RESTRICTED
WORLD TRADE WT/ACC/RUS/22
24November 1997
ORGANIZATION(97-5150)
Original: English Working Party ontheAccession
oftheRussian Federation
ACCESSION OFTHE RUSSIAN FEDERATION
Information ontheSubsidies System
intheRussian Federation
ThePermanent Mission oftheRussian Federation hassubmitted thefollowing information
onthesubsidies system intheRussian Federation, withtherequest thatitbecirculated tomembers
oftheWorking Party.
_______________
Atpresent, inaccordance withtheapplicable standards inRussia, thefollowing types ofState
support areprovided foreconomic sectors, specific enterprises andregions:
- direct transfers from theFederal Budget;
- budgetary loans;
- deferred payments totheFederal Budget;
- investment taxcredits;
- specific forms ofState support;
- grants andsubsidies ("subventions") toregions;
- State financing forspecific programmes.
Direct Transfers from theFederal Budget
Pursuant totheFederal LawNo.29-FZ "OntheFederal Budget for1997" of26February 1997,
theoverall Federal Budget funds designated tocover expenses ofthemain industries amount to
7,426.7 billion rubles.
1. Thebulk oftheexpenditure wasplanned tosupport thecoalindustry, amounting to
6,479.2 billion rubles (herein andhereafter before budget adjustments) inthebudget approved for1997,
or87.2percentofthetotalFederal Budget expenditures appropriated toenterprises andorganizations.
Non-repayable coalindustry funding outofSection 7oftheFederal Budget isperformed in
accordance withtheRegulations onStateFunding forCoalIndustry Restructuring Activities approved
byResolutionoftheGovernmentoftheRussianFederationNo.598dated17May1996whichdetermine
theprocedureformanagingthesefunds.TheRegulationscallforthefollowingelementsofStatesupport:
(a) technical operations toabandon highly unprofitable andunpromising mines andopen pit
operations;
(b) research anddesign support forcoalindustry restructuring;WT/ACC/RUS/22
Page2
(c) activities forsocial protection oftheemployees tobereleased inconnection withcoalindustry
restructuring;
(d) expenses tocover damages caused totheemployees oftheenterprises andopen pitstobe
abandoned;
(e) demolition ofworn-out housing andconstruction ofnewhousing;
(f) maintenance, re-engineering andmodernization ofmines andopenpitoperations;
(g) construction ofnewprofitable mines withappropriate infrastructure;
(h) selective support forcoalproducers which failtocover theirexpenses through freemarket
prices forcoalproducts;
(i) corporate expenses fortheimplementation oftheindustry-wide wage rateagreement;
(j) maintenance ofsocial assets heldincorporate balance sheets; and
(k) formation ofacentralized reserve fund.
2. TheStateregulationofpricesfortheproductionandsaleofliquefiedgasforindividualhousehold
needs isretained todate, andState support istherefore provided intheform ofsubsidies togas
processing plants oftheoilindustry andenterprises ofthepetrochemical industry intheamount of
9.7billion rubles.
3. Enterprises arebeing relieved fromtheirobligations tofinance themaintenance ofsocial assets
inaccordance withDecree ofthePresident oftheRussian Federation No.8dated 10January 1993,
Resolutions oftheGovernment oftheRussian Federation No.1325 of23December 1993, No.235
of7March 1995 andNo.724of17July1995.
TheFederal Budget includes partial compensation forthecostsassociated withthemaintenance
ofsocial assets intheamount of575billion rubles for1997.
4. The1997 Budget alsoprovides forapower ratecompensation payment forpower generation
andsupply companies intheamount of1,300 billion rubles (after budget adjustments).
5. Besides, the1997 Federal Budget includes:
- funding fortheexpenditures oftheStateCommittee forStandardization andMetrology inthe
amount of26.5billion rubles in1997(formaintenance ofthebasictimeandfrequency reference
service);
- State support forfolkartsandcrafts (10billion rubles in1997); and
- Statesupportforcertainothersectors(seeAppendix1forConsolidatedCalculationofFinancing
forCoalIndustry Restructuring Activities andAppendix 6*forother sectors).
*Tobesubmitted shortly.WT/ACC/RUS/22
Page3
Budgetary Loans forEnterprises andOrganizations
According tothe1997 Budget, appropriations havebeenplanned andmade outoftheState
budgetintheformofrepayableloanstothemechanicalengineeringindustry(thenamesoftheenterprises
andtherespective loanamounts arelisted inAppendix 6*).
Inparticular, appropriations forthewood industry havebeenmade against arepayment security
forthecreation ofwood, rawmaterials andfuelreserves between seasons totalling 800billion rubles
(107.6 billion rubles actually disbursed).
Deferred Payments totheFederal Budget
In1997, tostabilize thefinancial condition ofcertain industrial enterprises, deferrals were
granted withrespect topayments totheFederal Budget ataninterest rateof50percentoftheCentral
Bank'srefunding rateinaccordance withthelegislation inforce (Appendix 6*liststheenterprises to
which suchdeferrals ofpayments tothebudget havebeengranted).
Investment TaxCredits
These credits aregranted toanumber ofenterprises onaninterest-bearing andnon-forgivable
basis pursuant todecisions oftheGovernment oftheRussian Federation andexecutive authorities.
Theamounts andtypes ofinvestment taxcredits granted tovarious enterprises arelisted inAppendix 6.
