28 March 2002 
  
 
 
 
 
 
 
 
 Attached is the first draft of the Report of the Working 
Party on the Accession of the Russian Federation to the WTO.  
This document reflects the current state of work and will 
necessarily evolve in line with fu ture proceedings.  For ease of 
reference, it contains a numb er of paragraphs outlining 
Working Party members' requests for further specific 
information or clarifications which would be required for 
subsequent revisions.  The paragraphs in brackets refer to 
commitments that members' have requested from the Russian 
Federation in the process of accession. 
 
 
 
 
 
      
RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/RUS/25 
28 March 2002 
 (02-1656) 
Working Party on the 
Accession of the Russian Federation  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON THE 
ACCESSION OF THE RUSSIAN FEDERATION  
TO THE WORLD TRADE ORGANIZATION  
Introduction  
1. The Government of the Russian Federation ap plied for accession to the General Agreement 
on Tariffs and Trade (GATT 1947) in June 1993.  At its meeting on 8 July 1993, the GATT Council of Representatives established a Working Party to examine the application of the Government of the 
Russian Federation to accede to the GATT under Article XXXIII of the General Agreement.  
Following the entry into force of the WTO Agreement on 1 January 1995, and in pursuance of the 
decision adopted by the WTO General Council on 31 January 1995, the GATT 1947 Working Party 
was transformed into a WTO Accession Working Party under Article XII of the Marrakesh 
Agreement Establishing the WTO.   
2. The Working Party met on 17-19 July 1995, 4-6 December 1995, 30-31 May 1996, 
15 October 1996, 15 April 1997, 22-23 July 1997, 9-11 December 1997, 29 July 1998, 16-17 December 1998, and 25 May 2000 under the Chairmanship of H.E.  Mr.  W.  Rossier 
(Switzerland) and on 18 December 2000, 26-27 June 2001, 23-24 January 2002 and […] under the 
Chairmanship of H.E.  Mr.  K.  Bryn (Norway). 
Documentation Provided 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of the Russian Federation (L/7410), questions submitted by Working Party 
members on the foreign trade regime of the Russian Federation together with replies thereto and other 
information provided by the Russian authorities  listed in document WT/A CC/RUS/11/Rev[…] and 
the legislative texts and other do cumentation listed in Annex 1. WT/ACC/SPEC/RUS/25 
Page 2  
 
Introductory Statements 
4. In his introductory statement, the representative of the Russian Federation recalled that his 
Government had been an observer to the GATT 1947 since January 1992 when the Russian Federation continued the former USSR observer stat us.  In this capacity, the Russian Federation had 
witnessed the successful conclusion of the Uruguay Round and followed its implementation.  Since its 
request for accession to the WTO, and pursuant to the reform of its trade regime, the Russian 
Federation had progressively adopte d laws and regulations consistent with WTO multilateral rules 
and disciplines.  As a result of the Russian Government's concerted efforts to encourage free market 
and entrepreneurial activity and f acilitate foreign investment, the economy of the Russian Federation 
had been heading towards greater economic stabili ty and growth.  The Russian Government also 
made substantial efforts to combat inflation and control the budgetary  situation of the country.  In this 
context, membership in the World Trade Organizatio n was an important missing aspect in the Russian 
Federation' s trade policy and one of the priorities of the Government's program of economic reforms. 
5. The Working Party welcomed the Russian Fede ration's application for accession to the WTO 
and stressed the importance of a rapid completion of the ensuing negotiations on commercially viable 
terms which should be mutually beneficial to th e Russian Federation and WTO Members.  To this 
end, the Working Party considered that the enactment of relevant legislation in line with WTO 
requirements and of provisions for its implementation was essential to the establishment of the terms 
of accession of the Russian Federation to the WTO. 
6. The Working Party reviewed the economic policies and foreign trade regime of the Russian 
Federation and the terms of a draft Protocol of Accession to the WTO.  The views expressed by 
members of the Working Party on the various as pects of the Russian Federation's foreign trade 
regime, and on the terms and conditions of the Russian Federation's accession to the WTO are 
summarized below in paragr aphs […] to […].    
ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
Economic Policies 
- Monetary and Fiscal Policies 7. The representative of the Russian Federation expl ained that current economic policies in the 
Russian Federation were aimed at achieving fiscal an d monetary stability in the country.  The budget 
deficit had been reduced and finally eliminated through expenditure restraints and revenue increases.  On the revenue side, a renewed tax base system and more efficient tax collection instruments had  WT/ACC/SPEC/RUS/25 
 Page 3 
 
 
been introduced under a new Tax Code - Part One, No. 146-FZ of 31 July 1998 (as amended on 
30 March, 9 July 1999, 2 January, 5 August 2000, 24 March 2001) and - Part Two, No. 117-FZ of 
5 August 2000 (as amended on 29 December 2000, 30 May, 6, 7, 8 August 2001).  In the Russian 
Federation's view this legislative instrument put Russia' s taxation regime in compliance with WTO 
requirements in this area. 
8. Noting the Russian Federation's statement that the indirect taxation regime was now 
compatible with WTO requirements, including those under Article III of the GATT 1994, many 
members asked whether this would indicate that all differential treatment in favour of imports from 
and exports to CIS had been eliminated.  These me mbers also suggested that further information was 
required on the mechanism used to ensure that ta xes levied at the sub-national level were equally 
applied in a manner consistent with WTO obliga tions, notably national treatment.  Some members 
further requested  clarification on whether th e Russian Federation was still levying VAT on any 
exported products.    
9. Turning to monetary policy, the representative  of the Russian Federation stated that the 
current policy of its country was aimed at reaching a level of monetary and pr ice stability necessary to 
create the conditions for a sustainable economic growth.  This objective was basically being achieved 
by controlling money supply, maintaining a floating  exchange rate for the national currency, and 
consolidating gold and foreign exchange reserve a ssets.  All these actions were accompanied by 
measures directed at liberalizing foreign exchange  regulations.  The major instruments of monetary 
policy under the purview of the Central Bank of Russia (CBR) included refinancing of commercial 
banks, operations on the open market, depository operations, mandatory reserve requirements and 
interest rates policy.   
10. While recognizing the liberalisation efforts undertak en by the Russian Federation in this field, 
some members considered it useful to be provided with an opportunity to also review the content of the new package of banking laws and information on  the banking reform policy recently signed by the 
Russian authorities. 
- Foreign Exchange and Payments System 
11. The representative of Russian Federation recalled that, as a member of the International 
Monetary Fund (IMF) since 1992, his country followed internationally accepted monetary rules.  The national currency - the Rouble (equal to 100 Kope ks) - was convertible to foreign currencies on the 
basis of current market rates.  According to the commitments undertaken by the Russian Federation under Article VIII of the Articles of  Agreement of the International Mo netary Fund, current payments  WT/ACC/SPEC/RUS/25 
Page 4  
 
relating in particular to outward transfers of retu rns and other proceeds from foreign investments were 
generally carried out freely.  Six exchange restri ctions of minor economic significance were still in 
force subject to approval under Ar ticle VIII of the Articles of Agreement of the International 
Monetary Fund.  
12. Some members were concerned that existing re quirements on foreign exchange acquisition 
and retention might inhibit trade.  Thus additi onal information was requested on the status and 
operation of foreign exchange control and regulato ry measures in force, including restrictions on 
foreign exchange retention, restriction on the ability to obtain or retain foreign exchange for payments 
purposes, restrictions on the rights of residents to acquire and hold foreign exchange and to have 
account in foreign banks, pre-payment requirements  for imports, and the acquisition charge of 1 per 
cent levied on the purchase of foreign exchange.    
13. In response, the representative of the Russia n Federation confirmed that there were no 
subsidies on purchases and sales of foreign exchange .  The tax for purchase of foreign currency in 
cash amounted to 1 per cent for advances beyond 90 days only.  As to mandatory resale by Russian 
exporters of a part of their export earnings on th e internal exchange market, the relative ceiling had 
been reduced from 75 per cent to 50 per cent.  There were no restrictions for residents to buy foreign 
currencies on the domestic exchange market to meet their payment commitments on current 
transactions.  Foreign currencies to  pay capital transactions could al so be freely obtained on the 
domestic market on condition that the requirement of  the CBR was met.  The requirement in the case 
of prepayment to be transferred under contracts for imports made it compulsory for residents to 
deposit an amount in Roubles equal to 100 per cent of the sum used for buying foreign currency for 
the purpose of prepayment in an authorized bank .  The requirement was regarded by the Russian 
authorities as a means to avoid illicit capital flig ht as the Russian Government made substantial 
payments to service its external debt and needed  adequate currency control measures to check 
unauthorised outflow of capital.  The requirement did not apply to residents' purchases of foreign 
currencies required to pay for the import of goods already delivered in the country.  
14. Noting this statement, some members felt th at additional information was still needed on 
whether the mandatory foreign exchange resale of 50 per cent export earnings covered services 
earnings as well as goods and the requirement of the CBR to obtain foreign exchange to pay capital 
transactions also related to the deposit requirement  for prepayment of imports.  Some members further 
noted that the requirement in question was especi ally burdensome for small importers and could 
therefore heavily inhibit trade.  They urged the Russian Federation to consider the use of other methods to avoid illicit capital flight.  These member s also asked to be informed on the legislative 
basis which authorized Russia's exchange and payments restrictions and requirements.    WT/ACC/SPEC/RUS/25 
 Page 5 
 
 
15. The representative of the Russian Federation stated that the monetary policy, foreign 
exchange and payments system were matters of gr eat attention in the Russi an-IMF relationship.  
Progress made by the Russian Federation in elabor ating and implementing clear and sound policies in 
these areas were to a great extent achieved due to the consultative mechanism, joint programs and 
direct support by the IMF.  All relevant measures were coordinated with the IMF, including in 
particular those under the provisions of Article  XV of GATT 1994 and Article s VI and XI of GATS. 
16. He said that, within the framework of policies designed to combat illegal transfer of capital 
and to maintain the integrity of the financial system, his authorities implemented, on a non-
discriminatory basis, measures of currency regulation and currency control which did not constitute restriction for trade in goods and services.  Proc edures connected with implementation of these 
measures were not designed as a means to avoid the Russian Federation's future commitments under 
the WTO Agreements.  In the Russian Federation's view, these measures were in conformity with 
Russia's commitments under the relevant Articles of  Agreement of the IMF.  He also noted that 
capital transactions were subject to the regulative procedures of the CBR.  These transactions could 
require permissions of the CBR, or notifications to the CBR, or could be conducted freely.  
Permissions and notifications did not constitute unnece ssary barriers to trade.  The procedures were 
transparent and publicly available through normati ve acts published by the CBR.  The number of 
capital operations requiring the permissions of the CBR was constantly being reduced and superseded 
by simple notification procedures or free execution.   
17. He further explained that Russian juridical persons or residents had the right to acquire and 
reimburse freely credits and loans in foreign currenc ies attracted from non-resi dents for the period of 
time exceeding 180 days subject to simple notifica tion to the CBR.  Liberalization of transfers in 
foreign currencies by residents also included purcha ses of commercial securities nominated in foreign 
currencies through banks authorized to carry out th ese operations.  Export proceeds were subject to 
repatriation requirements.  Federal Law No. 72 of 31 May 2001 "On Changes and Amendments to the 
Law of the On Currency Regulation and Currency Control" simplified requirements in this area, particularly by prolonging delays for a number of  capital transactions which could be carried out 
freely without the permission of the CBR.  In accordance with this Law, Russian residents could defer up to three years settlements for some exported machinery and equipment and up to five years for 
payments related to construction and sub-contr acting works carried out abroad as well as for 
payments connected with insurance and reinsurance of these projects.  For the broad majority of 
exports, export repatriation requirements  were from three to six months.   
18. While noting that the Russian Federation might not intend to restrict trade with the currency 
regulation measures described above, some members considered that these measures had nevertheless WT/ACC/SPEC/RUS/25 
Page 6  
 
a trade restrictive effect.  These members noted for instance that Central Bank regulations that 
required shipment of goods within 90 days of payment of invoice had in practice caused trade 
interruptions, particularly for those exporting co untries which were geographically located at a 
distance from the Russian Federation.  Moreover, in  light of the current favorable position of the 
Russian Federation's balance-of-payments, thes e members requested information on the Russian 
Federation's plans to eliminate all remaining exch ange restrictions and multiple currency practices. 
- Investment Regime   
19. The representative of the Russian  Federation explained that the basic texts relating to the 
activities of foreign investors were set forth in th e Constitution of the Russian Federation adopted on 
12 December 1993, the Civil Code Part One, No. 51-FZ of 30 November 1994 (as amended on 20 
February, 12 August 1996, 8 July 1999, 16 April, 15 May 2001)  and Part Two, No. 14-FZ of 26 
January 1996 (as amended on 12 August 1996, 24 October 1997, 17 December 1999), and a number 
of other legislative acts such as  Federal Law No. 160-FZ of 9 July 1999 "On Foreign Investment in 
the Russian Federation", Federal Law No. 37-FZ of 25 February 1999 "On Investment Activity in the 
Russian Federation in the form of capital inve stment" (as amended on 2 January 2000), Federal Law 
No. 3615-1 of 9 October 1992 "On currency contro l and currency regulation" (as amended on 29 
December 1998, 5 July 1999 and 8 August 2001) and Federal Law No. 225-FZ of 30 December 1997 
"On Production Sharing Agreement" (as amended on 7 January 1999, 18 June 2001).  The adoption of 
the Land Code of the Russian Federation, a numb er of legislative acts on "debureaucratization" 
(Federal Law No. 128-FZ of 8 August 2001 "On Licensing of Specific Types of Activity", Federal Law No. 134-FZ of 8 August 2001 "On the Protecti on of Legal Entities' and Individual Entrepreneurs' 
Rights in the Case of Exercise of State Control (Supervision)", and the Tax Code of the Russian Federation significantly contributed to the form ation of a favourable investment climate and 
facilitated the activity of Ru ssian and foreign companies in the Russian market.   
20. He said that his Government had entrusted the Ministry of Economic Development and Trade 
with a wide range of responsibilities in the field of foreign investments, such as co-ordination of the 
corresponding activities of federal and regional  bodies, organisation of tenders, concession 
agreements, production sharing agreements and bila teral investment agreements.  The current policy 
of the Government aimed at encouraging investment s in the Russian Federation.  Investment policy 
was particularly directed at creating the conditions to promote the expansion of domestic and foreign 
investments, and also the formation of transparent and stable rules in the conduct of economic 
activities.  The Russian legislative acts mentioned in the above para graph provided proper guaranties 
for the protection of foreign investors' rights and interests and advantageous conditions for foreign 
investors and enterprises which intended to invest in the Russian Federation respecting its domestic  WT/ACC/SPEC/RUS/25 
 Page 7 
 
 
investment legislation and relevant international tr eaties signed by the Russian Federation.  According 
to Federal Law No. 160-FZ of 9 July 1999 "On Fo reign Investment in the Russian Federation", 
foreign investors in the Russian Federation were tr eated no less favourably than Russian ones with 
few exceptions provided by the same federal legislation.  
21. Members requested a descriptive summary of the provisions contained in the new draft 
Investment Law and the draft Tourism Law, together with an indication of the current status of these 
provisions in the Russian Federation legislative process and their prospects for enactment.  Noting Russia's stated intention to phase out all me asures which might not conform with the WTO 
Agreements on TRIMs and on Subsidies prior to accession, members further requested a description 
of any plans the Government of the Russian Federation was undertaking for reforming existing 
measures in this areas as well as an update of le gislative plans and their time-frames.  Some members 
made specific reference to the need to amend Federal Law No. 171-FZ of 22 November 1995 "On 
State Regulation of Production and distribution of Ethyl Alcohol and Alcohol Products" which 
banned foreign investment in the importation, bo ttling and distribution of beverages containing more 
than 12 per cent alcohol by volume and prevented foreign companies to invest in domestic distilled 
spirits industry.    
- State Ownership and Privatization  
22. In response to enquiries by members on the priv atization policies of th e Russian Federation, 
the representative of the Russian Federation stated that for the purpose of transparency his authorities 
were prepared to provide information on priva tization policies and their implementation in the 
Russian Federation.    
23. He stated that privatization in the Russian Fe deration was based on the following principles:   
long-term and short-term interests of the State;  the need to use different approaches to the 
privatization of different enterprises depending on thei r liquidity;  the need to increase privatization to 
the maximum extent possible, and the need to closely monitor all aspects of the privatization process.   
24. He further noted that privatization of State ow ned enterprises were executed pursuant to the 
following laws:  
- Federal Law No. 123-FZ of 21 July 1997  "On the Privatization of the State Property 
and on the Principles of Privatization of the Municipal Property in the Russian 
Federation" (as amended on 23 June 1999, 5 August 2000); WT/ACC/SPEC/RUS/25 
Page 8  
 
- the State Program of "Privatization of Stat e-Owned and Municipal Enterprises in the 
Russian Federation" (approve d by the Decree No. 2284 of 24 December 1993 of the 
President of the Russian Fe deration) (as amended on 14 March 1996, 6 October 1997, 
15 July 1998, 25 July, 1 August 2000); 
- Basic Provisions of the State Program of "Privatization of State-Owned and 
Municipal Enterprises in the Russian Federation after 1 July 1994" (approved by the 
Decree No. 1535 of 22 July 1994 of the President of the Russian Federation) (as amended on 16 April 1998, 25 January 1999);  and   
- the Conception of Management of State Pr operty and Privatization in the Russian 
Federation (approved by Decision No. 1024 of 9 August 1999 of the Government of 
the Russian Federation, as amended on 29 November 2000). 
25. He further added that under an ongoing scrutiny process, each year as part of the federal 
budget process the Government submitted a draft federal law on the introduction of amendments and 
addenda to the Privatization Program to the State Duma.  Before 1 April each year, the Government 
was also required to submit a detailed report on the Privatization Program of the previous year to the 
Federal Assembly of the Russian Federation.  That re port provided information such as the source of 
the investment (whether domestic or foreign), the impact of privatization upon the subjects of the 
Russian Federation, how the enterprise had been va lued and privatization implemented, and how the 
proceeds of the sale had been distributed.  Comp rehensive information on properties to be privatized 
was published well in advance.  Information on  completed privatizations was published in a 
specialized registry pursuant to the Decision of th e Government of the Russian Federation No. 696 of 
3 July 1998 "On Organization of Accounting of Federal Property and Maintenance of a Registry of Federal Property".  In addition, the Russian Fede ral Property Fund published a special official 
informative and analytical bulletin entitled "Reform". 
26. Regarding state properties which might be subject to  privatisation, he said that federal, state-
owned and municipal property were divided in to the following groups:  Federal facilities and 
enterprises that could not be privatized;  federal facilities and enterprises of which privatization was 
subject to approval by the Government of the Russian  Federation or a federa l body exercising relevant 
executive power;  municipal facilitie s and enterprises, of which priva tization required approval by the 
municipal authorities;  federal and municipal owne d facilities and enterprises subject to compulsory 
privatization;  and, certain fa cilities and enterprises whose priva tization terms expressly precluded 
investment by foreign natural or legal persons.  WT/ACC/SPEC/RUS/25 
 Page 9 
 
 
27. Regarding facilities and enterprises that could not be privatized, he said  that those included 
inter alia national defense facilities, air and water trans port facilities, and enterprises connected with 
the strategic interests of the Russian Federation.  These prohibitions were mainly set out in the 
following laws:  State Program of Privatization of  State-Owned and Municipal Enterprises in the 
Russian Federation, the Decision of the Government of the Russian Federation No. 1348 of 6 
December 1999 "On Federal State Unitary Enterprise s Based on the Right of Ec onomic Jurisdiction";  
and the Decision of the Government of the Russian Federation No. 784 of 17 July 1998 "On the List of Joint-Stock Companies Producing Products (Goods , Services) of Strategic Importance in Terms of 
National Security which cannot sell their Federall y-Owned shares before Term" (as amended on 7 
August, 14 August, 31 October, 14 November, 18 December 1998;  27 February, 30 August, 3 September, 9 September, 16 October, 31 December 1999;  16 March 2000).  He also noted that 
Articles 100 and 101 of Federal Law No. 150-FZ of  27 December 2000 "On the Federal Budget for 
2001" (as amended on 24 March, 8 August 2001) prohi bited certain joint-stock companies from being 
privatized.   The lists of properties not subject to pr ivatization were available to  all interested parties. 
28. Some members requested additional information on the criteria applied by "local government 
authorities" in deciding whether to permit foreign par ticipation in particular pr ivatizations and, if so, 
under what conditions.  In this context, clarifications on the nature of the relationship between local 
and the national regulatory framework were sought.  Those members also required more information 
on the scope and future of the Ru ssian Federation's privatization efforts and more information on 
those enterprises which would not be privatized.  
29. In response, the representative of the Russian Federation said that under current legislation 
the principle of national treatment applied.  Foreign i nvestors could take part in auctions and  tenders, 
although foreign investors' participa tion in privatizations of facilities and enterprises engaged in trade, 
public catering and consumer services, as well as of small enterprises in industry, construction, and 
automobile transportation were subject to approval by local government authorities in all cases.  
Authorizations were given by agencies in charge of  management of municipal property of the Russian 
regions or of local authorities.  Non-discriminato ry criteria governed decisions whether or not to 
authorize participation of foreign investors in the privatization of such fac ilities and enterprises.  
Participation of foreign investors in privatization of properties w ith local authority holdings was 
subject to security considerations (proximity of the privatized property to a military facility, good 
name and diligence of the foreign investor, good standing), and required a business plan and 
registrations as provided by the Russian legal framework. 
30. Decisions on the possibility of foreign investors'  participation in the privatization of facilities 
and enterprises of the defense industry, the oil and gas industry, the mining and processing of strategic WT/ACC/SPEC/RUS/25 
Page 10  
 
material ores, precious and semi-precious stones, prec ious metals, radioactive and rare-earth minerals, 
transport and communications were made simult aneously by the Government of the Russian 
Federation and the responsible state authority.  Additi onal restrictions on foreign investment were set 
by Federal Law of the Russian Federation No. 74-FZ of 7 May 1998, "On Distribution Constraints in 
Respect of the Shares of the Russian Joint-Stock Company for Power Engineering and Supply", and 
the "Shares of other Federally-Ow ned Joint-Stock Companies in Power Engineering";  the Decree of 
the President of the Russian Federation of No. 52 9 of 28 May 1997 "On the Procedure for Turnover 
of Shares in Russian Joint-Stock Company (RAO) Gazprom" and Federal Law No. 69-FZ of  31 
March 1999 "On Gas Supply in the Russian Federation". 
31. In response to requests from members for information on the current progress in privatization, 
the representative of the Russian Federation stated that, as of 1 January 2001, the number of privatized enterprises (from 1992) amounted to 130,180.   
Table 1:  Progress in Privatization of State Enterprises within 1993-2000
 
Year 1993 1994 1995 1996 1997 1998 1999 2000 
Number of privatized 
state-owned and 
municipal enterprises 42,924 21,905 10,152 4,997 3,353 2,694 677 301
Including those by the form of property 
Municipal … 11,108 6,960 3,354 1,462 1,251 453 200
Subjects of the 
Russian Federation … 5,112 1,317 715 340 503 44 74
Federal … 5,685 1,875 928 1,651 940 180 27
 
 
32. He noted that the steady decrease in the number of privatized enterprises was due to the fact  
that privatization of the most attr active enterprises such as the oil industry, metallurgy, sea and river 
transport had already been completed.  Concerning privatization by sectors, he provided the following information:    
Table 2:  Progress in Privatization of  State-Owned and Municipal Enterprises
 
concerning specific areas of activity for a period of time up to the first half of 2000  
Area of activity 1993-first half of 2000 
Industry  
- electric energy 21,703 
182 
Agricultural Sector 1,813  WT/ACC/SPEC/RUS/25 
 Page 11 
 
 
Area of activity 1993-first half of 2000 
Transport  
- railway  - auto road  
- pipeline  
- maritime transport - internal waterways  
- air transport  
- loading, unloading and expeditious services 3,196 
57 
2,506 
5 
41 95 
65 
84 
Communications  
Construction  Wholesale trade 
Retail  trade 
Public catering Housing and related services  
Services to the population  
Health care and other types of social care  Public education  
Culture and art  
Science  Other areas of economy 189 
8,066 1,574 
24,973 
5,084 2,660 
1,870 
314 242 
292 
639 
14,690 
Total 87,305 
 
33. In response to requests for further information, he noted that at present there were 22,135 
state-run unitary enterprises in the Russian Federation, including 11,128 Federal  state-run unitary 
enterprises.  There were 3,524 commercial companie s with federal state partic ipation in the following 
percentages:  100 per cent of authorized capital - 61 joint-stock companies;  more than 50 per cent of 
authorized capital - 506;  from 25 to 50 per cent of authorized capital – 1,211;  less than 25  per cent - 1,746. 
34. Federal Law No. 123-FZ of 21 July 1997 "On the Privatization of the State Property and on 
the Principles of Privatization of the Municipal Property" in the Russian Federation , established the 
methodology for the privatization of state and muni cipal property.  Property could be divested by 
auction, by tender, by corporatization or sale of shar es, or by transferring the property by way into the 
ownership of a corporation.  Auction and commercial tender were the main methods of selling state 
property in the course of privatization.  For instan ce, in 2000 56 per cent of state property of Russian 
Federation subjects were sold through auctions. 
Table 3.  Figures on methods of privatization of Federal property in 2000
 
Number of shares packages of Federal property enterprises sold 320 
On auction 248 
On particularized auction 13 
On tender 32 
In other ways 27 
 WT/ACC/SPEC/RUS/25 
Page 12  
 
35. Wholly or majority state owned enterprises we re responsible for 14 per cent of the total 
production of goods and services.  A full State monopoly remained in the sector of railroad transport.  
In the sphere of scientific research and developmen t the share of public sector enterprises comprised 
63.3 per cent.  The number of staff of public sect or enterprises in 2000 was 11.4 million people, or 
22.6 per cent of the employed population.  In 2000, foreign investments to the public sector 
enterprises constituted over US$16 million, while gene ral volume of foreign investments into Russian 
economy constituted US$11 billion. 
Table 4:  Volume of Production of Goods and Services,  
 
produced by State-Owned Enterprises in specific areas in 2000  
2000  
Share of production by state enterprises in total volume of 
production (goods and services), pr oduced in a sector of economy, 
% 
Industry 10.1 
Agriculture 13.6 
Communication services  14.9 
Construction 10.6 
Retail trade 2.3 
Catering 10.0 
Services, offered to the population 16.0 
In that number: 
Services of passenger transport 40.4 
Communication services 7.7 
Consumer services 2.4 
Culture services 1.7 
Health services 4.1 
Education services 13.6 
 
Table 5:  Volume of Industrial Production, produced by   
State-Owned Enterprises in specific areas in 2000  
2000  
Share of production by state enterprises in 
total volume of industrial production, 
produced in a sector of industry, % 
Industry 10.1 
Including:  
Electric energy 9.3 
Fuel 3.9 
Ferrous metallurgy 2.6 
Non-ferrous metallurgy 15.6 
Chemical and petrochemical 8.0 
Machine-building and metal-working 20.9 
Timber, woodworking, pulp and paper  5.2 
Building materials    4.3 
Glass  1.7  WT/ACC/SPEC/RUS/25 
 Page 13 
 
 
2000  
Share of production by state enterprises in 
total volume of industrial production, 
produced in a sector of industry, % 
Light industry 4.9 
Food industry 6.6 
Microbiological 40.1 
Flour-and-cereals and feed mill 12.3 
Medical 15.8 
Printing 52.5 
 
Table 6:  Most important types of agricultural products produced by  
State-Owned Enterprises in specific areas in 2000  
Products Share of production by state enterprises in total volume of 
production by agriculture enterprises, % 
Grain 6.9 
Sugar beet (factory) 4.1 
Oil-bearing crops 4.2 
    Including sunflower 3.6 
Potatoes 11.8 
Vegetables 13.6 
 
 
36. Members thanked the Russian Federation for the information submitted.  Some members 
invited the Russian Federation to enter a commitment  to report on developments in its program of 
privatization as long as the privatization program was in existence and on other issues related to any 
ongoing economic reforms relevant to its obligations under the WTO. 
37. [The representative of the Ru ssian Federation confirmed th e readiness of the Russian 
Federation to ensure the transparency of its ongoing privatization programme and to keep WTO 
Members informed of its progress in the reform of its economic and trade regime.  He stated that his 
Government would provide annual reports to WTO Me mbers (along the lines of that provided to the 
Working Party) on developments in its programme of privatization as long as the privatization 
programme was in existence.  He also stated th at his Government would provide annual reports on 
other issues related to economic reforms as rele vant to its obligations under the WTO while The 
Russian Federation was still in the process of reforming its economy.] 
- Pricing Policies 
38. Members stressed that the Working Party Report should ensure transparency on the operation 
of pricing controls (products and services covered, definition of co ncept of "natural monopolies", 
legislative basis, regulatory mechanisms, including at regional and local level. WT/ACC/SPEC/RUS/25 
Page 14  
 
39. The representative of the Russian Federation explained that the main goal of the economic 
policy pursued by his authorities was to introduce the principle of free market price formation based 
on supply and demand.  Therefore, prices in the vast majority of sectors in the Russian economy were 
determined freely by market forces.   
40. He noted that in sectors where natural monopo lies existed (transportation of oil and oil 
products along main pipelines; transportation of gas along main pipelines; transfer of electric heat and 
power;  transportation by rail;  se rvices of transport terminals, sea and river ports and airports;  
services of generally accessible electric and postal communication services) and in the case of 
products purchased exclusively or mainly by the State such as defence products, pricing was based on production costs and established in a way which excluded any possible abuse by the producer/supplier 
of its monopoly position.  The procedures and principl es used for fixing prices of goods and services 
regulated by the State differed depending on the type of goods or services.  For some goods a 
minimum price level was fixed (e.g. for alcoholic beverages above 28 proof) while for others a 
maximum price level was settled (e.g. in railway trans portation).  In addition, in  the case of air, road 
and river transport services involving competing gr oups of carriers, the carriers themselves had the 
right to set their own prices within established profit margins. 
41. Regarding price controls applied at the federal level, members asked fo r clarification on how 
state controlled prices were determined and what their relation to internatio nal prices was.  While 
noting that there was no agreement in the WTO on what could constitute a "natural monopoly", and 
therefore questioning the use of such term, some members required further clarification on the extent to which prices charged by these so-called "natural  monopoly" suppliers of goods and services would 
differ depending on whether they were sold to a domestic or foreign purchaser or – in the case of services associated with the sale of goods – they related to goods destined for export rather than for 
domestic consumption.  Additional information was sought on Russia's announcement of efforts to unify its domestic and foreign operating tariff s for railways, as well as a status report on 
developments.  A member requested further clarification on the grounds for fixing the minimum price level of vodka, liquor products and other alcohol stronger than 28 proof.  The member also asked the 
Russian Federation to explain how this practice c ould be in compliance with the Agreement on the 
Implementation of Article VII of the GATT 1994. 
42. The representative of the Russian Federation ex plained that the following elements were 
considered in determining the prices for products and services of natural monopolies: the cost-
effectiveness of their production including the expe nses of production (marketing) of products and 
services;  taxes and other payments;  the cost of fixed production assets;  the requirement of 
investment for reproduction purposes;  depreciati on charges;  estimated profits;  remoteness of  WT/ACC/SPEC/RUS/25 
 Page 15 
 
 
different consumer groups to the production site of products and services;  adequacy of the quality of 
the products;  and services produced and marketed to the consumer demand.   
43. Regarding price controls applied at the sub-regional level, some members enquired about the 
legal basis and scope of authority to apply price controls at this level, and about whether these 
measures were actually reviewed by the federal authorities.   
44. The representative of the Russian Federation replied that regional governments regulated 
prices for products and services classified as loca l natural monopolies.  These included gas and solid 
fuel sold to the population, transportation of passe ngers and luggage by all means of public transport 
in municipal transport networks, communal servi ces to households, water supply, and sewerage 
services.  At the regional government level, prices fo r electrical energy provided by regional electrical 
power-plants were also regulated, as well as prices for all means of commuter passenger 
transportation (except railways), communal services for the population (including rent), and public 
utilities.  Decisions on pricing taken at federal leve l by bodies authorized to regulate the activity of 
natural monopolies were compulsory for the regional executive bodies and local executive authorities.  
State regulation of prices for goods and services provided by local natural monopolies was carried out 
by regional executive bodies independently to the extent provided by current regulatory provisions, 
taking into account recommended prices  approved by federal executive bodies. 
45. He further noted that contract prices for goods  and services subject to state price regulation 
delivered on the territory of the Russian Federati on were fixed by enterprises independently, subject 
to market conditions and the current regulatory provisions regardless of whether they were sold to  
domestic or  foreign purchasers.  Contract prices  for exports of goods and services subject to state 
price regulation from the territory of the Russian Federation were also fixed by enterprises depending on market conditions. 
46. In response to questions by some members, he confirmed that Order No. 12/1 of the Federal 
Energy Commission of 24 March 1999 "On granting a 50 per cent reduction of prices of gas to 
enterprises which produce chemical fertilizers, chem ical protections for plants, and raw materials for 
production thereof, in 1999" had been repealed in 1999 and since there were no other legal provisions 
that provided for similar price reductions for industries.  As from 1 August 2001, export and import 
cargoes to and from Russian port s were transported through the territory of Russian Federation 
according to domestic tariffs.   
47. He recalled that the Decree of the Pres ident of the Russian Federation No. 221 of 
28 February 1995 "On Measures to Streamline the State Regulation of Prices (tariffs)" (as amended 
on 8 July 1995) and Resolution of the Government of the Russian Federation No. 239 of WT/ACC/SPEC/RUS/25 
Page 16  
 
7 March 1995 "On Measures to Streamline the State Regulation of Prices (Tariffs)"  (as amended on 
8 February, 15 April, 31 July 1996, 30 June 1997,  30 July, 28 December 1998, 6 February, 7 May, 
16 June, 20 August 2001), established the main principles of the state regulation of prices (tariffs) on 
the domestic market of the Russian Federation, carried out by the Government of the Russian 
Federation, federal authorities and sub-federal bodies  of executive power for those goods and services 
comprehensively listed in Tables 7-9.  He further noted that regulatory legal acts issued by federal 
executive bodies concerning state regulation of prices for goods and services were subject to mandatory official publication.  All decision s by the Government of the Russian Federation 
concerning state regulation of prices and tariffs, including those for services  of natural monopolies, 
were published in "Rossiiskaya Gazeta". 
Table 7:  List of Goods and Services for Internal Consumption for which prices are regulated by the 
Government of the Russian Federation and Federal Executive Bodies  
HS code/ 
CPC Description of goods and services Regulating body 
271121 Natural gas (excluding as sold to the population) The Federal Energy Commission 
271111 
271129 
 Accompanying oil gas and stripped dry gas1, 
casing-head gas (sold to gas processing plants 
for further processing), liquefied gas for 
household needs (excluding as sold to the population) The Ministry of Economic Development and 
Trade of the Russian Federation on agreement 
with the Ministry of Energy and the Ministry 
of Finance of the Russian Federation 
2844 Nuclear fuel cycle products The Ministry of Nuclear Power of the Russian 
Federation 
271600 Electric power and heat power The Federal Energy Commission 
9301-9307 
871000 Products for defence purposes The Ministry of Economic Development and 
Trade of the Russian Federation 
7101- 
7103 
 Raw diamonds and precious stones The Ministry of Finance of the Russian 
Federation on agreement with the Ministry of 
Economic Development and Trade of the Russian Federation 
9021 Prosthetic and orthopaedic appliances The Ministry of Economic Development and 
Trade of the Russian Federation on 
submission of the Ministry of Labour and Social Development and the Ministry of 
Finance of the Russian Federation  
2208 Vodka, liquor products and other alcohol 
products stronger than 28 proof, produced in the territory of the Russian Federation or imported 
into the customs territory of the Russian 
Federation. The Ministry of Economic Development and 
Trade of the Russian Federation on submission of the Ministry of Agriculture of 
the Russian Federation 
7131 Transportation of crude oil and oil derivatives 
by trunk pipelines The Federal Energy Commission 
7112 
741 Transportation of cargoes, railway loading and 
unloading operations The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
                                                      
1 excluding gas sold by the gas producer organizations not being affiliated to the Russian Joint-Stock 
Company Gazprom, the joint-stock companies Yakutgazprom, Norilskgazprom and Rosneft-
Sakhalinmorneftegaz and also the gas sold to the populace and housing construction cooperatives  WT/ACC/SPEC/RUS/25 
 Page 17 
 
 
HS code/ 
CPC Description of goods and services Regulating body 
71111 
7112 Transportation of passengers, baggage, cargoes 
and mail by railway transport (except suburban 
traffic) The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
741 Loading and unloading operations in ports, port 
duties The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian Federation on submission of the Ministry of Transport of the Russian Federation 
745 Charges for passage through internal waterways 
by vessels flying foreign flags The Ministry of Transport of the Russian 
Federation on agreement with The Ministry of Finance of the Russian Federation 
74610 
74110 
74190 Aircraft, passengers an d cargoes services in 
airports The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
74590 Ice-breaking fleet service The Ministry of Economic Development and 
Trade of the Russian Federation on 
submission of the Ministry of Transport of the 
Russian Federation and on agreement with the Ministry of Finance of the Russian Federation  
74620 Aeronavigation services of aircraft The Ministry of Transport of the Russian 
Federation (the Federal Aviation Service) 
7511 
752 7524 Certain postal and electronic communication 
services, communication services in respect of broadcasting of programmes of Russian state 
TV and radio organizations The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian Federation. 
75111 75112 Domestic postal items: letters, post cards, 
parcels (only for State Post office) The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian Federation. 
7522 75232 Domestic telegram (only for State Post office) The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian Federation. 
75212 Provision of a long-distance telephone link 
(connection) through an automatic or manually 
operated switchboard irrespective of a type 
device used by subscribers The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
7541 Provision of trunk telegraph and telephone 
communications channels to organizations 
funded by corresponding budgets The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
7524 Distribution and broadcasting of All-Russia 
television and radio programs The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
7521 Provision of access to the telephone network 
irrespective of the type of lines employed by 
subscribers (wire or wireless lines) The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
75211 Provision of a local telephone link (connection) The Ministry for Anti-Monopoly Policy and 
Support of Entrepreneurship of the Russian 
Federation. 
 
