RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/RUS/34
7 March 2000
(00-0880)
Working Party on the
Accession of the Russian FederationOriginal:  English
ACCESSION OF THE RUSSIAN FEDERATION
Information Regarding the
Development of Foreign Economic Legislation of the
Russian Federation in the field of Services
The Permanent Mission of the Russian Federation has submitted the following information
regarding the development of Russian Federation legislation on foreign economic regulation in the
field of services from 1 December 1998 to 1 January 2000.
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List of Federal Laws and Other Regulatory Legal Acts adopted in the Russian Federation
during the period 1 December 1998 to 1 January 2000:
1. Federal Law No. 160-FZ “On Foreign Investment”, dated 9 July 1999;
2 Federal Law No. 118-FZ “On Amendments and Additions to the Federal Law “On the
Procedure for Exit from and Entry into the Russian Federation”, dated 24 June 1999;
3. Federal Law No. 97-FZ “On Tenders for the Placement of Orders for the Supply of Goods,
Performance of Works, Provision of Services for State Needs”, dated 6 May 1999;
4. Federal Law No. 8-FZ “On Amendments and Additions to the Federal Law “On
Communications”, dated 6 January 1999;
5. Federal Law No. 183-FZ “On Export Control”, dated 18 July 1999;
6. Federal Law No. 39-FZ “On Investment Activities in the Russian Federation Undertaken in
the Form of Capital Investments”, dated 25 February 1999;
7. Federal Law No. 204-FZ “On Amendments and Additions to the Russian Federation Law
“On Organization of Insurance Business in the Russian Federation”, dated
20 November 1999;
8. Resolution of the Government of the Russian  Federation No. 1085 “On an Addition to the
Regulations on Guarantees to Be Provided by Foreign Citizens and Persons without
Citizenship for the Availability of Means for Their Living in and Exit from the Russian
Federation, approved by Resolution of the Russian Federation Government No. 1142, dated
1 October 1998”, dated 23 September 1999;
9. Resolution of the Government of the Russian Federation No. 900 “On Approval of the
Regulations on Seafarer Certification”, dated 4 August 1999;
10. Resolution of the Government of the Russian Federation No. 1488 “On Medical Insurance
of Foreign Citizens Temporarily Residing in the Russian Federation and Russian Citizens on
Their Exit from the Russian Federation”, dated 11 December 1999;
11. Resolution of the Government of the Russian Federation No. 180 “On the Procedure for
Regulating the Admission to and Use in the Russian Telecommunications Market of Global
Mobile Personal Satellite Communications Systems”, dated 16 February 1999;WT/ACC/RUS/34
Page 2
12. Resolution of the Government of the Russian Federation No. 556 “On Approval of the
Regulations on Licensing of Hazardous Waste Handling Activities”, dated 20 May 1999;
13. Regulations “On the Licensing of Certain Kinds of Auditing Activities in the Russian
Federation” (approved by Resolution of the Government of the Russian Federation No. 472
dated 27 April 1999);
14. Regulations on Holding Tenders for the Right to Surface TV and Radio Broadcasting as
well as the Elaboration and Development of a New Radio Frequency Channel for the
Purposes of TV and Radio Broadcasting (approv ed by Resolution of the Government of the
Russian Federation No. 698 dated 26 June 1999).
Comments
1. Federal Law  No. 160-FZ “On Foreign Investment”, dated 9 July 1999
This Federal Law determines the key guarantees of foreign investors’ rights to their
investments and return thereon and the terms and conditions of foreign investors’ business activities
in the Russian Federation.
However, the Law does not apply to the relations  involving foreign investments in banks and
other credit organizations and insurance organizations and to the relations involving foreign
investments in non-profit organizations for the attainment of a certain goal of public utility, whether
educational, charitable, scientific or religious.