Specific Forms ofState Support
Theparticipation oftheGovernment oftheRussian Federation ineliminating theconsequences
ofnatural calamities, firesanddisasters andtheallocation offunds todamaged enterprises isoneof
theforms ofspecific Statesupport andcannot beconsidered asprohibited since thefunds areallocated
onanadhocbasis. Thus, afterthefireattheengine plantofthejointstock company KaMAZ in1993,
thecompany wasgranted forgivable andnon-forgivable resources andadeferral ofdebtrepayment
until2000. Thetypes ofState support forKaMAZ arelisted inAppendix 6*.
Grants andSubsidies ("Subventions") toRegions
Articles 31and32oftheLaw"OntheFederal Budget for1997" provide fortheallocation
ofgrants toclosed administrative areas.
Inaccordance withthesaidLaw, theallocation ofgrants tocertain geographic regions is
envisaged. Theestimated amounts andnames ofsuchregions aregiven inAppendix 2.
Article 22oftheLaw"OntheFederal Budget for1997" provides fortheallocation ofsubsidies
("subventions") tothecityofMoscow forperforming thefunctions oftheRussian Federation capital
(seeAppendix 2)andalsotothecityofSochi asaresort ofnational importance, todevelop appropriate
infrastructure.
*Tobesubmitted shortly.WT/ACC/RUS/22
Page4
State Financing forSpecific Programmes
Federal special-purpose programmes, including regional ones, aredeveloped, approved and
implemented asprescribed byResolution oftheGovernment oftheRussian Federation No.594dated
26June1995.
Thelistoffederal special-purpose programmes tobefinanced outoftheFederal Budget must
beapproved bytheLawconcerning theFederal Budget foreachsubsequent year. Itmakes special
appropriationstotheStatecustomersofsuchprogrammesforthefundingofcapitalinvestments,research
anddevelopment costs (subject totheWTO standards andrules) andother current expenses.
Thegeneral purpose ofallfederal regional development programmes andother special
programmes developed andapproved bytheGovernment todate,hasbeentoestablish andimplement
apackage ofmeasures ensuring economic recovery andcreation ofanefficient regional economy.
Thefederalregionaldevelopmentprogrammesarealsoorientedtoachievingtheoverallobjectives
oftheregional economic policy oftheStatewhich aresetforthintheGuidelines forRegional Policies
intheRussian Federation approved byDecree ofthePresident oftheRussian Federation No.803dated
3June1996.
These objectives include:
- strengthening theeconomic foundations ofRussia, ensuring national integrity andstability;
- promoting thedevelopment andenhancement ofeconomic reform, creation ofadiversified
economy inallregions, development ofregional andnational commodity, labour andcapital
markets, institutional andmarket infrastructure;
- reducing regional disparities insocial andeconomic development, progressive creation of
conditions forstrengthening regional public welfare andstreamlining ofregional resettlement
programmes;
- achieving increased levels ofspecialization anddiversification ofregional economies, increasing
theviability ofregional economies;
- providing State support fordepressed, underdeveloped, environmentally damaged areas and
other areas withcomplex demographic andmigration-related problems; and
- developing andimplementing comprehensive policies forregions with difficult business
conditions which require special measures, suchastheArctic, FarEastern andfrontier areas.
Thefunds allocated fortheimplementation ofregional development programmes areprovided
intheformoffinancing capital investments andresearch anddevelopment outoftheFederal Budget,
principally inthedevelopment andmodernization oftransport andenergy infrastructure, environmental
protection, protection andrestoration ofcultural monuments, elimination ofconsequences ofnatural
calamities, development ofhousing andsocial infrastructure. Theprovision ofsuchsubsidies isneither
legally norfactually related toexports orimports.
Therefore, intheopinion oftheRussian delegation thefunds which areallocated tofinance
regional development programmes may, inaccordance withArticle 8oftheAgreement onSubsidies
andCountervailing Measures, beclassified as"non-actionable subsidies".WT/ACC/RUS/22
Page5
Thelistofregional programmes financed outoftheState budget isattached hereto as
Appendix 3.Appendix 4offers thelistoffederal special-purpose programmes financed outoftheState
budget in1997. Appendix 5isalistoflegislative actsgoverning taxandcustoms privileges. Thetext
ofthislegislation isprovided aspartoftheroutine legislative update diskette*.
***
There areanumber ofother measures offinancial assistance which donotconstitute prohibited
subsidiesandareconsistentwiththeWTOrules.TheseincludeStatesupportfortransportationcompanies
aimed atenhancing transportation safety; budgetary appropriations forwater management,
hydrometeorology, mapping, geodesy, environmental andplant protection.
Converted defence enterprises arecompensated forpartoftheirlostprofits inconnection with
shifting from military tocivilproduction from theFederal Budget. Compensation isprovided inthe
form ofgrants fortheconsumption fundandpartial refund oftheenterprises 'costs associated with
themaintenance ofsocial infrastructure.
Statesupport isprovided forthedelivery offuel,medicines, foodstuffs andpriority needs in
order tomeetindividual social institution, housing andutilities requirement inArctic andequivalent
areas.
Appendices:
Appendix 1.Consolidated Calculation ofFinancing forCoalIndustry Restructuring Activities
Appendix 2.Calculation ofAllocations toRegional Governments from the1997 Federal Budget
Appendix 3.Information onFederal Programmes ofRegional Development Included inthe1997
Federal Budget Financing List
Appendix 4.ListofFederal Special-Purpose Programmes toBeFinanced outofthe1997 Federal
Budget
Appendix 5.ListofLegislative ActsGoverning TaxandCustoms Privileges
Appendix 6.ListofFinancial Assistance Programmes oftheRussian Federation*
*Tobesubmitted shortly.WT/ACC/RUS/22
Page6Appendix 1. Consolidated Calculation ofFinancing forCoalIndustry Restructuring Activities
(billion rubles)
Lines ofFinancing forCoalIndustry Restructuring 1996 1997
(Totheextent offunds allocatable tocoalindustry organizations and
localauthorities ofmining cities andsettlements)(actual) Schedule
No.