 WT/ACC/SPEC/RUS/25 
Page 18  
 
Table 8:   List of Goods and Services for Internal  Consumption for which prices are regulated by the 
Government of the Russian Federation and Sub-Federal Executive Bodies  
HS code/ 
CPC Description of goods and services Regulating body 
271112 Natural gas distributed to the population and 
building cooperative societies The Executive Bodies of the Subjects of the 
Russian Federation 
271111 Liquefied gas distributed to the population for 
household purposes (except gas to refuel motor 
vehicles) The Executive Bodies of the Subjects of the 
Russian Federation 
271600 Electric power and heat power  Regional Power Commissions on agreement 
with the Federal Energy Commission 
2701 
2704 Solid fuel, furnace fuel for household use and 
kerosene distributed to the population The Executive Bodies of the Subjects of the 
Russian Federation 
3001- 
3006 Mercantile markups on prices for medicines and 
goods of medical designation The Executive Bodies of the Subjects of the 
Russian Federation 
931 933 Social services supplied to the population of the 
Russian Federation The Executive Bodies of the Subjects of the 
Russian Federation 
931 
933 Social services guaranteed by the State and 
supplied to elderly citizens and invalids of the 
Russian Federation The Executive Bodies of the Subjects of the 
Russian Federation 
71211 Transportation of passengers and baggage by all 
types of public transport, including urban, 
subway and suburban transport (except railway 
transport) The Executive Bodies of the Subjects of the 
Russian Federation 
9703 Funeral services The Executive Bodies of the Subjects of the 
Russian Federation 
9401 18000 Water supply and sewage systems services The Executive Bodies of the Subjects of the 
Russian Federation 
82101 82201 Payments for public utilities by the population The Executive Bodies of the Subjects of the 
Russian Federation 
 
 
Table 9:  List of Services for Internal Consumption for which the Sub-Federal  
Executive Bodies have the right to introduce regional regulations over prices (tariffs) and markups  
CPC Description of goods and services Regulating body 
622 Marketing and mercantile markups on prices for 
products and commodities distributed in the Far North areas or territories of equivalent status with 
limited cargo delivery periods The Executive Bodies of the Subjects of the 
Russian Federation 
6310 
642 Markups for products (commodities), distributed 
to public catering enterprises affiliated with 
secondary schools, vocational schools, secondary 
specialized and higher educational institutions The Executive Bodies of the Subjects of the 
Russian Federation 
6222 Mercantile markups for baby food (including food 
concentrates) The Executive Bodies of the Subjects of the 
Russian Federation 
71112 Transportation of passengers and baggage by 
suburban railway transport (upon agreement with 
the Ministry of Railways of the Russian 
Federation), and provided that the losses resulting from tariff regulation are reimbursed from the 
respective budget of the subjects of the Russian 
Federation The Executive Bodies of the Subjects of the 
Russian Federation on agreement with the 
Ministry of Railway Transport of the Russian 
Federation 
71213 71221 Transportation of passengers and baggage by 
motor transport along intra-regional and inter-The Executive Bodies of the Subjects of the 
Russian Federation  WT/ACC/SPEC/RUS/25 
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CPC Description of goods and services Regulating body 
regional routes (inter-repub lican routes within the 
Russian Federation), including taxi 
731 
7221 Local transportation of passengers and baggage 
by local airlines and river transport The Executive Bodies of the Subjects of the 
Russian Federation 
7211 
7212 
7221 7222 
731 
732 Transportation of cargoes, passengers and 
baggage by sea, river and air transport in the Far 
North areas and the territories of equivalent status The Executive Bodies of the Subjects of the 
Russian Federation 
7113 
741 Services rendered by enterprises of the industrial 
railway transport on branch lines. The Executive Bodies of the Subjects of the 
Russian Federation 
 
48. Recalling that the Russian Federation had in dicated that discriminatory pricing for 
transportation on railway freight would be elim inated by 1 March 2002, some members asked the 
Russian Federation if this measure had been impl emented as planned.  The members expected the 
Russian Federation  to treat all import and export ca rgoes on the same basis as domestically produced 
goods, in line with the national treatment requirement s of Article III, and to make a commitment to 
this in the Working Party Report. 
49. Some members expressed strong concerns about the trade distortions caused by state controls 
on the pricing of energy for domestic  consumption (whether in the form of gas, oil or electricity).  The 
effect of these controls was to depress prices for do mestic industrial users and to lead to a very wide 
differential between the price paid by domestic indus trial users and the price paid by export customers 
as well as the world market price.  This price differen tial was in the order of as much as 6 to 1 for gas, 
5 to 1 for electricity and 4 to 1 for oil. This dual pricing contributed to an indirect subsidisation of 
Russian industrial producers, as they do not have to pay a full market price for their energy inputs.   This situation had implications for the ability of imported goods to compete on the Russian market 
and could lead to a displacement of member products from third country markets. Moreover, the non-
market pricing of such inputs rendered price comp arisons in trade defence investigations (anti-
dumping and anti-subsidy) problematic.  Also, as a result of the non-market pricing of such inputs, 
Russian exports of "downstream" intermediate or fi nished goods, particularly of products that are 
energy-intensive such as fertiliser or metals, can take  place at prices below their normal value, leading 
to the possibility that they could face anti-dumping or  countervailing actions in export markets.  Thus 
member recognised that this is an area wher e the Russian Federation had begun a process of 
regulatory reform, which could be achieved overnight, and also understood that the Russian 
Federation could wish to maintain controls on the price of energy sold for domestic household 
consumption.  But this member considered that the opportunity of WTO accession should be taken to tackle the negative impact of dual pricing in favour of manufacturing industry at its source.  The 
member considered that the progressive phasing-out of these subsidies - together with the phasing-out WT/ACC/SPEC/RUS/25 
Page 20  
 
of export duties applied on associated products and a broader regulatory reform in the energy sector - 
would also benefit the wider economy of the Ru ssian Federation by allowing for a more rational 
resource allocation and stimulating greater investment and competitiveness. 
50. Members invited the Russian Federation to enter a commitment to apply price control 
measures in a WTO-consistent manner and to ta ke into account the interest of exporting WTO 
Members as provided for in Article III:5 of the GATT 1994 in the application of its price controls.  
A commitments was also sought that the Russian Federation would publish notices of the goods and policy subject to state price controls and would continue to do so after accession. 
51. [The representative of the Russian Federation confirmed the Russian Federation would apply 
the price controls on products and services contained in Tables […], and any similar measures that are 
introduced or reintroduced in future, in a WTO consis tent manner, and take account of the interests of 
exporting members as provided for in Article III: 9 of GATT 1994.  From the date of accession, the 
Russian Federation will publish lists of goods and se rvices subject to State price controls in its 
Official Gazette, including the list in Tables […] and any changes from that list.]    
- Competition Policy 52. The representative of the Russian Federation stated that his authorities attached great 
importance to competition policy.  Noting that it wa s not fully covered by current WTO provisions, 
the Russian Federation closely followed the work of the WTO Working Group on the interaction 
between trade and competition policy.  The basic goa l of competition policy in the Russian Federation 
was to promote and maintain, wherever viable, fair market competition among economic operators.   
53. He noted that anti-competitive market structur e and unfair business practices that impeded 
competition could be addressed thro ugh the application of the Anti-mo nopoly legislation.  To this 
end, antimonopoly legislation had been adopted, including Federal Law No. 948-1 of 22 March 1991 
"On Competition and Restriction of Monopoly Ac tivity on Commodity Markets" (as amended on 
24 June 1992, 25 May 1995 and 2 January 2000);  Federal Law  No. 2-FZ of 9 January 1996 "On Making Amendments and Supplements to Fede ral Law No. 2300-1 of 7 February 1992 "On 
Consumers Rights Protection" and the Code of th e RSFSR On Administrative Offences" (as amended 
on 17 December 1999) and Federal Law No 117-FZ of 23 June 1999 "On Protection of Competition 
in the Financial Services Market".  The Russian legi slation in force contained, therefore, all the basic 
elements of state supervision and control over ag reements (Concerted Actions) of economic operators 
restricting competition, abuse of dominant pos ition on the market by economic operators, and 
economic concentration.    WT/ACC/SPEC/RUS/25 
 Page 21 
 
 
54. He further noted that another important element of the Russian anti-monopoly legislation 
related to preventing, limiting and suppressing unfa ir competition.  According to Article 3.1 of  
Federal Law 948 or 22 March 1991 "On Competiti on and Limitation of Monopolies in Commodity 
Markets" (as amended on 24 June 1992, 25 May 1995, 2 January 2000), the role of the Ministry of 
Anti-monopoly Policy of the Russian Federation (MAP) was to assist the development of commodity 
markets and competition, and to prevent, restrain and prosecute formation of  monopolies and unfair 
competition. 
55. Members requested details on the role of MAP and its interaction with other federal or sub-
federal agencies with responsibilities in the competition field.  Clarification was sought on the availability of public information, on the role and responsibilities of the Ministry vis-à-vis Russian 
and foreign companies and on specific actions taken by the Ministry, such as investigations and the 
nature of remedies in the case of  established anti-competitive practices. 
56. In response, the representative of the Russian Fe deration explained that the main functions of 
MAP included the introductio n of legislative initiatives in the field of anti-monopoly activity, the 
development and execution of measures on demonopolization of production and distribution, the 
monitoring of compliance with anti-monopoly require ments in the establishment, reorganization and 
liquidation of economic enterprises.  The Ministry conducted a preliminary review and control on 
establishment and mergers, the affiliation of co mmercial organizations or their association,  
transactions of acquisitions of rights or shares in the capital of commercial organization and  receipt 
by a person (or group of persons) of ownership of fixed and intangible assets of another person.  These functions were realized through prior approv al or notification by antimonopoly organs.  He 
added that under Article 71.g of the Constitution of the Russian Federation, competition policy did not 
fall within the jurisdiction of regional authorities. 
57. He further explained that MAP regulated th e securities market and banking and insurance 
services markets under Federal Law No. 117-FZ of 23 June 1999 "On Protection of Competition in 
the Financial Services Market" and in conjunction w ith other federal authorities of executive power.  
In 2000, MAP had identified 7,570 violations of  the provisions of Federal Law No. 948-1 of 
22 March 1991 "On Competition and Limitation of Monopolies in Commodity Markets".  Of these, 
6,510 lawsuits were filed in prosecution of the violations identified.  Over 2,700 orders to remove the 
violation were given.  The bigger part of the violations identified dealt with abuse of dominant 
position in the market place by busin ess corporations (11 per cent of all lawsuits filed).  Abuse of 
dominant position in the marketplace by business co rporations was identified mainly in connection 
with companies enjoying natural monopolies:  h eat and power engineering (35 per cent of total WT/ACC/SPEC/RUS/25 
Page 22  
 
violations);  communications (15 per cent);  transpor tation (10 per cent, mostly in railway transport);  
and in housing and utilities.   
58. He confirmed that the activities of MAP and its  territorial divisions were reported in the 
journal "Antimonopoly Ministry Newsletter", on the web site of the Ministry ( www.maprus.ru
), and 
once a month through press conferen ces or round-table discussion.   
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
Powers of executive, legislative a nd judicial branches of government 
- Branches of State Power, Federal Structur e and Delimitation of Jurisdiction between 
Federal and Sub-Federal Authorities 
59. The representative of the Russian Federation no ted that, in accordance with the Constitution, 
State power in the Russian Federation was exercised by the President of the Russian Federation, the 
Federal Assembly (the Council of the Federation and the State Duma), the Government of the Russian 
Federation, and the courts of the Russian Federation. 
60. The President of the Russian Federation was the He ad of State.  He determined the guidelines 
of domestic and foreign policies of the State.  Pendin g resolution of a matter by the appropriate court,  
the President had the right to suspend the operatio n of acts of the executive power bodies of the 
"subjects"2 of the Russian Federation if they were not in compliance with the Constitution of the 
Russian Federation, federal laws and internatio nal commitments of the Russian Federation.   
61. Executive power in the Russian Federation was exercised by the Government of the Russian 
Federation.  The Government ensured the implementa tion in the Russian Federation of a single trade, 
financial, credit and monetary policy, including the establishment of the customs tariff;  the 
implementation of foreign policy;  and the implemen tation of measures required to ensure the rule of 
law. 
62. The Federal Assembly (the Parliament of the Russian Federation) was the representative of 
the legislative authority in the Russian Federation.  It consisted of two chambers - the Council of the 
Federation and the State Duma.  The Council of the Federation included two representatives from 
each subject of the Russian Federation: one from the legislative and one from executive body of state 
power.  The composition of the Council of the Fe deration was also determined by Federal Law 
                                                      
2 Proceeding from Article 5 (1) of the Constitution of the Russian Federation, the term "subjects" of the 
Russian Federation includes republics, regions, oblast, cities of federal importance, autonomous regions and  WT/ACC/SPEC/RUS/25 
 Page 23 
 
 
No. 113-FZ of 5 August 2000 "On the Order of Form ation of the Council of the Federation of Federal 
Assembly of the Russian Federation".  The State Duma  consisted of 450 deputies elected for a term of 
four years.  The composition of the State Duma  was determined by Federal Law No. 121-FZ of 
24 June 1999 "On Election of Deputies to the State Duma of the Russian Federation" (as amended on 
12 April and10 July 2001).  Both chambers were involved, inter alia, in the adoption of the federal 
laws on federal budget, federal taxes and dues, fi nancial, currency, credit, customs regulation and 
monetary issues, ratification and de nunciation of international treaties and agreements of the Russian 
Federation. 
63. The right of legislative initiative was vested with the President of the Russian Federation, the 
Members of the Council of the Federation, the Depu ties of the State Duma, the Government of the 
Russian Federation, and the legislative bodies of the subjects of the Russian Federation.  The right of 
legislative initiative was also vested with the Co nstitutional Court of the Russian Federation, the 
Supreme Court of the Russian Federation, the Superi or Court of Arbitration of the Russian Federation 
in matters under their jurisdiction. 
                                                                                                                                                                     
autonomous areas.  Article 65 of the Constitution contained the exhaustive list of  "subjects" of the Russian 
Federation. WT/ACC/SPEC/RUS/25 
Page 24  
 
64. The judicial system of the Russian Federation was instituted by the Constitution of the 
Russian Federation and Federal Constitutional Laws  No. 1-FKZ of 31 December 1996 "On Judicial 
System of the Russian Federation" ;  No. 1-FKZ of 21 February 1994 "On Constitutional Court of the 
Russian Federation"(as amended on 8 February 200 1);  and No. 1-FKZ of 28 April 1995 "On 
Arbitration Courts in the Russian Federation".  Judicial power was exercised by means of 
constitutional, civil, administrative and criminal court proceedings.  Besides the rules of civil 
procedure in federal courts of  general jurisdicti on established by the Civil Procedure Code of the 
RSFSR of 18 December 1965, the procedure for the settlement of disputes by arbitration courts was 
stipulated by the Arbitration Procedure Code of the Russian Federation No. 70-FZ of 5 May 1995.  The rates of state fees for claims or other statements  or complaints submitted to the courts of general 
jurisdiction or to arbitration courts  were established in Federal Law  No. 2005-1 of 9 December 1991 
"On State Fees".  The administration of  Justice in the Russian Federation was exercised by courts 
only.  The judicial power was separated and acted independently of the legislative and executive powers.   
65. Members asked confirmation on the uniform application of WTO provisions throughout the 
territory of the Russian Federation as well as an on  the extent of central authority to enforce WTO 
requirements vis-à-vis sub-central entities.  More in formation was also sought on the hierarchy of 
legislative acts in the Russian Federation, together  with an explicit statement on the status of 
international agreements like the WTO vis-à-vis Russian law and whether the Protocol of Accession 
to WTO was deemed to be a "treaty" for this purp ose, and a description of how, in legal terms, the 
protocol package would be ratified and WTO rule s and commitments implemented in the Russian 
Federation.  Further information was required on whether there were any areas relating to matters 
under WTO provisions where sub-federal entities might have exclusive jurisdiction.  A clarification 
was therefore needed on whether the authorities of the Russian Federation would be required to 
submit the approved protocol package to sub-centr al entities for their approval in the ratification 
process. 
66. In response, the representative of the Russia n Federation recalled that the Republics within 
the Russian Federation had their own constitutions and legislation.  The territories, regions, cities of 
federal importance, autonomous regions and autonomous areas had their charters and legislation.  
According to the Constitution of the Russian Federati on, the legislation of the subjects of the Russian 
Federation should not contradict th e federal legislation adopted within  the jurisdiction of the Russian 
Federation and the joint jurisdiction of the Russian Federation and its subjects .  In case of 
contradiction between a federal law and any other act  issued in the Russian Federation within federal 
and joint jurisdiction of the Russian Federation and its subjects the federal law should be applied.    WT/ACC/SPEC/RUS/25 
 Page 25 
 
 
67. He noted that Federal Law No. 184-FZ of 6 Oc tober 1999 "On the general principles of the 
organisation of the legislative (representative) and executive organs of state power of the subjects of 
the Russian Federation" (as amended on 29 July 2000, 8 February 2001) established a mechanism to 
ensure the conformity of the constitutions, laws and other legal acts of the subjects of the Russian 
Federation with the Constitution of the Russian Fe deration and the federal laws.  The President had 
the right to make recommendations aimed at ensuri ng that the law of the subjects of the Russian 
Federation, or other normative legal acts of legislat ive bodies of state power of the subjects of the 
Russian Federation, should conf orm with the Constitution of th e Russian Federation, federal 
constitutional laws and federal laws to legislative bodies of state power of the subject of the Russian  
Federation. 
68. As noted above, the President had the right to suspend the operation of acts of the executive 
power bodies of the subjects of the Russian Fede ration if they were not in compliance with the 
Constitution of the Russian Federation, federal la ws or international commitments of the Russian 
Federation. 
69. He further explained that the Constitution provi ded for the clear jurisdiction of the Russian 
Federation and the joint jurisdiction of the Russian Federation and its subjects.  The jurisdiction of the 
Russian Federation included the establishment of  the principles of federal policy and federal 
programmes in the sphere of state, economic, ecol ogical, social, cultural and national development of 
the Russian Federation;  establishment of legal prin ciples of a single market, as well as financial, 
currency, credit, customs regulation and monetary is sues;  the principles of pricing policy;  federal 
economic services, including federa l banks, federal budget, federal taxes and dues, federal funds of 
regional development;  foreign policy and internat ional relations of the Russian Federation;  
international treaties and agreements  of the Russian Federation;  issues of war and peace;  foreign 
economic relations of the Russian Federation;  federal power systems, including nuclear power-
engineering, fission materials, fe deral transport, railways, inform ation and communication, and outer 
space activities.  The joint jurisdiction of the Russ ian Federation and the subjects of the Federation 
included issues relating to the ownership, use, and disposal of land, mineral resources, water and other 
natural resources;  delimitation of state property;  establishment of general principles of taxation and 
levying of dues resulting from the fulfilment of the Russian Federation's international treaties. 
70. He said that generally recognised principles an d norms of international law and international 
treaties to which the Russian Federation was part y were constituent part of its legal system.  
According to Article 15 of the Constitution of the Russian Federation, if an international treaty to 
which the Russian Federation was party provided for other rules than those set forth by Russian 
Federation domestic law, the rules of th e international treaty would apply.   WT/ACC/SPEC/RUS/25 
Page 26  
 
71. According to Article 3 of Federal Law No. 157-FZ of 13 October 1995 "On State Regulation 
of Foreign Trade Activity" (as amended on 8 July 1997, 10 February 1999), foreign trade in the 
Russian Federation was regulated by the Constitutio n of the Russian Federation, federal laws and 
other legal acts of the Russian Federation and by  the international treaties to which the Russian 
Federation was a party.  Article  6 of said Law provided for, inter alia , the jurisdiction of the Russian 
Federation to form the concept and strategy of th e development of foreign trade relations and the 
basic principles of the foreign trade policy;  to ensure the economic security and protection of the economic sovereignty and economic interests of th e Russian Federation, as well as the economic 
interests of the subjects of the Russian Federation and of the Russian persons;  and to conclude 
international treaties in the fiel d of foreign economic relations. 
72. Federal Law 1999 No. 4-FZ of 2 January 1999 "On Co-ordination of International and 
Foreign Economic Ties of the Subjects of the Russian Federation" provided the subjects , inter alia , 
with the right to negotiate and conclude agreements  with their partners on international and foreign 
economic ties.  Such agreements could not contra dict federal legislation and the international 
commitments of the Russian Federa tion.  The Law made it compulsory for the subjects to notify the 
appropriate federal authorities before entering into  negotiations, and set fo rth a procedure of prior 
approval of the draft agreed text of the agreem ent by the appropriate fe deral authorities.  The 
agreements concluded by the subjects of the Russ ian Federation were not considered international 
treaties.   
73. As noted above, the right to conclude internat ional treaties fell within the jurisdiction of the 
Russian Federation.  But if an in ternational treaty of the Russian Federation affected issues falling 
within the jurisdiction of the subjects of the Russian  Federation, such a treaty should be concluded in 
co-ordination with relevant bodies of the interested subjects of the Russian Federation.  This provision 
was contained in Federal Law No. 101-FZ of 15 July  1995 "On international treaties of the Russian 
Federation".  As regards internati onal treaties of the Russian Federatio n affecting issues falling within 
the joint jurisdiction of the Russian Federation and the subjects of the Russian Federation, the Law 
established that federal bodies of executive power should send the main provisions or the draft of a  
treaty to the state power bodies of  the interested subject of the Federation.  Proposals received from 
the subjects were considered in the course of prepar ation of the draft of the international treaty.   
74. He further explained that under the Russian le gislation, an international treaty meant an 
international agreement concluded by the Russian Federation with a foreign State (or States) or with 
an international organization in wr itten form and governed by interna tional law, regardless of whether 
such an agreement consisted of one document or se veral interrelated documents, and also regardless 
of its specific name.  The Protocol of Accession to  the WTO would have the status of an international  WT/ACC/SPEC/RUS/25 
 Page 27 
 
 
treaty and as such become an integral part of the legal system of the Russian Federation.  The Protocol 
of Accession to the WTO should be subject to ratificat ion.  The ratification of the international treaties 
of the Russian Federation was to be effected in the form of federal law. 
75. He further noted that, in accordance with the Constitution of the Russian Federation, the 
Constitution itself and federal laws had supremacy over  the whole territory of the Russian Federation.  
The bodies of state authority, the bodies of local self-government, officials, private citizens and their 
associations were to observe the Constitution of th e Russian Federation and laws.  Besides, according 
to Federal Law No. 101 FZ of 15 July 1995 "On In ternational Treaties of the Russian Federation",  
the international treaties of the Russian Federation were subject to conscientious execution in 
accordance with the conditions of the international tr eaties themselves, the norms  of international law, 
the Constitution of the Russian Federation, this Law and any other legislative acts of the Russian Federation.  This Law also contained rules on ensu ring the execution of the international treaties of 
the Russian Federation by the President and the Government of the Russian Federation, federal bodies of the executive authority, bodies of state authority of the relevant subjects of the Russian Federation. 
76. Any administrative decision on issues covered by the WTO Agreement could be appealed.  
Depending on the issue concerned appeals could be ad dressed either to the Government or its agency 
which controlled the activity of the body responsible for such decision, or the respective court of  
jurisdiction.  In particular procedures of the admini strative appeal were stipulated in the Tax Code of 
the Russian Federation and the Customs Code of the Russian Federation.   
77. Members considered that a more explicit descri ption was required regarding to the right of 
administrative appeal, in particular concerning the right of appeal to an independent tribunal or 
judicial review and the procedures applied (e.g. fees, timetables, etc.).  Members also requested additional information on how the Government of  the Russian Federation was working with the 
Experts Committee of the Duma to ensure that WTO- inconsistent draft laws would not be enacted and 
that those already in place would be phased out.  They also felt that standard Protocol commitment 
language would be required to clarify the right and the willingness of the central Government to take 
the initiative to overrule any WTO-inconsistent meas ures which might be identified and to provide the 
right of appeal to an independent tribunal or judicial review as necessary. 
78. [The representative of the Russian Federation confirmed that the provisions of the WTO 
Agreement should be applied uniformly throughout the Russian Federation's customs territory and 
other territories under the Russian Federation's control, including in regions engaging in border trade 
or frontier traffic, special economic zones, and other areas where special regimes for tariffs, taxes and regulations were established.  He added that, wh en informed of a situation where WTO provisions WT/ACC/SPEC/RUS/25 
Page 28  
 
were not being applied or were applied in a no n-uniform manner, central authorities would act to 
enforce WTO provisions without requiring affe cted parties to petition thought the courts.] 
79. [The representative of the Russian Federation also confirmed that in matters involving 
international trade subject to WTO provisions, his authorities would provide the right to appeal to an 
independent tribunal or judicial review, in confor mity with WTO obligations, including Article X:3(b) 
of the GATT 1994.] 
POLICIES AFFECTING TRADE IN GOODS 
Trading Rights (the righ t to import and export) 
80. Some members noted that laws and regulations relating to the right to trade in goods (also 
referred to as "registration requirements" or "act ivity licencing") should not restrict imports in 
violation of the general prohibition on quantitative re strictions in Article XI:1 of the GATT 1994, nor 
should they discriminate against imported goods in violation of the non-discriminatory provisions of Article III:4 of the GATT 1994.  Furthermore, fees and charges levied on the right to import should be 
limited to the cost of services rendered as under Article VIII:1(a) of the GATT 1994, and taxes and 
charges on the right to trade in imported goods shou ld not lead to discrimination in favour of like 
domestic products as required by Article III:2 of the GATT 1999. 
81. The representative of the Russian Federation said  that the Russian Federation did not restrict 
the right of persons or entities to import or to export .  He recalled that the elimination of the State 
monopoly in foreign trade was proclaimed by Presidential Decree No. 213 of 15 November 1991 "On Liberalisation of Foreign Economic Activity on the Territory of the Russian Soviet Federal Socialist 
Republic" (as amended on 27 October 1992) under whic h all enterprises were given the right to carry 
out foreign economic activities, whatever their fo rm of ownership. This principle was further 
embodied in the Civil Code and the C onstitution of the Russian Federation.  
82. He said that trading rights in foreign trade on  the territory of the Russian Federation had been 
further described in Federal Law No. 157-FZ of 13 October 1995 "On the State Regulation of the 
Foreign Trade Activity". Article 2 of this law stipulat ed that foreign trade activity could be carried out 
both by Russian as well as foreign participants of foreign trade activities. Foreign participants of 
foreign trade activities were legal en tities or natural persons recognised as such by the law of foreign 
states. If foreign companies or natural persons carried out foreign trade activity (exportation or 
importation) as foreign partic ipants of foreign trade activity, they di d not need to be registered or have 
any investments in the Russian Federation. The Ru ssian Federation particip ants of foreign trade  WT/ACC/SPEC/RUS/25 
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activities were Russian juridical entities or natura l persons who had obtained state registration as 
juridical entities or individual entrepreneurs in accordance with the Russian law. 
83. The registration of legal entities and natural persons as individual entrepreneurs was 
performed in accordance with Article 51 of the Civ il Code and Presidential Decree No. 1482 of 8 July 
1994 "On Streamlining of State Registration of Ente rprises and Entrepreneurs in the Territory of the 
Russian Federation". The registration of a legal entit y required the submission of an application, the 
charter of the legal entity in question approved by its founders, a documentary confirmation of 
payment of no less than 50 per cen t of the charter capital of the firm, and a certificate of payment of 
state duty in the amount of 252 Rubles. The registration of a natural person as an individual entrepreneur required an applicatio n from that person and a document confirming the payment of the 
registration charge in the amount of 100 Rubles. De nial of registration could be appealed through a 
judicial procedure. The registratio n act permitted the enterprise/indivi dual entrepreneur to engage in 
economic activity, including foreign trade activity. 
84. The same principles were laid down in Federal Law No. 129-FZ of 8 August 2001 "On State 
Registration of Juridical Persons" which regulated the registration of the establishment, reorganisation 
or liquidation, and introduction of  amendments to instituting documents of, legal entities; and the 
conduct of the State Registry of legal persons.  The law established the order for the registration of 
legal entities and did not contain any restrictions or discrimination for fore ign founders of legal 
persons. The registration was effected solely by fe deral bodies. The lists of documents necessary for 
the registration of a new legal entity as well as of an entity under reorganisation were stipulated in 
Article 5 of the law (application for registration, description of the organisational form, address, 
copies of instituting documents, and the charter capital) and were exhaustive. Under subparagraph 4 of Article 9, the registering body could not demand any other documents than those mentioned in the 
Federal Law.  Federal Law No. 129-FZ of 8 August  2001  "On Registration of the Juridical Persons" 
would be valid from 1 July 2002.  Subjects of the Russian Federation had no rights to impose the 
requirements on legal or natural persons that might affect their rights to engage in importation or 
exportation of goods. 
85. Article 10 of the Law No. 157-FZ of 13 October 1995 "On the State Regulation of Foreign 
Trade Activity" established that all Russian particip ants of foreign trade activities were permitted to 
undertake foreign trade activity, regardless of the fo rm of their property and without any additional 
special permission or activity licence. This rule had three exceptions. The first was the importation 
and exportation of alcoholic beverages.  Pursuant  to Federal Law No 173-FZ of 22 November 1995 
"On State Regulation of Production and Turnove r of Ethyl Alcohol, Alcoholic and Alcohol-
Containing Products" (as amended on 7 January 199 9), natural persons and legal entities wishing to WT/ACC/SPEC/RUS/25 
Page 30  
 
do business in these areas needed to obtain an activit y licence in the agencies of the Ministry of Tax 
and Charges Collection after their state registration. Conditions and requirements to be fulfilled by the 
enterprises and entrepreneurs were stipulated in Articles 18 – 21 of the said Law. Licensing fees 
provided by Federal Law No. 5-FZ of 8 January 1998 "On Charges for Issuance of Licenses for 
Production and Turnover of Ethyl Alcohol, Alcohol Containing – Products"  were as follows:  
Table 10:  Licensing fees structure for manufacturing, storage, 
 
wholesale, exportation and impor tation of alcoholic beverages  
Types of Activity Licence fees 
(in minimum wages) Equivalent in Roubles 
Manufacturing and wholesale of 
alcoholic beverages 500 50,000 
Exportation of alcoholic beverages 100 or 5003 10,000 or 50,0003 
Importation, storage and wholesale of 
alcoholic beverages 1,000 or 15,0003 100,000 or 1,500,0003 
 
86. The second exception was exports of precious metals and precious stones from the Russian 
Federation in accordance with Pres idential Decree No. 742 of 21 July  2001 "On the Exportation from 
the Russian Federation of Precious Metals and Prec ious Stones".  The third exception related to 
imports and exports of pharmaceutical products (m edicines). According to Federal Law FZ-86 of 
22 June 1998 "On Medicines", the right to exports  and imports of pharmaceuticals was enjoyed by 
Russian participants of foreign economic activ ities, who have a licence for the production or 
wholesale trade of  these goods. Once a company obtained such an activity licence in all three cases mentioned above it would be eligible  for the receipt of import and export licenses each time it wished 
to import or export goods subject to licensing. 
                                                     
 
3 Lesser  fees correspond to payment for single operation license, while larger ones  - for  general  
licence.   Single operation licenses for exports or imports  were issued for delivery of alcoholic products for the 
customs value of up to 10,000 minimum wages (approximately US$32,000)  or of the volume in terms of absolute alcohol of  up to 2,000 decilitres and for duration of  not more than 2 months. The general licence was 
issued for exports or imports of alcoholic products for the period of one year starting from the date of issuance 
of this licence.  WT/ACC/SPEC/RUS/25 
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87. The registration requirement for export contracts had been originally introduced by 
Resolution of the Russian Government No. 758 of 1 July 1994, and had now been repealed by 
Resolution of the Russian Government No. 300 of 21 March 1996. Registration of import contracts 
had never been practised in the Russian Federation. Thus the Russian Federati on did not maintain any 
special registry of import or export contracts. There  were no plans to restore such registration in any 
form. 
88. Members noted that the Russian Federation had confirmed the elimination of the state-trading 
monopoly and had described the nature of the requir ements placed on individuals and firms that wish 
to import and export. They felt however that more  information was still requ ired on laws relating to 
the registration of enterprises and the regulati on of trading activity whic h were being currently 
drafted.  In particular, an outline  describing how these laws would make registration requirements for 
the right to import and export transparent and non -discriminatory was requested.  Information was 
also requested on whether the requirement that impo rt and export contracts be registered would be 
restored. More information was also needed concerni ng the requirements imposed by subjects of the 
Russian Federation on legal or natural persons that migh t affect their right to engage in importation or 
exportation of goods. 
89. Some members expressed concern over the restrictive consequences of the current system of 
activity licencing for the sale of alcoholic bevera ges.  Information was requested on the Russian 
Federation's intention to introduce new legislation in this area.  Noting that the fees charged for the 
right to trade in imported alcoholic beverages greatly exceeded those charged for domestic distribution or export, these members felt that more detail was also required on  this and on any other 
activity licencing fees associated with importation.  
90. Some members also asked clarification on wh ether the Russian Fede ration maintained any 
restrictions or requirements other than tariffs on the importation of precious metals and stones, notably whether imports of these products were also restricted by licencing, or whether it was 
necessary to import them through specific customs posts as was the case with diamond exports.  Some 
members further requested information on the terms and structure for activity licencing for 
pharmaceuticals, particularly in regards to any requ irements for imports that might differ from those 
applied to domestic production. These members also  requested the Russian Federation to confirm that 
the ability to request an activity licence for tr ade in pharmaceuticals was reserved to Russian 
Federation firms and to explain what that meant in  practice for foreign-owned firms in the Russian 
Federation, foreign exporting firms not established in  the Russian Federation, and domestic or foreign 
sole practitioners seeking to export pharmace uticals to the Russian Federation.   WT/ACC/SPEC/RUS/25 
Page 32  
 
