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. Last Updated: 07/27/2016

recent legislation

Importing goods as charter capital. State Customs Committee Letter No. 01-14073 of July 23, 1997, "On the Procedure for Granting Customs Privileges for Goods Imported as Contributions to the Charter Capital of Enterprises with Foreign Investment." The letter states that at the time such goods undergo custom formalities, VAT and custom duties exemptions shall be granted only if all of the following criteria are met in respect of the goods: (1) they are not subject to excise tax and are classified as fixed production assets; (2) they fully conform to the contribution terms, costs and quantity of goods specified in the founding documents as the foreign investor's contribution; and (3) they have been properly reflected in the company's books. Exemptions are granted by the appropriate regional customs authority for all fixed assets except appliances, computers, furniture, and audio and video recorders; exemptions for the latter goods are granted by the State Customs Committee.

Securities licensing. Federal Securities Commission Resolution No. 25 of Aug. 18, 1997, "On the Adoption of the Regulations on Rules of Licensing Professional Activities on the Securities Market." In accordance with this resolution, all companies which hold professional market participant licenses granted prior to Feb. 1, 1997, must obtain new licenses in accordance with current rules no later than Oct. 1, 1997. The grace period for credit organizations extends until Jan. 1, 1998. The resolution increases both the minimum required capital fund for licensed entities and the licensing fee. It sets forth the list of documents, information and other conditions required by the Federal Securities Commission in order to grant a license.

Import/export licensing. State Customs Committee Order No. 423 of July 15, 1997, "On Licensing the Import and Export of Goods." This order is issued in furtherance of a 1996 resolution of the Russian government which approves several regulations concerning the licensing of import and export activities and for tenders and auctions of export and import quotas. The State Customs Committee orders the enforcement of customs regulations and documentation in accordance with the established licensing procedures. It provides that licenses issued by the Foreign Ministry must be presented to customs authorities as a part of the required customs formalities for goods which must be imported and exported pursuant to a license.

Marine resources. Presidential Decree No. 950 of Aug. 29, 1997, "On Measures for Protecting Marine Resources and State Control in This Sphere." The decree empowers the Federal Border Service service to decide matters concerning the protection of marine resources of the territorial sea, exclusive economic zone and continental shelf of the Russian Federation. The Federal Boarder Service is instructed to create an internal marine protection division within two months from the date of this decree.

State Industry FIG. Government Resolution No. 949 of July 24, 1997, "On Retaining in Federal Ownership Shares of the Joint-Stock Companies/Members of the Heavy and Power Engineering Financial Industrial Group, and Transfer of Such Shares into Trust Management." In accordance with a related presidential decree, the Russian government resolves to retain in the federal ownership substantial interest in the following companies: 25 percent of the Turbomotorny plant; 36.34 percent of the Electrostal mechanical-engineering plant; 5 percent of the Yasnogorsky mechanical-engineering plant; and 10.68 percent of the Tula electric-drive plant. This resolution transfers the foregoing shares, along with 20.5 percent of the shares in the company Giprotyazmash, into trust management of the open joint-stock Central Company of the Heavy and Power Engineering Financial-Industrial Group.

Source: White & Case