ÀCh-P27-45
dated 29/5/97Expected
TOTAL STATE SUPPORT FUNDS
including along thefollowing lines:10044.6 4543.42 6479.17
1 Technical operations toabandon highly unprofitable andnon-promising coalmines and
openpits379.4 453.9 583.38
2 Research anddevelopment support forcoalindustry restructuring 20.0 124.5 178.17
3 Activities aimed atsocial protection ofemployees tobereleased inconnection withcoal
industry restructuring, theirfamily members, retirees anddisabled persons whohave
worked incoalmining, including:781.0 1314.7 2005.82
3.1 Local development andemployment programmes formining cities andsettlements: 238.0 200.0 323.41
3.1.1 incl.onarepayable andremunerative basis 165.6 290.00
3.1.2 incl.onanon-repayable basis 238.0 33.4 33.41
3.2 Social expenses ofcoalcompanies, including: 543.0 1114.7 1682.41
3.2.1 permissible expenses ofcoalcompanies forsocial protection ofcurrent andformer
mine employees andtheirfamily members543.0 723.1 1081.03
3.2.2 other social protection expenses ofcoalcompanies 0.0 391.6 601.38
4 Expenses tocompensate employees ofmines andopenpitstobeabandoned fordamage
caused duetoindustrial necessity100.0 131.1 188.40
5 Operations todemolish worn-out andconstruct newhousing inmining cities and
settlements208.0 40.8 120.12
6+7 Investments -total 3177.2 1188.1 1676.00
incl.onarepayable andremunerative basis 0.0 884.7 1676.00
incl.onanon-repayable basis 3177.2 303.4 0.00WT/ACC/RUS/22
Page7Lines ofFinancing forCoalIndustry Restructuring 1996 1997
(Totheextent offunds allocatable tocoalindustry organizations and
localauthorities ofmining cities andsettlements)(actual) Schedule
No.
ÀCh-P27-45
dated 29/5/97Expected
6 Maintenance, re-engineering andmodernization ofoperating mines andopenpitsinorder
toestablish profitable coalenterprises1080.0 611.4 839.70
6.1 incl.onarepayable andremunerative basis 458.0 839.699
6.2 incl.onanon-repayable basis 1080.0 153.4 0.00
7 Construction ofnewprofitable coalmines andopenpitswithappropriate industrial
infrastructure2097.0 576.7 836.30
7.1 incl.onarepayable andremunerative basis 426.7 836.301
7.2 incl.onanon-repayable basis 2097.0 150.0 0.00
8 Selective support forcoalproducers which donotcover theirexpenses through freeprices
forcoalproducts1679.0 564.3 793.569
9 Expenses ofcoalindustry andmine construction enterprises andorganizations to
implement theindustry rateagreement1459.0 422.31 603.711
10 Maintenance ofsocial assets andhousing stock heldinthebalance sheets ofcoalindustry
enterprises andorganizations before theirtransfer tolocalgovernments851.0 67.3 0.00
11 Formation ofacentralized reserve fundinanamount ofupto10%ofthefunds allocated 0.0 228.5 330.0
12 Maintenance ofsocial assets andhousing stock transferred tolocalgovernments before
31December 19961390.0 0.0 0.00WT/ACC/RUS/22
Page8Appendix 2 Calculation OfAllocations ToRegional Governments From The1997 Federal Budget
(billion rubles)
Transfers Allocations to
Federal
Regional
ProgrammesSubventions Closed
Administrative
AreasArctic
DeliveriesGrants Total Federal
Budget Expenditures
1 2 3 5 8 11 13
Total forallregions 52940.0 3590.0 2755.0 2735.0 3500.0 10753.6 76273.6
Reserve
NORTHERN AREA 1815.4 350.0 .0 706.3 307.0 970.9 4149.6
Arkhangelsk Region 512.8 .0 15.1 119.1 21.5 668.5
Nenets Autonomous District 108.5 62.6 .5 171.6
Vologda Region 136.7 .0 49.5 186.2
Murmansk Region 445.5 691.2 16.0 57.6 1210.3
Republic ofKarelia 423.0 11.1 13.6 447.7
Komi Republic 188.9 350.0 98.2 828.2 1465.3
NORTHWEST AREA 1745.4 158.0 .0 .0 .0 828.2 2092.5
CityofSt.Petersburg 355.4 64.0 .0 .0 419.4
Leningrad Region 264.8 .0 130.5 395.3
Novgorod Region 541.3 .0 28.8 570.1
Pskov Region 94.0 .0 29.8 707.7WT/ACC/RUS/22
Page9Transfers Allocations to
Federal
Regional
ProgrammesSubventions Closed
Administrative
AreasArctic
DeliveriesGrants Total Federal
Budget Expenditures
1 2 3 5 8 11 13
CENTRAL AREA 7207.5 47.5 2400.0 150.3 .0 1114.3 10919.6
Bryansk Region 417.7 44.4 462.1
Vladimir Region 513.2 26.0 539.2
Ivanovo Region 856.0 37.5 28.4 921.9
TverRegion 445.2 49.3 201.8 696.3
Kaluga Region 588.3 123.4 711.7
Kostroma Region 825.1 28.6 853.7
CityofMoscow .0 .0 2400.0 27.7 2427.7
Moscow Region 1641.8 101.0 133.5 1876.3
OrelRegion 589.8 .0 56.2 646.0
Ryazan Region 462.0 44.3 506.3
Smolensk Region 307.5 162.8 470.3
TulaRegion 321.9 10.0 201.6 433.5
Yaroslavl Region 239.0 35.6 274.6
VOLGA-VYATKA AREA 3060.4 84.0 .0 151.7 .0 210.7 3506.8
Nizhny Novgorod Region 426.7 145.8 .0 66.7 639.2