91. Some members further noted that, typically in the accession processes, a commitment was 
taken that laws and regulations relating to the right  to trade in goods, and all fees, charges or taxes 
levied on such rights, would be in full conformity with the acceding government's WTO obligations, 
including Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994, and that the relevant laws and 
regulations would be applied in full conformity with these obligations.  In the case of exemptions that 
might be granted from certain fees for imports from certain countries, these members also noted that a 
measure of this kind would constitute a viola tion of Article I of the GATT 1994 and should be 
eliminated. 
92. [The representative of the Russian Federation confirmed that the former State monopoly in 
foreign trade had been abolished and that no restrict ions existed on the right of foreign and domestic 
individuals and enterprises registered in the Russian  Federation to import and export goods within the 
Russian Federation's customs territo ry, except as provided in the WTO Agreements.  He confirmed 
that individuals and firms were not restricted in  their ability to import and export based on their 
registered scope of business, and that the criteria for registration were generally applicable and 
published in the Official Gazette.] 
93. [The representative of the Russian Federation also confirmed that the Russian Federation 
would ensure that its laws and regulations relating to  the right to trade in goods and all fees, charges 
or taxes levied on such rights were in full conf ormity with its WTO obligations, including Articles 
VIII:1(a), XI:1, III:2 and III:4 of the GATT 1994 , and that the Russian Federation would also 
implement such laws and regulations in full conformity with its obligations.] 
Import Regulations  
- Customs Regulations and Customs Tariff 94. The representative of the Russian Federation recalled that the Russian Federation had been an 
active member of the World Customs Organization even before gaining full membership on 
8 July 1993.  The Russian Federation had joined the International Convention on the Harmonized 
Commodity Description and Coding System on 1 January 1997.  Federal Law No. 5003-1 of 
21 May 1993 "On Customs Tariff" and the Customs Code constituted the legal framework for the customs regime of the Russian Federation. The right of appeal against decisions of Customs was 
ensured, inter alia, by Articles 17 and 404-419 of  the Customs Code. The Customs Code had been 
applied with minor changes since 1993. The new draft of the Customs Code and draft Chapter 27 of 
the Tax Code contained provisions on customs procedures and customs administration system in full conformity with the relevant WTO Agreement.  WT/ACC/SPEC/RUS/25 
 Page 33 
 
 
- Ordinary Customs Duties 
95. The representative of the Russian Federation explained that the structure of customs tariffs 
was regulated by Federal Law No. Law No. 5003-1 of 21 May 1993 "On Customs Tariff" (as amended 7 August, 25 November and 27 December 1995, 5 February 1997, 10 February and 
4 May 1999, 27 May 2000). Tariff rates could be  changed by government decisions based on 
proposals by the Governmental Commission on Customs and Tariff Policy and Trade Remedies 
Measures, also taking into account Russia' s international commitments. 
96. He said that his authorities planned to repla ce as from 1 January 2003 the Law "On Customs 
Tariff" by Chapter 27 of the Tax Code, entitled "T he Customs Duties and Customs Charges", which 
would be completely in conformity with the provisions of the GATT 1994 and the WTO Agreements. 
This Chapter would also contained a full descrip tion of customs valuatio n procedures fully in 
conformity with the WTO Agreement on Implementation of Article VII of the GATT 1994. 
97. He noted that the Resolution of the Gove rnment No.1560 of 27 December 1996 had 
introduced a commodity description and classification system based on HS 96, replacing as from 
1 January 1997 the HS 92 previously used. A new commodity description and classification system 
entered into force on 1 January 2002 based on HS 2002. The customs tariff consisted of 11,032 tariff lines. The significant majority of tariff items were subject to ad valorem  tariffs; 1,515 tariff items 
were subject to compound (mixed) rates ( ad valorem  and specific duties); and 76 tariff items were 
subject to specific rates (apples, chocolat e, beer and strong alcoholic beverages). The ad valorem  rates 
and ad valorem equivalents of combined and specific rates ranged from 0 to 30 per cent, except for 
ethyl alcohol and beer. 
Table 11:  Tariff structure
 
Tariff rate (per cent) Number of tariff items 
0 46 
5 3,989 
10 1,890 
15 3,120 Tariff rate (per cent) Nu mber of tariff items 
20 1,824 
25 108 
30 5 
above 30 50 
 WT/ACC/SPEC/RUS/25 
Page 34  
 
Table 12:  Tabulation of the trade weighted average customs tariff rates
 
Year Percentage 
1995 16.0 
1996 17.7 
1997 13.3 
1998 12.8 
1999 11.7 
2000 11.4 
2001(estimated) 10.7 
 
98. Tariff rates were established following the basi c criteria that (i) tariffs were the major trade 
policy measure applied to protect domestic industrial and agriculture production; (ii) tariffs were 
considered measures of both trad e and fiscal policy; (iii) tariff s were a function of economic 
development, in particular, the technological restruct uring of the economy. The most recent version of 
the Customs Tariff of the Russian Federation was introduced by the Resolution of the Government 
No. 148 of 22 February 2000 (as amended on 27 November 2000) which contained MFN rates of 
import customs duties for all 11,032 tariff lines. The rates of customs duties applicable to the products 
originating from the countries wi th which the Russian Federation did not apply MFN treatment 
double MFN rates. The import customs duties applic able to products originating from countries 
enjoying the Russian Federation' s GSP scheme and th e subject of their tradition al exports were levied 
at the level of 75 per cent of the MFN rates (exc ept for raw sugar where a tariff rate quota mechanism 
was used). 
99. Resolution of the Government No. 886 of 27 November 2000 substantially revised 
downwards and levelled out the customs duties (in approximately 3,500 tariff positions out of 
11,032). As a result of this unification customs ta riffs for nearly all goods categories were grouped 
under broader headings (raw materials, semi-finis hed products, finished products, foodstuffs) with 
duty levels of 5, 10, 15 and 20 per cent, respectively. These changes, which took effect on 1 January 2001, were aimed at liberalisation of im ports of modern technologies and machinery into 
the Russian Federation, countering illegal practices at customs and improving the effectiveness of 
customs payment collection. 
100. Noting that the Law  "On Customs Tariff" was being amended and other relevant laws were 
being drafted, some members felt that the Working Party should review the provisions of these new 
laws, particularly as they might relate to WTO obligations. These members also asked information on 
the application of tariffs, includi ng the establishment of the taxable base value for assessing duties and 
taxes on imports, and the position of any other taxes an d charges, for instance whether the tariff base  WT/ACC/SPEC/RUS/25 
 Page 35 
 
 
of the customs value was on a f.o.b. or c.i.f. basis, the basis on which VAT or excise tax were applied, 
etc.  They further asked whether there were any ad valorem  equivalents above 30 per cent on 
non-agricultural products and, if that was the case, to list the corresponding HS tariff lines of such 
products. One member also asked whether future GSP schemes would continue to provide for the 
75 per cent of the MFN rates.    
- Tariff Quotas, Tariff Exemptions 101. Some members requested a description of the current and prospective legal authority for 
auctioning licenses and quotas in the Russian Federation.  In this regard, these members noted that any method of allocating quotas or licenses should be consistent with WTO provisions, notably Articles II, XI, and XIII of the GATT 1994, the Agreement on Import Licensing Procedures and 
Article 4 of the Agreement on Ag riculture. In any case, full deta ils of tariff quota administration 
measures should be provided in or der to assess their WTO conformity. 
102. The representative of the Russian Federation replied that Federal Law No. Law No. 5003-1 of 
21 May 1993 "On Customs Tariff" provided the legal framework for the establishment of tariff rate 
quotas as a part of free trade agreements and the GSP scheme. These tariff quotas could be applied for 
agricultural and industrial goods. In general, tari ff rate quotas allowed import at zero (or reduced) 
tariffs. The only tariff rate quota currently in place (on raw sugar originating from countries enjoying 
Russia' s GSP scheme) had been opened under Govern ment Resolutions No. 572 of 27 July 2000 and 
No. 622 of 23 August 2001. TRQs on raw sugar had been allocated by auction among companies.  
The auction was open to all Russian participants of  foreign economic activities.  This method of 
allocating TRQs was transparent, ba sed on market principles and in line with Articles II, XI and XIII 
of the GATT 1994, as well as Article 4 of the WT O Agreement on Agriculture, as the payments made 
by the winner of the auction were not a tax, or duty or charge, but the fee due for the service of 
conducting the auction.   Several members stated that to the extent that the auction charges exceed Russia's tariff bindings, they would be inconsistent  with Russia's WTO obligations under Article II of 
the GATT, and allocation of quotas without regard to Articles XI and XIII would also violate WTO 
provisions. 
103. The representative of the Russian Federation further noted that exemptions from the payment 
of customs duty could be granted only in accordan ce with the provisions of Federal Law No. 5003-1 
of 21 May 1993 "On Customs Tariff". Article 35 of the said Law established the list of goods which 
were not subject to customs duties, such as goods in  transit; printed or recorded materials related to 
culture, science, education; items imported by fore ign diplomatic and consular offices in the Russian 
Federation in accordance with their needs and requi rements for official purposes; articles for personal WT/ACC/SPEC/RUS/25 
Page 36  
 
use when travelling abroad; goods destined for disa ster relief and humanitarian purposes; industrial 
and other equipment related to foreign investment, etc. Exemptions could be also granted under 
Articles 34, 36 and 37 of the said Law ("Commitmen ts under International Agreements") on the basis 
of tariff rate quotas; tariff preferences; free trade agreement and GSP scheme.  Tariff exemptions 
other than those provided for in the context of a free trade agreement or GSP scheme were applied on 
a MFN basis. 
104. Some members requested confirmation of whet her the Russian Federation also intended to 
provide legal authorization for the use of TRQs to re gulate general imports or if this would be limited 
to GSP imports.  These members required a more precise understanding of the methods of allocation 
and other aspects of the system that the Russian  Federation indented to adopt in this field. 
105. Some members further asked a clarification on whether the notion that only "Russian 
participants of foreign economic activities" participated in TRQ auctions included foreign-owned 
firms established as Russian juridical persons.  These members also requested a confirmation that 
there were no eligibility requirements to participate in TRQ auctions that would favour local 
production, such as requirements to enter into cont racts to purchase domestic  product or to provide 
domestic producers with inputs.  
- Other Duties and Charges 
106. The representative of the Russian Federation sa id that the Russian Federation did not at 
present apply duties and charges on imports other than ordinary customs duties and charges for 
services rendered.  
107. Noting this statement, some members asked the Russian Federation to enter a commitment 
that the Russian Federation would revise its domestic  law/regulations in this area so as to eliminate 
and bind at "zero" any such charges that are not tari ffs, domestic taxes applied to imports, or fees 
applied for services rendered in its Sc hedule as from the date of accession. 
108. [The representative of the Russian Federation  confirmed that the Russian Federation would 
not apply duties and charges on imports other than ordinary customs duties from the date of accession, 
and that any such charges apply to imports after accession would be in accordance with WTO provisions.  He further confirmed that the Russia n Federation would not list any other charges in its 
Schedule under Article II:1(b) of the GATT 1994, binding such charges at zero.]  WT/ACC/SPEC/RUS/25 
 Page 37 
 
 
- Fees and Charges for Services Rendered 
109. The representative of the Russian Federation said that fees for customs services were 
established in accordance with Article 110 of the "Customs Code", which contained the list of such fees.  These fees and charges were related to the approximate cost of the services rendered.  Revenues 
generated by those fees were remitted to the general revenues of the State budget. 
Table 13:  Fees and charges for customs services rendered related to importation or exportation
 
Description of Service Rendered/Purpose of Fees Rate Applied 
Customs charge for customs clearance 0.1 per cent of the customs value of the goods in 
rubles4 
Additional customs charge for customs clearance 0.05 per cent of the customs value of goods in 
foreign currency  
Customs charges for storage of goods in temporary storage warehouses, where the goods to be placed before the 
customs clearance
5, 6 
- the same in specially designed warehouses - in customs warehouses for goods placed under 
the customs warehouse regime  
 
0.02 Euro/kg of gross weight for every 24 hrs 
0.03 Euro/kg of gross weight for every 24 hrs 0.04 Euro/kg of gross weight and 3 Euro/vehicle 
per every 24 hrs 
Customs charges for cust oms escort of goods 
a) for each motor and rail way vehicle utilized either for the transportation of goods or which moves under its own 
power to be used as a commodity  
- for the distance up to 50 km - for the distance from 50 to 100 km 
- for the distance from100 to 200 km 
- for the distance over 200 km  
  
 
20 minimum wages (2,000 Rubles) 30 minimum wages (3,000 Rubles) 
40 minimum wages (4,000 Rubles) 
60 minimum wages (6,000 Rubles) 
Payment for the information and consultation 0.2-50 US$ depending upon the amount the 
information provided and short notice 
Payment for taking preliminary decision on classification of goods according to HS codes 5 minimum wages (500 Rubles) 
 
 
110. Members noted that, although that the informatio n provided above was helpful, a description 
on how the Russian Federation intended to modify its current regime was necessary as the Russian 
Federation had indicated its intention to revise its import fee structure and that this was provided for 
in the new draft "Customs Code".  Noting that under the present Code, fees charged for customs clearance were calculated on an ad valorem  basis,  these members questioned  how they would relate 
to the cost of services rendered.  
111. The representative of the Russian Federation noted that according to the new draft Customs 
Code fees and charges levied for customs services  related to importation or exportation would be 
reduced to two types: a customs charge for customs clearance; and a customs charge for customs 
                                                     
 
4 The State Customs Committee may reduce customs charge for customs clearance to zero 
5 For the warehouses established by customs authorities only 
6 The customs authorities may reduce the charges for storage by half of the maximum WT/ACC/SPEC/RUS/25 
Page 38  
 
escort of goods. The fees charged would be calculated as fixed sums, corresponding to the value of 
rendered service. 
112. He said that the stamp tax applicable for the pr ocessing of imports or exports by customs and 
for other purposes related to trade was establishe d in accordance with Federal Law No. 226-FZ of 
31 December 1995 "On introducing the amendments and additions to the law of Russian Federation 
on the state duty"(with amendments and additions of 20 August 1996; 19 July 1997; 21 July 1998; 
13 April 1999).  The stamp tax was to be collected for the performance of legally valid actions or for 
the issue of documents by the bodies or by the official persons authorised for this purpose.  
Table 14:  Stamp Tax related to imports and exports
 
Service rendered/type of Fees and Charges Rates applied7 
For committing notary actions by the notaries of the 
state notary's offices or by official persons of the executive power bodies, the bodies of local self-
government and of the consular institutions authorised 
for this and also for their compiling the drafts of the documents and issuing the copies and duplicates of 
the documents, the state duty shall be levied in the 
following amounts:  
1. for the attestation of agreements the subject of 
which is subject to evaluation - 0.5 per cent of the sum for 
- which the obligation is assumed but at least 30 
per cent of the minimal wage 
2. for the attestation of agency agreements - 1.5 per cent of the sum of the agreement but at 
least 50 per cent of the minimal wage  
3. for the certification of other warrants - 20%  of the minimum wage  
4. for effecting a captain's protest - a 15-fold minimum wage  
5. for testifying to the correctness of a document's 
translation from one language into another - 10% of the minimum wage per 1 page of  the 
document's translation 
6. for accepting in deposit of moneys and  securities  - 0.5 per cent of accepted monetary sum and the 
value of securities 
7. for testifying to the correctness of the copies of 
other documents and of the extracts from 
documents - 1%  of the minimum wage per 1 page 
8. for testifying to the authenticity of the signature: 
-  on applications and on other documents  (with the exception of the bank cards)  
-  on bank cards (from every person and on every 
document)  
- 5% of the minimum wage   
- 1 minimum wage  
9. for the issue of duplicates of the documents, kept 
in the cases of the state notary's offices, executive 
power bodies and consular institutions - 50%  of the minimum wage  
10. for the performance of the technical work  of 
preparation of the above documents (print, editing, check of texts)  - two per cent of the minimal wage per page 
 
                                                      
7 The minimum wage is roughly US$3.2  WT/ACC/SPEC/RUS/25 
 Page 39 
 
 
113. Regarding stamp taxes, members questioned how an ad valorem  stamp tax for the attestation 
of agency agreements and for accepting money and secu rities in deposit could relate to the cost of the 
service rendered.  They also requested clarificat ion on whether these taxes applied in the act of 
importation or exportation, and what sorts of cu stoms documents required a stamp tax.  Regarding 
fees that were applied only to imports for requir ements which would normally apply to both imported 
and domestic products, such as standards certificatio n or vehicle taxes, these members also noted that 
these fees were not consistent with Article III of the GATT 1994 and should be revised or eliminated prior to accession.  Clarification was also requested regarding the nature of th e services rendered by 
the additional customs charge for customs clearance,  and on the precise meaning of statements such 
as "for performing other notary actions" or "for the performance of the technical work for the making of the documents". 
114. Members asked the Russian Federation to enter a commitment to revise its domestic 
law/regulations so as to ensure that, as from the date of accession, any fees or charges for services rendered related to importation or exportation would be  applied only in conformity with Article VIII 
of the GATT 1994, and that information regarding the application and level of any such fees, revenues collected and their use would be provided to WTO Members upon request. 
115. [The representative of the Russian Federation  confirmed that the Russian Federation would 
ensure that any fees and charges for services render ed listed in Table […] or introduced in the future 
would only be applied in conformity with the relevant obligations of the GATT 1994, and that any 
application of fees and charges by the Russian Federation for services rendered or in connection with importation or exportation would be in accordan ce with the relevant provisions of the WTO 
Agreements, in particular Articles VIII and X of the GATT 1994, from the date of accession.  He 
further confirmed that, after accession, information re garding the application a nd the level of any such 
fees, revenues collected and their use, would be provided to WTO members upon request.]  
- Consular Fees 
116. The representative of the Russian Federation said that no special consular fees connected with 
the export or import of goods or services have been instituted. Regular consular fees were collected in 
accordance with the legislation of  the Russian Federation, Consular Articles provisions and the 
currently applied Customs Tariff approved on 29  June 1993 and 28 March 1994, as well as 
international treaties of the Russian Federation . 
117. He noted that payments collected by consular offices of the Russian Federation for executing 
abroad consular acts or issuance of the documents of  legal significance to citizens of foreign states, 
foreign legal entities, persons without citizenship, en terprises with foreign investments, as well as WT/ACC/SPEC/RUS/25 
Page 40  
 
Russian natural persons or legal entities constantly  or temporarily residing or located in foreign 
countries, were remitted to the general revenues of  the State budget. Heads of consular offices had the 
power to decrease the consular fees or not to collec t them at all from individual persons in view of 
their applications, if the reasons specified by them were considered to be valid.  
118. Some members inquired on the rationale for charging fees for consular purposes at a lower 
rate from certain countries  where the service was performed (the  Baltic countries and CIS countries) 
as this practice would be in violation of Article I of the GATT 1994 and should be eliminated prior to accession. These members asked the Russian Federation to undertake the same commitment 
undertaken for fees and charges for services rendered for consular fees. 
119. [The representative of the Russian Federation  confirmed that the Russian Federation would 
ensure that the commitments undertaken in paragraph […] above would equally apply in respect of the use of consular fees.] 
   WT/ACC/SPEC/RUS/25
 Page 41Table 15:  Consular Fees  
Rates applied 
CIS countries and Baltic countries Other countries No. Documents and acts, for which consular fees are collected 
US$ US$ 
Fees for certification and notarization of documents 1.  
For certification of each document 3 30 
Power of attorney notarization 
For power of attorney authorizing the use and command of 
property, including motor vehicles, as well as carrying out the 
lending operations:  6 60 2. 
For confirming other powers claimed by an individual 2 20 
For notarization of: 
agreements subject to evaluation: 5 % of the amount specified in the agreement, but no less 
than 1 US dollar.  5 % of the amount specified in the agreement, but no less 
than 10 US$.  
For authentication of signature: 1 10 
For authentication of copies of instruments and extracts from 
instruments  1.5 15 
For authentication of photostats:  6 
For issuing the extracts from, or copies of, instruments kept in the 
files of consular offices (for one page) 1.5 15 
 If less than one page of text of an extract from, or a copy 
of, instrument is issued, the collected fee shall correspond 
to the same for a full page.  Minimum fee for this act: 
30 
For making an executive inscription 2% of the collected amount, but no less than  0.5 US$. 2% of the collected amount, but no l ess than 5 US$.  
For processing the 
documents certifying the fact of purchasing the 
motor vehicles or 
motocycles 1% of value of the given 
transport facility assessed by mercantile business,  
but no less than 10 US$.  Translation with simultaneous notarization of its 
correctness for each page: 
  For translations from 
foreign languages into 
Russian 20 
  For translations from 
Russian into foreign languages 35 
  For certification of 
correctness of a translation 
made without participation of consular office for each page 15 3. 
 
  For typing the documents 5  WT/ACC/SPEC/RUS/25 
Page 42 Rates applied 
CIS countries and Baltic countries Other countries No. Documents and acts, for which consular fees are collected 
US$ US$ 
Consulage for consular service of sea- and air-craft 
Executing the protest by 
master 5 Executing the protest by 
master 50 
Issuing the certificate of 
loading or unloading 
operations with a vessel 
flying a foreign flag, as 
well as certifying other 
shipping documents 10 Issuing the certificate of 
loading or unloading 
operations with a vessel 
flying a foreign flag, as 
well as certifying other 
shipping documents 100 
Issuing the temporary 
certificate confirming the right to fly a flag of the Russian Federation or 
ownership of vessel 15 Issuing the temporary 
certificate confirming the right to fly a flag of the Russian Federation or 
ownership of vessel 150 
Prolongation of the term of 
validity of vessel 
documents and processing 
the logbooks 3 Prolongation of the term of 
validity of vessel 
documents and processing 
the logbooks 30 
Notarization of various 
certificates and 
applications; issuing the 
cargo certificate; adding 
crew members to a crew 
list, or removing them from it 3 Notarization of various 
certificates and 
applications; issuing the 
cargo certificate; adding 
crew members to a crew 
list, or removing them from it 30 
Gluing the additional 
sheets in crew list or 
logbook 2 Gluing the additional 
sheets in crew list or 
logbook 20 
Notarization of sanitary 
certificate 3 Notarization of sanitary 
certificate 30 4. 
 
Executing a protocol of 
salvaging the wrecked or 
stolen vessel 2.5 Executing a protocol of 
salvaging the wrecked or 
stolen vessel 25  WT/ACC/SPEC/RUS/25 
 Page 43 
 
 
 - Other Fees 
120. Some members requested clarification on any po ssible discriminatory aspect involved in the 
application of port user fees between foreign and domestic users.  
121. The representative of the Russian Federation said that the port fees used in commercial 
seaports of the Russian Federation had been approved by the Ministry of Transport of the Russian Federation on 21 July 1995. The port-charges incl ude: tonnage, beaconnage, canal dues, wharfage, 
anchor dues, ecological dues, pilotage dues, na vigation dues. Port-charges were collected in 
commercial seaports of the Russian Federation, irrespective of their fo rm of organisation, legal status 
and pattern of ownership, from Russian and forei gn vessels and floating facilities on the basis of 
non-discrimination principle. 
Table. 16 (a):  Port Fees used in Commercial Seaports of 
 
the Russian Federation Group Classification of Vessels  
Group of 
vessels Vessels and floating facilities 
A Foreign-going cargo vessels and facilities, including non-self propelled ones.  
B Coastal-traffic cargo vessels and facilities, including non-self propelled ones. 
C Foreign-going inter-port ferries. Foreign-going passenger ships.  
D Coastal-traffic inter-port ferries. Coastal-traffi c passenger ships. Ice breakers not operated day-to-
day or rented by port sea administration (or seaport administration). 
E Lighters on board the lighter-aboard ship; warships; hospital ships; sports vessels; private yachts; 
technical vessels used for deepening works in ports; vessels of local port fleet, shipyards or 
ASPTR/LRN; ice breakers operated day-to-day by port sea administration (or seaport administration) and not rented by them.  
F Transit vessels; vessels touching at a port forcedly, for damage repairs, quarantine needs or 
custom house and frontier formalities, as well as the vessels undergoing performance trial.  
G Service vessels; research ships; surveying vessels.  
H Fishing and other vessels of a fish industry department.  
 
Table. 16 (b): Port Fees used in Commercial Seaports of the Russian Federation  
Order of Charge Collecting Tariff 
Port US$ Port US$ 
1. Tonnage  
Shall be collected for 1 cubic meter of vessel conventional capacity, separately for each fetching into the port and sailing from it.  
Black Sea – Sea of Azov basin 
Novorossiysk 0.270 Taganrog 0.140
Sochi 0.285 Tuapse  0.250
  Other ports  0.184
Baltic basin  
Vyborg 0.200 Kaliningrad  0.170
Vysotsk  0.220 Other ports  0.210
Saint Petersburg  0.240   WT/ACC/SPEC/RUS/25 
Page 44  
 
 Order of Charge Collecting Tariff 
Port US$ Port US$ 
North basin  
Arkhangelsk  0.230 Naryan-Mar  0.240
Amderma  0.218 Onega  0.216
Kandalaksha  0.216 Tiksi  0.216
Mezen  0.216 Khatanga  0.216
Murmansk  0.230 Other ports  0.216
Arctic and Far East basin  
Anadyr  0.175 Pevek  0.175
Aleksandrovsk-in-Sakhalin  0.279 Provideniya  0.210
Beringovskiy  0.175 Petropavlovsk-
Kamchatsky 0.175
Boshnyakovo  0.234 Poronaysk  0.248
Vladivistok  0.223 Posyet 0.205
Vostochny  0.223 Uglegorsk  0.234
Vanino  0.210 Ust-Kamchatsk  0.175
Korsakov  0.220 Kholmsk   0.223
Krasnogorsk  0.225 Shakhtyorsk  0.234
Magadan  0.175 Egvekinot  0.265
Nakhodka  0.223 Other ports  0.175
Nakhodka (oil harbor) 0.223   
Nikolaevsk-on-Amur  0.225   
Caspian basin  
Makhachkala 0.150 Other ports  0.112
Astrakhan (Olya) 0.120   
2. Beaconage  
Shall be collected for 1 cubic meter of vessel conventional capacity upon each fetching into the port and its transit passing.   
Exempted from the light dues are vessels calling for refuge to perform an emergency repair and the 
vessels of group "D". Vessels of groups "E" and "G" are exempted from the beaconage dues unless they perform cargo handling and operations of commercial nature at the port. 
Black Sea – Sea of Azov basin 
Novorossiysk 0.025 Taganrog 0.025
Sochi 0.025 Tuapse 0.025
  Other ports 0.025
Baltic basin 
Vyborg 0.025 Kaliningrad 0.025
Vysotsk 0.025 Other ports 0.025
Saint Petersburg 0.025   
North basin 
Arkhangelsk 0.025 Naryan-Mar 0.025
Amderma 0.025 Onega 0.025
Kandalaksha 0.025 Tiksi 0.025
Mezen 0.025 Khatanga 0.025
Murmansk 0.025 Other ports 0.025
Arctic and Far East basins 
Anadyr 0.025 Pevek 0.025
Aleksandrovsk-in-Sakhalin 0.025 Provideniya 0.025
Beringovskiy 0.025 Petro-pavlovsk-
Kamchatskiy 0.025
Boshnyakovo 0.025 Poronaysk 0.025
Vladivostok 0.025 Posyet 0.025
Vostochny 0.025 Uglegorsk 0.025 WT/ACC/SPEC/RUS/25 
 Page 45 
 
 
 Order of Charge Collecting Tariff 
Port US$ Port US$ 
Vanino 0.025 Ust-Kamchatsk 0.025
Korsakov 0.025 Kholmsk 0.025
Krasnogorsk 0.025 Shakhtyorsk 0.025
Magadan 0.025 Egvekinot 0.025
Nakhodka 0.025 Other ports 0.025
Nakhodka (oil harbor) 0.025   
Nikolaevsk-on-Amur  0.025   
Caspian basin 
Makhachkala 0.025 Other ports 0.025
Astrakhan 0.025   
3. Canal dues  
Shall be collected for 1 cubic meter of vessel conventional capacity upon each pass of canal in one 
direction. 
Black Sea – Sea of Azov basin 
Taganrog 0.072 Tuapse 0.009
Sea of Azov – Don River Canal  0.216   
Baltic basin 
Kaliningrad 0.075 Saint Petersburg 0.070
Vyborg 0.045   
Vysotsk 0.025   
North basin 
Arkhangelsk 0.196 Naryan-Mar 0.299
Mezen 0.159 Onega 0.299
Far East basin 
Vostochny  0.011 Nikolaevsk-on-
Amur 0.050
Kholmsk 0.011   
Caspian basin 
Volga River – Caspian Sea Canal   Makhachkala 0.016
Astrakhan 0.790   
Astrakhan (Olya) 0.480   
4. Wharfage  
Shall be collected for 1 cubic meter of vessel conventional capacity for each day of vessel being alongside. The wharfage dues are collected from vessels staying alongside the berth. For the vessels of groups "A", 
"B" and "H" wharfage dues are charged per 1 m
3 of the conventional volume of the vessel for each day 
of the vessel' s stay alongside the berth. The time of st ay at a berth is rounded off upward to one-half of 
the day. For the vessels of groups "C", "D", "E", "F" and "G" berth dues are charged per 1m
3 of the 
convetional volume for each call. 
Port Group A, B or H vessels  Group C, D, E, F or G vessels  
 for vessel being 
alongside, with load 
handling operations 
carried out  for all other cases  US$ 
 US$  
Black Sea – Sea of Azov basin 
Novorossiysk  
- for bulk-carriers  0.0022 0.0007 0.0044
- for tankers 0.0045 0.0015 
Sochi 0.0220 0.0070 0.0044
Taganrog 0.0063 0.0021 0.0044
Tuapse  
- for bulk-carriers 0.0021 0.0007 0.0044WT/ACC/SPEC/RUS/25 
Page 46  
 
 Order of Charge Collecting Tariff 
Port US$ Port US$ 
- for tankers  0.0042 0.0014 
Other ports 0.0040 0.0014 0.0044
Baltic basin 
Vyborg 0.0051 0.0017 0.0040
Vysotsk 0.0056 0.0019 0.0040
Kaliningrad 0.0070 0.0023 0.0040
Saint Petersburg 0.0031 0.0010 0.0040
Other ports 0.0040 0.0013 0.0040
North basin 
Arkhangelsk 0.0062 0.0021 0.0050
Kandalaksha 0.0180 0.0060 0.0050
Murmansk 0.0049 0.0016 0.0050
Naryan-Mar 0.0156 0.0052 0.0050
Tiksi 0.0072 0.0024 0.0050
Other ports 0.0100 0.0033 0.0050
Arctic and Far East basins 
Anadyr 0.0079 0.0027 0.0070
Vanino 0.0046 0.0015 0.0060
Vladivostok 0.0054 0.0018 0.0060
Vostochny 0.0130 0.0043 0.0060
Korsakov 0.0190 0.0063 0.0060
Magadan 0.0056 0.0018 0.0070
Nakhodka 0.0049 0.0016 0.0060
Nakhodka (oil harbor) 0.0148 0.0049 0.0060
Nikolaevsk-on-Amur 0.0184 0.0061 0.0060
Pevek 0.0113 0.0038 0.0070
Petropavlovsk-Kamchatskiy 0.0121 0.0040 0.0070
Posyet 0.0113 0.0038 0.0060
Provideniya 0.0068 0.0024 0.0070
Kholmsk 0.0190 0.0063 0.0070
Egvekinot 0.0103 0.0034 0.0070
Other ports 0.0097 0.0032 0.0060
Caspian basin 
Astrakhan 0.0220 0.0070 0.0044
Makhachkala 0.0156 0.0052 0.0050
Other ports 0.0146 0.0048 0.0044
5. Anchor dues  
Shall be collected for 1 cubic meter of vessel conventional capacity for each hour of anchorage in the 
outer or inner harbor in excess of 12 hours. Incomplete hour of anchorage shall be considered as a complete hour of anchorage.      
Black Sea – Sea of Azov basin 
Novorossiysk 0.0001 Taganrog 0.0001
Sochi 0.0001 Tuapse 0.0001
  Other ports 0.0001
Baltic basin 
Vyborg 0.0001 Kaliningrad 0.0001
Vysotsk 0.0001 Other ports 0.0001
Saint Petersburg 0.0001   
North basin 
Arkhangelsk 0.0001 Naryan-Mar 0.0001
Amderma 0.0001 Onega 0.0001
Kandalaksha 0.0001 Tiksi 0.0001 WT/ACC/SPEC/RUS/25 
 Page 47 
 
 
 Order of Charge Collecting Tariff 
Port US$ Port US$ 
Mezen 0.0001 Khatanga 0.0001
Murmansk 0.0001 Other ports 0.0001
Arctic and Far East basins 
Anadyr 0.0001 Pevek 0.0001
Aleksandrovsk-in-Sakhalin 0.0001 Provideniya 0.0001
Beringovskiy 0.0001 Petropavlovsk-
Kamchatskiy 0.0001
Boshnyakovo 0.0001 Poronaysk 0.0001
Vladivostok 0.0001 Posyet 0.0001
Vostochny 0.0001 Uglegorsk 0.0001
Vanino 0.0001 Ust-Kamchatsk 0.0001
Krasnogorsk 0.0001 Kholmsk 0.0001
Magadan 0.0001 Shakhtyorsk 0.0001
Nakhodka 0.0001 Egvekinot 0.0001
Nakhodka (oil harbor) 0.0001 Other ports 0.0001
Nikolaevsk-on-Amur 0.0001   
Caspian basin 
Makhachkala 0.0001 Other ports 0.0001
Astrakhan 0.0001   
 
- Import Surcharge 
122. The representative of the Russian Federation no ted that Article 15 of Federal Law No. 63-FZ 
of 14 April 1998 "On Measures to Protect the Economic Interests of the Russian Federation with Respect to Foreign Trade in Goods" provided the legal framework to safeguard the country's balance 
of payment. This article was in full compliance with the provisions of Article XII of GATT 1994. In accordance with this law, and due to particular ba lance of payment difficulties, the Resolution of the 
Government No. 791 of 17 July 1998 had introduced a special import surcharge at a rate of 3 per cent 
ad valorem  applied to all tariff items.  Resolution of th e Government No. [...] of 27 February 1999 
had eliminated the import surcharge as from 1 March 1999. 
123. Some members noted that the application of a tariff surcharge by the Russian Federation, 
based on the mentioned provisions of Federal Law No.63-FZ, may not be consistent with WTO 
provisions.  These members considered that, gi ven the overlapping authorities of Federal Law 
No. 63-FZ and the Russian Federation' s intention to establish separate specialized legislation on trade 
remedies, a commitment was required from the Russian Federation that the provisions of Federal Law 
No.63-FZ that addressed trade remedies, includi ng those applied for balance-of-payments purposes, 
would be replaced by other legal provisions that conform to relevant WTO provisions, in particular 
the WTO Agreements on Safeguards, Antidumping, and Subsidies and Countervailing Measures, and Article XII of the GATT 1994 and the Understanding on that Article.   WT/ACC/SPEC/RUS/25 
Page 48  
 
