in the area of export control.

The implementation of this targeted programme would also create favourable conditions for increased trade among the EurAsEC member states by eliminating unnecessary administrative procedures while simultaneously securing the compliance of member states with international obligations regarding the non-proliferation of WMD and the methods of their delivery.

IV. Draft Federal Law On the Ratification of the Treaty between the Russian Federation and the Italian Republic on Cooperation in Child Adoption

The Ministry of Education and Science and the Foreign Ministry are submitting the draft federal law On the Ratification of the Treaty between the Russian Federation and the Italian Republic on Cooperation in Child Adoption.

The main aim of the Treaty is to protect the rights of the children offered for international adoption.

The Treaty stresses that offering a child for adoption by people resident in another country is only an option where it is impossible to find a suitable family in the home country.

Under the Treaty the contracting parties commit to take measures to prevent and stop illegal activities involving the children adopted, including the use of adoption to derive illegitimate financial benefits, abduction, the substitution and trafficking of children, the exploitation of child labour, sexual abuse of children and any other activities that contradict the goals of the Treaty.

The Treaty determines the scope of authority of the competent agencies and authorized organisations which will cooperate on adoption.

The Treaty determines adoption procedure and specifies the mechanism of monitoring the living conditions and education of the adopted children.

Under the Treaty adopted children are guaranteed the same protection and the same rights as the host country extends to its own citizens. An adopted child acquires the citizenship of the host country from the effective date of the court decision on adoption, while retaining the citizenship of the home country.

The Treaty also allows the laws of the host country to require the prospective adoptive parents undergo training and social and psychological testing.

In addition, the Treaty makes it mandatory for the central authority of the host country, if the child's interests so require, by agreement with the central authority of the original county, to ensure that the child is placed with another family or returned to the home country.

V. Submitting the Agreement between the Russian Federation and the Republic of Belarus on the joint protection of the external border of the Union State in their common air space, and the creation of an integrated regional air defence system of the Russian Federation and the Republic of Belarus to the President of the Russian Federation for the purpose of ratification

The Russian Ministry of Foreign Affairs and the Russian Ministry of Defence have submitted a draft resolution of the Government of the Russian Federation on the above issue.

The aim of the draft is to seek the approval of this Agreement and its submission to the President of the Russian Federation who would then submit it to the State Duma for ratification.

The above Agreement provides the legal framework for the joint use of troops (forces) and assets which ensure the air defence of the Russian Federation and the Republic of Belarus, their integration and joint development and training.

VI. Preparation and holding of the annual All-Russia Sporting Forum "Russia: a Sports Power"

The Ministry of Sport, Tourism and Youth Policy has prepared a draft executive order of the Government of the Russian Federation on the holding of an All-Russia Sporting Forum "Russia: a Sports Power" to be held in Kazan on October 22-25.

The Forum will be attended by the representatives of the International Olympic Committee, the heads of national Olympic committees, international sports federations and businessmen.

Events taking place during the Forum include: the Innovation in Sport international exhibition, the opening of an International Festival of Sports Documentaries and the opening of the International Sports Congress.

The Forum will incorporate presentations of sports projects, the demonstration of sporting events included in the Consolidated Calendar of Interregional, Russian National and International Physical Fitness and Sport Events, as well as the opening of new sports facilities (a clay pigeon shooting complex, a tennis academy, a martial arts palace and the Zilant sports centre).

The draft executive order envisages the formation of an Organising Committee for the preparation and holding of the All-Russia Sporting Forum "Russia: a Sports Power" and its composition.

The Organising Committee includes representatives of federal executive bodies, the business community, members of the Presidential Council for the Promotion of Physical Fitness and Sports, for the preparation and holding of the 22nd Winter Olympic Games and 11th Paralympic Winter Games in Sochi in 2014 and the 27th World Summer Students Games in the city of Kazan in 2013.

VII. The Body Responsible for Accrediting Certification Agencies and Testing Laboratories (Centres) that Certify Products for Children and Adolescents as Compliant

The draft resolution on the above issue has been submitted by the Ministry of Industry and Trade of the Russian Federation.

The draft resolution of the Government of the Russian Federation On the Body Responsible for Accrediting Certification Agencies and Testing Laboratories (Centres) that Certify Products for Children and Adolescents as Compliant has been developed as part of the implementation of the technical regulations On the Safety of Products Intended for Children and Adolescents.

Under the draft resolution the certification agencies and testing laboratories (centres) which certify products intended for children and adolescents as compliant shall be accredited by the Federal Agency for Technical Regulation and Metrology.

The technical regulations On the Safety of Products Intended for Children and Adolescents make it mandatory to confirm the products' compliance in the form of declaration of compliance and mandatory certification.

Under the resolution of the Gosstandart of Russia No.11 of March 17, 1998, approving the Statute on GOST R Certification System, the GOST R Certification System was created to ensure mandatory certification throughout the Russian Federation by creating a network of properly accredited certification agencies and testing laboratories (centres) covering the entire range of products (and services) subject to mandatory certification under the laws of the Russian Federation.

Section 5.4.9. of the Statute on the Federal Agency for Technical Regulation and Metrology approved by the Russian Government's Resolution No.294 of June 17, 2004 rules that the Federal Agency for Technical Regulation and Metrology carries out accreditation in the established sphere of activity, with the certification bodies accredited by the Federal Agency for Technical Regulation and Metrology proceeding under the laws of the Russian Federation.

Moscow, September 9, 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.