Kirov Region 829.9 5.9 .0 43.8 879.6
Republic ofMari-El 552.8 .0 32.4 585.2
Mordovian SSR 692.1 84.0 .0 40.6 816.7
Chuvash Republic 558.9 .0 27.2 586.1WT/ACC/RUS/22
Page10Transfers Allocations to
Federal
Regional
ProgrammesSubventions Closed
Administrative
AreasArctic
DeliveriesGrants Total Federal
Budget Expenditures
1 2 3 5 8 11 13
CENTRAL CHERNOZEM
AREA2044.6 .0 .0 .0 .0 314.2 2358.8
Belgorod Region 126.9 71.5 198.4
Voronezh Region 781.6 94.9 876.5
Kursk Region 582.4 51.5 633.9
Lipetsk Region .0 48.2 48.2
Tambov Region 553.7 48.1 601.8
VOLGA AREA 4223.3 48.6 .0 192.2 .0 520.9 4985.0
Astrakhan Region 771.9 34.6 26.0 832.5
Volgograd Region 382.2 85.4 467.6
Samara Region .0 4.6 55.3 59.9
Penza Region 646.4 141.8 54.6 842.8
Saratov Region 1011.9 15.8 66.3 1094.0
Ulyanovsk Region 479.7 47.5 527.2
Republic ofKalmykia 488.9 44.0 48.5 581.4
Republic ofTatarstan 442.3 137.3 579.6
NORTH CAUCASIAN AREA 8869.6 978.3 355.0 .0 .0 2359.2 12562.1
Krasnodar Territory 1668.7 355.0 241.8 2265.5
Republic ofAdygeya 368.2 15.0 31.9 415.1
Stavropol Territory 1252.0 15.0 253.4 1520.4WT/ACC/RUS/22
Page11Transfers Allocations to
Federal
Regional
ProgrammesSubventions Closed
Administrative
AreasArctic
DeliveriesGrants Total Federal
Budget Expenditures
1 2 3 5 8 11 13
Karachai-Cherkess Republic 272.5 .0 32.0 304.5
Rostov Region 1266.6 1635.3 2901.9
Republic ofDagestan 1815.8 350.0 95.3 2261.1
Kabardino-Balkar Republic 572.4 220.0 37.2 829.6
North Ossetian SSR 590.7 78.3 29.8 698.8
Chechen Republic 747.3 .0 747.3
Ingush Republic 315.4 300.0 2.5 617.9
URAL AREA 2635.4 26.0 .0 699.2 22.1 1156.9 4539.6
Kurgan Region 533.2 35.8 569.0
Orenburg Region 440.2 16.9 85.9 543.0
Perm Region 326.0 23.3 517.5 866.8
Komi-Permyak Autonomous
District139.9 26.0 22.1 1.7 189.7
Sverdlovsk Region .0 170.9 112.8 283.7
Chelyabinsk Region 405.8 407.2 184.3 997.3
Republic ofBashkortostan .0 80.9 172.2 253.1
Udmurt Republic 790.3 46.7 837.0
WESTERN SIBERIAN AREA 7142.6 36.4 .0 26.0 343.8 2489.1 10037.9
Altai Territory 2403.6 26.0 99.5 2529.1
Republic ofAltai 186.8 15.0 14.7 20.3 236.8
Kemerovo Region 1700.6 .0 2138.7 3839.3WT/ACC/RUS/22
Page12Transfers Allocations to
Federal
Regional
ProgrammesSubventions Closed
Administrative
AreasArctic
DeliveriesGrants Total Federal
Budget Expenditures
1 2 3 5 8 11 13
Novosibirsk Region 671.1 .0 78.0 749.1
Omsk Region 850.5 .0 74.5 925.0
Tomsk Region 525.2 21.4 .0 78.6 23.5 648.7
Tyumen Region 804.8 .0 6.1 53.7 864.8
Khanty-Mansi Autonomous
District.0 126.5 .9 127.4
Yamalo-Nenets Autonomous
District.0 117.9 .0 117.9
EASTERN SIBERIAN AREA 3024.6 129.7 .0 397.1 625.3 435.4 4612.0
Krasnoyarsk Territory .0 385.7 305.8 179.5 871.0
Republic ofKhakassia 181.5 .0 40.1 221.6
Taimyr Autonomous District 108.6 86.0 .5 195.1
Evenk Autonomous District 130.9 55.3 .7 186.9
Irkutsk Region 310.4 24.7 81.1 66.9 483.1
Ust-Ordynsky Buryat
Autonomous District219.2 .0 8.6 227.8
Chita Region 636.1 11.4 14.7 61.4 723.6
Aginskoye Buryat
Autonomous District108.2 .0 13.7 121.9
Republic ofBuryatia 865.6 10.0 31.7 39.6 947.1
Republic ofTuva 464.1 95.0 50.4 24.4 633.9WT/ACC/RUS/22
Page13Transfers Allocations to
Federal
Regional
ProgrammesSubventions Closed
Administrative
AreasArctic
DeliveriesGrants Total Federal
Budget Expenditures
1 2 3 5 8 11 13
FAR EASTERN AREA 10905.2 1471.8 .0 412.2 2201.9 972.7 15963.8
Primorsky Territory 2532.4 1388.0 248.8 34.4 281.2 4484.8
Khabarovsk Territory 1250.7 .0 164.6 189.6 1604.9
Jewish Autonomous Region 354.9 .0 16.7 371.6
Amur Region 1366.5 .0 3.2 19.6 113.3 1502.6
Kamchatka Region 684.7 36.4 160.2 179.3 12.0 1072.6
Koryak Autonomous District 260.6 .0 82.3 28.7 371.6
Magadan Region 842.4 .0 250.5 30.8 1123.7
Chukotka Autonomous District 618.1 .0 278.8 8.0 904.9
Sakhalin Region 834.2 47.4 144.9 276.9 1303.4
Republic ofSakha (Yakutia) 2160.7 1047.5 15.5 3223.7
Kaliningrad Region 266.0 259.7 20.2 545.9WT/ACC/RUS/22
Page14Appendix 3 Information OnFederal Programmes OfRegional Development
included inthe1997 federal budget financing list
(billion rubles in1997 prices)
Programme Name Programme Approval
DecisionState Customer Implementation
PeriodProgramme Financing
Earmarked in1997
Federal Budget (adjusted
forsequestration)
1 2 3 4 5 6
REGIONAL PROGRAMMES
1 "Social andeconomic
development oftheKuril
Islands andSakhalin Region"Government Decree
No.1297 dated 17/12/93Administration ofSakhalin
Region, State Committee for
Northern Territories1993-1996 anduntil
200069.2
2 Presidential programme