 Application of Internal Taxes on Imports 
- Excise Taxes 
124. The representative of the Russian Federation noted that excise taxes on certain products were 
differentiated between imported and domestically -produced goods until January 1997. Federal Law 
No.12-FZ of 10 January 1997 "On Excise Tax" unified excise tax rates for imported and domestic products. In pursuance of Chapter 22 of the "Tax Code" (Federal Law No. 117-FZ of 5 August 2000), 
excise tax rates for imports and those for domes tic products were identical and brought into 
conformity with Article III of th e GATT 1994. The products subject to excise taxes and respective tax 
rates in the year 2002 were enumerated in Table 17 below. 
Table 17: Excise taxes
 
Types of excisable goods Tax rate  (in per cent or Rubles and kopeks per 
one unit of measurement) 
Ethyl alcohol made of all types of raw materials  14 Rubles 11 kopeks per 1 litre of absolute ethyl 
Alcohol products of volume fraction of ethyl alcohol over 25 per cent (except for wines) and alcohol containing products 98 Rubles 78 kopeks per 1 litre of absolute ethyl 
alcohol contained in excisable goods 
 
Alcohol products of volume 
fraction of ethyl alcohol from 9 to 25 per cent inclusive (except for wines) 72 Rubles 91 kopeks per 1 litre of absolute ethyl 
alcohol contained in excisable goods 
Alcohol products of volume 
fraction of ethyl alcohol up to 9 per cent inclusive(except 
for wines) 50 Rubles 60 kopeks per 1 litre of absolute ethyl 
alcohol contained in excisable goods 
Wines (except for natural wines) 41 Rubles 20 kopeks per 1 litre of absolute ethyl 
alcohol contained in excisable goods 
Champagne and sparkling wines 10 Rubles 58 kopeks per 1 litre 
Natural wines  
(except for champagne and sparkling wines) 3 Rubles 52 kopeks per 1 litre 
Beer with normative (standard) volume of fraction of ethyl 
alcohol up 0,5 per cent inclusive 0 Ruble per 1 litre 
Beer with normative (standardized) volume of fraction of 
ethyl alcohol  over 0,5 per cent up to 8.6 per cent inclusive 1 Ruble 12 kopeks per 1 litre 
Beer with normative (standardized) volume of fraction of 
ethyl alcohol over  8.6 per cent 3 Rubles 70 kopeks per 1 litre 
Pipe tobacco 453 Rubles 60 kopeks per 1 kg 
Smoking tobacco, except for tobacco utilized as raw 
material to produce tobacco articles 183 Rubles 92 kopeks per 1 kg 
Cigars 11 Rubles per 20 kopeks per 1 piece 
Cigarillos, cigarettes with filter longer than 85 mm 84 Rubles per 1,000 pieces 
Cigarettes with filter, except for cigarettes longer than 85 
mm and cigarettes of the 1, 2, 3, and 4 classes as per GOST 61 Rubles 60 kopeks per 1,000 pieces 
Cigarettes with filter of 1, 2, 3  and 4 classes as per GOST 39 Rubles 20 kopeks per 1,000 pieces 
Non-filter cigarettes, mouthpiece cigarettes 11 Rubles 20 kopeks per 1,000 pieces 
Jewellery 5 per cent 
Petroleum and stable gas condensate 73 Rubles 92 kopeks per 1 ton  WT/ACC/SPEC/RUS/25 
 Page 49 
 
 
 Types of excisable goods Tax rate  (in per cent or Rubles and kopeks per 
one unit of measurement) 
Cars with engine power up to 67.5 Kw  (90 hp) inclusive 0 Rubles per 0.75 kWh ( 1 hp) 
Cars with engine power up over 67.5 Kw  (90 hp) and up 
to 112.5 Kw  (150 hp) inclusive 11 Rubles 20 kopeks per 0.75 Kwt ( 1 hp) 
Cars with engine power over 112.5 Kw  (150 hp), 
motorcycles with engine power over 112.5 Kw 
(150 hp) 112 Rubles per 0.75 Kwt ( 1 hp) 
Motor gasoline with octane value up to "80" inclusive 1512 Rubles per 1 ton 
Motor gasoline with other octane values 2072 Rubles per 1 ton 
Diesel fuel 616 Rubles per 1 ton 
Oil for diesel and (or) carburettor (injector) engines 1680 Rubles per 1 ton 
Natural gas sold on the territory of the Russian Federation 15 per cent 
Natural gas sold to member states of the  Commonwealth 
of Independent States 15 per cent 
Natural gas sold from the territory of the Russian 
Federation (except for the CIS member states) 30 per cent 
 
125. He noted that two categories of products only  (natural gas and jewellery) were subject to 
ad valorem  rates.  The tax base for cal culating excise tax for those products was the selling price 
exclusive of VAT for domestic products and the sum of their customs value and the payable customs duty exclusive of VAT for imported goods. If excisable goods were placed under customs treatment 
of transit, bonded warehouse, re-export, processing  under the customs control, free customs area, free 
warehouse, destruction and refusal in favour of the State the excise tax was not paid. 
126. He said that excise taxes had been applied diff erently to Russian trade with CIS countries than 
to trade with non-CIS countries.  But as from 1 July 2001, when the Chapter 22 of the "Tax Code" 
entered into force, excise taxes were levied in a uniform manner based on the principle of country of 
destination. 
127. Members expressed appr eciation for the comprehensive listing of excise taxes and other 
information on their application to domestic and imported goods. Noting that when excise taxes were collected on imports from CIS countries there was a deduction from the charge for excise taxes 
applied in the exporting CIS country, these members stressed that this could constitute an apparent violation of Article I.  In addition,  the differentiation of excise tax rates within specific categories of 
alcoholic beverage, e.g., for different types of beer, wine, and spirits, might have a de facto  
discriminatory effect on imports.  They also requ ested a clarification on th e definition of cigarettes 
designated by "cigarettes with filter of 1,2,3 and 4 classes as per GOST" and on whether those were 
imported or domestically produced or both. 
128. Noting further that differential rates of excise tax were levied on natural gas depending on 
whether it was sold in the Russian Federation, for export to other CIS countries (15 per cent), or WT/ACC/SPEC/RUS/25 
Page 50  
 
 whether it was for export to other countries (30 per ce nt), some members felt that this practice should 
be brought  in conformity with the WTO upon access ion.  Moreover, a more detailed clarification was 
needed on the national treatment implications of ca lculating excise taxes on imports on the customs 
value plus the total of customs duties and levies payable, while the excise taxes on domestically 
produced goods were based on actual value only. 
- Value Added Tax 129. Some members requested confirmation that VAT was now applied in an uniform manner to 
all domestic and imported products  and that was also the case with respect to CIS countries as from 
1 July 2001.  Clarification was also requested on whether the same principle applied to imports and 
exports of energy products such as gas and oil. A member requested clarification concerning the 
different VAT treatment of ice- cream produced from milk and dairy products (10 per cent) and 
ice-cream produced from fruits and berries (20 per cent).  
130.  The representative of the Russ ian Federation replied that, in accordance with Chapter 21 of 
the "Tax Code" (Federal Law No. 117-FZ of 5 August 2000 and Federal Law No. 118 of 
5 August 2000 "On Introduction of Part Two of the Tax Code"), VAT was applied in an uniform 
manner to all domestic and imported products on the ba sis of country of destination principle, and that 
also was the case with CIS countries as from 1 July  2001. The only exception re lated to bilateral trade 
with Belarus, where VAT was levied on the country of origin. As for the exportation of crude oil and 
natural gas, VAT would be levied on the country of  destination also with re spect to bilateral trade 
with CIS country from the year 2004 or 2005.  
131. Noting that that the application of domestic taxes to Belarus was still based on the country of 
origin, some members asked the Russian Federation to indicate how, and in what time-frame, the 
Russian Federation intended to proceed to convert its taxation system with Belarus. These members 
also asked a list, by HS tariff lines, of oil and ga s import items for which th e level of application of 
VAT continued to be based on the co untry of origin. They further re quested the Russian Federation to 
provide a more precise timetable for unifying application of VAT on all products on the basis of the 
country of destination. 
132. The representative of the Russian Federation noted that VAT was levied at a single rate of 
20 per cent with some exemptions listed in Table 18.  All these exemptions  were applied in non-
discriminatory manner both to domestic output and imports of similar products. Also exempt from 
VAT were goods placed under the customs treatment of transit customs warehouse; re-export; duty free shop; processing under customs control; free customs zone; free warehouse; destruction and  WT/ACC/SPEC/RUS/25 
 Page 51 
 
 
 refusal in favour of the State. The tax base for th e imposition of VAT included excise taxes, if any. 
For imported goods customs duties were also included in the tax base.  
Table 18:  Value Added Tax  
No. Goods sale (transfer, performance, rendering) of which on the territory of the Russian Federation shall 
not be the subject of value added taxation 
1. The major and vitally essential drugs, including me dicine - substances, among others those prepared by 
pharmacies, except for raw material  (materials) for their preparation, vitamin-rich and treatment and 
preventive products of food, meat, dairy, fish and flour-and-cereals industry, household disinfectant, 
insecticides and deratization means, diapers, repellents, goods for veterinary uses, containers and 
packing; 
- major and vitally essential items of medical use; 
- major and vitally essential medical equipment; 
- artificial limbs and orthopaedic articles, raw materials for their manufacture and semifinished 
articles for above; 
- technical facilities, including motor vehicles, materials which can be used only for disability 
prevention or rehabilitation of invalids; 
- lenses and rims for glasses (except for sunglasses); 
- food products produced directly by canteens of universities and schools, canteens of other 
educational institutions, canteens of medical organizations, children' s pre-school establishments and sold by them to aforesaid establishments, and also food products manufactured directly by organizations of publ ic catering and sold by such to aforesaid 
canteens. 
2. Postage stamps (except for collectable stamps), marked cards and marked envelopes, lottery tickets of 
lotteries conducted by decisions of the Government of the Russian Federation and/or 
legislative (representative) bodies of constituent entities of the Russian Federation; 
- coins made of precious metals (except for collectable coins) which are the currency of the 
Russian Federation, or currency of foreign states. The procedure for referring coins made of 
precious metals to collectable coins shall be established by the Government of the Russian 
Federation; 
- goods placed under the customs treatment of duty free shop; 
- goods (works, services) except for excisable goods and excisable mineral raw materials sold 
(performed, rendered) within the framework of rendering gratuitous help (assistance) to the 
Russian Federation according to the Federal Law on the Gratuitous Help (Assistance) to the Russian Federation and Addenda and Amendments to Certain Laws of the Russian Federation 
on Taxes and on the Establishment of Privileges under the Payments to State Extra-Budgetary 
Funds in Connection with the Granting of Gratuitous Help (Assistance) to the Russian Federation. 
3. Sale of religious use objects (according to the list approved by the Government of the Russian 
Federation upon submission by religious organizations (associations) the former being produced and 
sold by religious organizations (associations) within the framework of religious activities, apart from 
excisable ones and also organization and holding by aforesaid organizations of religious rites, ceremonies, prayer assemblies or other cult activities; 
 -  sale of goods (except for excisable, mineral raw materials and mineral resources, and also 
other goods according to the list approved by the Government of the Russian Federation upon submission by All-Russian public organizations of disabled persons, works, services (except 
for broker and other intermediary services), effected and sold by: 
 -  public organizations of invalids (including those created as unions of public organizations of 
invalids) at least 80 per cent of whose membership are invalids and their legal representatives; 
 -  organizations which entire authorized capital cons ists of contributions of public organizations 
of invalids specified in paragraph two of the present Subitem if the average active roll of 
invalids among their workers constitutes not less than 50 per cent, and their share in the fund 
of wages - not less than 25 per cent; WT/ACC/SPEC/RUS/25 
Page 52  
 
 No. Goods sale (transfer, performance, rendering) of which on the territory of the Russian Federation shall 
not be the subject of value added taxation 
 -  establishments, whose asset' s are owned solely by public organizations of invalids specified in 
paragraph two of the present Subitem and created to achieve educational, cultural, treatment-
and-health improvement, physical culture and sports, scientific, information related and other 
social purposes, and also to render legal and other help to the disabled, disabled children and their parents; 
 -  health treatment and industrial (labour) workshops at anti-tuberculosis, psychiatric, psycho-
neurological establishments, establishments of social protection or social rehabilitation of 
population; 
 -  sale of articles of folk art crafts of recognized artistic value (except for excisable goods) which 
samples have been registered in the order established by the Government of the Russian 
Federation; 
 -  sale of ore, concentrates and other industrial products containing precious metals, scrap and 
waste of precious metals for further processing and refining; sale of precious metals and gems by taxpayers (except for those listed in Sub-item 6 of Item 1 of Article 164 of the present 
Code) to the State Fund of Precious Metals and Gems of the Russian Federation, to the Central 
Bank of the Russian Federation and banks; sale of gems into raw materials (except for raw diamonds) to be processed by enterprises irrespective of their forms of ownership for 
subsequent export sale; sale of gems into raw materials to specialized foreign trade 
organizations, the Central Bank of the Russian Federation and banks; sale of precious metals from the State Fund of Precious Metals and Gems of the Russian Federation to specialized 
foreign trade organizations, the Central Bank of the Russian Federation and banks, and also 
precious metals in ingots by the Central Bank of the Russian Federation and banks provided that these ingots remain in a certificated vault (the State Vault of Valuables, the vault of the 
Central Bank of the Russian Federation or vaults of banks); 
 -  sale of raw diamonds by producing enterprises to processing enterprises of all forms of 
ownership; 
 -  intrasystem sale (transfers, performance, rendering for own needs) of goods produced 
(performed works, rendered services) by organizations and establishments of the penitentiary system; 
 -  transfer of goods (execution of works, rendering of services) free of charge within the 
framework of charities according to the Federal Law on Charities and Charitable Organizations, except for excisable goods; 
 -  sale of scientific and educational book products and also editorial, publishing and polygraphic 
activity in its production and sale; 
 -  sale of products of own manufacture of organizations engaged in the production of agricultural 
products which generate 70 per cent and more of the overall share of incomes from the sale in 
the total sum of their incomes, the former done  towards wages in kind for labour, issues in 
kind for labour, and also for the public catering of workers involved in agricultural works; 
 -  sale of products of mass media, printed matter associated with education, science and culture; 
editorial, publishing and polygraphic works and services in the production of mass media products and books associated with education, science and culture. 
4. The present Sub-item shall not apply to mass media products of advertising and erotic nature and also 
to printed matter of advertising and erotic character. 
5. Goods importation of which to the customs territory of the Russian Federation shall not be value added 
taxable: 
 -  goods (except for excisable goods) imported as the gratuitous help (assistance) to the Russian 
Federation, in accordance with the manner established by the Government of the Russian 
Federation pursuant to the Federal Law on the Gratuitous Help (Assistance) to the Russian 
Federation and the Introduction of Amendments and Addenda to Certain Legislative Acts of the Russian Federation on Taxes and on the Establishment of Privileges on Payments to the 
State Extra-Budgetary Funds in Connection with the Granting of the Gratuitous Help 
(Assistance) to the Ru ssian Federation"; 
 -  goods listed in Sub-item 1 of Item 2 of Article 149 of the Tax Code and also the raw material 
and component parts for their production;  WT/ACC/SPEC/RUS/25 
 Page 53 
 
 
 No. Goods sale (transfer, performance, rendering) of which on the territory of the Russian Federation shall 
not be the subject of value added taxation 
 -  materials for production of medical immunobiological drugs for diagnostics, prevention and/or 
treatment of infectious diseases (under the list approved by the Government of the Russian 
Federation); 
 -  valuable articles of arts handed over as gifts to establishments and referred by law of the 
Russian Federation to highly valuable articles of cultural and national heritage of peoples of the Russian Federation; 
 -  all types of printed publications received by the state and municipal libraries and museums 
under international exchange of books and also of products of cinematography imported by 
specialized state organizations for the purposes of international non-commercial exchanges; 
 -  all types of printed publications received by the state and municipal libraries and museums 
under international exchange of books and also of products of cinematography imported by 
specialized state organizations for the purposes of international non-commercial exchanges; 
- - products manufactured as a result of economic ac tivity of Russian organizations on land lots 
being the territory of a foreign state covered by the Russian Federation' s right of land use on 
the basis of an international treaty; 
- - process equipment, components and spare parts thereto imported as a contribution to 
authorized (pooled) capitals of organizations; 
- raw natural diamonds; 
- - process equipment, components and spare parts thereto imported as a contribution to 
authorized (pooled) capitals of organizations; 
- raw natural diamonds; 
- - goods intended for official use by foreign diplomatic and agencies equated thereto, and also 
for personal use by diplomatic and administrative - clerical personnel of these agencies, 
including members of their families living together with them; 
- - currency of the Russian Federation and foreign currency, notes, being a legal tender (except 
for those used for numismatic purposes), and also financial credit instruments - shares, bonds, certificates, bills of exchange; 
- - products of sea fishery caught and/or produced by fishing enterprises of the Russian 
Federation. 
6. Goods levied by VAT an a 10 per cent rate: 
7. The taxation shall be made under the 10 per cent tax rate in case of sale of the following food articles: 
 -  cattle and poultry in live weight; 
 -  meat and meat products (except for gourmet articles: tenderloin, veal, tongues, sausage articles 
- fresh smoked of best quality, fresh smoked se midry, of best quality, fresh seasoned, stuffed 
of best quality; smoked articles made of pork, mutton, beef, veal, poultry - balyk, karbonade, 
neck, ham, pastorma, loin; baked pork and beef; canned ham, bacon, karbonade and tongue in 
marinade); 
 -  milk and diary products (including ice-cream produced on their basis, except for ice-cream 
produced on a fruits-and-berry basis, fruit and food ice); 
 -  eggs and egg based products; 
 -  vegetable oil 
 -  margarine; 
 -  sugar, including raw sugar; 
 -  salt; 
 -  grain, compound food, fodder mixes, grain waste; 
 -  oilseeds and products of their processing (coarsely cut), oilcakes); 
 -  bread and bakery food articles (including fancy bread, rusk and roll articles); 
 -  groats; 
 -  flour; 
 -  pasta articles 
 -  live fish (except for valuable species: white salmon, the Baltic and Far Eastern salmon, 
sturgeon (beluga, bester, sturgeon, sevryuga, sterlet), salmon, trout (except for sea trout), 
nelma, keta, chavych, kizhuch, muksun, omul, the Siberian and Amur sig, chir); WT/ACC/SPEC/RUS/25 
Page 54  
 
 No. Goods sale (transfer, performance, rendering) of which on the territory of the Russian Federation shall 
not be the subject of value added taxation 
 -  seafoods and fish products, including fish cooled, frozen and other kinds of processing, 
herring, canned food and pickled canned food (except for gourmet articles: caviar of sturgeon 
and salmon species; of white salmon, the Baltic salmon, of sturgeon fishes - beluga, bester, 
sturgeon, sevryuga, sterlet; salmon; backs and flanks of nelma, cold smoked; light-, medium- and semuzh- pickled keta and chavycha; backs of keta, chavycha and cold smoked kizhuch, 
flanks of keta and sides of cold smoked chavycha; backs of muksun, omul, the Siberian and 
Amur sig, cold smoked chir; pickled canned fillet - slices of the Baltic salmon and the Far Eastern salmon; crab me at and sets of cooked-and-frozen se parate limbs of crabs; of spiny 
lobsters); 
 -  children' s and diabetic foods; 
 -  vegetables (including potatoes); 
 -  the following goods for children: 
 -  knitted articles for the new-born and children of  day care, preschool, junior and senior school 
age groups: the street knitted articles, underwear knitted articles, socks and stockings articles, 
other knitted articles: gloves, mittens, head gears; 
 -  sewn articles (except for articles made of natural fur and natural leather) for the new-born and 
children of day care, preschool, junior and senior school age groups: the street clothes 
(including the dress and suit groups), underwear, headgears, clothes and articles for new-born and children of day care group; 
 -  footwear (except for sports): footwear for the new-born and children of day care group, of 
preschool, school; made of felt; rubber: small children sizes, children, school; 
 -  children' s beds; 
 -  children' s mattresses; 
 -  perambulators; 
 -  school exercise-books; 
 -  toys; 
 -  plasticine; 
 -  pencil cases; 
 -  counting sticks; 
 -  school abacuses; 
 -  school diaries; 
 -  drawing-books; 
 -  albums for drawing; 
 -  albums for plotting; 
 -  folders for exercise-books; 
 -  covers for textbooks, diaries, exercise-books; 
 -  holders of cards with figures and letters; 
 -  diapers. 
 
133. Referring to the list of VAT exemptions listed in Table 18, some members noted that a 
reference was made therein that "sale of products of own manufacture of organisations engaged in the 
production of agricultural products which generate  70 per cent and more of the overall share of 
incomes from the sale in the total sum of their in comes" were exempted from VAT. They asked to 
know which were the products in question and whet her imports of similar products did also qualify 
for exemption.  Noting that "products of sea fisher y caught and/or produced by fishing enterprises" 
were also VAT exempted, these members further in quired whether this exemption was extended to 
imported fish products as well.   WT/ACC/SPEC/RUS/25 
 Page 55 
 
 
 134. Some members requested the Russian Federation to enter a commitment that  Russia' s 
domestic taxes, including VAT and excise taxes, and other taxes applied to goods, would be applied 
in a non-discriminatory manner to imports rega rdless of country of origin and to domestically-
produced goods in compliance with Articles I and II I of the GATT 1994 as from the date of accession. 
135. [The representative of the Russian Federation co nfirmed that from the date of accession, the 
Russian Federation would apply its domestic taxes,  including VAT, excise taxes, and other taxes 
applied to goods including those listed in Table […] and paragraphs […], would be applied in compliance with Articles I and III of the GATT 199 4, in a non-discriminatory manner to imports 
regardless of country of origin and to domestically produced goods.] 
Quantitative Import Restrictions, including Prohibitions and Quotas  
136. In response to questions by members, the representative of the Russian Federation said that 
the Russian Federation did not maintain any quantitative import restrictions, prohibitions or quotas 
within the purview of Article XI of the GATT 1994.  He noted that the only exception was the 
temporary ban on importation of ethyl alcohol  enforced under Federal Law No. 61-FZ of 
31 March 1999 "On Temporary Ban on Ethyl Alcohol Imports" which would be terminated on 
31 December 2001.  This measure was necessary for the enforcement of governmental measures to 
restrict the quantities of like domestic product for marketing and could follow under 
Article XI: 2 (c) (i) of GATT 1994.  After 31 De cember 2001, the regulation of import of ethyl 
alcohol would only be affected by import tariff duties and licenses described below [in 
paragraphs …]. 
137. He further said that Article 13 of Federal Law No. 173-FZ of 22 November 1995 "On State 
Regulation of Production and Turnover of Ethyl Alcohol, Alcoholic and Alcohol-Containing 
Products" restricted imports of distilled spirits to no more than 10 per cent of alcohol sales in the 
Russian Federation. Within this quota, not less than 60 per cent of imports must contain 15 per cent of 
alcohol or less. The provisions of that  Article had never been implemented. 
138. Noting the Russian Federation's statement con cerning the lifting of the temporary ban on 
imports of ethyl alcohol as a temporary measure required to combat tax fraud, some members  
requested clarification on whether the Russian authorities still considered this ban temporary, and  
expressed concern regarding how, once the ban had been lifted, imports of ethyl alcohol would be 
affected by Federal Law No. 1199 "On the Approval of Rules for the Issuance of Quotas for the 
Manufacture of Ethyl Alcohol from All Types and Special Permits for Its Delivery".  As this Law 
seemed to contemplate placing quotas on deliveries by domestic producers, the issue remained as to WT/ACC/SPEC/RUS/25 
Page 56  
 
 whether the Russian Federation eventually planned to place quotas on imports.  As for the reference to 
a law (in force but not applied) that restricted imports of distilled spirits to no more that 10 per cent of 
the Russian market and stipulated that within this quota at least 60 per cent of imports must contain 
15 per cent of alcohol or less, some members requested a clarification as to whether the Russian 
authorities actually intended to repeal this law. 
Import Licensing Systems  139. The representative of the Russian Federation no ted that the legal framework for the import 
licensing system was established by Article 19 of  Federal Law No. 157-FZ of 13 October 1995 "On 
the State Regulation of Foreign Trade Activities".  Articles 12 and 15 of the Law stipulated that 
procedures for the importation of precious stones , precious metals, and nuclear materials should be 
established by Presidential Decrees,  while procedures for the importation of goods affecting Russia's 
national security interests and for the fulfilment of  its international agreemen ts were established by 
the Government of the Russian Federation.  
140. He further noted that through Resolution No. 1299 of 1 October 1996 "On Rules of Conduct 
of Auctions and Tenders on Sale of Quotas in Case s of Introduction of Quantitative Testrictions and 
Licensing of Exported and Imported Goods, Works and Services" (as amended on 27 January 1997, 2 February, 14 March and 29 December 1998), the Government of the Russian Federation introduced 
a uniform procedure for the licensing of imports, ma king the Russian practices in this field consistent 
with the relevant provisions of the GATT 1994 and the WTO Agreement on Import Licensing 
Procedures. 
Table 19 (a):  List of goods subject to non-automatic import licensing
 
Product group HS Code Reason for licensing GATT Reference 
Weapons, ammunition, 
military equipment, kits 
to produce such equipment 9301-9307, 8710 National security Art. XXI (b) (ii) 
Explosive substances 2904 20100, 3601-3604 National security Art. XXI (b) (ii) 
Nuclear materials, 
equipment and 
installations to produce such materials 2844, 8401 etc. in accordance with the 
internationally agreed list of Tangier 
committee and London club of nuclear suppliers National security Art. XXI (b) (ii) 
Pharmaceutical 
products 2904-2909, 2912-2942, 3001-3004, 
3006 30, 3006 60 Protection of human, 
animal or plant life or 
health Art. XX (b)  
Drugs, substances with 
psychotropic effects; 
poisons; materials to 
produce such substances Internationally ag reed list of UN 
Convention of 1961 (as amended by 
Vienna Protocol of 1963) Protection of human, 
animal or plant life or 
health Art. XX (b)   WT/ACC/SPEC/RUS/25 
 Page 57 
 
 
 Product group HS Code Reason for licensing GATT Reference 
Products for plant 
protection 3808 (only for plant protection) Protection of human, 
animal or plant life or health Art. XX (b)  
Hazardous wastes Internationally agreed list of Basel 
Convention Protection of human, 
animal or plant life or 
health Art. XX (b) 
Ozone destroying 
substances and  
products Internationally agreed  list of Montreal 
Protocol Protection of human, 
animal or plant life or 
health Art. XX (b) 
Encryption devices 847 (only cipher equipment)  
847330 (only for cipher equipment), 854380900 (only for cipher 
equipment),  
854390900 (only for cipher equipment) National security Art. XXI (b) (ii) 
Goods of dual purposes 
which could be used for 
production of chemical, biological, nuclear or 
rocket mass destruction  
weapons  Internationally agreed lists National security Art. XXI (b) (ii) 
Sturgeon species of fish 
and products made there 
of including caviar Internationally agreed lists: 
ex.030199190, ex.030269190, 
ex.030270, ex.030379190, ex.030380, 
ex.030410190, ex.030410910, ex.030420190, ex.030490100,  
ex.030520, ex.030530900, 
ex.030549800, ex.030559900, 
ex.030569900, ex.051191900, ex.160419910,ex.160419980, 
ex.160420900 (all-only sturgeon 
species of fish), 160430100 Protection of animal 
life or health Art. XX (b)  
Equipment for 
unauthorised receipt of 
information ex.851750, ex.851780900, 
ex.852440100, ex.852510900, 
ex.852520900, ex.8527, ex.900651, ex.900652, ex.852530, ex.852540, 
ex.900653100 (all-special devices 
only) Protection of public 
moral Art. XX (a) 
Ethyl alcohol 220710000 
220720000 
220890910 
220890990 Protection of human 
health or life Art.XX (b) 
Vodka and some other 
strong alcoholic beverages  220860, 220890110, 220890190, 
ex.220890330, ex.220890380, 220890410, 220890450, 
ex.220890480, 220890520, 
ex.220890570, ex.220890690, ex.220890710, ex.220890740, 
ex.220890780 Protection of human 
life or health. Art.XX ( b ) 
Raw sugar 170111 Administration of 
TRQ Agreement on 
Import Licensing Procedures, 
Articles 1 and 3 
 WT/ACC/SPEC/RUS/25 
Page 58  
 
 Table 19 (b):  List of Goods su bject to automatic import licensing
 
Product group HS Code Reason for licensing 
Glucose syrup 1702 30 990 Monitoring of trade flows 
Tobacco and tobacco items 2401-2403 Monitoring of trade flows 
 
141. More specifically, he said that import licensi ng in force was justified by provisions of 
Articles XX and XXI of the GATT 1994 and the corresponding provisions of the WTO Agreement on 
Import Licensing Procedures. In accordance with the said Federal Law, license s were required for the 
purpose of fulfilling international agreements; ensuri ng state security; the protection of human, animal 
and plant health; the protection of the environmen t; and the maintenance of public morals. Licences 
were generally issued by the Ministry for Economic Development and Trade. In the case of weapons and ammunitions licences were issued by the Ministry of Defence. The licensing regime applied to 
imports from all countries, including imports from CIS.  
142. Regarding the Russian Federation's statement that  a justification to support the application of 
non-automatic import licenses for alcoholic beve rages might be found under Article XX of GATT 
1994, some members felt that more explanation was necessary to understand how the provisions in 
the chapeau of Article XX could be met in this ca se. Doubts were expressed regarding the explanation 
given by the Russian Federation that the requirement s for some of the items listed in Table 19 (a) 
(e.g. ethyl alcohol, vodka, pharmaceuticals, and plant protection chemicals)  were consistent with 
WTO provisions.  These members also argued that th e prior authorizations required for importation of 
goods subject to Hygienic Assessment and Mandatory  Certification could act as disguised barriers to 
trade or might not be applied uniformly to imports and domestic output. 
143. Regarding the information provided by the Russian Federation in relation to goods subject to 
non-automatic licensing, some members asked more detail information on how the Russian authorities 
considered that each of the requirements of Article 1 and 3 of the Agreement on Import Licencing 
Procedures had been met in relation to non-automa tic import licencing in the administration of its 
TRQ for raw sugar (HS 1701.11). 
144. In response, the representative of the Russian Federation said that the purpose of the licensing 
regime was to monitor and control imports of goods which, for various reasons, were classified as 
sensitive for the Russian Federation and the intern ational community. He said that the Russian 
Federation had no intention to limit the quantity and value of imports, except as provided for in 
international conventions such as the Montreal Protocol or Basel Convention. He further noted that import licenses for tobacco and glucose syrup had been  of a temporary surveillance character, issued  WT/ACC/SPEC/RUS/25 
 Page 59 
 
 
 to gather trade data. Those license s were granted automatically. In th e case of import licensing for 
strong alcoholic beverages and pharmaceutical products, he noted that the applicant should have an 
activity licence. 
145. He said that the last Government Resolution (No. 1580) that enforced import or export 
licensing had been issued on 29 December 1998, and after that decisions on goods subject to import or export licence regime had been amended on severa l occasions over the previous three years with a 
view to minimizing the list of products concerned. The most recent decision adopted on 20 July 2001 removed white sugar from the list of products re quiring an import license. He added that licence 
applications were submitted to two administrative bo dies only. The amount and type of information to 
be submitted was stipulated in the Government Resolution No. 1299 of 31 October 1996 which 
described the procedures for application, and contained copy of the import or export contract, copy of the charter of the applicant, copy of the certificate for the state registration approval of the federal 
agency responsible for the specific sensitive good s (for non-automatic licence only) and activity 
licence (for strong alcoholic beverages only).  The vali dity of the licence was, as a rule, no more than 
12 months but could be extended upon request of the licence holder. An administrative fee of 3,000 Rubles was charged for each import or export licence. For issuance of preliminary permits for 
imports of pharmaceutical products the Ministry of  Health charged fees of 0.05 per cent of the 
contract value of the goods. Applications could only be rejected if any of the above-mentioned 
documents would not be available, or the informat ion submitted by the appli cant was false, or the 
importer or exporter did not fulfil the conditions stip ulated in international conventions for specific 
goods. A licence was required to be issued within 25 days after the complete set of documents had 
been submitted.  
146. Noting that for alcoholic beverages, import licenses were only issued where the applicant 
already had an activity licence, some members felt that additional explanation was necessary on the 
rationale for this apparent double requirement.  Th ey also required information on the number of 
licenses issued every year and on how many of these were currently in force.  These members expected the Russian Federation to make a commitm ent that any import licenses on ethyl alcohol, 
alcoholic drinks and pharmaceutical products should be granted automatically on the basis of a regime 
compatible with WTO requirements, including Artic le 2 of the WTO Agreement on Import Licensing 
Procedures.  Furthermore, the Russian Federation should commit to ensuring that all import licenses 
on these and any other products subject to licensi ng will be applied only in compliance with the 
requirements of the WTO Agreement on Import Licensing Procedures. WT/ACC/SPEC/RUS/25 
Page 60  
 
 147. Some members requested clarification on the stat us of any legislative initiative in the Russian 
Federation which could be designed to restrict impo rts of pharmaceuticals having domestic analogues.  
These members felt that, if adopted, this legislation could be inconsistent with the provisions of 
Articles III and XI of the GATT 1994. 
148. Regarding Government Resolution No. 1539 "On the importation in and the exportation from 
the Russian Federation of Medicaments and Pharm aceutical Substances", some members further 
indicated that  Paragraph 2 of this resolution appear ed to suggest that foreign manufactures must have 
offices in the Russian Federation in order to obtain an import license.  They requested clarification as 
to whether this would imply that foreign manufact urers of pharmaceuticals should have an office in 
the Russian Federation to obtain a license to import, and noted that in this case such a requirement 
would be WTO inconsistent with WTO provisions.  In addition, they asked the Russian Federation to elaborate on the purpose of these requirements, partic ularly in the case of licensing products such as 
flavourings and dual use precursor chemicals, and on whether they require the examination of every 
contract to import. 
149. Noting that pharmaceutical exporters had expressed concern over certain Russian import 
licensing requirements (for instance if the mol ecule unique to the pharmaceutical had not changed 
periodic renewal of licenses appeared unnecessary and could be expensive and burdensome to 
industry), some members asked whet her such requirements were equally applied or not to similar 
domestic products, as they could constitute a viol ation of Article III. Noting further that some 
pharmaceutical exporters had expressed concern th at the administration of licenses at MOH and 
MEDT did not presently meet WTO requirements such as transparency, fees for services rendered, 
processing within a reasonable timeframe and fo rbearance on minor documentation errors, these 
members requested clarification on the steps that th e Russian Federation intended to take to ensure 
that the administration of import licen ses would conform to WTO requirements. 
150. Some members noted their understanding that activity licensing for precious stones and 
metals had been eliminated on 11 February 2001 (under Federal Law No. 128).  The Russian 
Federation had acknowledged that the current law concerning pharmaceuticals (No. 86) was 
inconsistent with the new draft Foreign Trade and Import/Export Licensing Laws.  These members 
expected the Russian Federation to report to the Working Party that Law. No. 86 would be amended 
or repealed to ensure WTO conformity and give cl ear indication of the intended timing.  The Russian 
Federation should also confirm that activity licens es would be made available to all registered 
companies (domestic or foreign) which satisfied gove rnment regulatory criteria.  Activity licenses in 
these areas were only available to specific Russian Federation companies or (in the case of medicine)  WT/ACC/SPEC/RUS/25 
 Page 61 
 
