Dec 31, 2004: Legislative Update for 2004

The Draft Law "On Consolidated Financial Accounting" was adopted in its second reading. The Draft Law determines the general requirements for the drawing up of accounts, rendering of accounts and publishing of accounts under International Accounting Standards.

The Law "On Amending the Advertising Federal Law" was adopted in its third reading. (The Law was promulgated on August 25.) The Law imposes restrictions on advertising alcoholic beverages.

The Law "On Amending Articles 17 and 18 of the Antitrust Federal Law" was adopted in its first reading. (The Law was promulgated on March 11, 2005.) The Law permits transactions without Federal Antitrust Service approval if the value of assets is not higher than: 3 billion Russian rubles for mergers and acquisitions, 200 million Russian rubles for new profit-making organizations, and 100 million Russian rubles for other transactions.

The Law "On Repealing the Federal Law ‘On Restructuring of Lending Organizations‘" was adopted in its third reading. (The Law was promulgated on July 31, 2004.)

The Law "On Payments of the Bank of Russia (The Central Bank of the Russian Federation) in Case of Insolvency (Bankruptcy) of Banks Not Included in the System of Obligatory Insurance for Natural Persons’ Deposits in Russian Banks" was adopted in its third reading. (The Law was promulgated on August 11, 2004.) The Law strengthens the stability of the Russian banking system by having the state insure deposits.

The Law "On Credit Histories" was adopted in its third reading. (The Law was promulgated on January 13, 2005.) The Law establishes the information disclosure system for determining the credit worthiness of loan applicants.

The Law "On Federal Budget 2005" was adopted in its fourth reading. (The Law was promulgated on December 28, 2004.) The Law establishes basic federal budget provisions: budgeted receipts – RUR 326.08 billion, budgeted expenditures – RUR 3,047.97 billion, Russian oil price – $28 per barrel, GPD growth – 6.3 percent.

The Law "On Amending the Federal Law ‘On Protection of Consumers‘" was adopted in its third reading. (The Law was promulgated on December 29, 2004.) The Law establishes the liability of importers (companies and private entrepreneurs) for substandard goods if the producer’s location is outside Russia.

The Law "On Amending the Federal Law ‘On Joint-Stock Companies‘" was adopted in its third reading. (The Law was promulgated on March 17, 2004.) The Law establishes the procedure of cumulative voting for members of joint-stock companies’ boards of directors.

The Law "On Amending the Federal Law ‘On Joint-Stock Companies‘" was adopted in its third reading. (The Law was promulgated on December 7, 2004.) The Law defines more exactly the terms "net profit" and "dividend payments order."

The Law "On Commercial Secrets" was adopted by the State Duma. (The Law was promulgated on August 5, 2004.) The Law enshrines the protection of commercial secrets.

The Law "On Amending the Federal Law ‘On Joint-Stock Companies‘" was adopted in its third reading. (The Law was promulgated on December 7, 2004.) The Law regulates the rights of stockholders and members of boards of directors to dispute the boards of directors’ decisions in the courts.

The Draft Law "On Amending the Federal Law ‘On the State and Municipal Property Privatization‘" was adopted in its third reading. The Draft Law guarantees state and private interests in auctions of property worth over RUR 15 billion.

The Law "On Amending the Customs Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on November 16, 2004.) The Law eliminates legal uncertainty of customs duties.

The Law "On Fishery and Water Conservation" was adopted in its third reading. (The Law was promulgated on December 12, 2004.) The Law determines procedures for the study, renewing, use and conservation of water resources.

The Law "On Amending the Federal Law ‘On Mortgages‘ was adopted by the State Duma. (The Law was promulgated on February 10, 2004.) The Law permits using lands designated as agricultural in mortgage lending.

The Law "On the Regulatory Framework of Tariffs on Utilities" was adopted in its third reading. (The Law was promulgated on December 31, 2004.) The Law determines regulatory standards, types of tariffs, and the rights and duties of federal, regional and local authorities.

The Law "On Savings and Housing Co-Operatives" was adopted in its third reading. (The Law was promulgated on December 31, 2004.) The Law establishes the conditions for creating affordable housing for people pooling their resources.

The Law "On Amending the Federal Law ‘On Mortgages‘ was adopted in its third reading. (The Law was promulgated on December 31, 2004.) The Law abolishes the procedure of legally-binding notary attestation of mortgage agreements.

The Law "On Amending the Federal Law ‘On Insolvency (or Bankruptcy)‘" was adopted in its first reading. (The Law was promulgated on January 12, 2005.) The Law prolongs the legal force of the Federal Law "On the Specifics of Insolvency (or Bankruptcy) of Natural Monopoly Subjects in the Fuel and Energy Complex."

The Law "On Land Transference from One Category to Another" was adopted in its third reading. (The Law was promulgated on December 30, 2004.) The Law regulates the transfer of land from one category to another, establishing the rights and duties of federal, regional and local authorities.