"Economic andsocial
development oftheFarEast
andTrans-Baikal Regions"Government Decree
No.480dated 15/4/96Ministry ofEconomics
(coordinator), Ministry of
Labour, Ministry ofTransport,
Ministry ofForeign Economic
Relations, Ministry of
Agriculture andProvisions,
Ministry ofRailways, State
Committee forNorthern
Territories1996-2005 18.5WT/ACC/RUS/22
Page15Programme Name Programme Approval
DecisionState Customer Implementation
PeriodProgramme Financing
Earmarked in1997
Federal Budget (adjusted
forsequestration)
1 2 3 4 5 6
3 "Comprehensive social and
economic development of
Krasnodar Territory"Government Decree
No.702dated 13/6/96Ministry ofEconomics
(coordinator), Ministry of
Agriculture andProvisions,
State Committee for
Construction, Ministry ofFuel
andEnergy, Ministry of
Transport, State Committee for
Physical Culture andTourism1996-2000 7.0
4 "Economic andsocial
development oftheRepublic
ofMordovia"Government Decree
No.1257 dated 26/12/95Ministry ofEconomics
(coordinator), Ministry of
Agriculture andProvisions,
State Committee for
Construction, Ministry of
Transport1996-2000 52.8
5 "Economic andsocial
development ofPskov Region"Government Decree
No.149dated 16/2/96State Committee for
Construction1996-1998 42.3
6 "Economic andsocial
development ofTverRegion
(Great Watershed areas)"Resolution No.2336-1 of
theSoviet of
Nationalities ofthe
Supreme Soviet dated
12/2/92Administration ofTverRegion 1993-2000 0.9
7 "Preservation anddevelopment
ofSt.Petersburg ’shistorical
citycentre"Government Decree
No.585dated 16/5/96State Committee for
Construction1996-2010 28.8
8 "Social andeconomic
development, ethnic and
cultural revival oftheBalkan
people"Government Decree
No.374dated 3/4/96Ministry ofNationalities 1996-2000 1.1WT/ACC/RUS/22
Page16Programme Name Programme Approval
DecisionState Customer Implementation
PeriodProgramme Financing
Earmarked in1997
Federal Budget (adjusted
forsequestration)
1 2 3 4 5 6
ENVIRONMENTAL PROGRAMMES
9 "State support forpublic
natural reservations and
national parks"Government Decree
No.1032 dated 10/10/96State Committee forEcology,
Forestry Agencyuntil2000 100.1
10 "Environmental rehabilitation
oftheVolga river andits
tributaries, restoration and
prevention ofdeterioration of
natural complexes intheVolga
basin" ("Volga Revival")Government Decree
No.95dated 2/2/96
(First-priority activities)Ministry ofNatural Resources
(coordinator), federal executive
authorities, executive authorities
ofRussian Federation subjects1996-2010
(First-priority
activities for
1996-1998)43.3
11 "Establishment ofanIntegral
Automated Radiation
Monitoring System (IARMS)
intheRussian Federation"Government Decree
No.1085 dated 2/11/94State Committee forEcology
(coordinator), therelevant
ministries andagencies for
specific aspects1997-2002 5.9
12 "Development ofthesystem of
hydro meteorological support
fortheeconomy ofthe
Russian Federation"Government Decree
No.437dated 3/5/94Committee forHydro
meteorology1994-2000 383.9
13 Environmental rehabilitation
andhuman health protection in
TulaRegionGovernment Decree
No.732dated 2/6/93Administration ofTulaRegion 1993-1998 5.2
14 "Urgent measures toimprove
theenvironmental, sanitary,
epidemiological andpublic
health situation inBratsk,
Irkutsk Region" ("Bratsk
Ecology")Government Decree
No.376dated 23/4/94Bratsk CityAdministration,
Irkutsk Region1994-2000 12.7WT/ACC/RUS/22
Page17Programme Name Programme Approval
DecisionState Customer Implementation
PeriodProgramme Financing
Earmarked in1997
Federal Budget (adjusted
forsequestration)
1 2 3 4 5 6
15 "Flood protection oflocalities,
business facilities, agricultural
andother valuable lands in
Primorsky Territory"Government Decree
No.340dated 15/4/95Administration ofPrimorsky
Territory1995-2000 37.3
16 "Rehabilitation ofthe
environmental andpublic
health situation inNizhny
Tagil, Sverdlovsk RegionGovernment Decree
No.452,6/5/95Nizhny Tagil City
Administration, Sverdlovsk
Region1996-2000 2.3
17 "Protection andimprovement
ofthelocalities damaged by
thedestructive impact of
Krasnodar Reservoir"Presidential Edict
No.207dated 10/2/93;
Government Decree
No.81dated 26/1/95Government oftheRepublic of
Adygeya1993-2000 8.9
18 "Solving thesocial, economic
andenvironmental problems
related toCaspian water rise"
("Caspian")Government Decree
No.328dated 23/3/96
(First-priority activities)State Committee for
Construction1996-2000 58.9
19 "Social andeconomic
rehabilitation andhuman