 
 Russian Federation companies which had the licence to produce the same goods.  These members 
considered that this discrimination should be elimin ated.  They noted that this would not prevent the 
Russian Federation from operating state-trading en terprises or applying controls on imports and 
exports for example for purposes of human health, as long as these were applied in a manner 
consistent with relevant WTO obligations. 
151. Members considered that the Russian Federati on should commit to apply import licensing 
measures, including those used for standards or sanitary certification, in  conformity with WTO 
Agreements, in particular Articles XI, XII, XIII, XIX, XX and XXI of the GATT 1994, and the WTO 
Agreements on Agriculture, Sanitary and Phytosanitary Measures, Import Licensing Procedures, Safeguards and Technical Barriers to Trade upon accession.  To facilitate this commitment, the 
Russian Federation was invited to provide an update d description of its import licensing regime, and 
to include information on the specific criteria for th e application of the various licensing requirements. 
152. [The Representative of the Russian Federation confirmed that the Russian Federation would 
eliminate from the date of accession, and would not introduce, reintroduce or apply, quantitative 
restrictions on imports or other non-tariff measures such as quotas, bans, permits, prior authorization 
requirements, licencing requirements  or other requirements or restri ctions having equivalent effect 
that could not be justified under the provisions of  the WTO Agreements.  Amendments to the import 
licencing regime after accession would be fully in accordance with all relevant provisions of the 
WTO, including the Agreement on Import Licencing Pr ocedures.   He further confirmed that the legal 
authority of the Government of the Russian Federation to suspend imports or to apply licencing requirements that could be used to suspend, ban or otherwise restrict the quantity of trade would be 
applied from the date of accession in conformity with the requirements of the WTO, in particular 
Articles III, XI, XII, XIII, XIX, XX and XXI of the GATT 1994, and the WTO Agreements on 
Agriculture, the Application of Sanitary and Phytosanitary Measures, Import Licencing Procedures, Safeguards, Technical Barriers to Trade and the U nderstanding on Balance-of-payments Provisions of 
the GATT 1994.]  
- Customs Valuation  
153. Members noted that specific issues of concern in this area included the use of de facto  fixed 
import prices for some goods, the need to include more precise provisions for valuation of imports possibly involving related parties, and the inclusio n of the Interpretative No tes to the Agreement in 
legal text.  They reiterated that any use of minimu m or arbitrary valuation methods, even if intended 
to address a specific problem, must be eliminat ed prior to accession and replaced with procedures 
meeting WTO requirements.   WT/ACC/SPEC/RUS/25 
Page 62  
 
 154. The representative of the Russian Federation said that the basic provisions relating to customs 
valuation practices in the Russian Federation were contained in Federal Law No. 5003-1 of 
21 May 1993 "On Customs Tariff" and Government Resolution No. 856 of 5 November 1992 "On the 
Procedure of Customs Valuation of Products Imported into the Territory of the Russian Federation". 
The rules for determining customs values were ba sed on the provisions of the WTO Agreement on 
Implementation of Article VII of the GATT 1994. A ll six methods of customs valuation applied were 
based on the provisions of Articles 1, 2, 3, 5, 6, 7 and 8 of that Agreement.  
155. He further noted that, taking into account the provisions of Article 17 of the WTO Agreement 
on Implementation of Article VII of the GATT 1994, the State Customs Committee (SCC) had been implementing a special technique of customs control which was aimed at preventing gross under-
invoicing of customs value, such as the use of false documents stating a clearly understated contractual price in the performance of customs formalities.  
156. Noting that the Russian Authorities had mentioned "a special technique of customs control" 
recently introduced by the State Customs Committee in order to prevent "gross under-invoicing" of 
customs value, some members requested clarific ation on the modalities of application and legal 
justification of this special technique. 
157. In response, the representative of the Russian Federation said that this technique entrusted the 
decision-making authority of the customs bodies with the task of checking the truth and accuracy of the stated value of products.  The relevant customs bodies were vested with certain functions to 
control customs value, and those situations in which such functions could be performed were 
specified and the operational procedures of the cust oms bodies at the various levels (custom-house, 
regional customs authority, SCC staff) defined.  This technique was not meant to replace the 
applicable Russian legislation  on customs valuation based on the use of the transaction value as a 
main method of customs valuation.  This techniqu e might also enable the customs authorities to more 
effectively respect the provisions of Article 13 of the WTO Agreement on Implementation of 
Article VII of the GATT 1994 as it simplified the proc edures and criteria used to decide whether the 
stated transaction value could have been understated.   
158. He further noted that actions by the SCC could be appealed in accordance with the procedure 
established by the Customs Code of the Russian Federation.  Article 40 7 of the Customs Code 
required that the initial appeal should be filed with  the higher customs administration of the Russian 
Federation, while Article 416 stipulated that should this appeal be turned down, the importer could further appeal to a court. He also noted that draft Chapter 27 of the Tax Code of the Russian Federation entitled "Customs Duty and Customs Charges" contained requirements ensuring  WT/ACC/SPEC/RUS/25 
 Page 63 
 
 
 consistency of customs valuation procedures with the provisions of the WTO Agreement on 
Implementation of Article VII of the GATT 1994.  
159. Some members noted that currently applied law did not fully appear to implement Article 13 
of the Agreement on the Implementation of Artic le VII of the GATT 1994 which provided for a 
guarantee system allowing an importer to withdraw goods from customs pending final determination of the customs value if he provided  sufficient guarantee.  This was a critical provision as it ensured 
that customs procedures did not, in themselves, block imports. These members sought a confirmation that relevant Customs decisions, e.g., Orders and Letters, and the decisions of local customs 
authorities, that traders needed to be able to review and understand, would be made available for this purpose to traders and other interest ed parties promptly and at reasonable cost.  Information was also 
required on how the Russian State Customs Committ ee and its regional offices, published and/or 
made available their rulings and other information for importers and exporters. 
160. Noting the reference to the new Tax Code a nd the draft Customs Code, members considered 
that further information on the proposed new legi slation in this area was needed to enter into 
meaningful discussions on the extent to which furt her adjustments would be required to bring the 
Russian practices in full conformity with WTO requirements. They noted that the procedural 
protections in the WTO Agreement that facilitat e importation were important benefits for WTO 
members and should be established in the Russian Federation upon accession. 
161. [The representative of the Russian Federation  confirmed that the Russian Federation would 
apply its customs valuation laws, regulations and prac tices in full conformity with the relevant WTO 
provisions, including the Agreement on Implementation of Article VII of the GATT 1994, from the date of accession without recourse to any transition period.  He further confirmed that, in determining 
the value of imports, the Russian Federation would apply the provisions on the Treatment of Interest 
Charges in Customs Value of Imported Goods an d for the Valuation of Carrier Media Bearing 
Software for Data Processing Equipment. In accordan ce with these latter provisions, only the cost of 
the carrier medium itself would be accounted for in  the customs value. He also confirmed that the 
Russian Federation had eliminated the use of minimum import prices and reference prices for 
determining the value of imports, and that the Russian Federation would not use any form of 
minimum value, reference price, or fixed valua tion schedule establishing the value of imports and 
exports nor would apply duties and taxes from the date of accession.  He added that, as an 
international agreement, the prov isions of the WTO Agreement on the Implementation of Article VII 
of the GATT 1994 would supersede domestic law after accession.]   WT/ACC/SPEC/RUS/25 
Page 64  
 
 - Rules of Origin 
162. The representative of the Russ ian Federation said that the Russian Federation was closely 
following the work of the WCO and the WTO regarding the harmonisation for non-preferential rules of origin.  In accordance with the provisions  of Federal Law No. 5003-1 of 21 May 1993 "On 
Customs Tariff", the principles for determining the country of origin of goods were based on international practices.  The procedures for dete rmining the country of origin of goods were 
established pursuant to the said Law.  Goods origin ated from a country if they were wholly obtained 
in that country or substantially transformed  in acco rdance with criteria set forth in the said Law.  The 
country of origin of goods might also be understood to mean a group of countries, customs unions, a region or a part of a country, if this was necessar y to identify them with a view to determining the 
origin of goods.  He also noted that the provisions of Federal Law No. 5003-1 of 21 May 1993 "On 
Customs Tariff" which related to the determination of the country of origin of goods, reflecting 
international practices and implementing the re commendations of the Kyoto Convention, were 
incorporated in the draft of the new version of the Customs Code of the Russian Federation.   
163. He further explained that, in order to verify th e origin of goods from a country, the Russian 
customs agency might request the presentation of a ce rtificate of origin. This applied, in particular 
with respect to goods originating from countrie s which benefit from the National GSP Scheme; to 
goods of which the importation from a given coun try was regulated by quantitative restrictions 
(quotas) or by other methods for the regulation of foreign economic activities;  if this was envisaged 
by international agreements, to which the Russian Federation  was a party, as well as by Russian 
legislation on environmental protection, public health, protection for the rights of Russian consumers, 
public order, state security and other vital interest s of the Russian Federation;  and, in cases where 
data about the origin of the goods were absent in the documents submitted for customs clearance or 
the Russian customs agency had reason to believe that  the declared data about the origin of the goods 
were not trustworthy. 
164. The certificate of origin of goods should unequivocally certify that such goods originated 
from the specified country, and should contain:  a written statement by the consignor that goods met 
the appropriate criteria of origin ;  and written confirmation by the duly authorised agency of the 
exporting country which had issued such certificat e that the data indicated therein were true. 
165. The certificate of origin of goods should be submitted alongside the customs declaration and 
other documents presented for customs clearance.  If  doubts existed about the validity of a certificate 
or the accuracy of the data indicated therein, including the data about the country of origin of goods, the Russian customs agency might approach the organi sations that had issued the certificate or other  WT/ACC/SPEC/RUS/25 
 Page 65 
 
 
 authorities of the country indicated as the country of  origin of goods with a request for supplementary 
or clarifying data.  Goods would not be regarded as originating from a given country until a duly 
executed certificate of origin or  requested data were submitted. 
166. He noted that the Russian customs authorities mi ght refuse to clear goods across the Russian 
customs border only if they had sufficient grounds to believe that such goods originated from a country from which goods could not be cleared under international agreements to which the Russian 
Federation was a party and/or Russian legislation.  Failure to submit a duly executed certificate or 
data about the origin of goods would not constitute grounds for refusal to clear such goods across the 
customs border.  Goods of which the origin had not been clearly established should be cleared after 
the payment of customs duties at the non-MFN rates of the Russian Customs Tariff.   
167. He further noted that the determination of the origin of goods originating from developing 
countries eligible for the system of preferences maintained by the Russian Federation was governed 
by the "Rules of Origin of Goods Originating from Developing Countries for the Purposes of Tariff 
Preferences under the General Preferen ces System" incorporated in the Agreement of the CIS states of 
12 April 1996 "On Rules of Origin of Goods Originating from Developing Countries for the Purposes 
of Tariff Preferences under the General Preferences System". As for the rules of origin within free 
trade agreements, the additional criteria of direct purchase were used. 
168. In respect of goods originating from CIS coun tries, he said that the Russian Federation 
adhered to the "Rules of Origin of Goods" approved by the Council of Heads of CIS Governments on 
30 November 2000. The above rules were develope d pursuant to the international practice of 
determination of origin. 
169. Noting that the rules of origin provisions contained in Federal Law No. 5003-1 of 
21 May 1993 "On Customs Tariff" did not appear to fully reflect the requirements of the WTO 
Agreement, some members felt it was essential to ensure that the new draft Customs Code would 
provide revised rules of origin consistent with WTO provisions.  These members also required a 
clarification on whether these new laws would cover both preferential  and non-preferential rules of 
origin. 
170. Some members indicated a particular interest in provisions concerning the right to request an 
origin determination from the Government prior to  shipment, and requested a commitment requested 
that these provisions should be apply in line with the requirements of Article 2(h) and Annex II, 
paragraph 3(d) of the Agreement on Rules of Origin . In addition, they also indicated that Russia' s 
preferential rules of origin for CIS should fully reflect the interim rule s of Annex II of the Agreement.  WT/ACC/SPEC/RUS/25 
Page 66  
 
 In this regard, these members requested clarificat ion on whether the "Decision of the Council of the 
Governments of the Commonwealth of Independent States on the Rules for the Determination of a 
Country of Goods' Origin" of 24 September 1993 would currently meet these requirements, and a 
commitment was sought as to their implementation upon accession. 
171. [The representative of the Russian Federation confirmed that from the date of accession the 
Russian Federation's laws and regulations on rule s of origin for both MFN and preferential trade 
would be applied in conformity with the provisions of the WTO Agreement on Rules of Origin, 
including the provisions of Annex II, and that these provisions would be established in the Russian 
Federation's legal framework. In this regard, the requirements of Article 2(h) and of Annex II, 
paragraph 3(d), i.e. that for non-pr eferential and preferential rules of origin, respectively, its customs 
authorities would provide an assessment of the or igin of the import and outline the terms under which 
it would be provided upon the request of an export er, importer or any person with a justifiable cause. 
According to the provisions of the WTO Agreement on Rules of Origin specified above, any request 
for such an assessment would be accepted even before trade in the goods concerned had began, and 
any such assessment would be binding for three years.] 
- Other Customs Formalities 
172. The representative of the Russian Federation  said  that other customs formalities in use in the 
Russian Federation were applied in accordance with  the internationally accepted rules and were based 
on the Kyoto Convention.  
173. Noting this statement, some members considered that the simplification of border controls 
and customs documentation necessary for importation in the Russian Federation would have a favorable impact through reduced costs and im proved efficiency for Russian traders.   
174. Noting that his country was experiencing a huge volume of uncontrolled entry of smuggled 
goods from the Russian Federation which seriously injured its domestic market, one member asked 
the Russian authorities to clarify how they intended  to fully control the Russian Federation's customs 
border in its entirety to prevent exit of smuggled goods from Russian territory continuing to damage 
small and vulnerable neighbouring countries.  This  member also believed that import regulations 
imposed by the Russian Federation on imports of certain types of products (wine and wine products, 
petroleum products, tobacco products, chicken meat etc.) which authorized only certain check-points 
often located away from the exporting countries, even in the case of neighbouring countries, to handle 
these goods, represented hidden impediments to tr ade.  He therefore requested that the Russian 
Federation ensure these requirements be  removed or significantly simplified.  WT/ACC/SPEC/RUS/25 
 Page 67 
 
 
 175. Members expected the Russian Federation to undertake a commitment that upon accession all 
regulations, formalities and requirements connected with the importation of goods, including in 
relation to statistical control, customs clearance,  documents, documentation and certification, 
inspection and analysis, and any changes to these regulations, formalities and requirements would be 
published sufficiently in advance and applied in a uniform, impartial and reasonable manner across 
the customs territory of the Russian , consistent  with WTO requirements, including GATT Articles 
VIII and X.  Customs regulations, formalities and requi rements should also be applied and operated in 
a fashion consistent with WTO requirements.  They  noted that industry and exporters had regular 
experience of inconsistencies between administrative decisions taken by the Russian Federation authorities and the prevailing Russian Federation legi slation.  Moreover, inco nsistencies appeared to 
exist between the general legisl ative framework and subsidiary regulations and administrative 
guidance issued by the Russian Federation government bodies (such as the State Customs 
Committee).  Furthermore, administrative orders issued by the State Customs Committee are sometimes issued as "secret orders" and their contents are not publicised to traders.   
176. A member said that his authorities had identified a number of measures that raised concerns 
in this area.  Under State Customs Committee Orders No. 155 of 14 February 2001 and No. 949 of 
1 October 2001, certain goods that qualified as high-risk  (eg. certain foodstuffs) were not released for 
free circulation without the specific approval of a higher customs authority.  The process of obtaining 
such approval can last from one to two weeks.  Under rules introduced in October 2001 by the North 
Western Customs Authority, shipments of "risk produc ts" (a wide group of products including coffee, 
furniture, tyres and washing machines) are subj ect to burdensome docum entary requirements, 
including in relationship to the ownership of the vehicle transporting the goods.  The Russian 
Federation had also imposed restrictions that require customs clearance for certain goods, including textiles, clothing and electrical products, to take place only on border crossings with certain Asian 
countries as well as in ports and airports.  Consequently such items originating in Asia can no longer 
be exported to the Russian Federation via this member's customs territory.  As well as raising 
concerns in relation to conformity with WTO require ments on trade in transit, these decrees made it 
possible for companies exporting to the Russian Fede ration to use raw materials from the Far East for 
sub-contracting and subsequently created a barrier to  business cooperation.  The cumulative effect is 
that exporters to the Russian Federation face unpr edictable, non-transparent, lengthy and generally 
burdensome customs procedures for imported goods at the point of entry into the Russian Federation's 
customs territory.  Appropriate checks on imported goods may be called for to ensure that the Russian 
Federation's regulatory requirements are respected, but such measures should not be applied in a 
heavy-handed or non-transparent way.  Standard WT O requirements of transparency, predictability 
and uniform application should apply. WT/ACC/SPEC/RUS/25 
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 - Pre-shipment Inspection   
177. Noting that the Russian authorities had stated that the Russian Federation did not require any 
inspection services prior to shipment, member s asked the Russian Federation to undertake a 
commitment indicating that if such services should be employed in the future, they would conform to 
WTO provisions in their operations, e.g., in the appl ication of fees for services rendered, observance 
of other WTO requirements in customs processing, and in providing right of appeal to the 
Government. 
178. [The representative of the Russian Federation confirmed that if such a system would be 
introduced in the future, it wo uld be temporary. The Government of the Russian Federation would 
take responsibility to ensure that the operations of any pre-shipment  inspection companies it retained 
would meet the requirements of the WTO Agreements , in particular the Agreements on Pre-shipment  
Inspection, Import Licencing Procedures, Customs Valuation, Sanitary and Phytosanitary Measures 
and Technical Barriers to Trade.  He further c onfirmed that charges and fees applied by such 
companies would be consistent with Article VIII of the GATT 1994, and that such system would 
comply with the due process and transparency requ irements of the WTO Agreements, in particular 
Article X of the GATT 1994, and the Agreement on the Implementation of Article VII of the 
GATT 1994.]  
- Anti-Dumping, Countervailing Duties and Safeguard Regimes  
179. The representative of the Russian Federatio n noted that Federal Law No. 63-FZ of 
14 April 1998 "On Measures to Protect the Economi c Interests of the Russian Federation in Foreign 
Trade in Goods" established rules of procedures for the application,  conduct of investigation and the 
imposition of safeguards, anti-dump ing and countervailing me asures as well as ot her regulations of 
exports and imports provided for in the relevant  rules of the GATT 1994, including measures for 
safeguarding the balance of payments.  Anti-dumpi ng, safeguards and countervailing measures could 
be introduced only following an investigation showing evidence of substantially increased, dumped or 
subsidised imports, serious or material injury to  domestic industry or threat of such injury and 
causality between these developments .  The measures could only be in place for a limited period of 
time necessary to eliminate the injury.  Go vernment Regulations Nos. 183 and 184 of 
16 February 1999 and No. 274 of 11 March 1999 established procedures for investigations as well as for determination of injury.    WT/ACC/SPEC/RUS/25 
 Page 69 
 
 
 180. He further noted that a new draft Federal Law "On Safeguard, Anti-Dumping and 
Countervailing Measures" had been prepared by the Go vernment in full conformity with the relevant 
WTO provisions and would be submitted to the State Duma shortly.  
181. Concerning anti-dumping, members noted that the description of the current legislation 
provided by the Russian authorities did not appear to be consistent with releva nt WTO provisions.  In 
particular, investigations seemed to be limited to  injury and causality aspects without requiring a 
proper determination of dumping, while any measures applied would be expected to remain in place for "a limited period of time necessary to eliminat e injury", thus not necessarily complying with the 
five-year maximum duration provided for measures undertaken under the WTO Anti-dumping Agreement.  Concerning safeguards, members fe lt that more information was required on the 
measures currently in place or under considerat ion by the Russian authorities (e.g. on caramels and 
steel) before any assessment of their WTO compatibility could be effectively made. 
182. Noting that new legislation was being prepar ed in these areas, including a new Law "On 
Additions and Amendments to the Federal Law "On Protection of Economic Interests of the Russian 
Federation in Foreign Trade in Goods", members fe lt that the Working Party should be given an 
opportunity to review the content and coverage of these new legislative acts as well as any 
implementing regulations so as to reflect their provisi ons in the draft report.   As it was apparent that 
the Russian Federation intended to make recourse to such measures to regulate trade, members also 
stressed the importance of devising an appropriate commitment that should confirm the full 
conformity of the new Law and regulations and th eir modalities of application with relevant WTO 
Agreements. 
183. A member requested the Russian Federation to confirm that, notwithstanding Article 18.3 of 
the Anti-dumping Agreement, the Russian Fede ration would apply the provisions of the 
Anti-dumping Agreement to proceedings under Articl e 9.3, including the calculation of margins of 
dumping, in connection with anti-dumping measures adopted before the entry into force of the Draft 
Protocol ("existing measures"), to reviews of exis ting measures initiated under Articles 9.5, 11.2 and 
11.3 pursuant to requests made on or after the entry into force of the Draft Protocol (any review of an 
existing measure of Article 11.3 would be initiate d no later than five years from its date of 
imposition), and provide the type of judicial revi ew described in Article 13 of the Anti-dumping 
Agreement with regard to proceedings under Article  9.3 and reviews under Articles 9.5, 11.2 and 
11.3.  This member further requested the Russian Federation to confirm that the Russian Federation 
would provide the type of judicial review described in Article 23 of the Agreement on Subsidies and Countervailing Measures with regard to reviews under Articles 19.3, 21.2 and 21.3.  The Russian WT/ACC/SPEC/RUS/25 
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 Federation would also ensure that all investigatio ns initiated and measures imposed in the area of 
trade defence instruments (i.e. anti-dumping, countervailing and safeguard measures) were fully 
consistent with WTO requirements upon accession.  The Russian Federation would ensure that all 
relevant legislation in place at the time of acce ssion or implemented in the future was in full 
conformity with the relevant provisions of the relevant WTO Agreement. 
184. [The representative of the Russian Federation  confirmed that the Russian Federation would 
not apply such measures until it has notified and implemented laws in full conformity with the 
relevant WTO provisions, includ ing Articles VI and XIX of the GATT 1994 and the Agreement on 
the Implementation of Article VI, the Agreement on Subsidies and Countervailing Measures, and the 
Agreement on Safeguards.  After such legislation was implemented, the Russian Federation would 
only apply any anti-dumping measures, counterva iling measures and safeguard measures in full 
conformity with WTO provisions.] 
Export Regulation - Export Duties  
185. The representative of the Russian Federation said that export duties ranging from 5 to 
50 per cent had been imposed mainly for fiscal purpos es and, in very few cases (raw hides and skins, 
scrap and waste of non-ferrous metals), to ensure materials essential to the domestic industry and to 
prevent shortages in domestic supply. Export duties were applied on an MFN basis except for goods exported to members of the Customs Union.  All ch anges in export duties were published officially. 
Exported goods were exempt from VAT (except for crude oil and natural gas exported to CIS 
countries).  He also noted that the Russian Fe deration maintained the same customs fees on 
exportation as on importation. 
186. Some members noted that the Russian Federation maintained export restrictions in the forms 
of export tariffs, export quotas and export lice ncing. These members were concerned that these 
systems might restrict trade without justifiable grounds. They therefore requested the Russian 
Federation to apply all such measures in  conformity with the WTO Agreements.  
187. Some members also recalled that export duties acted as indirect subsidies to domestic down-
stream users and could thus distort international trad e.  The comprehensive listing of export duties, the 
list of export restrictions and the information provided on licensing and other prior authorizations 
presented by the Russian authorities was all welcome information.  Noting that the Russian Federation 
was preparing new legislation on import and export licensing and on application of standards and the  WT/ACC/SPEC/RUS/25 
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 certification of imports, these members felt that this information should be updated when that 
legislation was in a more advanced form.  Noting further that the VAT exemption on exports of oil 
and natural gas was slated to expire in 2004, some members suggested that the Russian Federation's 
plans on the revision of its export tariff regime  should be reflected in the draft Report. 
188. Noting that the Russian Federation had argued th at export duties were levied for largely fiscal 
purposes, members expressed concern that the effe ct of these duties was to discriminate against 
foreign buyers and to raise the level of the export price so that third-country producers (i) encountered their own difficulties of supply for the products con cerned, (ii) suffered from increased production 
costs resulting eg. from higher input or energy cost s and/or (iii) faced a s ituation where they lose 
relative competitiveness on the global market for down stream products as a result of the indirect price 
support given to domestic Russian producers compet ing in the same markets. This was particularly 
the case as a result of export duties on minerals, petrochemicals, natural ga s, raw hides and skins, 
ferrous and non-ferrous metals and scrap, etc.  They expected the Russian Federation to make a 
commitment to phase out export duties under modalities and a timetable would need to be established.  
The Russian Federation should also commit that export duties would not be applied on other products and that, once eliminated, export duties on products  currently affected would not be reintroduced. 
- Quantitative Export Restrictions, Including Prohibitions and Quotas 
189. The representative of the Russian Federation said  that all previous export bans or export 
quotas had been abolished since 1996. Article 15 of Federal Law No. 157-FZ of 13 October 1995 "On 
State Regulation of Foreign Trade Activity" allowed for the imposition of export quotas in 
exceptional cases to ensure essen tial national interests of the Russi an Federation and implementation 
of its international commitments. There was no special  registration of export contracts or registration 
or nomination of exporting companies (special exporter s). According to Article 19 of the said Federal 
Law, a ban on exports could be intr oduced by special Federal Law only. 
190. Noting this statement, a member requested furt her clarification on the Decree of the Customs 
Committee of the Russian Federation No. 1002 of 29 December 2001 which stipulated the customs 
clearance checkpoints that might be used for exporta tion of certain timber products by rail or road. 
This member noted that this Decree had been provisionally amended on 14 January 2002 to include 
customs clearance checkpoints at its country border s with the Russian Federa tion and asked whether 
the Russian Federation intended to make a definitiv e amendment to Decree No. 1002 so as to avoid 
possible trade distorting effects.  WT/ACC/SPEC/RUS/25 
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 - Export Licensing Procedures 
191. The representative of the Russian Federation not ed that the procedures for export licensing 
were the same as for import licensing. Some sensitive goods were subject to non-automatic licensing. A limited number of products were subject to automatic licensing fo r monitoring of trade flows.  
Table 20 (a):  Goods subject to non-automatic export licensing
 
Product group HS Code Reason for 
licensing GATT Reference 
Weapons, ammunition, 
military equipment, kits 
to produce such 
equipment 9301-9307, 8710 National security Art. XXI (b) (ii) 
Explosive substances 2904 20100, 3601-3604 National security Art. XXI (b) (ii) 
Nuclear materials, 
equipment and 
installations to produce 
such materials 2844, 8401 etc. In accordance with 
the internationally agreed list of 
Tsanger committee and London 
club of nuclear suppliers National security Art. XXI (b) (I) 
Pharmaceutical 
products 2904-2909, 2912-2942, 3001-
3004, 3006 30, 3006 60 Protection of 
human, animal or 
plant life or health Art. XX (b)  
Drugs, substances with 
psychotropic effects; poisons; materials to 
produce such substances Internationally agre ed list of U.N. 
Convention of 1961 (as amended by Vienna protocol of 1963) Protection of 
human, animal or plant life or health Art. XX (b)  
Products for plant 
protection 3808 (only for plant protection) Protection of 
human, animal or plant life or health Art. XX (b)  
Certain precious metals 
and stones, objects made there of, alloys semifabricates, ores, 
concentrates wastes  2616, 2530 90 950,7101 
7103, 7106, 7108, 7110, 7118 Special role of 
precious metals and stones Art. XV:9 (b) 
Hazardous wastes Internationally agreed list of Basel 
Convention Protection of 
human, animal or 
plant life or health Art. XX (b) 
Ozone destroying 
substances and  
products Internationally ag reed list of 
Montreal Protocol Protection of 
human, animal or 
plant life or health Art. XX (b) 
Encryption devices 847 (only cipher equipment) 
847330 (only for cipher 
equipment), 854380900 (only for 
cipher equipment), 854390900 (only for cipher equipment) National security Art. XXI (b) (ii) 
Goods of dual purposes 
which could be used for production of chemical, 
biological, nuclear or 
rocket mass destruction  weapons  Internationally agreed lists National security Art. XXI (b) (ii)  WT/ACC/SPEC/RUS/25 
 Page 73 
 
 
 Product group HS Code Reason for 
licensing GATT Reference 
Sturgeon species of fish 
and products made there 
of including caviar Internationally agreed lists: 
ex.030199190, ex.030269190, 
ex.030270, ex.030379190, 
ex.030380, ex.030410190, ex.030410910, ex.030420190, 
ex.030490100,  ex.030520, 
ex.030530900, ex.030549800, ex.030559900, ex.030569900, 
ex.051191900, 
ex.160419910,ex.160419980, ex.160420900 (all-only sturgeon 
species of fish), 160430100 Protection of 
animal life or health Art. XX (b)  
Equipment for 
unauthorised receipt of 
information ex.851750, ex.851780900, 
ex.852440100, ex.852510900, 
ex.852520900, ex.8527, ex.900651, ex.900652, ex.852530, 
ex.852540, ex.900653100 (all-
special devices only) Protection of public 
moral Art. XX (a) 
Ethyl alcohol 220710000 
220720000 
220890910 
220890990  Art. XX (b) 
Vodka and some other 
strong alcoholic 
beverages  220860, 220890110, 220890190, 
ex.220890330, ex.220890380, 
220890410, 220890450, ex.220890480, 220890520, ex.220890570, ex.220890690, 
ex.220890710, ex.220890740, 
ex.220890780  Art. XX (b) 
Wild animals and wild 
plants 010119900,  010290900, 
010391900, 010392900, 
010410900, 010420900, 
010600910, 010600990 040700900, 0507, 050800000, 
0604, 070951, 070952000, 
071080600, 071230000, 
080221000, 080222000, 0810-0812, 121220000, 1301, 1302 
(except  130219300), 1401-1404, 
9601(all-wild animals and wild plants only)  Protection of 
human, animal or 
plant life or health Art. XX (b) 
Pharmaceutical raw 
materials 020610100, 020622100, 
020629100, 020630100, 020641100, 020649100, 
020680100, 020690100, 0507, 
051000000, 1211, 121220000, 
1302 130219300, 3001, 3002 (all-pharmaceutical raw materials 
only) Protection of 
human, animal or plant life or health Art. XX (b) 
Rare kinds of fish 0301, 0306, 0307, 051191900 (all- 
rare kinds of fish alive only) Protection of 
human, animal or plant life or health Art. XX (b) 
 WT/ACC/SPEC/RUS/25 
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 Table 20 (b):  Goods subject to automatic export licensing
 
Product group HS Code Reason for licensing 
Soya beans, rape or colza seeds, 
sunflower seeds  1201, 1205, 1206 Monitoring of trade flows 
Raw hides and skins 4101, 4102, 4103 Monitoring of trade flows 
 
