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. Last Updated: 07/27/2016


Land sale. Presidential Decree No. 1263 of Nov. 26, 1997, "On Sale of Plots of Land, Designated for Building, Located on the Territories of Cities and Rural Settlements, and the Rights of Their Lease to Natural Persons and Legal Entities." The decree requires that plots of land, located on the territories of urban and rural settlements, designated for building in accordance with the urban and land development documentation (or rights of their lease), be subject for sale to natural persons and legal entities on the basis of tenders (auctions), unless otherwise provided by Russian legislation. The decree further establishes that plots of land owned by the state, the sale of which is not specially provided for in the Russian legislation, are not subject to sale. This decree requires from the government of the Russian Federation that rules for conducting the aforementioned tenders (auctions) shall be prepared and adopted.

Loan operations. Presidential Decree No. 1212 of Nov. 12, 1997, "On Creating Conditions for Conducting Loan Operations on the Internal and External Capital Market." The decree brings into effect Presidential Decree No. 304 of April 8, 1997, "On Issuing Foreign Loan Bonds by the Bodies of Executive Power of the cities of Moscow and St. Petersburg and the Nizhny Novgorod Region" with respect to issuance of foreign loan bonds by bodies of executive power of the Republic of Komi and the Leningrad, Oryol and Samara regions. The decree also approves the proposal of the government of the Russian Federation and the Interfax information agency on the creation of a system providing a qualified and fair estimate of the economic situation and solvency of subjects of the Russian Federation and its enterprises so that loan operations on the internal and external capital markets can be properly conducted. This decree approves the creation of an independent federal rating agency on the basis of the aforementioned information agency. The decree provides that the government of the RF will use the estimate of the independent federal rating agency when preparing decisions regarding the issuance of foreign loan bonds by the bodies of executive power that are subjects of the Russian Federation.

Tourist organizations. Finance Ministry Letter No. 12-6-10 of Oct. 30, 1997, "On the Control of Activity of Tourist Organizations on the Territory of the RF." The letter confirms that in accordance with current Russian legislation, cash registers shall be used by tourist organizations in settlement of cash payments for provided "goods" (e.g. lodging, airfare, other amenities and services). The letter also confirms that in cases provided by applicable legislation, certain types of tourist organizations are allowed to settle cash payments for "goods" without using cash registers, but using forms of documents that strictly comply with accounting standards for such transactions. The letter states that the exemption from VAT is not applicable to commissions received by tourist agents from the sale of tourist and excursion tour packages. Such exemptions are applicable only to those commissions received from the sale of certain types of tour packages that have been approved by the Finance Ministry. The letter further states that the exemption from VAT while providing services to foreign tourists shall be granted only on the basis of documents that are defined by the current legislation. This letter establishes that in all cases, "time shares," memberships in foreign resort clubs and certificates on the right to stay in hotels and on the territories of foreign resorts, are subject to VAT.

Source: White & Case