health protection in
Chapayevsk, Samara RegionGovernment Decree
No.1071 dated 2/11/95State Committee forEcology 1997-2010 5.1
20 "Protecting theenvironment
andpopulation against dioxin
anddioxin-like toxic
substances" ("Dioxin")Government Decree
No.1102 dated 11/11/95State Committee forEcology 1996-1997 6.3
PROGRAMMES FOR ELIMINATING CONSEQUENCES OFDISASTERS AND OTHER EMERGENCIES
21 "Protecting theRussian
Federation population against
Chernobyl consequences"
("Chernobyl")Decree 1112 ofthe
Council ofMinisters
dated 28/8/97Ministry ofEmergencies 1996-2000 89.3WT/ACC/RUS/22
Page18Programme Name Programme Approval
DecisionState Customer Implementation
PeriodProgramme Financing
Earmarked in1997
Federal Budget (adjusted
forsequestration)
1 2 3 4 5 6
22 "Social andradiation
rehabilitation oftheUral
population andareas damaged
duetotheoperations of
Production Association
"Mayak" fortheperiod ending
2000"Government Decree
No.577dated 13/5/96Ministry ofEmergencies
(coordinator), Ministry of
Nuclear Energy, executive
authorities ofChelyabinsk,
Kurgan andSverdlovsk regions1996-2000 39.2
23 "Rehabilitation ofthe
population, social and
economic development inthe
areas ofAltai Territory
damaged byradiation asa
result ofSemipalatinsk nuclear
testsfor1994-1995 andforthe
period ending 2000"Decree No.1160 ofthe
Council ofMinisters
dated 16/11/93Ministry ofEmergencies 1994-2000 14.42
24 "Medical andsocial assistance
tothepopulation, sanitary and
hygienic rehabilitation ofthe
localities oftheRepublic of
Altai damaged byradiation as
aresult ofSemipalatinsk
nuclear testsfor1994-1995
andfortheperiod ending
2000"Government Decree
No.1307 dated 31/12/95Ministry ofEmergencies,
Government oftheRepublic of
Altai1996-1997 anduntil
20009.9
25 "Ensuring theseismic stability
ofbusiness facilities in
Kamchatka Region" ("Seismic
Protection")Government Decree
No.606dated 26/6/95Administration ofKamchatka
Region1995-1999 61.8WT/ACC/RUS/22
Page19Programme Name Programme Approval
DecisionState Customer Implementation
PeriodProgramme Financing
Earmarked in1997
Federal Budget (adjusted
forsequestration)
1 2 3 4 5 6
26 "Developing theFederal
Seismic Observation and
Earthquake Forecast System
(FSOS)"Government Decree
No.1207 dated 3/11/94Ministry ofEmergencies 1996-2000 16.5WT/ACC/RUS/22
Page20Appendix 4 ListOfFederal Special-purpose Programmes ToBeFinanced OutOfThe1997 Federal Budget
(Billion Rbin1997 levels)
Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
Housing Development
1. "Housing" programme
State customer: Russian Federation Government, Ministry ofConstruction,
State Committee forNorthern Territories, Ministry ofEmergencies, Ministry
ofDefense, State Ministry forYouth Affairs, other federal executive
authorities, executive authorities ofsubjects6,525.34 1.90 6,527.24
including:
Management Centre oftheMilitary Space Forces (Krasnoznamensk) 106.00 106.00
housing development pursuant toEdicts oftheRussian Federation
President andDecrees oftheRussian Federation Government150.50 150.50
aspartofthe"Housing" programme:
1.1 Programme: "Housing Provision forServicemen, Individuals Dismissed or
Retired from Military Service, Employees ofInternal Affairs Authorities and
Their Family Members in1996-1997"3,985.80 3,985.80
including:
relocation from Leninsk (Baikonur) 200.00 200.00
inaddition:
under thedefence expenditure budget 4,057.50 4,057.50WT/ACC/RUS/22
Page21Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
State customer: Ministry ofDefence, other federal executive authorities,
executive authorities ofRussian Federation subjects, Ministry ofConstruction
(supervision)
1.2 Presidential programme: "Housing development intheRussian Federation for
individuals moving from Arctic andequivalent areas" (1993-2005)
State customer: State Committee forNorthern Territories224.00 224.00
1.3 Programme: "Housing Provision forParticipants intheLiquidation ofthe
Chernobyl Accident Consequences" ("Housing forLiquidators") (1995-1997)
State customer: Ministry ofEmergencies200.00 200.00
1.4 "Own Home" programme (1996-2000) 965.00 1.90 967.10
2. "Statistics Reform" programme (1997-2000)
State customer: State Committee forStatistics25.00 10.30 35.30
3. Programme: "State Support forSmall Businesses intheRussian Federation"
(1996-1997), financed from theFederal Small Business Support Fund
State customer: Federal Small Business Support Fund386.60 386.60
BaseEconomic Sectors andInfrastructure