192. Members requested more information on the procedures followed and fees charged in 
connection with the issuance of export licences.  A confirmation was sought that any fees charged on exports related to the cost of service rendered in accordance with WTO provisions.  The Russian 
authorities were asked to inform the Working Party of any legislative changes affecting the general customs regulation of exports or any similar proposa ls.  All restrictive measures which could not be 
justified under WTO provisions should be eliminated upon accession and should be applied in the future only if in conformity with these provis ions.  Some members also questioned whether the 
restrictions on precious metals and stones, semi-precious stones, vodka, and ethyl alcohol could be justified under the WTO provisions invoked by the Russian authorities. 
193. Members asked the Russian Federation to un dertake a commitment that the Russian 
Federation would eliminate any quantitative or rest rictive licencing measures that could not be 
justified under the WTO Agreements, either by the date  of accession or by any agreed timetable in its 
Protocol of Accession, and that any such measures applied in future would be in conformity with WTO provisions, including Articles XI, XVII, XX and XXI of the GATT 1994. 
194. Noting that the Russian Federation did not presently apply any export quotas members 
recalled that a system of non-automatic export licensi ng however applied to a wide range of products.  
Such measures had the potential to be applied in  a manner contrary to the general prohibition of 
quantitative restrictions on export provided under Ar ticle XI of GATT 1994.  In the case of precious 
metals and stones, the legislation providing for export licensing made the issue of an export licence for certain products subject to a quota (President ial Decree No. 742 of 21 June 2001).    Under this 
same Decree, exports of platinum were permitt ed under licence within quantitative limits, while 
exports of precious metals waste and scrap are prohibited.  While a rationale could exist for the 
application of certain controls on exports under the relevant GATT exceptions clauses (including 
Articles XX and XXI), for example in respect of the exports of dual use goods, hazardous products, 
endangered species etc, the rationale for such controls on the exports of other goods, particularly pharmaceuticals, alcohol and alcoholic drinks and precious metals and stones other than gold and 
silver was less clear.  Automatic licensing, which is  already applied for exports of raw hides and skins 
and certain oilseeds, provides a mechanism for Russia to monitor export flows, if this is considered  WT/ACC/SPEC/RUS/25 
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 desirable.  However, as discretionary controls on these particular products are unlikely to meet the 
relevant criteria of the GATT exceptions clauses, it is essential that any licensing regime should be 
genuinely automatic, in order to avoid restrictions on trade.   
195. Some members also noted that the Russian Fede ration had applied restrictions on the number 
of customs posts authorised for the export of specif ic products, for example metal scrap.  As well as 
creating potential delays and bottlenecks and adding to shipment costs, the members were concerned 
that such restrictions could also act as de facto  trade barriers.  The Russia n Federation should update 
the Working Party on steps being taken to increase the number of customs posts authorised for the 
export of specific products, such as metal scrap and forestry products.  These members were also concerned that licensing requirements that govern access to pipelines or other distribution networks 
could operate in a manner so as to restrict the volume of oil and gas exported from the Russian Federation.  Management of these pipelines is typically the responsibility of a state monopoly 
(Transneft for oil and Ga zprom and its affiliate Ga zexport for natural gas). This situation raised 
questions of compatibility with WTO requirements, including Article XI of the GATT 1994.  The 
Russian Federation should provide the Working Party with further information on the operation of these regimes, including on the regime for export licensing of energy products.  
- Export Financing, Subsidy and Promotion Policies 
196. Members stressed the need to continue efforts to  clarify whether benefits provided to certain 
exporting industries in the Russian Federation woul d constitute prohibited export subsidies.  In 
particular they requested more information regarding the price a nd availability of natural gas to 
certain export industries, e.g., fertilizer, vis-à-vi s the price and availability to other commercial 
entities within the Russian Federation.  
197. Noting that the Russian Federation was developing a comprehensive draft law on State Aids 
that should address these issues and that deal comprehensively with subsidies, i.e., those provided for 
as "revenues foregone" through tax and tariff exempt ions or special pricing polities, as well as those 
provided for in the budget, members requested that the Russian Federation, should revise its domestic 
law/regulations for any identified subsidy measures with a view to elimination of prohibited industrial 
export subsidies upon accession.   
198. [The representative of the Russian Federation c onfirmed that, from the date of accession, the 
Russian Federation would not maintain subsidies, including export subsidies which met the definition 
of a prohibited subsidy, within the meaning of  Article 3 of the Agre ement on Subsidies and 
Countervailing Measures, that it would not introduce such prohibited subsidies in the future, and that WT/ACC/SPEC/RUS/25 
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 export financing and other export promotion policie s would be operated in conformity with WTO 
provisions.] 
3. Internal Policies Affecting Foreign Trade in Goods 
- Industrial policy, including subsidy policies 
199. The representative of the Russian Federation noted  that under current Russian legislation the 
following types of state support (financial contribu tion) were available: (i) direct transfers of 
budgetary funds, including those under federal targeted and investment programs;  (ii) grants and 
subventions (earmarked grants) to regions;  (iii) budgetary loans, credits and guarantees;  and (iv) 
deferred payments and exemptions with respect to payable taxes.  Tariff preferences with respect to  
goods and services produced by na tural monopolies could also be granted by decisions of federal and 
regional tariff regulating authorities.  At present, no budget subsidies existed in the Russian 
Federation which could be considered as export subsidies. 
200. He said that total state support averaged US$12 billion a year, including US$10 billion from 
the federal budget (average data for 1997-1999).  S upport was accorded both at federal and regional 
levels.  Direct transfers constituted the main elemen t of state support to in dustrial production sector 
(around 40 per cent).  Such support was concentrated  in the coal mining industry and it was mainly 
targetting social and restructuring needs.  The remaining amount of direct transfers was provided for under federal targeted programs, 38 per cent of which destined to programs (projects) associated with the development of industrial production. 
201. He added that financial contribution to the regions of the Russian Federation did not directly 
related to the development of industrial production , but was aimed at reducing regional financial 
disparities.  The bulk of transfers was provided on the basis of obje ctive indicators characterising 
social situation in the regions (82.5 per cent of the total amount).  The rest was paid for deliveries of 
supplies of food and fuel to Far North areas (11.5 per cent) and special ("closed") territorial areas. 
202. He said that same forms of state support to industrial production sectors were used by the 
subjects of the Russian Federation.  Such support mostly aimed at the financial rehabilitation of 
enterprises, resolution of social problems, and reimbursement of losses.  Less than 6 per cent of the total amount of support was destined to production development. 
203. Noting that WTO rules on subsidies covered state benefits given through revenues forgone, as 
well as those financed through budgetary allocat ions, members felt that the Russian Federation 
appeared to address the issue of prohibited subsidies, but did not address other industrial subsidies  WT/ACC/SPEC/RUS/25 
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 that should be notified under the WTO Agreement on Subsidies and Countervailing Measures.  They 
invited the Russian Federation to provide detailed information in this regard in the form of the 
notification requirements provided for in the WT O Agreement on Subsidies and Countervailing 
Measures.  They also considered it useful to receive updated information on the Russian Federation's 
comprehensive draft law on State Aids, including a description of its purpose, scope and provisions, 
and an indication of when it might be implemented.   
204. Noting further that the Russian Federation recognized that tariff preferences or natural 
monopoly pricing could constitute a subsidy under the WTO Agreement on Subsidies and 
Countervailing Measures, some members asked the Russi an Federation to provide a description of the 
existing pricing mechanisms and any reforms under wa y to bring domestic pri ces for oil, natural gas 
and electricity closer to world market prices. 
205. More generally, members asked the Russian Federation to describe its subsidy system more 
broadly and confirm that any subsidy programs would be administered in line with the WTO 
Agreement on Subsidies and Counterva iling Measures, whether at the na tional, sub-national, regional 
or local level, and that upon accession all necessary information on programs to be notified, if such 
programs existed, would be provided to the Committee on Subsidies and Countervailing Measures in 
accordance with Article 25 of the Agreement. 
206. [The representative of the Russian Federation  confirmed that for a ll federal and regional 
subsidy measures identified, the Ru ssian Federation would revise its domestic law or regulations to 
eliminate prohibited subsidies within the meaning of Article 3 of the WTO Agreement on Subsidies 
and Countervailing Measures from the date of accession.  He further confirmed that the Russian Federation would administer any subsidy programs  in place or established after accession in 
conformity with the WTO Agreement on Subsidies and Countervailing Measures and that all 
necessary information on programs be notified (if such programs existed) and be provided to the 
Committee on Subsidies and Countervailing Measures in accordance with Article 25 of the 
Agreement upon entry into force of the Russian Federation's Protocol of Accession to the WTO.] 
- Technical Regulations and Standards, Incl uding Measures Taken at the Border with 
Respect to Imports 
- Technical Barriers to Trade 
207. The representative of the Russian Federation noted that the federal authority for 
standardization, metrology and certification matters was the State Committee of the Russian WT/ACC/SPEC/RUS/25 
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 Federation for Standardization and Metrology (Gosstanda rt of Russia).  Gosstandart acted directly or 
through its subordinate centres for standardization, metrology and certification and state inspectors, 
performing surveillance over state standards and prov iding uniformity in the units of measure.  The 
tasks of developing State standards of the Russian Federation, and of participating in the development 
of international and regi onal standards, was fulfilled by t echnical standardization committees.  
208. In this regard, he recalled that the legal fram ework for the regulation of matters pertaining to 
standardization, metrology and certification was esta blished by the following legislative acts: Federal 
Law No. 5154-1 of 10 June 1993 "On Standardization" (as amended and supplemented on 
27 December 1995);  Federal Law No . 4871-1 of 27 April 1993 "On Provision of Uniformity of Units 
of Measure";  Federal Law No. 5151-1 of 10 June  1993 "On Certification of  Products and Services" 
(as amended and supplemented on 27 December 1995, 2 March, and 31 July 1998);  Federal Law No. 2300-1 of 7 February 1992 "On Protection of Consumer Rights" (as amended and supplemented 
ofN17 December 1999);  Government Resolution No . 100 of 12 February 1994 "On Organization of 
Works in Standardization, Provision of Uniformity of  Units of Measure, Certif ication of Products and 
Services";  Government Resolution No.113 of 2 February 1998 "On Certain Measures to Improve 
Systems of Ensuring Quality of Products and Services";  Government Resolution No.1212 of 
1 November 1999 "On Development of a Unifor m System of Classification and Encoding of 
Technical and Economic and Social Information";  Government Resolution No.26 of 11 January 2000 
"On Federal System of Cataloguing Products Procur ed for Federal State Needs";  and Government 
Resolution No.514 of 6 July 2001 "On Accreditation of Organizations Performing Assessment of 
Conformity of Products, Production Processes an d Services to the Existing Quality and Safety 
Requirements". 
209. He further noted that, under this legislative fram ework, products imported into the territory of 
the Russian Federation should meet technical, pharm acological, sanitary, veterinary, phytosanitary 
and ecological standards and requirements determin ed by the Russian Federa tion.  In particular, 
imports of products into the territory of the Russ ian Federation were restrict ed if the products in 
question did not meet the legislative requirements, they did not have a certificate, marking or a 
corresponding sign in the cases envisaged by fede ral laws and other legal acts of the Russian 
Federation, or they were banned for use as harmful consumer goods.  The Russian authorities 
determined the nomenclature of products and serv ices subject to mandator y certification in the 
Russian Federation.  Products subject to mand atory certification were listed in Government 
Resolution No. 1013 of 13 August 1997 (as amended on 24 May 2000) "On the Approval of the List of Goods Subject to Mandatory Certification and the List of Works and Services Subject to 
Mandatory Certification" ( as amended on 24 May 2000).  Gosstandart was in charge of organizing  WT/ACC/SPEC/RUS/25 
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 and implementing mandatory certification requirements.  In cases envisaged by legislative acts of the 
Russian Federation with respect to certain types of products, this ta sk could be entrusted to other 
governmental bodies of the Russian Federation.  The forms of mandatory certification of products 
were determined by Gosstandart or other authoriz ed governmental bodies of the Russian Federation 
with due regard to established international practices .  The entities involved in  mandatory certification 
were the State Committee for Standards and other governmental bodies of administration of the 
Russian Federation authorised to deal with issues  relating to mandatory certifications, certification 
bodies, test laboratories (centres), and producers (suppliers, executors). 
210. He added that the list of goods for which safety might be confirmed by declaration of 
conformity was provided in Government Resolution No.766 of 7 July 1999 "On Approval of the List 
of Products Whose Conformity May Be Confirmed by Conformity Declaration".  Conformity of 
products subject to mandatory certification could be confirmed by a conformity certificate issued by 
certification authorities, or a declaration of conformity registered with the certification authority.  Such a certificate should be submitted to cust oms authorities together with the cargo customs 
declaration, and was necessary to obtain permission for importing the products in question into the Russian Federation.  The recognition of certificates issued by the supplying country was carried out 
by reference to interstate agre ements and international certification systems to which the Russian 
Federation had acceded.  The fees connected to cer tification of products and services, including 
certification tests, were payable as provided for under the certification rules "Payment for Works 
Involved in Certification of Products and Services" issued by the Ministry of Finance and registered 
with the Ministry of Justice of the Russian Federation.   
211. He said that the Appeal Commission of Gossta ndart was regulated by its charter and had been 
set up for the purpose of considering complaints by users concerning the performance of certification 
authorities, testing laboratories (centres), certification experts and applicants, monitoring, use of conformity mark, issuance, suspension and cancella tion of certificates, licenses, and other related 
issues.  All work related to conformity with  the WTO Agreements on TBT and SPS was conducted 
under the provisions of the Inter-Agency Program of Measures to Ensure Compliance with the 
Requirements of WTO Agreement on TBT and WTO Agreement on SPS.  Gosstandart, jointly with 
the Ministry of Economic Development and Trade of  the Russian Federation, had drafted measures 
aimed at further harmonizing the existing legisla tion with the requirements of WTO Agreements on 
TBT and SPS.  The draft framework implementi ng these measures provided the following main 
approaches based on the provisions of the WTO Agre ement on TBT:  (i) issues of safety and quality 
of products would be regulated by legal acts, i.e. technical regulations providing binding 
specifications with respect to goods and their produc tion processes;  (ii) national standards would be WT/ACC/SPEC/RUS/25 
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 developed, as a rule, pursuant to an international co unterpart as voluntary stan dards;  (iii) conformity 
confirmation procedures would be reconciled with in ternational rules and would be a constituent part 
of a technical regulation, providing the producer with a choice of different confirmation schemes 
depending on the degree of potential danger of the products;  (iv) legislative support would be 
obtained through a single enquiry point open to customers, including international customers, and 
containing all available documents and documents in progress;  (v) the draft law provided that the cost 
of mandatory conformity confirmation would be base d on uniform rules of price fixation for identical 
or similar products and on the basis of uniform principles reflecting the actual value of incurred 
expenses. 
212. He added that, after the adopti on of this law, his authorities also intended to examine the 
adjoining legislation and, if necessary, define the ensuing amendments.  In addition, in 2002 his 
authorities intended to issue fe deral laws "On Accreditation" and "On Cataloguing".  Simultaneously, 
draft state standards would be developed base d on the direct application of corresponding 
international standards.  Voluntary application of such state standards should ensure compliance with 
the requirements of technical regulations.  As technical regulations for various types of products were also being developed and taking effect, all state standards (both existing and newly developed) would 
be transformed to non-binding instruments by revi sion, cancellation or adoption of new standards. 
213. He also recalled that, for the purposes of implementing the provisions of the WTO Agreement 
on TBT which required harmonization of national st andards with their inte rnational counterparts, 
since 1997 and subject to state standardization plan s, his authorities had developed and implemented 
state standards, over 50 per cent of which we re already harmonized with their international 
counterparts.  The overall level of harmonization of  domestic standards with international standards 
was currently about 35 per cent.  
214. He said that, while the draf t framework law was not yet operational,  Gosstandart was 
working on the exclusion of certain types of products from the range of goods subject to mandatory 
certification, and  on the reclassification of certain ty pes of products so as to allow their conformity 
confirmation by a declaration of conformity (quality sy stem certificate, tests protocol of the accredited 
laboratory).  The Single Enquiry Point contempl ated under the WTO Agreements on TBT and SPS 
had been established to provide the Russian and foreign customers with access to Russian legal 
provisions, standards, rules and conformity confirmation procedures. 
215. The enquiry point was located within Gosstanda rt of the Russian Federation at the following 
address:  WT/ACC/SPEC/RUS/25 
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 Russian Federation 
4, Granatniy Pereulok,  
103001, Moscow 
e-mail : ENPOINT@VNIIKI.RU  
website – http://www.ricwto.ru  
Tel/Fax: (007 095) 230 25 98 
216. In order to implement the requirements of  the WTO Agreements on TBT and SPS with 
respect to the notification of draft regulatory documents, GOST R 1.13-2001 "State Standardization 
System of the Russian Federation - The Procedur e for Preparation of Notifications of Draft 
Regulatory Documents" had been enacted and publis hed in November 2001.  This standard provided 
framework requirements and procedures for filling in the notification forms with respect to draft 
regulatory documents produced pursuant to WTO Agreements on TBT and SPS.  Enactment of this 
standard would allow the full-scale implementation of  notification procedures with respect to draft 
domestic regulatory documents.  Since 2000, Gosstandart had published a regular (quarterly) 
"Newsletter (Vestnik) of the Russian Enquiry Poin t", which contained such regulatory documents and 
reference materials as required by the WTO Agre ements on TBT and SPS.  Draft documents were 
also published in the Newsletter.  In the future, the Newsletter whould also publish information on draft domestic documents. 
217. In order to provide an adequate level of tran sparency on any measures taken, a web-page was 
created on the Internet by the Ministry of Economic Development and Trade and Gosstandart 
(http://www.gost.ru/
) containing plans for development of standards, draft laws, other draft regulatory 
acts, and other required documents pursuant to WTO Agreement on TBT.  During 2002, this page would be supplemented with documents and information in English.   
218. Members noted that, so far, the Russian author ities had provided a general outline of current 
elements of Russia's system of standards and certif ication, without including detailed information on 
the required institutional arrangements.  Russia' s effo rt to amend the current system in order to ensure 
effective and ongoing compliance with TBT obligations also remained to be reviewed.   
219. Regarding requirements on forgery-proof mark s for electric appliances, one member noted 
that on 30 December 1998 the Ministry of Trade and Gosstandard had issued Instruction No. 200/30 
under which manufacturers of these products were re quired to affix a conformity mark on their 
products, importers and/or dealers were required to  affix a registration information mark on the box 
(to be purchased in advance from each regional Trade Inspection Department), and sellers and/or 
retailers were required to affix a registration inform ation mark on each product.  As a result, this 
member maintained that foreign manufacturers were obliged to purchase three different kind of marks WT/ACC/SPEC/RUS/25 
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 for their products, resulting in an unnecessary burden for their business.  He requested the Russian 
Federation to eliminate these requ irements as soon as possible. 
220. Noting further that the Russian authorities were in the process of developing new or amended 
laws on Standardization, Metrology, and Conformity Assessment whose provisions would address a 
number of the concerns expresse d by the Working Party with the Russian Federation's current TBT 
regime, members felt that this new additional legislation might go a long way towards reforming the 
present system to prevent unnecessary technical barriers to trade.   
221. More specifically, some members asked for a de scription on how the new legislation would 
address identified concerns such as the need for clarity in the Russian Federation' s legislation on TBT, for additional horizontal guidance to auth orities on their development and application of 
technical regulations, for additional transparency and enhanced due process regulations, and for action 
to bring fees for conformity assessment services into line with WTO provisions. Other examples of 
measures which required further description incl uded establishing a clear distinction between 
compulsory technical regulations and voluntary standards, ending the coexistence of various 
categories of so-called "standards" and to the existe nce of compulsory elements in the standards (with 
no exceptions), aligning with in ternational standards (unless ther e were justified exemptions) and 
participating in international standa rds bodies, assuring openness and transparency in the drafting of 
technical regulations, standards, etc., and clearly defining the products subject to mandatory 
certification while assuring proporti onality in conformity assessment measures and consistency of 
certification procedures applied to the same products. 
222. Some members considered that the Russian Federa tion should further describe its intentions 
to domestically clarify and institutionalise the responsibilities of the various agencies in implementing the WTO Agreement on Technical Barriers to Trad e, including the designation of an authority 
responsible for overall implementation and, more generally, the practical arrangements in place to ensure compliance of measures covered with WTO re levant provisions.  These members also sought a 
commitment that the Russian Federation would implement the WTO Agreement on Technical 
Barriers to Trade upon accession. 
223. [The representative of the Russian Federation  confirmed that the Russian Federation would 
apply all obligations under the WTO Agreement on Te chnical Barriers to Trade from the date of 
accession without recourse to any transition period.]  WT/ACC/SPEC/RUS/25 
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 - Sanitary and Phytosanitary Measures 
224. The representative of the Russian Federation sa id that the Ministry of Health and its 
Department on State Sanitary and Epidemiological Surveillance ("Gossanepidna dzor") was the federal 
executive authority in charge of ensuring sanitary and epidemiological well-being of the population.  
Protection of human health was regulated by Federal Law No. 5487-1 of 23 June 1993 "Fundamentals of Health Legislation of the Russian Federation";  Federal Law  No. 52-FZ of 30 March 1999 "On 
Sanitary and Epidemiological Well-Being of the Popu lation";  Regulations of the State Sanitary and 
Epidemiological Service of the Russian Federation and Regulations on State Sanitary and 
Epidemiological Standardization approved by Government Resolution No. 554 of 24 July 2000;  and terms and provisions of other federal laws and resolutions of the Government of the Russian 
Federation concerning provision of safety of goods and products for human health and environment (e.g.  Federal Laws "On Environmental Protectio n";  "On Consumer Rights Protection";  and "On 
Quality and Safety of Food Products"). 
225. He noted that, under current Russian legislation, all products produced in and imported into 
the territory of the Russian Federation for distribu tion to the population and/or use in industrial 
production, agriculture, civil construction deve lopment, for transport requiring direct human 
involvement, or for private and household use, had to conform to the requirements of sanitary and 
epidemiological rules, norms and hygienic standard s (Articles 13, 15, 16 of Federal Law No. 52-FZ).  
Such conformity should be confirmed by a san itary-epidemiological approval or a registration 
certificate.  A sanitary and epidemiological report  was not a confirmation of  conformity of products 
and goods to the requirements of sanitary legislati on (this was a responsibility of the producer or 
supplier), but only a statement that the certain type of product was in conformity with the sanitary legislation, under strict implementation of esta blished requirements and rules during production, 
transportation, storage and sale of products.  Hygienic assessment of imported products had to be performed, as a rule, prior to delivery of products to the territory of the Russian Federation.  Imports 
of products that had not passed a prior hygienic asse ssment procedure had to be subjected to hygienic 
examination resulting in a hygienic report va lid for such particular consignment only. 
226. Pursuant to Article 14 of Federal Law No. 52-FZ , chemical, biological substances and certain 
types of products presenting potential human ha zards were allowed for production, transportation, 
procurement, storage, sale and use after their state registration based on the results of research, tests, 
examination.  Federal Law No. 52 -FZ (Article 43) also provided that chemical and biological 
substances not heretofore industrially produced or used and preparations thereof presenting potential human threat, certain types of products presen ting potential human threat, and certain types of WT/ACC/SPEC/RUS/25 
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 products including food products imported into the Russian Federation for the first time should be 
subject to state registration.  State registration of the above substances and types of products was 
based on an assessment of the threat presented by substances and certain types of products for human 
life and health and environment according to the regulatory documents and assessment guidelines 
approved by the Ministry of Health of the Russian Federation, the establishment of hygienic and other 
limitations on the presence and content of certain elements of such products in the environment and 
the development of protective measures, including requirements with respect to disposal and destruction of substances and certain types of prod ucts, to prevent damage to human life and health 
and environment. 
227. He further noted that a registration certificate was issued for any type of products for the 
whole period of industrial production in the case of Russian products, or the period of supplies in the case of imported products.  State registration of  potentially hazardous substances and types of 
products was performed by the Ministry of Health an d, in the case of new food products of animal 
origin, by the same in conjunction with the Ministry of Agriculture (Government Resolution No. 262 
of 4 April 2001 "On State Registration of Certain Types of Products Presenting Potential Threat for 
Human Life and Health and Certain Types of Products First Imported to the Territory of the Russian 
Federation";  Government Resolution No. 987 of 21 December 2000 "On State Surveillance and 
Control in Ensuring Quality and Safety of Food Products";  and Government Resolution No.988 of 
21 December 2000 "On State Registration of New F ood Products, Materials and Items").  Lists of 
products subject to state registration were attached  to the above Resolutions of the Russian Federation 
Government.  The requirements and criteria with re spect to safety of produ cts for human health and 
the environment pursuant to Articles 1, 2, 12, 13, 15, 16, 37, 38, 39, 41, 42 of Federal Law No. 52-FZ 
were implemented by state sanitary and epidemiolo gical rules and norms which were regulatory legal 
acts binding on all citizens, individual entreprene urs and legal entities.  All regulations within the 
territory of the Russian Federation were implemen ted through federal rules a pproved and enacted by 
the Ministry of Health.  The State Sanitary and Epidemiological Service of the Russian Federation was a single federal centralized system of agencies  and institutions, consisting of a federal executive 
authority (the Ministry of Health – Gossanepidnadz or) chaired by the Chief State Sanitary Expert of 
the Russian Federation – First Deputy Minister of Health of the Russian Federation centres for state 
sanitary and epidemiological surveillance in Russ ian Federation regions, areas, transport (water 
transport and aircraft) and state research and other institutions.  Pursuant to Russian legislation, an 
applicant had the right to appeal a decision of Gossanepidnadzor following administrative or judicial 
procedures.  WT/ACC/SPEC/RUS/25 
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 228. The procedure for sanitary and epidemiological examination of products, types of products 
and the procedure for issuing a sanitary and ep idemiological report on the conformity (or 
non-conformity) of products with state sanitary a nd epidemiological rules and norms were established 
under the Regulations on the Procedures of Sanitary  and Epidemiological Examination of Products", 
approved by the Ministry of Health's Order No.217 of 20 July 1998.  A sanitary and epidemiological 
report ascertaining the conformity of products with the available sanitary rules and hygienic norms 
and based on the results of a sanitary and epidemiological examination of products by one of the Gossanepidnadzor centres, was valid everywhere in the territory of the Russian Federation. 
229. After state registration with the Ministry of Ju stice of the Russian Fede ration, all regulatory 
legal acts of the Ministry of Health had to be published in official press organs: the Bulletin of 
regulatory acts of federal executive authorities of th e Administration of the President of the Russian 
Federation (Presidential Decree No. 763 of 23 Ma y 1996 "On the Procedure for Publication and 
Taking Effect of Acts of the President of the Russian Federation, the Government of the Russian 
Federation, and Regulatory Legal Ac ts of Federal Executive Authorities");  the Bulletin of regulatory 
documents and guidelines of Gossan epidnadzor of the Ministry of Health;  and various specialized 
scientific journals and manuals (N utrition Care, Health Care at Wo rk Place, Radiation Hygienics, 
Toxicology Newsletter, etc.).  Draft sanitary rule s were published in the "Newsletter of the Russian 
Enquiry Point" and specialized journals.  Regulato ry documents took effect not earlier than three 
months after their approval, unless a direct threat to human health and life was involved. A Russian 
TBT and SPS Enquiry Point had been set up and was functioning, supplying all relevant information 
on SPS issues (cf.  para…). 
230. The Federal executive authority in charge of  veterinary control over imports of animal 
products was the Ministry of Agriculture (Veterina ry Department).  The procedures of the State 
Veterinary Service were  regulated by Federal Law No. 4979-1 of 14 May 1993 "On Veterinary 
Service", and other federal laws and regulatory le gal acts made pursuant thereto ("Regulations on the 
State Veterinary Service of the Russian Federation for Protection of the Russian Territory Against Importation of Infectious Animal Diseases from Abroad", approved by Government Resolution 
No.830 of 29 October 1992;  "Regulations on State Veterinary Surveillance in the Russian Federation", approved by Government Resolution No .706 of 19 June 1994;  "Regulations on the 
Procedure for Examination of Lo w Quality or Hazardous Food Input and Products, Their Use and 
Destruction", approved by Government Resolution No . 1263 of 29 September 1997;  "Regulations on 
Division of Functions of State Ve terinary Surveillance in Processing and Storage Enterprises of 
Animal Products" No. 13-7-2/173 of 14 October 1994 approved by the Chief State Veterinary 
Inspector of the Russian Federation;  Instructio n "On the Procedure for Issuance of Veterinary WT/ACC/SPEC/RUS/25 
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 Accompanying Documents for Cargoes Controlled by the State Veterinary Surveillance Agency" 
No. 13-7-2/871 of 12 April 1997 approved by the Ministry of Agriculture;  and Government 
Resolution No. 987 of 21 December 2000 "On State Surveillance and Control in Ensuring Quality and 
Safety of Food Products").   
231. He further said that developments in the legi slation on certification, quality and safety of 
products made it necessary to update the Federa l Law "On Veterinary Service".  Amendment and 
supplementing regulations were currently in preparation.  Changes would affect the structure of the State Veterinary Service of The Russian Federation and the organization of veterinary and sanitary 
surveillance.  Veterinary requirements with respect  to domestic and imported cargoes controlled by 
the state veterinary services were the same as provided under Federal Law No. 4979-1 of 14 May 
1993 "On Veterinary Practices" (Articles14,15,18).  The list of controlled cargoes was endorsed by 
letter No. 13-8-01/3009 of 16 May 2000 of the Veterinary Department of the Ministry of Agriculture.  
Imports of cargoes controlled by the State Veteri nary Service to the Russ ian Federation required 
authorization of the Chief State Veterinary Insp ector of Russia.  A cargo entering the Russian 
Federation had to be accompanied by the original veterinary certificates of the exporting country, 
issued by the state veterinary service of the co untry of production and guaranteeing compliance with 
all provisions of the certificate.  The Russian Fede ration had agreed forms of veterinary certificates 
for all types of animal products (goods) with the state veterinary services of most exporting countries.   
232. Pursuant to the requirements of bilateral agreem ents for cooperation in veterinary matters, and 
also pursuant to the Code of the International Ep izootics Office (IEO) and by virtue of Federal Law 
No. 4979-1 of 14 May 1993 "On Veterinary Practices ", pre-shipment inspection was implemented on 
raw meat products that have not undergone ther mal treatment.  Such inspection was implemented 
under the supervision of representatives of the Veterinary Department.  For those countries that had 
not agreed veterinary certificates with the Russia n Federation, imports of cargoes were governed by 
"Veterinary and Sanitary Requirements for Imports in to the Russian Federation of Cargoes Controlled 
by the State Veterinary Service", approved by the Chief State Veterinary Inspector of the Russian Federation and letter No.13-8-01 of 23 December 1999 issued by the Ministry of Agriculture. 
233. Imports into the Russian Federation of contro lled cargoes were restricted to designated 
cross-border checkpoints at railway and car stations, at seaports, airports and other specially equipped 
places open for international communications a nd having cross-border veterinary checkpoints 
installed.  To be able to bring (as import or trans it) controlled cargoes regulated by the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (CITES), in addition to the above  WT/ACC/SPEC/RUS/25 
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 documents the owner of the cargo needed to have a permit from the CITES agency in the exporting 
country (in the Russian Federation the CITES agen cy was the Ministry of Natural Resources). 
234. Imports (exports) of pedigree animals required th at the owner of the animals had obtained, as 
well as the permit of the Chief State Veterinary In spector of the Russian Federation and a veterinary 
certificate, an "extract from the state registry of selection achievements allo wed for use, with respect 
to the imported plant seeds or pedigree animals" (a t import) or "confirmation of compliance with the 
requirements with respect to protection of patent hol der rights with respect to the exported plant seeds 
or pedigree animals" (at export), signed by the Deputy Minister of Agriculture of the Russian 
Federation. 
235. Transit of cargoes required written authorizatio n by the Chief State Veterinary Inspector of 
the Russian Federation or his/her deputies.  Where pe rmits for transit through third countries had to be 
obtained, such formalities were the responsibility of  the owner of the cargo.  International transit 
required permits from central state veterinary agencies of importing countries, both destinations of the 
cargo and transit territories.  The itinerary of the car go also had to be agreed with such agencies. 
236. Imports of veterinary preparations were regul ated by Government Resolution No. 1539 of 
25 December 1998 "Regulations on Imports into and Exports from the Russian Federation of Medicines and Pharmaceuticals".  Once enacted, all new instruments of veterinary legislation were 
published in the journals "Veterinary Science and Practice", "Veterinary Newspaper", the newspaper 
"Veterinary Consultant", and other special publications. 
237. Policies on quarantine of plants were determined  by the Ministry of Agriculture, with actual 
quarantine being implemented within the Ministry by the State Service for Quarantine of Plants.  
Regionally, phytosanitary controls were implemented by state inspections for quarantine of plants 
conducted in the different regions of the Russian Fe deration.  Cross-border phytosanitary controls at 
Russian checkpoints were performed by cross-border plant quarantine points, and local quarantine of 
plants was performed by district and inter-district plant quarantine points of the regional inspections.   
238. Imports of products into the territory of the Russian Federation were subject to phytosanitary 
control based on import quarantine permits issued by the State [Inspection] for Quarantine of Plants of 
the Russian Federation and its divisions in the Russi an Federation regions.  Import quarantine permits 
were issued under Government Resolution No.268 of 23 April 1992 "On State Service for Quarantine of Plants in the Russian Federation" (as amended a nd supplemented by Government Resolution of the 
No.1143 of 1 October 1998).  The list of products subject to phytosanitary control, indicating codes according to the Goods Nomenclature of the Forei gn Economic Activity of the CIS, was provided in WT/ACC/SPEC/RUS/25 
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 the "Nomenclature of Main Types of Products, Cargoes and Materials (Goods) Subject to Quarantine, 
for which imports into and exports from the Russian Federation required authorization by the agencies 
of the State Service for Quarantine of Plants of the Russian Federation".  This latter Nomenclature 
was approved by the Ministry of Agriculture on 19 March 1999 upon agreement with the State 
Customs Committee of the Russian Federation, and was binding both for the agencies of the State 
Service for Quarantine of Plants and the agencies of the State Customs Committee of the Russian 
Federation. 
239. With regard to imports of seeds and planting stock and some other products imported by 
several regions, import quarantine permits relating to imports of fresh vegetables and fruits were 
issued by Rosgoskarantine.  These permits could also be issued by the regional inspection authorities 
of the regions concerned.  To obtai n an import quarantine permit, the consignor needed to apply to the 
corresponding inspection or Rosgoskarantin.  The application had to state the product in question, the 
country of origin, the country of export, volumes, timeframe for collection, destinations, cross-border 
checkpoints for imports of such products subject to quarantine (Government Resolution No. 268 of 23 
April 1992 "On State Service for Quarantine of Pl ants in the Russian Federation").  An import 
quarantine permit indicated ad hoc phytosanitary re quirements with respect to each consignment of 
products subject to quarantine and the requirement that each consignment should be accompanied 
with a phytosanitary certificate, confirming conform ity of the phytosanitary qualities of the product to 
the said requirements.  A phytosanitary certificate needed to be issued by agencies of the state service 
in charge of the quarantine of plan ts in the exportin g country.  Phytosanitary measures maintained by 
the Russian Federation met the recommendations of the European and Mediterranean Plant Protection 
Organization (of which he Russian Federation(US SR) was a member since 1957 and an executive 
member since 1997). 
240. Noting that the information provided above constituted a useful compendium of current 
practice in the Russian Federation, members felt that th is information was still insufficient to assess to 
what extent the current regime was consistent with WTO provisions.  More information on currently applied phytosanitary measures was also required.  In  this connection members stressed that lack of 
clarity in the way in which the Russian Federation pr oposed to ensure that its SPS regime, as in case 
of any other NTMs, could prevent bilateral market access negotiations being effectively pursued.   
241. While recognizing that the Russ ian Federation was taking steps to strengthen its SPS regime 
and bring it into compliance with WTO rules, members further considered that there was still 
substantial work ahead for the Russian Federatio n to develop a predictable, transparent, and 
science-based regulatory system that would ensure  due legal process and sustained adherence to  WT/ACC/SPEC/RUS/25 
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 international obligations.  In practice this could be achieved by achieving compliance with WTO 
obligations, particularly regarding the following pr inciples of the SPS Agreement:  transparency of 
measures through information to other WTO Members;   consistency, coherency and proportionality of 
measures;  non-discriminatory nature of measures, including the need for requirements affecting 
imports not to be more restrictive than those affe cting domestic production;  adoption of international 
standards set by Codex, OIE and IPPC for import rules (the rules must be based on transparent 
scientific risk assessment in case they go beyond the international standards, or where no international 
standards exist);  applications of the principles of regionalisation; and, acceptance of certificates and 
other guarantees given by a third country (including the European Union) competent authorities as the basis for imports.   
242. Members stressed that the Russia n Federation needed to bring its  legislative and regulatory 
procedures into compliance with WTO requirements , and provide the necessary legislative acts and 
documentation to demonstrate how these current deficiencies would be addressed.  They considered that an update of the Russian Federation SPS Action Plan  would be particularly helpful at this stage of 
work.  More information was also sought on the in spection procedures and associated charges in force 
in relation to import of poultry meat and red meat as  that available indicated that the effect of recently 
introduced measures had made the testing procedures  in the country of export more burdensome and 
had raised the charges levied on imports.  Members also sought a commitment that the Russian 
Federation would fully apply the WT O Agreement on SPS upon accession. 
243. [The representative of the Ru ssian Federation confirmed that the Russian Federation would 
apply all obligations under the WTO Agreement on Sanitary and Phytosanitary Measures from the 
date of accession without reco urse to any transition period.] 
- Trade-related Investment Measures (TRIMs)  
244. The representative of the Russian Federation said  that Federal Law No.160-FZ of 9 July 1999 
"On Foreign Investment in the Russ ian Federation" did not provide for measures inconsistent with the 
provisions of Articles III or XI of the GATT 1994 nor measures wh ich corresponded to the illustrative 
list of TRIMs, as in Article2, paragraph 2 of the WTO Agreement on TRIMs.  The Law provided that 
information on all measures affecting foreign invest ors should be published.  The Law also provided 
the Government and local entities with the authority to grant foreign investors a more favourable regime, taking into consideration the general econo mic interest of the Russian Federation.  [As the 
Law determined the criteria for the provision of such more favourable regime, the sub-federal 
authorities could establish such criteria by themselves.]  WT/ACC/SPEC/RUS/25 
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 245. He noted that the Law No. 225-FZ of 30 December 1995 (as amended on 7 January 1999, 
18 June 2001) "On Production Sharing" contemplated that foreign investors which took part in 
production sharing schemes in the Russian Federation  should place some proportion of their orders to 
locally produced goods.  Presidential Decree No.135  of 5 February 1998 "On Additional Measures to 
Attract Investments for Development of Domestic  Car Making", and Government Resolution No.413 
of 23 April 1998 "On Additional Measures to Attract  Investments for Development of Domestic Car 
Making" provided for customs and other preferences for those investments in the automotive industry that exceeded the established ceiling.  Four investment agreements had been signed on the basis of 
these acts.  There was a strong intention not to sign any other such agreements.  The normative acts for cancellation of those decrees and resolutions would be prepared in due course.   
246. In response to questions by some members, he confirmed that Government Resolution 
No.574 of 2 August 2001 "On Certain Issues of Re gulation of Temporary Imports of Foreign Made 
Aircraft" superseded Government Resolution No.716 of 7 July 1998 "On Additional Measures of State Support for Civil Aviation in Russia".   
247. Members felt that the information on TRIMs prov ided above did not fully address the issues 
that had been raised in the Working Party on the me asures in place, particularly with respect to the 
Law on the Production Sharing Agreements an d the investment-promoting legislation for the 
automotive sector and civil aviation for which a full description was still required.  Members felt that 
additional information was need ed, particularly on relevant WTO requirements relating to 
investments provisions provided for in the amendments to the Law on "Production Sharing 
Agreements" adopted on 7 January 1999, the amended tax provisions as well as the provisions of the 
new "Law on Production Sharing" of 2001.  More info rmation was also required on the workings of 
Government Resolution No. 716 of 7 July 1998 "On Further Measures for State Support for Civil 
Aviation", Presidential Decree No.135 of 5 Februa ry 1998 "On Attracting Additional Investments to 
Promote the Automobile Industry", Government Resolution No. 413 of 23 April 1998 "On Additional 
Measures to Attract Investments for the Developm ent of the Domestic Automotive Industry", and 
Federal Law No. 160-FZ of 9 July 1999 "On Fore ign Investment in the Russian Federation" of 
July 1999.  While understanding th at these programs might be eliminated or modified, some members 
requested confirmation that the Russian Federation would eliminate any existing TRIMs upon 
accession. 
248. [The representative of the Russian Federation said that, from the date of accession, the 
Russian Federation would eliminate and would not ma intain any measures inconsistent with the WTO  WT/ACC/SPEC/RUS/25 
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 Agreement on Trade-related Investment Measures (TRIMs), and would apply this Agreement without 
recourse to any transition period.]   
- State-trading Practices 
249. Members noted that the Russian Federation had identified five enterprises as state-trading 
enterprises that should be subject to notification under GATT Article XVII.  One of these enterprises, Rosugol, was dissolved in November 1997.  Members also requested further information on the role 
of marketing enterprises such as Exportkhleb, Prodi ntorg, and Roskhleboprodukt in agricultural trade, 
describing the legislation that had specifically ended the special rights and privileges that these organizations had traditiona lly received as monopoly trade or ma rketing entities.  Further information 
was also deemed necessary on the extent to whic h Russia' s agricultural trade was still conducted 
through inter-governmental agreements between the Russian Federation and other countries, 
especially those in the CIS, and on whether any go vernment-to-government barter arrangements were 
still in place. 
250. The representative of the Russian Federation conf irmed that his authorities considered that 
five state-trading enterprises in the Russian Federa tion would follow the notification requirements of 
Article XII of the GATT 1994.  Th ese enterprises and the product/products for which they have 
special powers were:  Russian joint stock compan y (RJSC) Gazprom – natural gas; Russian joint 
stock company (RJSC) UES of Russia – electricity; Joint stock company (JSC) Rosugol – coal; Joint 
stock company (JSC) Diamonds of Russia-Sakha (ALROSA) – raw natural diamonds; and State 
enterprise (SE) Almazyuvelir Export Foreign Trade Association – raw natural diamonds.  In the view 
of the Russian Government, there were no other en terprises in the Russian Federation, either state-
owned or privately-owned, which had been granted such exclusive or special rights, or privileges including statutory or constitutional powers in the exercise of whic h their purchases or sales might 
influence the level or direction of imports or expo rts.  The list of these was limited to the energy 
(three state-trading enterprises), and raw natural diam ond and platinum (two state-trading enterprises) 
spheres.  The enterprises, which had been granted exclusive or special rights or privileges in the 
exercise of which they influenced, through their purcha se or sales, the level or direction of imports or 
exports, made their purchases and sales on the basis of commercial considerations. 
251. Regarding trade in agricultural products, he noted that under Government Resolution No.1224 
of 26 September 1997, the Federal Agency for Food Market Regulation had replaced the Federal 
Food Corporation with a modified institutional and legal framework.  The Agency's mission included, inter alia , the monitoring of agricultural product markets, promotion of competition, assisting in 
commodity purchases in the agricultural mark et, and acting as a state customer (procuring WT/ACC/SPEC/RUS/25 
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 organisation) to maintain the current food reserves of the Russian Government.  Purchases of products 
and commodity interventions were to be performed not by the Agency, but exclusively by business 
entities selected through public tende rs.  Thus the Agency did not impact on export or import trade. 
252. He confirmed that some enterprises (Roshleboproduct and Roscontract) had been granted 
exclusive and special rights in 1993-1994 in the course of bilateral barter trade with some CIS 
countries performed under the framework of specia l intergovernmental agreements for those calendar 
years.  Such exclusive rights of those enterprises  expired completely on 31 December 1995 at the 
moment of expiration of the agreement mentioned above and were never resumed.  At the present 
time The Russian Federation did not conduct barter trade with any of the CIS countries.   
253. Regarding a recent government resoluti on that imposed licensing requirements on 
procurement, processing, storing, and marketing of grain and grain products for state needs, as well as 
on production of most grain products (bread, flour, etc.), members requested further clarification on 
the purpose of these licenses, and on whether both  foreign and domestic companies were subject to 
them. 
254. Concerning reports that 150 bankrupt grain fac ilities (mills, storage facilities, etc.) had been 
reverted to state control, some members request ed clarification on how this process was being 
implemented, and what role the Government would play in the operation and management decisions 
of these facilities.  In addition to listing state- trading enterprises, members also asked a confirmation 
that upon accession the Russian Federation's state-trading enterprises would be administered and 
operated in conformity with WTO provisions, including Article XVII and the Understanding.  A 
confirmation was also sought that the laws and regulations governing th e trading activities of 
state-owned enterprises, as well as enterprises with special or exclusive privileges (including practices 
such as state orders, purchases for state needs, state-designated trading, state goods distribution, 
government-to-government agreements for the supply/purchase of products, dual pricing of energy and state mandated counter-trade and barter), woul d be applied in conformity with WTO provisions, 
including GATT Article XVII, the Understanding  on Article XVII and the Understanding on 
Article VIII of the GATS. 
255. [The representative of the Russian Federation c onfirmed that, from the date of accession, the 
Russian Federation would apply its laws and re gulations governing the trading activities of 
state-owned enterprises and other enterprises with special or exclusive privileges (including practices 
such as state orders, purchases for state needs, state-designated trading, state goods distribution, government-to-government agreements for the supply/purchase of products, and state-mandated counter-trade and barter), including those listed in paragraphs […], in conformity with WTO  WT/ACC/SPEC/RUS/25 
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 provisions, including Article XVII of the GATT 199 4, the Understanding on Ar ticle VII of the GATT 
1994, and the Understanding on Article VIII of the GATS.  He also confirmed that the Russian 
Federation would notify enterprises falling within the scope of Article XV II no later than upon 
accession, and would observe the obligations of non-discrimination and application of commercial 
considerations for trade transa ctions for these enterprises.] 
- Free Zones and Special Economic Zones 256. The representative of the Russian Federation noted that, although Russian legislation 
provided for the establishment of free-trade zones,  such zones had never become significant in terms 
of the Russian Federation' s trade regime.  Actu ally only one Special Economic Zone (SEZ) was 
operative due to the specific geographical location of  the Kaliningrad region.  This SEZ was directly 
administered by the regional authorities.  Under Federal Law No.13-FZ of 22 January 2000 "On The 
Special Economic Zone in the Kaliningrad Regi on" (as amended on 27 December 2000) all goods 
(excluding goods covered by quantitative restrictio ns), imported into the Kaliningrad Region were 
exempted from customs duties and payments (excluding charges).   
257. He said that the legislation in force (Federal Law No. 150-FZ of 27 December 2000 "On the 
Federal Budget for 2001", as amended on 24 March and 8 August 2001) abrogated the excise and VAT exemptions for imports of excisable goods under free customs zone regime of the territory of the 
Kaliningrad SEZ in the year 2001.  However, if such  goods were later exported to other regions of the 
Russian Federation, customs import duties were payable in full, with the exception of goods 
processed or deemed to have been processed in the Kaliningrad Region.  Under Federal Law 
No. 13-FZ, a product was deemed to be manufactured in the Special Economic Zone provided that the value added in the processing amounted to no less th an 30 per cent, or no less than 15 per cent in 
electronics and sophisticated home appliances, and its processing resulted in a change of the HS code 
of such product according to the customs classificat ion.  The procedure for determining a product as 
originating from a special economic zone was establis hed by a joint resolution of the Administration 
of Kaliningrad Region and the State Customs Committee of Russia No. 296-r/01-14/1365 of 
31 December 1998 "On Approval of the Procedure fo r Determination of Goods as Originating from 
the Special Economic Zone of Kaliningrad Region" , registered by the Ministry of Justice in 
Regulation No.1892 of 9 July 1999. 
258. He further noted that current legislation also provided for the establishment of SEZs in the 
Magadan region and in Nakhodka, but that these zo nes were not yet active.  The Free Economic Area 
"Nakhodka" was formed in October 1990, as the Russ ian Federation's first free economic area.  Its 
free economic regime was regulated by Reso lution of the RSFSR Supreme Council of WT/ACC/SPEC/RUS/25 
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 24 October 1990 "On Creation of a Free Economic Zone Centred on the Town of Nakhodka in 
Primorsky Krai", and Government Resolution No. 1033 of 8 September 1994 "On Certain Measures 
of Development of the Free Economic Zone of Nak hodka".  Exports and imports of goods to and from 
the Free Economic Area "Nakhodka" were regu lated by the ordinary customs regime.   
259. Magadan Special Economic Zone was crea ted under Federal Law No. 104-FZ of 
31 May 1999 "On the Special Economic Zone in  Magadan Region", and Law of Magadan Region 
No. 80-OZ of 5 July 1999 "On Changing the Administrative and Territorial Structure of Magadan Region".  The procedure for determining that goods originated from the Special Economic Zone in 
Magadan Region was provided under Order No. 829 of 30 November 1999 of the State Customs 
Committee, and the "Guidelines for Determining Go ods as Originating from the Special Economic 
Zone in Magadan Region" contained in a joint Letter of the State Customs Committee and the 
Administration of Magadan Region No. 01-11/10593 of 25 April 2000. 
260. The territory of Magadan Region was a free customs zone, which meant that foreign goods 
were imported to the territory of the Special Eco nomic Zone free of customs duties and taxes.  
Foreign goods exported from the territory of Maga dan Region within or outside of the customs 
territory of the Russian Federation were liable to customs duties in full amount.  Foreign goods 
undergoing a certain amount of processing and whic h would qualify for the definition of sufficient 
processing, were deemed to be Russian goods and were not liable to import customs duties and other 
taxes when entering the rest of the customs territo ry of the Russian Federation.  The criteria of 
sufficient processing of goods in the Special Econo mic Zone were as follows: change of commodity 
classification (HS code);  implementation of certain production and technological operations 
sufficient  for the goods to be deemed to originat e from the Special Economic Zone;  and change of 
cost of goods, provided the value added by processing amounted to no less than 30 per cent of the 
goods (no less than 15 per cent for electronics or sophisticated home appliances).  Tax and customs benefits were to be maintained until 31 December 2014 – the last effective date of the Law "On the 
Special Economic Zone of Magadan Region".   
261. Members requested further information in order to assess whether the existing free zone in 
Kaliningrad, or those provided for in additional legisl ation, might entail WTO issues.  Issues raised in 
this connection questioned the basis on which goods  manufactured in Kaliningrad were deemed to 
have transformed imported inputs sufficiently to eliminate the need to pay the duties and taxes 
exempted when the inputs were imported, and what ot her benefits, if any, in terms of tax exemptions, 
were available to firms that locate there.  A description of the provisions for firms located in the Free Zones for Magadhan and Nakhodka was also requested.    WT/ACC/SPEC/RUS/25 
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 262. Members stressed that the Russian Federation shou ld revise its domestic laws and regulations 
to eliminate any measures in place in the Russian Federation's free zones or other special economic 
areas that were not in conformity with WTO provisions upon accession, in particular incentives tied to 
export requirements, other subsidies, and TRIMs, so as ensure enforcement of its WTO obligations in 
those zones.  Members also asked that the Russian Federation should consider the customary 
commitment to apply normal customs formalities on goods from the zones sold elsewhere in the 
Russian Federation, includin g the application of tariffs  and taxes upon accession. 
263. [The representative of the Russian Federation co nfirmed that any free zones or other special 
economic areas authorized in the Russian legislati on, including those in paragraphs […], would be 
administered in conformity with WTO provisions, and that the Russian Federation would ensure 
enforcement of WTO provisions in the zones.  The right of firms to establish and operate in these areas would not depend on export performance, trade ba lancing, or local content criteria.  In addition, 
goods produced in these areas under provisions that  exempt import from tariffs and certain taxes 
would be subject to normal customs formalities wh en entering the rest of the Russian Federation, 
including the application of tariff and taxes.]  
- Government Procurement Practices 
264. Members invited the Russian Federation to provide information on its government 
procurement practices in this section of the draft re port.  Some members also expressed interest in a 
commitment from the Russian Federation to b ecome an observer to the WTO Agreement on 
Government Procurements to initiate negotiations for accession to this Agreement upon accession.   
265. Members further requested information on the status of proposed new legislation in this area.  
In addition, information was also required on the involvement of the Russian government in barter 
trade, noting the legal basis for this as well.   
266. [The representative of the Russian Federatio n confirmed the intention of the Russian 
Federation to join the WTO Agreement on Government Procurement and to notify the Committee on Government Procurement to this effect at the time of its accession to the WTO.  He also confirmed 
that the Russian Federation would request obse rvership in the Agreement on Government 
Procurement at the time of its accession to the WTO.] 
- Regulation of Trade in Transit 
267. The representative of the Russian Federation sa id that, at present, transit of commodities 
through the territory of the Russian Federation was free from the levy of fees, customs duties, VAT WT/ACC/SPEC/RUS/25 
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 and excise tax.  The Russian Federation granted free dom of transit through its territory as prescribed 
by Article V of the GATT 1994 as well as on the basi s of international treaties to which it was party 
to.  The only charges levied were those for trans portation commensurate with administrative expenses 
or with the cost of services rendered. 
268. Members indicated that a sufficient descrip tion of Russian provisions on transit was still 
required to confirm whether the Russian Federation' s policies for trade in transit were in conformity 
with the provisions of the WTO Agreement, in particular Article V of the GATT 1994. 
269. [The representative of the Russian Federation  confirmed that the Russian Federation would 
apply all its laws and regulations governing transit operations and would act in full conformity with 
the provisions of the WTO Agreement, in particular Article V of the GATT 1994.] 
- Policies Affecting Foreign Trade in Agricultural Products 
270. The representative of the Russian Federation said  that the key long-term objectives of the 
Russian agricultural sector were the establishm ent of an effective and competitive agro-industrial 
production and the provision of a sufficient degree of food security for the Russian population.  These objectives required a comprehensive program of pol icy measures of both a short-term and a long-term 
nature.  Pursuant to the "Priority Trends of Ag ri-Food Policy of the Government of the Russian 
Federation for 2001 – 2010", approved by the Government on 27 July 2000, the Russian agricultural sector needed first and foremost to address the problems that had been accumulated over the years preceding the reform and during the reform, and notab ly the sectoral imbalanc e of prices and revenues 
which was a major adverse factor in agrarian produc tion, low profitability, and the development of a 
material base.   
271. In this connection, he explained the current priorities of the agro-food policy and on the 
agrarian reform in the Russian Federation and described in detail agricultural support measures and 
policies both under the green and amber boxes provided  for in the WTO Agreement on Agriculture.  
He also noted that, taking into account such factor s as the geography of agricultural production in the 
Russian Federation, its vast territory, actual stat e of development of tran sportation system and 
infrastructures supporting exports of agricultural products, use of export subsidies by some of the Russian Federation's major partners and also the prevailing conditions for competition on world 
agricultural markets, his Government came to the c onclusion that export subsidies consistent with the 
WTO Agreement on Agriculture could be used.  Therefore, the Russian Federation intended to 
reserve its right to use export subsidies subject to: (a) agreed reductions with WTO members over a  WT/ACC/SPEC/RUS/25 
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 fixed period of time;  and (b) possible results of the on-going new WTO negotiations on agriculture 
on export subsidies. 
272. Members noted with concern that a comprehensive submission of the Russian Federation's 
agricultural support policies was still required in order to establish a detailed description of the 
Russian Federation's agricultural policies on which appropriate commitments could be determined.  
Members considered that in providing this inform ation the Russian Federation should give emphasis 
on "green box" measures that could achieve the desired reform objectives pursued by the Russian Federation in the field of agriculture.  Some member s further argued that in the current context they 
considered it inappropriate for any country to accede to the WTO with export subsidy commitments.  These members stressed that the Russian Federation should bind its export subsidies at zero. 
- Trade in Civil Aircraft  
273. A member noted that the Russian Federation had indicated in bilateral exchanges a 
willingness to join the Agreement on Trade in Civil Aircraft Agreement.  This member sought a 
commitment from the Russian Federation that this would occur upon accession. 
274. Another member also expected the Russian Federation to make a commitment to become a 
signatory to the Agreement on Trade in Civil Airc raft upon accession to the WTO.  This member 
expected that the Russian Federation should implement the agreement without exceptions and without recourse to any transitional period.  This member further expected the Russian Federation to ensure 
that all internal taxes would be applied to the sale  or lease of civil aircraft in a non-discriminatory 
fashion between imported and domestically produced  goods and between goods imported from third 
countries. 
- Textiles 
275. Some members noted that upon its accession to the WTO, the provisions of the WTO 
Agreement on Textiles and Clothing would also become  relevant for the Russian Federation.  In this 
connection, a member said that its bilateral quotas  on imports from the Russian Federation of certain 
textile and clothing products woul d become the starting-point for further liberalisation under the terms 
of that Agreement.  In order to ensure an orderly transfer to this new status and to guarantee the benefits of ATC trade liberalisa tion for Russian exports, these members sought an appropriate 
commitment in the draft report. 
276. A member stated that the quantitative restrictions on imports maintained by WTO Members 
on textiles and clothing products originating from the Russian Federation that were in force on the WT/ACC/SPEC/RUS/25 
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 date prior to the date of accession of the Russian Federation to the WTO should be notified to the 
Textiles monitoring Body (TMB) by the members main taining such restrictions and would be applied 
for the purposes of Article 2 of the WTO Agreemen t on Textiles and Clothing.  Thus, for the purpose 
of the Russian Federation's accession to the WTO, th e phrase "day prior to the date of entry into force 
of the Agreement on Textiles and Clothing" should be deemed to refer to the day prior to the date of 
accession of the Russian Federation to the WTO.  To  this base level the increase in growth rates 
provided for in Article 2.14 of the Agreement on Textiles and Clothing should be applied, as 
appropriate, in the Agreement on Textiles and Clot hing from the date of th e Russian Federation's 
accession to the WTO. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME (TRIPS) General 
277. Members stressed that this area constituted a very important aspect of the process of 
accession of the Russian Federation to the WTO.  Th e Russian authorities were invited to continue 
their efforts to follow basic inte rnational standards provided by the WTO Agreement on TRIPS and to 
apply them upon accession. 
278. In response, the representative of the Russian Federation said that the national system of 
protection of intellectual property rights corresponded  to the basic international standards in this field 
including, inter alia, the provisions of the WTO Agreement on TRIPS.  The general thrust of the 
Russian Federation's policy on in tellectual property was determined by the Constitution of the 
Russian Federation (Article 44-1) which provided, erga omnes,  the guaranteed freedom of literary, 
artistic, scientific, technical and ot her types of creative activity, and teaching, and stipulated that the 
intellectual property should be protected by law.  Th e whole system of the Russian legislation in force 
contributed to the realisation of this constitutional ri ght.  A vital element of the said system laid in a 
number of international agreements to which the Russian Federation was a party. 
279. He noted that the Russian Federation extended  national treatment to the legal entities and 
individuals of those countries which were partie s to agreements mandatin g such treatment (most 
notably: the Paris Convention for the Protection of  Industrial Property, the Universal Copyright 
Convention, and the Bern Convention for the Protection of Literary and Artistic Works) both directly 
pursuant to such covenants (Clause 4 of Article 15 of the Constitution of the Russian Federation 
provided for the direct application and prevalence of  international agreements) and in accordance with 
the relevant provisions of legislative acts of the Russian Federation (in partic ular, Articles 36 and 37 
of the "Patent Law of the Russian Federation" No. 3517-1 FZ of 23 September 1992, Articles 47 and  WT/ACC/SPEC/RUS/25 
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 48 of Federal Law No. 3520-FZ of 23 September 1992 "On Trademarks, Service Marks, and 
Appellations of Origin";  Article 3, Article 5:1 and Article 35:4 of Federal Law No.5351-1 FZ of 
9 July 1993 "On Copyrights and Related Rights";  Article 7 of Federal Law No.3523-1 FZ of 
23 September 1992 "On the Legal Protection of Com puter Programs and Databa ses";  and Articles 13 
and 14  of Federation Law No. 3526-1 FZ of 23 September 1992 "On the Legal Protection of Layout 
Designs of Integrated Circuits").  The application of most-favoured-nation treatment (with exceptions 
regarding advantages granted by the Russian Fede ration in accordance with certain agreements 
including agreements with CIS countries) on inte llectual property was furt her stipulated in the 
agreements that the Russian Federation had w ith Switzerland and the European Union.   
280. Noting that the government of the Russian Federation had prepared and introduced into the 
Duma draft legislation amending its copyright, tradem ark, patent and other intellectual property laws, 
including laws for enforcement of rights, members felt that the provision of a clear timetable for the 
adoption of this legislation would considerably help  the Working Party proceedings in this regard.  
Members further stressed that the Working Party should be kept informed of initiatives taken to 
reduce current high levels of piracy and counterfeiting. 
281. Commenting of specific issues pertaining to legislative developments in this field, the 
representative of the Russian Federation explained that:   
- Copyright and Related Rights 
282. In general, the provisions of the Russian legislation on copyright (including the ones on the 
protection of computer programs and databases) were  in conformity with the provisions of the Bern 
Convention for the Protection of Literary  and Artistic Works (including Article 6 bis) and the relevant 
provisions of the WTO Agreement on TRIPS.  At th e same time, according to the declaration made by 
the Government of the Russian Federation when joining the Bern Convention, the provisions of the 
latter were not applied to literary and artistic works which were of public domain when the 
Convention came into force for the Russian Federation.  In accordance with Article 28 of Federal Law 
No. 3531-1 FZ of 9 July 1993 "On Copyright and Re lated Rights", works for which the term of 
copyright expired, as well as works to which copyright protection had never been extended within the 
Russian Federation were of public domain.  New amendments to this Law would bring the provisions 
relating to retroactive protection into conformity  with the respective requirements of the Bern 
Convention and WTO Agreement on TRIPS.   WT/ACC/SPEC/RUS/25 
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 - Trademarks, Including Service Marks 
283. In general, the provisions of the Russian le gislation on the protection of trademarks and 
service marks were in conformity with the provis ions of the Paris Convention for the Protection of 
Industrial Property and the relevant provisions of the WTO Agreement on TRIPS, with the exception 
of the TRIPS provisions on additional protec tion of well-known marks with respect to 
non-homogeneous goods.  These pr ovisions would be taken into account when amendments to 
Federal Law No. 3520-FZ of 23 September 1992 "On Trademarks, Service Marks and Appellations of 
Origin" would be approved. 
- Geographical Indications, Including Appellations of Origin 
284. Prior to 1992 geographical indications in the Russian Federation were protected mostly by 
considering any false geographical indications as a form of unfair competition or a violation of 
consumer rights (this was done by antitrust agencies or courts respectively).  In addition to this, since 
1992 one highly important category of geographical indications - appellations of origin - was 
accorded special protection through th eir state registration in accordance with the procedure set forth 
in the Federal Law "On Trademarks, Serv ice Marks and Appellations of Origin". 
285. In general, the provisions in accordance to which geographical indications were accorded 
protection were in conformity with the provisi ons of the Paris Convention for the Protection of 
Industrial Property and the relevant provisions of  the WTO Agreement on TRIPS.  The draft law an 
amendments to Federal Law No. 3520-FZ of 23 Se ptember 1992 "On Trademarks, Service Marks and 
Appellations of Origin" would take into accoun t the provisions of the WTO Agreement on TRIPS 
relating to additional protection of  geographical indications for wines and spirits and extended only 
for the appellations of origin which were register ed in accordance with the established procedure. 
- Inventions and Industrial Designs 
286. In general, the provisions of the "Patent Law of the Russian Federation on the protection of 
inventions and industrial designs" No…[…] were in conformity with the Paris Convention and the relevant provisions of the WTO Agreement on TRIPS.   The draft law on amendments to the Patent 
Law of the Russian Federation would take into account the provisions of the WTO Agreement on TRIPS relating to the use of inventions without patent holder's authorisation ("compulsory licensing").    WT/ACC/SPEC/RUS/25 
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 - Plant Variety and Animal Breed Protection (Selection Attainments) 
287. Plant varieties and animal breeds were protected in accordance with Federal Law 
No. 5605-1 FZ of 6 August 1993 "O n Selection Attainments".  The pr ovisions of this Law were in 
conformity with the WTO Agreement on TRIPS and the UPOV Convention to which the Russian 
Federation became a member in 1998. 
- Layout Designs of Integrated Circuits 288. Layout designs of integrated circuits were  protected in accordance with Federal Law 
No. 3526-FZ of 23 September 1992 "On Legal Protecti on of Layout Designs of Integrated Circuits".  
In general, the provisions of this Law were in c onformity with the provisions of the Treaty on 
Intellectual Property in Respect of Integrated Circui ts (Washington Treaty), notwithstanding the fact 
that the Russian Federation was not a party to th is Treaty.  Additionally (with respect to the 
Washington Treaty) the relevant requirements of the WTO Agreement on TRIPS had been taken into 
account in a draft law on amendments to the Law  "On Legal Protection of Layout Designs of 
Integrated Circuits"  which was to be submitted to the legislative authorities. 
- Requirements on undisclosed information, including trade secrets and test data 
289. Protection of undisclosed information, as in Section 7 of the WTO Agreement on TRIPS, was 
ensured in the Russian legislation by virtue of Article  139 of the Civil Code.  In particular, Article 139 
stipulated the liability of officials who illegally ob tained information which constituted official or 
commercial secrets.  The obtention, use, or disclo sure of scientific, technical, production, or 
commercial information, including commercial se crets, without the owner's consent were not 
permitted by virtue of Article 10 of Federal Law No. 948-1 of 23 March 1991 "On Competition and 
Restriction of Monopoly Activity on Commodity Markets". 
- Enforcement 
- Criminal Measures 
290. The  representative of the Russian Federation further noted that since 1999 there had been a 
special department dealing with intellectual prop erty crimes within th e Main Economic Crime 
Division of the Ministry of Interior (and its regi onal departments).  As for criminal sanctions, the 
Criminal Code included three articles specifically  dealing with intellectual property: Article 146 
(Copyright and Related Rights Violations);  Ar ticle 147 (Patents Viola tions);  and Article 180 
(Trademark Violations).  While copyright violations were punishable by fines and imprisonment, for WT/ACC/SPEC/RUS/25 
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 other intellectual property violations no imprisonment was provided.  In the meantime, the Duma had 
approved the draft amendment to Article 180 (Trademark Violations) introducing a new paragraph 
dealing with organised crime, initial conspiracy and providing an imprisonment at the first reading. 
291. Since intellectual property crimes were not co nsidered to be "grave" crimes, enforcement 
bodies used other articles of the Criminal Code when appropriate such as smuggling, consumer fraud, etc.  In 1997, there were 720 intellectual property violation cases;  in 1998: 950;  in 1999: 1300;  in 
2000: 2000, including 1117 cases on copyright and related rights violations.  In 1999, 125 illegal manufacturing facilities were closed down and 30 million illegal units were confiscated.  In 2000, 334 
manufacturing facilities were closed down and 50 m illion units were confiscated.  Confiscation of 
illegal goods, materials and equipment used for their manufacturing was not directly stipulated under 
Articles 146, 147 and 180 of the Criminal Code.  It  was normal practice, however, to confiscate these 
goods and machinery as material evidence.  For th e illegal copies, the right holder could request to 
take the goods.  For machinery, the matter had to be decided by courts.  Concerning the Superior Arbitration Court's practice, the Court issued a de cision on confiscation and destruction in cases 
where the right holder did not request the goods to be transferred to him.  If a Court did not decide on confiscation of illegal goods in civil proceedings this  decision could be appeal ed against by the right 
holder. 
- Criminal Procedure 
292. In accordance with the legislation in force, the enforcement bodies had the responsibility for 
discovering and identifying criminal violations.  Since intellectual property violations were within the 
category of private accusation, criminal procedure co uld not be initiated without the complaint by the 
right holder.  The time limits for investigation in accordance with the Criminal Procedure Code was 
initially 10 days and 30 days for the final decision in complex cases. 
293. Normally, the statement that the goods were counterfeit was made by the right holder.  
Official state expertise could be done by the Centre for Expertise of the Ministry of Interior.  
Rospatent which dealt with examination in the trademark cases.  The decision on expertise was made 
by the investigator, prosecutor or the court.  Th e expertise initiated by th e law enforcement bodies 
was free of charge.   
- Administrative Measures 
294. Administrative sanctions under the Code of Admi nistrative Offences in force were applied 
only to copyright violations (Article 150:4).  Ad ministrative sanctions were the fines defined by the  WT/ACC/SPEC/RUS/25 
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 court between the minimum and maximum established in  the Law.  Although the fines were not high, 
administrative liability was generally a more simple  and efficient form for smaller scale copyright 
violations.  Most importantly, Article 150-4 directly provided for the confiscation of illegal copies, 
material and equipment.  Confiscated articles could be  transferred to the right holder on his request or 
destroyed.  The criterion, which defined administrative  liability as opposed to criminal liability at the 
moment was "significant damage".  In addition, criminal measures were aimed against the most 
serious crimes, which represented danger to the public.   
295. As far as the activities of the Ministry of An ti-monopoly Policy and Entrepreneurship Support 
were concerned, the sanctions were available u nder the anti-monopoly legislation.  Any business 
entity whose rights of intellectual property were violated by another business entity could apply to the 
Ministry to start the proceedings against the offender.  The Ministry could issue a decision imposing fines or demanding certain actions or prohibiting in fringing actions.  The procedure normally took 
between one and two months, and in complicat ed cases between three and six months.   
- Border Measures 
296. Article 10 of the Customs Code included intell ectual property protection within the scope of 
Customs' responsibility.  Since 1998, the State Customs Committee accepted right holders'  applications for Customs' measures.  The following  documents had to be presented: confirmation of 
the intellectual property rights, power of attorney  (when necessary) and information on the violation 
(description of goods) as well as any additiona l information available from the right holder. 
297. At present, the Customs Code did not allow th e Customs bodies to act fully in accordance 
with the WTO TRIPS standards in terms of supp lying the right holder as a third party with 
information and of providing the right holder with an opportunity to inspect detained goods and take 
samples.  The draft new Customs Code included a new section dealing with intellectual property 
protection, which effectively addressed these problems as well.  When goods were detained, Customs 
had ten working days to inspect all goods.  Particular  attention was paid to the goods indicated by the 
right holder.  The term could be extended for another 20 working days or 31 calendar days.  Within 
this period, if there were grounds to consider inte llectual property violations, the Customs transferred 
materials on intellectual property violation to the Poli ce and prosecutors.  The right holder could bring 
a civil law case to the court.   
298. As for the possibility of obtaining information about the infringing company, its history, 
activity, etc. from Customs bodies, the new draft Cu stoms Code stipulated that such information 
would be available in relation to importers, as well as imported goods.   WT/ACC/SPEC/RUS/25 
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 - Civil Law Remedies and Procedure 
299. Referring to remedies available under the Civil Code, the list was as follows:  confirmation of 
rights;  prohibition of actions violating rights;  imposing fines;  compensation of damages caused to the right holder;  and compensation of income received by the infringer and statutory compensation.  
The last two  measures were available only for copyright.   
300. Regarding claims for damages and assessment of damages, in civil law cases the general 
principle of full recovery of damages existed.  Th e amount of damage was calculated in accordance 
with the general norms of the Civil Code based on the prices of corresponding legitimate goods taking into account actual damage and forg one profit of the right holder.  As for the statutory compensation 
it was initially defined by the plaintiff who needs to  prove the fact of dama ge caused but without 
calculating the amount.  Then it was further assessed by the court based on the nature of infringement, income received by the infringer, etc.  The cour t finally decided on the amount of compensation.   
301. Regarding provisional measures  under Article 75 of the Code of Arbitration Procedure the 
court could issue an order for preliminary injunction based on the plaintiff's petition.  Such measures 
should be aimed at securing the claim.  Provisional measures included: prohibition of infringing 
actions, arrest of property including back accounts, seizure of documents and other evidence.  The judge handling the case should make a decision the next day after the petition is filed without the 
representatives of the parties.  Under the current legislation, any petition for provisional measures can 
be filed after the civil procedure was initiated.  However, the draft amendments to the Code of 
Arbitration Procedure proposed to a llow provisional measures to be obtained before filing the claim. 
302. Noting all the above, members sought a commitme nt that the Russian Federation would be in 
compliance with the TRIPS Agreement upon acce ssion, including its enforcement provisions. 
303. [The representative of the Russian Federation  confirmed that the Russian Federation would 
apply fully the provisions of the WTO Agreement on  Trade-related  Aspects of Intellectual Property 
Rights (TRIPS) from the date of accession to the WTO, including provisions for enforcement, without recourse to any transitional period.  He confirme d that the Russian Federation would, in compliance 
with Article 39 of the TRIPS Agreement, provide effective protection against unfair commercial use 
of undisclosed test or other data submitted to au thorities in the Russian Fe deration, in support of 
applications for marketing approval of pharmaceuti cal or of agricultural chemical products which 
utilised new chemical entities, for a period of at least six years from the date on which the Russian 
Federation granted marketing approval  to the person submitting the data.  He also confirmed that the 
Patent Law would be amended to better specify the legal framework for decision-making with respect  WT/ACC/SPEC/RUS/25 
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 to issuance of compulsory licenses (this amendment would put the Patent Law in  conformity with the 
requirements Article 31 of the TRIPS Agreement);  the Draft Law on Trademarks would bring the 
Russian legislation in this area in conformity  with TRIPS requirements (including immediate 
publication after registration, additional protecti on for well-known trademarks against bad faith 
registration and use on dissimilar goods, and additional protection against TM registration containing 
Geographical Indications);  the Draft Law on introduction of amendments and addenda to Federal Law 
"On Legal Protection of Topologies of Integrated Circuits" would implement all the TRIPS requirements in this area and would ensure the gran ting of protection against articles embodying an 
integrated circuit containing an unlawfully re produced topography;  the Draft Federal Law on 
introduction of amendments and addenda to Fe deral Law "On Legal Protection of Computer 
Programmes and Databases" would make clear its relati onship, as "lex specialis" to the Copyright law  
and that The Russian Federationwill implement all TRIPS obligations with respect to Computer 
software and Databases;  the Draft Federal Law on introduction of amendments and addenda to Federal Law "On copyright and related rights" wo uld introduce amendments that will allow the 
application "in toto" of the provis ions of Article 18 of the Berne Convention to foreign works and 
phonograms, including the granting of retroactive protection to foreign works or phonograms;  and 
that current revisions of Criminal Code and the Criminal Procedure Code, the Civil Procedure Code 
and the Arbitration Procedure Code and the Customs Code will allow for the correct implementation of 
Articles 41-61 of the TRIPS Agreement and the enforc ement by The Russian Federation of Intellectual 
Property Rights.] 
TRADE-RELATED SERVICES REGIME Policies affecting Trade in Services 
304. The representative of the Russian Federation noted  that the Russian market for services began 
to develop only in the first part of the 1990s, fo llowing the domestic process of economic reforms and 
privatisation, as well as liberalisation of the whole system of the Russian Federation's economic 
relations.  The development of services market had led to a substantial increase of its share in national 
GNP, reaching about 55 per cent in 2000 (28 per cent in 1991).  Although the Russian Federation's 
share in world trade in services was not yet quite important, the contribution of services to the 
country's total trade was not negligible (in 2000, the Russian Federation' s share of trade in services in 
the world' s trade in services was just over 1 per cent).  The balance of foreign trade in services was 
traditionally negative for the Russian Federation, with exports amounting to US$9,632 million and 
imports amounting to US$17,412  million in 2000 (data based on the Balance of Payments).   WT/ACC/SPEC/RUS/25 
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 305. The reform of the Russian economy during the last decade called into being new services 
sectors as well as contributed to the development of existing ones.  At the same time, be they old or 
new, services providers in some sectors operat ed within insufficient regulatory and institutional 
framework and suffered from unstable market structure.   As "infant industries", those services sectors 
were liable to positive and negative economic and soci al variations that could have a serious impact 
on the economy as a whole.  Should negative variations prevail, the Russian Federation needed to 
retain the possibility of having recourse to certain temporary measures aimed at the maintenance of  a 
normal competitive environment, bala nce and integrity of markets, social stability and employment.  
The implication of these measures was limited in time until the factors triggering their use would be 
removed.  Should multilateral disciplines addressing  the relevant issues be agreed, the Russian 
Federation was willing to make the mentioned me asures comply with those disciplines.   
306. The economic developments in services were su pported by the legislative process.  Many 
laws and regulations were adopted to establish a le gal framework for provision of services in general 
(such as Civil Code or Law on foreign investments) or  in specific sectors.  However, the dynamism of 
services markets was still not adequately reflected by the domestic regulatory system.  The reasons for 
the Russian banking crisis in August 1998 were in particular associated with inadequate approaches 
to, and lack of effective prudential arrangements in, the established banking activities following the 
extreme dependance of the domestic financial system from the situation in short-term foreign capital 
markets.  In addition, development of regulatory sy stems in some services sectors depended on the 
adoption in their final form of  politically sensitive ba sic laws on the status of  land for the purpose of 
ownership and commercial transactions.  For the purposes of creating a favourable economic and 
investment climate, including in the sphere of services, the Russian Federation had embarked on a 
series of measures to reduce red tape restra ints on the economy, involving streamlining of the 
procedures of company registrations , downsizing the list of types of activities subject to licensing and 
reduction of frequency of inspections of enterprises.   It could be expected that regulatory framework 
of the Russian Federation governing the services sector would, at the same time, be subject to frequent adaptations and improvement in light of  experience and of progress made in building 
national capacity to supply services on a competitive  basis.  That did not co ntradict GATS provisions 
recognizing the right of members to regulate and to introduce new regulations on the supply of 
services within their territories in order to meet na tional policy objectives.  In this context, he noted 
that, under the existing legal framework, some ki nds of services were subject to licensing.   
307. He also noted that the Russian authorities we re aware of ongoing negotiations within the 
WTO with a view to developing the necessary multilat eral disciplines to avoid trade distortive effects 
of subsidies and addressing the appropriateness of countervailing procedures.  Taking into account the  WT/ACC/SPEC/RUS/25 
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 fact that the Russian Federation did not take part in  the negotiations as a fully-fledged participant and 
thus was not able to adequately secure its particul ar interests in this resp ect, the Russian Federation 
had to reserve the right, pending the results of these negotiations, to maintain subsidy measures 
according to national legislation and practices in order to adjust its specific commitments on services 
in a manner not contradicting the above-mentioned results.   
308. The Russian Federation exercised its sovereign rights over subsoil and mineral resources, 
underground resources within the territory of the Russian Federation, including subsoil domain and mineral resources contained therein, energy and other resources.  Subsoil areas could not be subject to 
purchase, sale, gift, inheritance, deposit, pledge or any other form of alienation.  In this context, the Russian Federation was developing a market environm ent [in this field] with the purpose of creating 
favourable conditions for enterprise operation, ca pital and technology inflow  and encouraging access 
to the subsoil and natural resources inter alia on the basis of conclusion of production sharing and 
concession agreements.    
309. With respect to MFN commitments, the Russian Federation had a limited number of bilateral 
agreements related to debt settlements and tech nical assistance, measures resulting from the 
agreements on legal assistance, measures which de fined the responsibility for the preservation of 
suitability of aircraft for carrying out the flights (def ined by bilateral agreements), and agreements on  
terms  of activity on the territory of the Russian Fe deration of some international banking institutions  
(North Investment Bank,  Black Sea Bank of Trade and Development, Interstate Bank) which 
contained some preferential provisions resulting from  specific international status of these institutions 
within the context of the  agreements.  The Ru ssian Federation understood that WTO provisions 
should not be construed as preventing the Russian Fe deration implementing thes e bilateral agreements 
for the period of their validity.  The Schedule of Specific Commitments of the Russian Federation is 
based on the understanding that the Russian Fe deration reserves the right to determine its 
commitments with respect to the state procurement supplied on a non-discriminatory basis depending 
on the future definition of the services purchased for governmental purposes, and in accordance with 
multilateral rules that will be established in the context of Article XIII of the GATS. 
310. For the purpose of the protection of interests of  investors, depositors and policy-holders, the 
protection of national currency of the Russian Federation and also for the purpose of ensuring the 
stability and integrity of the financial system, the Ru ssian Federation did not exclude the possibility of 
applying measures affecting currency regulation and currency control and any transaction involving 
instruments of the internal debt of the Russian Fede ration and raising credits or  loans at international WT/ACC/SPEC/RUS/25 
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 financial markets by issuance and placement of bonds and other issue-grade securities outside the 
territory of the Ru ssian Federation. 
311. The Russian Federation followed the federal policy of, and exercised state control vis-à-vis , 
the natural monopolies
8 in the spheres, determined by Federal Law No.147 of 17 August 1995 "On 
the Natural Monopolies", for the purpose of reaching a balance of interests between the consumers and subjects of the natural monopolies.
9  The bodies regulating natural monopolies exercised control 
over the actions which were perfor med with participation of the subjects of the natural monopolies 
engaged in services supply or with  respect to such subjects, or whic h could result in infringement of 
the interests of consumers of services, regulated  in keeping with the mentioned Federal Law or 
subject to the restraint of the economically justif ied transition of the corresponding services market 
from the state of natural monopoly to that of a competitive market.  Methods of state regulation included the following:  price regulation with re spect to the activity of the subjects of natural 
monopolies in services market through the setting (fix ation) of the maximum level of prices (tariffs);  
identification of consumers subject to obligatory service and/or the fixation of a minimum level of 
their supply;  control over any transac tions as a result of which a subject of  natural monopoly acquires 
the right of ownership of fixed assets or the righ t of using fixed assets, not intended for services 
supply, regulated in accordance with the said Fede ral Law;  control over the investments of a subject 
of natural monopoly in services supply, which are not regulated in keeping with the said Federal Law;  
control over the sale, lease, or any other transaction, as a result of which the transactor unit acquires 
the right of ownership or possession and/or use of the part of the fixed assets of the subject of natural 
monopoly, intended for the services supply, regulate d in conformity with the said Federal Law.  
Transactions of acquisitions of rights or shares in  the capital of juridical persons engaged in the 
supply of services in spheres where natural monopolies exist, receipt by a person (or group of persons) of ownership of fixed asse ts and intangible assets of such juridical persons may be subject to 
authorization.   
312. In the Russian Federation, services considered as public utilities could be subject to public 
monopolies or exclusive rights granted to private ope rators.  Public utilities existed in sectors such as 
utility services, related scientific and technical cons ulting services, services on obligatory independent 
                                                     