The Law also provides a guarantee against changes in Russian Federation legislation
unfavourable to a foreign investor or business entity with foreign investments. It guarantees  non-
application of new federal laws or other regulatory legal acts of the Russian Federation, as well as
amendments and additions to any current laws (in such cases and under such conditions as stipulated
in Article 9 of the Law). The provisions of Article 9 apply to any business entity with foreign
investments, if foreign investors’ share(s) in or contribution to the charter or participatory capital of
such entity exceeds 25 per cent or any business en tity with foreign investments which carries out a
priority investment project, irrespective of foreign investors’ share(s) in or contribution to the charteror participatory capital of such entity.
The Law set forth that exemptions of a restrictive nature may be imposed on foreign investors
by federal laws only to the extent necessary in order to protect the foundations of constitutional order,
morality,  health, rights or legal interests of other persons or to ensure national defence and security.
2. Federal Law No. 118-FZ “On Amendments and Additions to the Federal Law “On the
Procedure for Exit from and Entry into the Russian Federation”, dated 24 June 1999
This Law contains the following provision:“In the event that a foreign citizen or person without citizenship applies for entry into the
Russian Federation for work purposes, a Russian visa may be issued to him only if there is a permit of
the federal executive body in charge of the migration service granted according to the procedure
established by the Government of the Russian Federation.”WT/ACC/RUS/34
Page 3
3. Federal Law No. 97-FZ “On Tenders for the Placement of Orders for the Supply of Goods,
Performance of Works, Provision of Services for State Needs”, dated 6 May 1999
This Law shall regulate the relationship ar ising between the purchasing entities (state
customer) and bidders (suppliers or contractors) in the course of a tender for the placement of ordersfor the supply of goods, performance of work or provision of services for state needs.
Regarding the participation of foreign suppliers or contractors in such bidding, the Law
determines that foreign suppliers of goods, works or services may submit their bids in the event that
the production of such goods, works or services for state needs in the Russian Federation is non-
existent or economically inadvisable.
4. Federal Law No. 8-FZ “On Amendments and Additions to the Federal Law “On
Communications”, dated 6 January 1999
Regarding access to the Russian market for communications services, the Law requires to
give priority to the domestic production and to the operation of communications equipmentmanufactured in the Russian Federation in accordance with national research and technology policy.
5. Federal Law No. 183-FZ “On Export Control”, dated 18 July 1999
This Federal Law establishes the principles of pursuing government policy and the legal basis
of activities of  Russian federal executive authorities in the field of export control and determines the
rights, duties and liability of participants in foreign trade activities.
This Federal Law applies to foreign trade activities with respect to goods, information, works,
services or intellectual products which can be used in the development of mass destruction weapons,means of their delivery, other types of weapons and military equipment as concerns the
implementation of export control for the purposes identified by this Federal Law.
This Federal Law determines (Article 18) that the execution of foreign trade transactions
involving the transfer of controlled products and technologies to a foreign party are subject to such
foreign party’s written undertaking that such products and technologies will not be used for the
development of any mass destruction weapons or means of their delivery.
Such foreign trade transactions involving the transfer of controlled products and technologies
to a foreign party are subject to licensing. A license should be issued by the federal executive
authority in accordance with the Federal Law “On Government Regulation of Foreign Trade
Activities”.
6. Federal Law No. 39-FZ “On Investment Activities in the Russian Federation Undertaken in
the Form of Capital Investments”, dated 25 February 1999
The Law determines the legal and economic framework of investment activities undertaken in
the form of capital investments in the Russian Federation and provides guarantees for equal protection
of the rights, interests and property of participants in investment activities undertaken in the form of
capital investments, irrespective of their ownership form.
Article 4 of the Law provides that investors should make capital investments in the Russian
Federation using their own and/or attracted funds in compliance with the Russian legislation.
Investors may be individuals, legal entities, associations of legal entities without legal personality
formed under a joint activity agreement, government  agencies, local governments as well as foreign
business entities.WT/ACC/RUS/34
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7. Federal Law No. 204-FZ “On Amendments and Additions to the Russian Federation Law
“On Organization of Insurance Business in the Russian Federation”, dated 20 November 1999
This Law lifts the virtually only restriction on the access of foreign suppliers to the Russian
insurance market which limited the foreign interest in  the charter capital of a Russian insurer to 49 per
cent, thus expanding foreign presence in the Russian market.