4. Programme: "Defense Industry Conversion in1995-1997" 931.80 2,025.50 2,957.30
including:
conversion oftheRussian Space Agency 'senterprises 51.80 82.09 133.89
conversion loan 2,412.50 2,412.50
State customer: State Conversion Fund (coordinator), Ministry oftheDefense
Industry, Ministry ofTransport, Ministry ofFuelandEnergy, Ministry of
Communications, Ministry ofNuclear Energy, Ministry ofLabour, Russian
Space Agency
5 Presidential programme: "Development ofRussian Civil Aircraft" (forthe
period ending 2000)
State customer: Ministry oftheDefense Industry843.15 42.00 885.15WT/ACC/RUS/22
Page22Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
6. Presidential programme: "Russian Shipyards" (1996-2000)
State customer: Ministry oftheDefense Industry217.80 217.80
7 Presidential programme: "Development ofRussian Electronics" (1994-2000)
State customer: Ministry oftheDefense Industry361.95 361.95
8 "Fuel andEnergy" programme (1996-2000)
State customer: Ministry ofFuelandEnergy (coordinator), Ministry of
Nuclear Energy, State Committee forScience andTechnology, Ministry of
Industry1,260.00 143.50 0.80 1,404.30
inaddition:
outoftheproceeds ofcoalindustry subsidies 2,402.00 2,402.00
including:
Beringovskaya Mine (Chukotka Autonomous District) 25.00 25.00
Solntsevsky Open Pit(Sakhalin Region) 30.00 30.00
Mugunsky Open Pit(Irkutsk Region) 35.00 35.00
Yerkhovetsky Open Pit(Amur Region) 10.00 10.00
9. Programme: "Energy-Saving Electrical Equipment" (1996-1997)
State customer: Ministry ofIndustry9.50 1.58 11.08
10. Presidential programme: "Gasification ofRussia" (1996-2000)
State customer: Ministry ofFuelandEnergy, Ministry ofAgriculture and
Provisions115.00 115.00
including:
10.1 Presidential programme: "Gasification Development intheCentral Chernozem
Area oftheRussian Federation in1996-2000"
State customer: Ministry ofFuelandEnergy, Ministry ofAgriculture and
Provisions20.00 20.00
11 "Communications" programme 668.5 190.48 1,365.88 2,224.86WT/ACC/RUS/22
Page23Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
including:
11.1 Programme: "Revival oftheRussian Merchant Marine" (1993-2000)
State customer: Ministry ofTransport241.00 14.68 255.68
11.2 Programme: "Russian Inland Waterways" (1996-2000)
State customer: Ministry ofTransport330.00 668.80 998.80
11.3 Programme: "Railway Passenger Transportation Development andQuality
Improvement" ("Vehicle Development, Including Locomotive Engineering")
(1994-2000)
State customer: Ministry ofRailways, Ministry ofIndustry27.80 27.80
11.4 Programme: "Development ofUrban Bus,Trolley BusandTram Manufacture
intheRussian Federation during 1993-2000" ("Passenger Vehicle
Development")
State customer: Ministry ofIndustry, Ministry ofTransport, Ministry ofthe
Defense Industry24.50 3.00 27.50
11.5 Presidential programme: "Development ofCommunications, Television and
Radio Broadcasting Equipment" (1997-2005)
State customer: Ministry oftheDefense Industry170.00 170.00
11.6 Presidential programme: "Establishment andDevelopment ofa
Special-Purpose Information andTelecommunications System intheInterests
ofGovernmental Authorities" (ITCS programme, Governmental
Communications) (1996-2000), financed from theCustoms System
Development Fund
State customer: Federal Agency ofGovernmental Communications and
Information2.50 2.50
11.7 Programme: "Traffic Safety Enhancement inRussia" (1996-1998)
State customer: Ministry ofTransport, Ministry ofInternal Affairs2.80 22.58 25.38WT/ACC/RUS/22
Page24Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
11.8 Programme: "Development ofPostal Communications intheRussian
Federation" (1994-2005)
State customer: Ministry ofCommunications42.70 42.70
12 Programme: "State Protection ofMachine ToolManufacture" (1993-1998)
State customer: Ministry ofIndustry7.30 3.98 11.28
13 Programme: "Retooling andDevelopment ofRussian Metallurgy"
(1993-2000)
State customer: Ministry ofIndustry162.00 162.00
14 Programme: "Increasing theCompetitiveness ofRussian Products" 216.00 9.87 15.00 240.87
including:
14.1 Innovation programme: "Development andEstablishment ofCompetitive
Commercial Chemical Production toImplement Economic Development
Priorities andReduce Man-Induced Impact ontheEnvironment" (1993-1997)
State customer: Ministry ofIndustry185.00 4.23 189.23
14.2 Innovation programme: "Certification andMetrology" (1992-1998)
State customer: State Committee forStandards, Ministry ofIndustry31.00 5.64 15.00 51.64
15 Innovation programme: "Russian Arctic Equipment"