 
8 A natural monopoly is the state of a market in which the satisfaction of the demand on this market is 
more effective in the absence of competition, due to the specific technological aspects of production (in 
connection with the substantial decrease in the production costs per unit of services to the extent of growing 
volume of output), whereas services produced by the subjects of a natural monopoly cannot be replaced by consumption of other services in connection with which the demand on the given market for services produced 
by the subject of the natural monopolies depends to a lesser degree on changes of prices for these services than 
on the demand for other services.  WT/ACC/SPEC/RUS/25 
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 technical testing, appraisals, examinations and analysis, environmental services, health services, 
transport services and services auxiliary to all mode s of transport.  Exclusive rights on such services 
could be granted to private operators, for instance operators with concessions from bodies of state 
power and local self-governmental bodies, subject to  specific services oblig ations.  These services 
were universal and were supplied on the basis of pu blic contract.  These measures were applied on 
non-discriminatory basis with respect to foreign services suppliers. 
313. The policy of the Russian Federation in preserving, developing, and disseminating culture, 
required that an authorization could be required wi th respect to the acquisition of control over a 
juridical person of the Russian Federation related to  the cultural heritage of Russian Federation and/or 
being a cultural property of the peoples of the Ru ssian Federation.  Also the number of services 
suppliers and scope of their operation could be limi ted on non-discriminatory basis on the specially 
protected territories.   
314. For the purpose of the protection and preservation of indigenous persons and exiguous ethnic 
communities, measures directed at the protection and preservation of the territories of the traditional 
habitation of these group could be applied, and pr eferences to these group could be granted with 
respect to their traditional economic activity on the territory of their traditional habitation. 
315. For the purpose of national security reasons,  the Russian Federation could use measures to 
regulate economic and entrepreneur activities with re spect to trade in services, including possession, 
use and disposal of land, natural resources and im movable property, entry and/or permanent stay of 
physical persons could be limited or prohibited within the border zones and closed administrative 
areas.  Such measures were not aimed at discrimination of the foreign suppliers of services.  The requirement for a GATS inquiry point was now being addressed. 
                                                                                                                                                                    
