PRESS RELEASE*

At its meeting on September 15, 2008 the Presidium of the Government of the Russian Federation made the following decisions on the items on its agenda.

1.On the results of the federal budget implementation in the first six months of 2008

The Presidium of the Government of the Russian federation has taken note of the report by Deputy Chairman of the Government of the Russian Federation - Finance Minister of the Russian Federation on the said issue.

The Presidium of the Government of the Russian Federation has approved the report on the implementation of the federal budget in the first six months of 2008 and decided to send it to the State Duma, the Federation Council and the Audit Chamber of the Russian Federation.

The meeting has instructed the federal executive power bodies which dispose of federal budget resources to take the necessary measures to ensure measured and effective use of budget allocations in the form of federal budget subsidies to the budgets of the subjects of the Russian Federation for the purpose of co-financing of state-owned capital construction projects in the subjects of the Russian Federation or for granting corresponding subsidies from the budgets of the subjects of the Russian Federation to local budgets for the purpose of co-financing of capital construction projects that are owned by municipalities.
The Ministry of Regions has been charged with coordinating this work.

2.On the progress of federal targeted programmes and the implementation of the Federal Targeted Investment Programme in the first six months of 2008

The Presidium of the Government of the Russian Federation has taken note of the report by the Minister of Economic Development of the Russian Federation on the said issue.

The meeting has instructed the federal executive bodies which commission federal targeted programmes, construction projects and objects for federal needs to take the relevant measures to fulfill the planned activities under the programmes within the deadlines set for 2008, achieve the target indicators, to ensure the necessary financing during the second six months of 2008 out of all sources of financing as well as timely launching of the operation of the said construction and other projects.

It has been decided that the federal executive bodies concerned which commission federal targeted programmes must complete the adjustment of the programmes in keeping with the changed financing parameters in 2008 and, if the completion date of the targeted federal programme is not earlier than 2011, introduce a new procedure of granting subsidies from the federal budget to the budgets of the subjects of the Russian Federation for the purpose of co-financing state-owned capital construction projects of the subjects of the Russian Federation and (or) granting the relevant subsidies from the budgets of the subjects of the Russian Federation to the local budgets for the purpose of co-financing capital construction projects which are owned by municipalities.

The Ministry of Economic Development shall report the results of the work to the Government of the Russian Federation before October 25, 2008.

The Ministry of Economic Development, the Finance Ministry, the Ministry of Regions, the Ministry of Communications, and the Ministry of Education and Science have been instructed to take measures to enhance the effectiveness of the federal targeted programmes The Development of the Nano-Industry Infrastructure in the Russian Federation in 2008-2010, Electronic Russia (2002-2010) and Social and Economic Development of the Chechen Republic in 2008-2011.

It has been decided that the Ministry of Regions and the Ministry of Economic Development must submit to the Government proposals on terminating the federal targeted programme of state support of the development of municipal entities and the creation of conditions for the exercise of constitutional powers by the local governments.

The Ministry of Economic Development and the Finance Ministry, in conjunction with the federal executive bodies concerned and the Government's Military-Industrial Commission, have been instructed to review the implementation of the new procedure of financing capital construction projects under the economic management or operational management of Federal State Unitary Enterprises in the first 9 months of 2008. The results shall be reported to the Government before December 10, 2008.

The meeting has charged the Ministry of Economic Development and the Finance Ministry with preparing drafts of regulatory legal acts to support the financing out of the federal budget of capital construction projects under economic or operational management of Federal State Unitary Enterprises. The drafts shall be submitted to the Government before October 15, 2008.

It has been decided that the Finance Ministry, in conjunction with the federal executive bodies concerned, must prepare proposals to ensure that the federal budget money invested in federal targeted programmes and not used up in 2008, be used for the original purposes in 2009.

The relevant proposals shall be submitted to the Government within ten days.