The Law "On Amending the Federal Law ‘On the Use of Agricultural Lands‘" was adopted in its first reading. (The Law was promulgated on March 11, 2005.) The Law extends the deadlines for landlords to change lease contracts to comply with the Civil Code of the Russian Federation.

The Draft Law "On Amending the Licensing Federal Law" was adopted in its first reading. The Draft Law abolishes 49 licensing activities and simplifies the procedure for licensing.

The Law "On Amending the Federal Law ‘On Equity Market‘ was adopted in its first reading. (The Law was promulgated on March 12, 2005.) The Bill repealed the peremptory rule, which had established the required signature of a financial consultant on issuing securities.

The Draft Law "On Amending the Federal Law ‘On Equity Markets‘" and the Federal Law "On Protecting the Rights and Legitimate Interests of Investors in Equity Markets" was adopted in its first reading. The Draft Law establishes a special order for issuing short-term Bank of Russia (The Central Bank of the Russian Federation) bonds.

The Law "On Amending the Federal Law ‘On Mortgage Bonds‘" was adopted by the State Duma. (The Law was promulgated on January 13, 2005.) This Law defines more exactly mortgage agent status and mortgage bonds descriptions.

The Law "On Amending the Tax Code of the Russian Federation and the Federal Law ‘On Customs Duties‘" was adopted in its third reading. (The Law was promulgated on May 12, 2004.) The Law varies the minerals tax formula and increases the export duty on oil.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on July 3, 2004.) The Law requires gambling establishments to pay taxes in the municipality where the business is physically located.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on July 31, 2004.) The Law supplements the Tax Code of the Russian Federation with the new Chapter "Water Tax."

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on July 31, 2004.) The Law creates more favorable conditions for the collection system of specific excise taxes.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on August 25, 2004.) The Law adds trailers to the taxable transport objects.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on October 7, 2004.) The Law more clearly defines what is "profit" and what is therefore taxable under the profit tax.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on November 5, 2004.) The Law determines the procedure of taxation of telecommunications companies owning specific dialing prefixes.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on November 5, 2004.) The Law supplements the Tax Code of the Russian Federation with the new Chapter "Public Fees."

The Law "On Amending the Tax Code of the Russian Federation and Other Legal Acts of the Russian Federation" was adopted in its third reading. (The Law was promulgated on November 30, 2004.) The Law supplements the Tax Code of the Russian Federation with the new Chapter "Land Tax." Land tax is determined as a local tax and will be introduced by acts of the City (Municipal) Council and by the Laws of the City of Moscow and the Laws of the City of St. Petersburg

The Law "On Amending the Tax Code of the Russian Federation and Other Legal Acts of the Russian Federation" was adopted in its third reading. (The Law was promulgated on January 13, 2005.) The Law determines the right of new companies and individual businessmen applying to be taxed under the simplified taxation regime while registering with tax authorities.

The Law "On Amending the Tax Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on December 31, 2004.) The Law defines more exactly taxation of stocks that individuals received during the reorganization of legal entities.

The Draft Law "On Amending the Tax Code of the Russian Federation" was adopted in its first reading. The Draft Law determines the taxation procedure for the reorganized legal entities.

The Law "Town Planning Code of the Russian Federation" was adopted in its third reading. (The Law was promulgated on December 30, 2004.) The Law is the main legal act in territorial planning and building design.

The Draft Law "On Amending the Federal Law ‘On State Control of International Trucking and Responsibility for Violations of Transportation Regulations‘" was adopted in its second reading. The Draft Law establishes terminological uniformity in this law.

The Draft Law "On Amending the Federal Law ‘On State Control for Aviation Development‘" was adopted in its first reading. The Draft Law permits foreign investors to form authorized capital stock of not more than 49 percent in companies founded for investment projects in development, manufacturing, testing, repairing and disposal of aerospace engineering.

The Law "On Repealing the Federal Law ‘On Engineering Systems in the Agricultural Sector‘" was adopted by the State Duma. (The Law was promulgated on June 24, 2004.)

The Law "On Amending the Federal Law ‘On Combatting Money-Laundering and Financing of Terrorism" was adopted by the State Duma. (The Law was promulgated on July 31, 2004.) The Law expands the list of subjects obliged to inform state organs about real estate acquisitions.

The Draft Law "On Making Supply Orders, Performance of Work, Rendering Services for the State and Municipalities" was adopted in its first reading. The Draft Law determines the tender procedures and addresses the Government of Russia‘s right to limit and/or prohibit supplying state and municipal needs with foreign goods, works and services.

The Law "On Beer Sales Restriction" was adopted in its third reading. (The Law was promulgated on March 14, 2005.) The Law prohibits beer sales near children‘s, educational, religious and healthcare institutions.