 
9 The subject of a natural monopoly is a transactor unit (legal entity) engaged in the services supply in 
the conditions of the natural monopoly . WT/ACC/SPEC/RUS/25 
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 316. Members noted that more information on the Russian Federation's progress towards 
establishing the required inquiry point and other transparency and procedural requirements for GATS 
was deemed useful.  They also requested confirmati on that, in services sectors requiring licencing, 
foreign natural and juridical persons needing activity licences could obtain them on the same terms as 
Russian natural and juridical pers ons in the services sectors inscribed in the Russian Federation's 
Schedule of Specific Commitments, and where the Russian Federation accords to services and service 
suppliers of any other WTO Member, with respect to  all measures affecting the supply of services, 
treatment no less favourable than  it accords to its own like services and service suppliers as is 
provided for by the GATS. 
317. A member expressed deep concern over the maintaining by the Russian Federation of 
discriminatory regime with regard to the supply of services on Russian services' market by his country's nationals residing in different regions of his country, under the mode of supply –
"commercial presence" and "movem ent of natural persons".  This member asked the Russian 
Federation to make the necessary adjustments in orde r to avoid discriminatory treatment and to allow 
all his nationals to provide services on the Russian market on an equal footing. 
318. A member requested confirmation regarding the Russian Federation's intention to introduce 
international accounting standards (IAS) adopted by the International Accounting Standards Board 
(IASB) for banks by 1 January 2004 and for all listed companies by 1 January 2005.  This member 
asked the Russian Federation to confirm this inform ation and indicated the steps by which it intended 
to achieve this objective.  He also requested th e Russian Federation to info rm the Working Party on 
the actual application of IAS by Russian companies.   
319. Some members expected the Russian Federa tion to make a commitment to guarantee 
transparency of licensing requirements and procedures, qualification requirements and procedures as 
well as of other authorisation requirements, in pa rticular with respect to obtaining, extending, 
renewing, denying and terminating licences and other approvals required to provide services in the 
Russian Federation's market and appeals of such  actions.  The Russian Federation's licensing 
procedures and conditions should not in themselves act as a barrier to market access and should not be 
more trade restrictive than necessary.   The Russ ian Federation should publish a list of authorities 
responsible for authorising, approving or regulating those service sectors in which Russia makes 
specific commitments and the Russian Federation's licensing procedures and conditions.  These 
members also expected the Russian Federation to make a commitment to guarantee that for those 
services that would be included in the Russian Federation's Schedule of Specific Commitments, relevant regulatory authorities would be separated fr om, and not accountable to, any service suppliers  WT/ACC/SPEC/RUS/25 
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 they regulate.   These members further expected  the Russian Federation to make a commitment to 
guarantee that foreign service suppliers remain free to choose their partners. 
TRANSPARENCY 
 Publication of Information on Trade 
320. Members requested a description of the legal authorization to implement Article X and the 
other transparency provisions in WTO Agreements was required together with a confirmation that 
these provisions would be applied upon accession.  A clarification was particularly sought to specify 
where Russia' s laws, decrees, resolutions, orders , letters, etc. were published to fulfill the 
requirements of Article X and the other transparency provisions in WTO Agreements. 
321. The representative of the Russian Federation noted that Article 15 of the Constitution 
provided that: "Laws shall be officially published.  Unpublished laws shall not be used.  Any 
normative legal acts concerning human rights, freedoms and duties of man and citizen may not be used, if they are not officially published for ge neral knowledge".  The c onstitutional principle of 
obligatory publication of legislative acts was developed in Federal Constitutional Law No. 2 -FKZ of 
17 December 1997 "On the Government of the Ru ssian Federation" (as amended on 31 December 
1997), in Federal Law No.5-FZ of 14 July 1994 "On the procedure of publication and entry into force 
of Federal Constitutional Laws, Fede ral Laws, statements of chambers  of Federal Assembly" and in 
the Presidential Decree N.763 of 23 May 1996 "On th e procedure of publication and entry in force of 
statements of the President of the Russian Fede ration, Government of the Russian Federation and 
legislative acts of the federal executive bodies".  In accordance with the aforesaid legislation, only 
officially published federal constitutional laws, fe deral laws, statements of  chambers of Federal 
Assembly were enforced within the territory of the Russian Federation.  The "Parlamentskaya Gazeta" 
(Parliament Gazette), "Rossijskaya Gazeta" (Ru ssian Gazette) or "Sobr anie Zakonodatelstva 
Rossijskoj Federatsii" (Complete legislation of the Russian Federation) were the official publications 
of the acts mentioned above.   
322. The  sources of official publication of the acts of the President of the Russian Federation and 
the Governments of the Russian Federation were "Rossijskaya Gazeta" and "Sobranie Zakonodatelstva Rossijskoj Federatsii" .  The normative acts of federal bodies of the executive power 
were registered in the Ministry of Justice of th e Russian Federation and were subject to official 
publication in "Rossijskaya Gazeta" and in "Bulletin of the normative acts of federal bodies". WT/ACC/SPEC/RUS/25 
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 323. [The representative of the Russian Federation confirmed that from the date of accession all 
laws, regulations, decrees, decisions, judicial de cisions and administrative rulings of general 
application related to trade would be publishe d promptly in a manner that fulfils the WTO 
requirements, including Article X of the GATT 1994.  As such, no law or regulation related to 
international trade would become effective prior to such publica tion in one or more official 
publication specifically identified for this purpose from the date of ac cession.  He also confirmed that 
the Russian Federation would observe the transparency requirements of the GATS, particularly Article II, from the date of accession.] 
- Notifications 
324. Members sought a commitment that the Russian Federation would provide, as from the date 
of accession, initial notifications for all WTO Agreem ents, and that regulations subsequently enacted 
by the Russian Federation which would give effect to the laws enacted to implement any of the WTO 
Agreements would also conform to the requirements of that Agreement. 
325. [The representative of the Russian Federation confirmed that upon entry into force of the 
Protocol of Accession, the Russian Federation wo uld submit all initial notifications required by any 
Agreement constituting part of the WTO Agreement.   Any regulations subsequently enacted by the 
Russian Federation which gave effect to the la ws enacted to implement any Agreement constituting 
part of the WTO Agreement would also conform to the requirements of that Agreement.] 
FREE TRADE AND CUSTOMS UNION AGREEMENTS 326. Members noted that it was customary to provide a detailed description of the scope, nature, 
and status of all preferential arrangements.  This was required to ensure that the value of MFN commitments negotiated in the schedules would be known to all parties.  They felt that the Russian 
Federation should consider how to improve the information needed in this regard. 
327. The representative of the Russian Federation said that, in accordance with the Russian 
Federation's bilateral ag reements on free trade with CIS countries and the Federal Republic of 
Yugoslavia, the importation of n early all goods (including agricu ltural products) originating from 
these countries into the customs territory of the Ru ssian Federation was not subject to customs duties.  
Such preferences were granted on the basis of a certificate of origin, provided that the exporter was a 
resident of the exporting country.   
328. He also said that a number of agreements had been signed between the Russian Federation 
and the Republic of Belarus, the Republic of Kazakhstan, the Republic  of Tajikistan and the Kyrgyz  WT/ACC/SPEC/RUS/25 
 Page 113 
 
 
 Republic.  These agreements were aimed at a step-by-step formation of a customs union among the 
signatories.  The above-noted agreements to create a customs union had been transformed into a 
single Agreement on the Establishment of the Eu rasian Economic Community, taking effect on 
30 May 2001.  Pursuant to Article 6 of this Ag reement, a customs tariff common for the Russian 
Federation, Belarus, Kazakhstan and Tajikistan would be gradually formed within a five year period.  
The Agreement provided for possible extension of the timeframe for formation of the Common 
Customs Tariff beyond the original five-year period.  This process would fully take into account the future commitments of the Russian Federation as a WTO member, including, inter alia, the provisions 
of Article XXIV of the GATT 1994 and Article V of the GATS.  The Russian Federation would also 
ensure that the provisions of these WTO Agreem ents for notification, consultation and other 
requirements concerning free trade areas and cust oms unions of which the Russian Federation was a 
member were met.  The Russian Federation intende d to maintain a limited scope of MFN exemptions, 
as provided for in the Annex on GATS Article II.  [D escription of the respective measure, countries to 
which the measure was applied, its intended duration  and conditions creating th e need for exemptions 
were provided in the List of  Article II (MFN) exemptions of the Russian Federation.]  
329. He said that trade agreements in specific sectors, concluded with several WTO members and 
falling into the definition of "voluntary export rest raint agreements", covered different products such 
as steel and steel products, certain fertilizers, tex tiles and sport weapons.  It was not the intention of 
the Russian Federation to continue these agreem ents which were not in conformity with WTO 
commitments and the Russian Federation intended to pr opose to its other parties either to bring them 
into conformity with the WTO or to terminate these agreements from the date of the Russian 
Federation' s accession to the WTO. 
330. Members required further clarification on ho w the Russian Federation intended to ensure 
compliance between its process of accession to the WTO and its commitments undertaken in the framework of the Customs Union, notably with re spect to the establishmen t of a common external 
tariff considering that a Customs Union c ountry was already member of the WTO. 
331. Members further sought a commitment that  the Russian Federation would observe 
Article XXIV of the GATT an d Article V of the GATS in its participation in trade agreements, and 
would ensure that the provisions of these WTO Ag reements for notification,  consultation and other 
requirements concerning free trade areas and custom s unions were met upon accession, and that any 
subsequent legislation or regulations enacted or altered under these agreements would remain 
consistent with the provisions of the WTO.  More  specifically, the Russian Federation should notify WT/ACC/SPEC/RUS/25 
Page 114  
 
 its Free Trade Areas, Customs Union, and Economi c Union Agreements for review by the Committee 
on Regional Trade Agreements (CRTA) upon accession. 
332. [The representative of the Russ ian Federation stated that his Government would observe the 
provisions of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its 
participation in trade agreements, and would ensure that the provisions of these WTO Agreements for 
notification, consultation and other requirements concerning free trade areas and customs unions of 
which the Russian Federation was a member were me t from the date of accession.  He confirmed that 
the Russian Federation would, upon accession, submit notifications and copies of its Free Trade Area 
and Customs Union Agreements to the Committee on Regional Trade Agreements (CRTA).  He further confirmed that any legislation or regulation s required to be altered under its Trade Agreements 
would remain consistent with the provisions of the WTO and would, in any case, be notified to the CRTA during its examination of the same.] 
Conclusions 
333. [to be completed] 
 
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 Page 115 
 
 
 ANNEX 1 
List of Laws and Regulations Available to the Working Party  
 
1. Constitution of the Russian Federati on adopted on 12 December 1993; 
2. Federal Constitutional Law "On Constitutiona l Court of the Russian Federation" of 
21 February 1994 No. 1-FKZ (as amended on 8 February 2001); 
3. Federal Constitutional Law "On State Arbitratio n Courts in the Russian Federation" of 
28 April 1995 No. 1-FKZ; 
4. Federal Constitutional Law "On Judicial System of the Russian Federation" of 31 December 1996 
No. 1-FKZ; 
5. Federal Constitutional Law "On the Government of the Russian Federation" (as amended on 
31 December 1997) of 17 December 1997 No. 2-FKZ; 
6. Customs Code of the Russian Federation of  18 June 1993 No. 5221-1 (as amended on 19 June, 
December 1995, 21 July, 16 November 1997, 10 February 1999); 
7. Civil Code Part One 30 November 1994 No. 51-FZ and Part Two of 26 January 1996 No. 14-FZ 
(as amended on 20 February, 12 August 1996, 24  October 1998, 8 July, 17 December 1999); 
8. Tax Code Part One of 31July 1998 No. 146-FZ (as amended on 30 March, 9 September 1999, 
2 January 2000) and Part Two of 5 August 2000 No . 117-FZ (as amended on 29 December 2000);  
9. Fundamentals of the Legislation of the Russian Federation "On Health Protection" of 22 July 1993 
No. 5487-1 (as amended on 02 March 1998 , 20 December 1999, 02 December 2000); 
10. Law of the Russian Federation "On Competition and Restriction of Monopoly Activity on 
Commodity Markets" of 22 March 1991 No. 948-1 (as amended on 24 June 1992, 25 May 1995 
and 2 January 2000); 
11. Law of the Russian Federation "On Protection of the Natural Environment" of 19 December 1991 
No. 2060-1 (as amended on 21 February 1992, 02 June 1993, 27 December 2000);  
12. Law of the Russian Federation "On Copyrights and Related Rights of 9.July 1993" No.5351-1 FZ 
(as amended on 19 July 1995); 
13. Law of the Russian Federation "On the Legal Protecti on of Layout Designs of Integrated Circuits" 
23.September 1992 No.3526-1; 
14. Patent Law of the Russian Federation of 23 September 1992 No. 3517-1 (as amended on 
27 December 2000); 
15. Law of the Russian Federation "On the Legal Prot ection of Computer Programs and Databases" 
of 23.September 1992 No.3523-1; 
16. Law of the Russian Federation "On Veterinary" of 14 May 1993 No. 4979-1; WT/ACC/SPEC/RUS/25 
Page 116  
 
 17. Law of the Russian Federation "On Customs Tariff" of 21 May 1993 No. 5003-1 (as amended on 
7 August, 25 November, 27 December 1995, 5 February 1997, 10 February, 4 May 1999, 27 May, 
27 December 2000; 
18. Law of the Russian Federation "On Certification Of Products And Services" of 10 June 1993 
No. 5151-1 (as amended on 27 December 1995, 02 March 1998, 31 July 1998); 
19. Law of the Russian Federation "On Trademarks, Se rvice Marks, and Appellations of Origin" of 
23 September 1992 No. 3520 (as amended on 27 December 2000); 
20. Federal Law "On the procedure of publication an d entry into force of Federal Constitutional 
Laws, Federal Laws, statements of chambers of Federal Assembly" of 14 July 1994 No 5-FZ;  
21. the Federal Law "On purchases and deliveries of  farm products, raw materials and foodstuffs to 
meet State needs"  of 2 December 1994 No. 53 FZ; 
22. Federal Law «On international trea ties of the Russian Federation» of 15 July 1995 No. 101 FZ; 
23. Federal Law "On State Regulation of Foreign Trade Activity" (as amended on 8 July 1997, 
10 February 1999) of 13 October 1995 No. 157-FZ; 
24. Federal Law "On State Regulation of Production and Turnover of Ethyl Alcohol, Alcoholic and 
Alcohol-Containing Products" of 22 November  1995 No. 173-FZ (as amended  on 7 January  
1999); 
25. Federal Law "On Making Amendments and Suppl ements to the Federal Law "On Consumers 
Rights Protection" and the Code of the RSFSR On Administrative Offences" of 9Lanuary 1996 
No 2-FZ (as amended on 17 December 1999); 
26. Federal Law "On The Special Economic Zone in the Kaliningrad Region" of 22 January 1996 
No. 13-FZ (as amended on 27 December 2000); 
27. Federal Law "On the Privatization of the State Property and on Principles of Privatization of 
Municipal Property in the Russian Federation" of 21 July 1997 No. 123-FZ (as amended on 
23 June 1999, 5 August 2000); 
28. Federal Law "On Production Sharing Agreement" of  30 December 1997 No. 225-FZ (as amended 
on 7 January 1997); 
29. Federal Law "On MEASUREF OF Protection of the Economic Interests of the Russian Federation 
in Foreign Trade in Goods" of 14 April 1998 No. 63-FZ; 
30. Federal Law "On Introduction of Part One of the Tax Code of the Russian Federation" of 
31 July 1998 No. 147-FZ (as amended on 9 July 1999, 5 August 2000, 24 March 2001); 
31. The Federal Law No. "On Co-ordination of International and Foreign Economic Ties of the 
Subjects of the Russian Federation" of 2 December 1998 No.4-FZ; 
32. Federal Law "On Investment Activity in the Russian Federation in the Form of Capital 
investment" of 25 February 1999 No. 39-FZ (as amended on 2 January 2000); 
33. Federal Law "On tenders for the placement of or ders for the supply of goods, performance of 
works, provision of services for State needs" of 6 May 1999 No. 97-FZ;  WT/ACC/SPEC/RUS/25 
 Page 117 
 
 
 34. Federal Law "On The Special Economic Zone in the Magadan Region" of 31 May 1999 
No. 104-FZ (as amended on 31 December 1999, 27 December 2000); 
35. Federal Law "On Election of Deputies to the State Duma of the Russian federation" of 
21 June 1999 No. 121-FZ; 
36. Federal Law "On Foreign Investment in the Russian Federation" of 9 July 1999 No. 160-FZ; 
37. The Federal Law "On Export Control" of 18 July 1999 No.183-FZ; 
38. Federal Law "On  Protection of Competition in the Financial Services Market" of 
29 December 1999 No 117-FZ; 
39. Federal Law "On Introduction of Part Two of the Tax Code of the Russian Federation" of 
5 August 2000 No 118-FZ (as amended on  27 December 2000, 24 March 2001); 
40. Federal Law "On the Order of Formation of th e Council of the Federation of the Federal 
Assembly of the Russian Federation" of 5 August 2000 No. 113-FZ; 
41. Decree of the President "On Liberalization of Fo reign Economic Activity on the Territory of the 
Russian Soviet Federal Socialist Republic" of 15 November 1991 No. 213 (as amended on 
27 October 1992 was abolished by Decree of the President No. 2061 of 23  December 2000); 
42. State Programme of Privatization of State-Owned and Municipal Enterprises in the Russian 
Federation 1994 (approved by the Decree of  the President of the Russian Federation №2284 of 
24 December 1993) (as amended on 14 March 1996, 6 October 1997, 15 July 1998, 25 July, 
1 August 2000); 
43. Basic Provisions of the State Programme of Privatization of State-Owned and Municipal 
Enterprises in the Russian Federation after 1 July  1994 (approved by the Decree of the President 
of the Russian Federation №1535 of 22 July 1994) (as amended on 16 April 1998, 
25 January 1999); 
44. Decree of the President "On Streamlining of Stat e Registration of Enterprises and Entrepreneurs 
in the Territory of the Russian Fe deration" of 8 July 1994 No. 1482; 
45. Decree of the President of the Russian Federation "On measures to streamline the state regulation 
of prices (tariffs) of 28 February 1995  )" No. 221 (as amended on 8 July 1995); 
46. Decree of the President "On the procedure of publication and entry in force of statements of the 
President of the Russian Federation, Government of  the Russian Federation and legislative acts of 
the federal executive bodies" of 23 May 1996 No 763; 
47. Decree of the President "On the Order of Importat ion on the Territory of the Russian Federation 
and Exportation from the Territory of the Russian Federation of Natural Diamonds and Brilliants and Certain Questions of Functioning of the In ternal Market of Raw Natural Diamonds" of 
20 July 1997 No.740; 
48. Resolution of the Russian Government "On Meas ures to Improve the State Regulation of Import 
and Export of Products and Services" of 1 July 1994 No. 758; WT/ACC/SPEC/RUS/25 
Page 118  
 
 49. Resolution of the Government "On measures to str eamline the state regulation of prices (tariffs)" 
of 7March  1995 No. 239 (as amended on 8 February, 15 April, 31 July 1996, 30 June 1997, 
30 July, 28 December 1998, 6 February 2001); 
50. Resolution of the Government of the Ru ssian Federation "On Complex Programme on 
Encouraging of the Foreign and Native  Investme nts into Economy of the Russian Federation" of 
13 October 1995 No. 1016; 
51. Resolution  of the Government "On State Progr amme on Demonopolization of the Economy and 
Development of Competition in Markets of the Ru ssian Federation" of 9 March 1996 No. 191 (as 
amended on 4 September 1995, 15 May 1998); 
52. Resolution  of the Government "On Abolition of Certain Decisions of the Government on 
Registration of Commodity Export Contracts" of 21 March 1996 No. 300; 
53. Resolution of the Government "On rules of conduct of auctions and tenders on sale of quotas in 
cases of introduction of quantitative restrictions  and licensing of exported and imported goods 
(works and services) in the Russian Federation" of 31 October 1996 No. 1299 (as amended on 
27 January 1997, 2 February, 14 March and 29 December 1998, 12 Oc tober, 15 December 2000); 
54. Resolution of the  Government "On Establishing the Federal Agency for Food Market Regulation 
replaced the Federal Food Corporatio n" of 26 September 1997 No. 1224; 
55. "On Commodity Nomenclature  Applied in Foreig n Economic Activity and On Customs Tariff of 
the Russian Federation" of 27 December 1996 No. 1560 (as amended on 23 April, 7 November, 
19 December 1997; 8 January, 21 February, 11, 22 May, 1 June, 13, 21 August, 5 September, 
21 October, 30 December 1998; 18 January, 13, 24 February, 16 March, 28 June, 8,20,27 August, 3 September, 14 November, 4, 9 December 1999; 22 February 2000); 
56. Resolution of the Government "On The Procedure For Ensuring That Products Imported Into the 
Russian Federation Contain Labels in the Russian Language" of 27 December 1996 No. 1575 (as 
amended on 14 July 1997); 
57. Resolution of the Government "On Approval of the List of Products, Works and Services subject 
to Mandatory Certification" of 13 August 1998 (as amended 24 May 2000); 
58. Resolution of the Government "On Approval of  the Temporary Regulation on the Order of the 
issue of the Values of the State Found of Precious Metals and Precious Stones of the Russian 
Federation" of 19 January 1998 No. 46;  
59. Resolution of the Government "On Determinati on of the Material Injury Resulting from  the 
Dumping Import) of 16 February 1999 No. 183; 
60. Resolution of the Government "On Determination of the Material Injury to the Branch of the 
Russian Economy Resulting from Backing by the Foreign Country (Union of Countries) of the 
Goods Imported into the Russian Federation" of 16 February 1999 No 184; 
61. Resolution of the Government "On Procedure of Realization of the Inve stigation Preceding the 
Application of the Special Anti-Dumping and Protective Measures" of 11 March 1999 No. 274; 
62. Resolution of the Government "On Customs Tari ff the Code of Rates of the Import Customs 
Duties and HS applied in Foreign Economic  Activity" of 22 February 2000 No. 148 
(Amendments of  16 March, 8 April, 11 May, 7,28 July, 3 August, 27 November 2000);  WT/ACC/SPEC/RUS/25 
 Page 119 
 
 
 63. Resolution of the Government "On Conditions of Anti-monopoly Control on Financial Services 
Market and Adoption of the Principles of Dete rmination of Transaction and Borders of the 
Financial Services" of 7 March 2000 No 994;  
64. Regulation of the Government "On The Procedure For Ensuring That Products Imported Into the 
Russian Federation Contain Labels in the Russian Language" of 27 December 1996 No. 1575 (as 
amended on 14 July 1997); 
65. Hygienic Requirements for Video Display Units", "Personal Computers and Organization of Work", 
"Hygienic Requirements for Hand Tools and Orga nization of Work", "Sanitary Regulations for 
Distribution of Fishery Products", "Sanitary Norms of Permissible Levels for Physical Factors 
During Use of Domestic Articles"; 
66. Order of Gossanepidnadzor "On hygienic assessment of production, delivery, realization of products 
and goods" of 20 July 1998. 
67. [ …] WT/ACC/SPEC/RUS/25 
Page 120  
 
 334.  
DRAFT DECISION 
 
ACCESSION OF THE RUSSIAN FEDERATION 
 
Decision of […]  
 
 
 The Ministerial Conference, 
 
 Having regard to  paragraph 2 of Article XII and paragr aph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the Decision-Making Procedures under Articles IX and XII of the Marrakesh Agreement Establishing the World 
Trade Organization agreed by the General Council (WT/L/93), 
 
 Taking note  of the application of the Russian Fe deration for accession to the Marrakesh 
Agreement Establishing the World Trade Organization dated 9 December 1994, 
  Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Russian Federation to the WTO Agre ement and having prepared a Draft Protocol on 
the Accession of the Russian Federation, 
 
 Decides  as follows: 
  The Russian Federation may accede to the WT O Agreement on the terms and conditions set 
out in the Draft Protocol annexed to this Decision. 
 
 
_______________ 
 
 
  WT/ACC/SPEC/RUS/25 
 Page 121 
 
 
 DRAFT PROTOCOL  
ON THE ACCESSION OF THE RUSSIAN FEDERATION 
 
Preamble  
 
 The World Trade Organization (her einafter referred to as the "WTO "), pursuant to the approval 
of the General Council of the WTO accorded u nder Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement "), and the 
Russian Federation,  
  Taking note
 of the Report of the Working Party on the Accession of the Russian Federation to 
the WTO Agreement reproduced in document WT/ACC/RUS  …, dated … (hereinafter referred to as the 
"Working Party Report"), 
 
 Having regard  to the results of the negoti ations on the accession of th e Russian Federation to the 
WTO Agreement,   
 Agree
 as follows: 
 
PART I -  GENERAL 
 1. Upon entry into force of this Protocol pursuant to paragraph 8, the Russian Federation accedes to the WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of 
the WTO.  
 
2. The WTO Agreement to which the Russian Federation accedes shall be the WTO Agreement, 
including the Explanatory Notes to that Agreement, as rectified, amended or otherwise modified by such 
legal instruments as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments referred to in paragraph … of the Working Party Report, 
shall be an integral part of the WTO Agreement. 
 
3. Except as otherwise provided for in paragraph … of the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Russian Federation as if it had accepted that Agreement on the date of its entry into 
force.  
4. The Russian Federation may maintain a measure inconsistent with paragraph 1 of Article II of 
the GATS provided that such a measure was recorded in  the list of Article II Exemptions annexed to this 
Protocol and meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
PART II - SCHEDULES 
 
5. The Schedules reproduced in Annex I to this Protocol shall become the Schedule of 
Concessions and Commitments annexed to the General Agreement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Commitments annexed to the 
General Agreement on Trade in Services (hereinaft er referred to as "GATS") relating to The Russian 
Federation.  The staging of the concessions and commitments listed in the Schedules shall be implemented as specified in the relevant parts of the respective Schedules.  
6. For the purpose of the reference in paragraph 6(a)  of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments 
annexed to this Protocol shall be the date of entry into force of this Protocol. WT/ACC/SPEC/RUS/25 
Page 122  
 
  
PART III - FINAL PROVISIONS 
 
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Russian Federation 
until …. 
 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by the Russian Federation.  
 
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by the Russian Federation thereto pursuant to paragraph 9 to each Member of the WTO and to The Russian 
Federation.   
 
 This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter 
of the United Nations.    
 Done at … this … day of … in a single copy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule annexed hereto may specify that it its authentic 
in only one of these languages. 
 
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  WT/ACC/SPEC/RUS/25 
 Page 123 
 
 
 ANNEX II 
 
 
 
SCHEDULE – THE RUSSIAN FEDERTION 
 
Authentic only in the … language. 
 
 
  
Part I - Goods 
 
(Circulated in document WT/ACC/RUS[…]) 
 
  
 
Part II – Services 
 
(Circulated in document WT/ACC/RUS/[…] 
  
__________