At the same time, due to the rather complicated situation prevailing in the Russian insurance
market (in particular, the uncompleted formation of a modern system of insurance supervision,
consequences of the August 1998 financial crisis), certain regulatory measures are introduced for
insurance companies with a foreign interest exceeding 49 per cent (restrictions on life insurance,mandatory insurance etc.).
The Law does not impair the interests of the companies with foreign participation which
already operate in the market, since the business environment will not change for such companies,
provided that the foreign interest in them is not increased above 49 per cent.
8. Resolution of the Russian Federation Government No. 1085 “On an Addition to the
Regulations on Guarantees to Be Provided by Foreign Citizens and Persons without
Citizenship for the Availability of Means for Their Living in and Exit from the Russian
Federation, approved by Resolution of the Russian Federation Government No. 1142, dated 1
October 1998”, dated 23 September 1999
It is determined that “a duly issued medical insurance policy of a foreign citizen or person
without citizenship entering the Russian Federation from a country which has established, as a
mandatory condition for the entry of Russian citizens into its territory, the procurement of medicalinsurance for the period of their residence” is required for such person to enter the Russian Federation.
9. Resolution of the Russian Federation Government No. 900 “On Approval of the Regulations
on Seafarer Certification”, dated 4 August 1999
These Regulations are developed on the basis of the 1978 International Convention on
Standards of Training, Certification and Watchkeeping for Seafarers and the amendments made to theConvention in 1995 (hereinafter, the “1978 Convention”). In accordance with the provisions of the
1978 Convention, it is provided that, instead of assigning titles to commanders, diplomas,
qualification certificates and specialist’ certificates will be issued to seafarers.
With respect to foreign citizens, the Regulatio ns determine that diplomas, qualification and
specialist’ certificates should be issued to:
- foreign citizens who have graduated from seafarer schools in the Russian Federation;
- foreign citizens who work or worked aboard ships flying the national flag of the Russian
Federation; and
- foreign citizens in such cases as stipulated by  any international treaties concerning seafarer
certification and training between the Russian Federation and other states which are parties to
the 1978 Convention.
The Regulations also provides that captain and commander certificates issued by a foreign
state which is a party to the 1978 Convention should be recognized by issuing confirmations
according to the rules determined by the Russian Federation Ministry of Transport.WT/ACC/RUS/34
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10. Resolution of the Russian Federation Government No. 1488 “On Medical Insurance of
Foreign Citizens Temporarily Residing in the Russian Federation and Russian Citizens on
Their Exit from the Russian Federation”, dated 11 December 1999
In accordance with Article 8 of the RSFSR Law “On Medical Insurance of Individuals in the
Russian Federation”, the Government of the Russian Federation resolves, inter alia , that in the event
that a foreign state imposes a regulation under which the procurement of medical insurance for the
period of their residence is a mandatory condition for Russian Federation citizens to enter its territory,
the Russian Federation Ministry of Foreign Affairs must, through the established procedure, consider
whether it is necessary to impose a similar condition with respect to the entry of such state’s citizens
into the Russian Federation.
11. Resolution of the Russian Federation Government No. 180 “On the Procedure for Regulating
the Admission to and Use in the Russian Telecommunications Market of Global Mobile
Personal Satellite Communications Systems”, dated 16 February 1999
This Resolution is approved in order to enhance the co-operation and partnership of Russian
operator and industrial companies in the implementa tion of international projects intended to develop
the new type of services, i.e. global mobile pers onal satellite communications, and to ensure further
development of the Russian Federation integrated communications network on the basis of new
technologies. In this connection, the Government of the Russian Federation resolves:
- to recognize, in principle, that the communications services offered by global mobile personal
satellite communications systems in the telecommunications market of Russia may be used in
accordance with the Russian legislation, provided that Russian operator companies shall be
established with an exclusive right to provide telecommunications services of the relevant
systems in the Russian Federation;
- to grant an exclusive right to provide confid ential telecommunications services within the
global mobile personal satellite communications systems which are used in the Russian
telecommunications market to a designated Russian operator which shall be responsible for
the establishment and development of a special federal subsystem of confidential
telecommunications; and
- to issue licenses to the Russian operator companies for the provision of telecommunications
services using any global mobile personal satellite communications systems created byinternational companies only after the releva nt company owning such system has provided
the necessary internationally accepted warranties.