State customer: Ministry ofIndustry0.53 0.53
16 Programme: "Development ofCommercial Biotechnology" (1996-2000)
State customer: Ministry ofIndustry3.50 6.00 9.50
Programme: "Russian Forest Preservation" 210.50 76.35 1,449.9 1,736.75
including:
16.1 Programme: "Fire Protection ofForests" (1993-1997)
State customer: Russian Forestry Agency100.00 1.88 638.8 740.68
16.2 "Russian Forests" programme (1996-2000)
State customer: Russian Forestry Agency20.00 4.47 811.10 835.57WT/ACC/RUS/22
Page25Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
16.3 Programme: Wood Industry Development intheRussian Federation"
(1996-2000)
State customer: State Committee fortheWood Industry90.50 70.00 160.50
17 Programme: "Stabilization andDevelopment ofAgroindustrial Production in
theRussian Federation during 1996-2000"
State customer: Ministry ofAgriculture andProvisions73.30 90.45 3,215.5 3,379.25
including:
17.1 Programme: "Mechanical Engineering fortheRussian Agroindustrial Sector"
(1993-1998)
State customer: Ministry ofAgriculture andProvisions, Ministry ofIndustry18.30 76.65 94.95
17.2 Programme: "Development ofanAutomated State Land Registry System"
(1996-2000)
State customer: State Land Committee15.00 616.2 631.20
17.3 "Russian Hops" programme (1996-2000)
State customer: Ministry ofAgriculture andProvisions5.00 5.00
17.4 Programme: "Enhancing theFertility ofRussian Soils" ("Fertility")
(1996-2000)
State customer: Ministry ofAgriculture andProvisions13.80 2,305.7 2,319.50
17.5 Programme: "Fish Industry Development intheRussian Federation" ("Fish")
(fortheperiod ending 2000)
State customer: State Fishing Committee35.00 293.6 328.6
18 Programme: "Advanced Mapping andGeodetic Technologies intheRussian
Federation" (1994-2000)
State customer: Russian Mapping Service8.70 5.33 39.90 53.93
19 Programme: "Russian Engineering Network ofTechnical Novelties" ("Russian
Engineering Network") (1996-1998)
State customer: Ministry ofEconomics0.90 0.90WT/ACC/RUS/22
Page26Name ofProgramme/Sub-programme State
InvestmentCurrent Expenses Total
Financing
Research and
development
NeedsOther
1 2 3 4 5 6
20 Presidential programme "National Technology Base"
State customer: Ministry oftheDefense Industry21.00 21.00
21 Presidential programme: "Development andApplication ofDual-Use
Technologies inSpecial Chemistry"
State customer: Ministry oftheDefense Industry20.00 20.00
22 State Programme ofState Secret Protection intheRussian Federation for
1996-1997
State customer: State Technical Commission ofthePresident10.00 10.00
23 Programme: "State Support forLocal Governments" 50.00 50.00
24 Programme: "Preservation andDevelopment ofSt.Petersburg 'sHistorical
CityCentre"
State customer: Ministry ofConstruction, St.Petersburg CityAdministration64.00 64.00
25 Programme: "Social andEconomic Development ofPskov Region during
1996-1998"
State customer: Pskov Regional Administration94.00 94.00WT/ACC/RUS/22
Page27Appendix 5. ListofLegislative ActsContaining andGoverning TaxandCustoms Privileges
Legislative Act Articles oftheLegislative ActContaining TaxorCustoms Privileges
1 LawNo.2116-1 "OnCorporate Profits Tax" dated 27/12/91 Article 6.TaxPrivileges
2 LawNo.1992-1 "OnValue Added Tax" dated 6/12/91 Article 5.ListofTax-Exempt Goods (Work, Services)
3 LawNo.1998-1 "OnIndividual Income Tax" dated 7/12/91 Chapter I,Article 3.Tax-Exempt Income
4 LawNo.1759-1 "OnRoad Funds intheRussian Federation"
dated 18/10/91Article 5,Section 4
Article 6,Section 4
Article 7,Section 4
TaxPrivileges
5 LawNo.226-FZ "OnState Duty" dated 31/12/95 Article 5.State Duty Privileges
6 LawNo.2003 -1"OnIndividual Property Tax" dated 9/12/91 Article 4.TaxPrivileges
7 LawNo.2020-1 "OnGiftandLegacy Tax" dated 12/12/91 Article 4.TaxPrivileges
8 LawNo.2030-1 "OnCorporate Property Tax" dated 13/12/91 Articles 4,5.TaxPrivileges
9 LawNo.1730-1 "OnLand Tax" dated 11/10/91 PartIV,Article 12.Land TaxPrivileges
10 LawNo.2305-1 "OnUnderground Resources" dated 21/2/92 Article 40.TaxPrivileges
11 LawNo.5003-1 "OnCustoms Tariff" dated 21/5/93 PartVI.Tariff Privileges
Article 35.Exemptions from Duty
Article 36.Granting ofTariff Preferences
Article 37.Granting ofTariff Privileges
12 Federal LawNo.190-FZ of30/11/95 ontheFinancial-industrial
GroupsArticle 15.State Support fortheactivity oftheFinancial-Industrial
Groups
* Thelistdescribes fundamental legislative actswhich should beconsidered taking intoaccount anyamendments andadditions made thereto.