The Ministry of Regions, the Ministry of Economic Development and the Finance Ministry have been instructed to prepare proposals on monitoring the compliance by the subjects of the Russian Federation with the targets of the subsidies from the federal budgets to the budgets of the subjects of the Russian Federation for the purpose of co-financing state-owned capital construction projects in the subjects of the Russian Federation and (or) granting corresponding subsidies for the co-financing of capital construction projects owned by municipalities. The relevant proposals shall be submitted to the Government within two weeks.

The Ministry of Education and Science, the Ministry of Economic Development, the Finance Ministry and the federal executive bodies which commission federal targeted programmes have been instructed to prepare proposals on enhancing the effectiveness of research and development under federal targeted programmes with particular attention to R/D that is essential for the achievement of the goals of the programmes. Proposals to the effect shall be submitted to the Government before December 1, 2008.

The meeting has charged the federal budget planning executive bodies with taking measures to expedite the drafting of regulatory acts that envisage the making of decisions on the preparation and disbursement, beginning from January 1, 2009, of budgetary investments into state-owned capital construction projects that are not included in the federal targeted programmes.

The Ministry of Economic Development shall report the results of this work to the Government before December 1, 2008.

The federal budget planning executive bodies have been given until November 1, 2008 to prepare and submit to the Ministry of Economic Development, the Finance Ministry and the Ministry of Regions proposals regarding the list and tentative volume of financing out of the federal budgets of federal targeted programmes to be launched from 2010, proposed amendments to the current federal targeted programmes, the most significant newly-launched state capital construction projects of the Russian Federation not included in the federal targeted programmes for subsequent consideration thereof at a meeting of the Government Commission for Budget Projections for the Next Fiscal Year and for the Plan Period.

The Deputy Chairman of the Government of the Russian Federation - Finance Minister of the Russian Federation shall consider the said proposals in advance.

It has been decided that before November 1, 2008 the Ministry of Economic Development must prepare and submit to the Government proposals on possible exemption of capital construction projects fully or partially financed out of the federal budget and that have critical social, defense, political or other significance, from the requirements on the audit of investment projects for effective use of federal budget money allocated for capital investment established under the federal law On Investment Activities in the Russian Federation in the Form of Capital Investments.

The Ministry of Economic Development and the Finance Ministry have been given until December 10, 2008 to submit to the Government proposals on the mechanism of redistribution of federal budget money earmarked in 2009-2011 to finance construction and other projects that had no approved cost estimate documentation as of April 1.

The Ministry of Economic Development and the Finance Ministry have been instructed to submit to the Government proposals on the procedure of keeping, as of January 1, 2009, a single register of the activities under federal targeted programmes and of capital construction projects as well as proposals to simplify the procedure of implementation of federal targeted programmes to ensure that programmes be adjusted only after the adoption (amendment) of the federal law on the federal budget for the next fiscal year and the subsequent plan period.

3.On the draft federal law On Introducing Amendments to Chapter 25 (3) of Part Two of the Tax Code of the Russian Federation and Some Other Legislative Acts of the Russian Federation and On Annulment of the Federal Law On Charges for the Issue of Licenses to Engage in Activities Connected with the Production and Sale of Ethylated Alcohol, Alcoholic and Alcohol-Containing Products

The Presidium of the Government of the Russian Federation has approved, in the light of the discussion held during the meeting, the draft federal law and decided to submit it to the State Duma.

4.On the draft federal law On Introducing Amendments to Articles 333(33) and 333 (35) of Part 2 of the Tax Code of the Russian Federation.

The meeting of the Presidium of the Government of the Russian Federation approved the submitted draft federal law and decided to introduce it at the State Duma.

5.On the draft federal law On Introducing Amendments to the Administrative Offences Code of the Russian Federation

The Presidium of the Government of the Russian Federation approved the submitted draft federal law and decided to introduce it at the State Duma.

6.On the draft federal law On Introducing Amendments to Article 11 of the Federal Law On the State Border of the Russian Federation

The meeting of the Presidium of the Government of the Russian Federation approved the submitted draft federal law and decided to introduce it at the State Duma.

September 23, 2008
Moscow

*The decisions on the items on the agenda are taken with due account of the remarks and proposals made at the meeting of the Government Presidium and are issued as official documents of the Government of the Russian Federation