12. Resolution of the Russian Federation Government No. 556 “On Approval of the Regulations
on Licensing of Hazardous Waste Handling Activities”, dated 20 May 1999
These Regulations establishes the procedure for licensing any activity producing hazardous
waste as well as any activity involving the colle ction, utilization, neutralization, transportation or
disposal of hazardous waste.
The Regulations, inter alia , determines that a license applicant must, in order to obtain a
license, submit to the licensing authority, in particular:
- information on the professional skills of the specialists who are to implement the licensed
activity. If such information is unavailable, the licensing authority may request to hold anexamination of the specialists for their professional competence;
- resolutions from the territorial agencies of the Russian State Committee for Environmental
Protection, the Russian  Ministry of Labour and Social Development, the State Fire
Prevention Service of the Russian Ministry of Internal Affairs, the State Sanitary andWT/ACC/RUS/34
Page 6
Epidemiological Service of the Russian Federation and the Russian  Ministry of Civil
Defence, Emergencies and Elimination of Natural Disaster Consequences at the location
where the relevant legal entity or individual entrepreneur is registered and/or at the location of
any territorially definite sites where the licensed activity is undertaken. In order to carry out
the handling of any hazardous waste resulting from mineral extraction and processing,resolution from the territorial agencies of the Russian Federal Committee for Mining and
Industrial Supervision should also be provided.
The licensing requirements and conditions may include qualification requirements for a
license applicant or licensee, in particular, qualification requirements for employees of a legal entity
or for an individual entrepreneur.
The licensing requirements and conditions may also include requirements concerning
compliance with any specific terms and conditions governing any object in or by means of which the
licensed activity is to be carried out.
13. Regulations “On the Licensing of Certain Kinds of Auditing Activities in the Russian
Federation” (approved by Resolution of the Government of the Russian Federation No. 472
dated 27 April 1999)
These Regulations, drawn up pursuant to the Fe deral Law “On the Licensing of Certain Types
of Activities”, establishes the procedure for auditing licensing intended to ensure State control overcompliance with the requirements imposed upon such activities by  the Russian legislation.
In order to obtain an auditing license, a number of requirements must be complied with,
including as follows:
- an individual auditor must hold an auditor’s qualification certificate entitling him to perform
the relevant type of audit activities;
- a legal entity must have in its staff at least two auditors holding auditor’s qualification
certificates;
- at least a 51 per cent interest in the charter ca pital or charter fund of any auditing entity must
be owned by certified auditors and/or licensed audit entities.
14. Regulations on Holding Tenders for the Right to Surface TV and Radio Broadcasting as well
as the Elaboration and Development of a New Radio Frequency Channel for the Purposes of
TV and Radio Broadcasting (approved by Resolution of the Government of the Russian
Federation No. 698 dated 26 June 1999)
These Regulations are approved in order to increase the efficiency of using the limited
national resources of the radio frequency range which are allocated for the purposes of surface
broadcasting and to satisfy to a fuller extent public demand for TV programs.
The Regulations,  inter alia , provide that:
- activities to identify new radio frequency channels for the establishment of overland air
broadcasting must be carried out in accordance with the established procedure for radio
frequency designation/allocation in the Russian Federation for radio electronic equipment of
all purposes upon the request of the Russian Federal Television and Radio Broadcasting
Service, legal entities or individual entrepreneurs duly registered in the Russian Federation;
- legal entities and individual entrepreneurs duly registered in the Russian Federation may
participate in bids.
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