RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/RUS/34/Rev.1
2 May 2000
(00-1762)
Working Party on the
Accession of the Russian FederationOriginal:  English
ACCESSION OF THE RUSSIAN FEDERATION
Information Regarding the
Development of Foreign Economic Legislation of the
Russian Federation in the field of Services
Revision
The Permanent Mission of the Russian Federation has submitted the following information
regarding the development of Russian Federation legislation on foreign economic regulations in the
field of services from 1 December 1998 to 1 January 2000.
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List of Federal Laws and Other Regulatory Legal Acts adopted in the Russian Federation
during the period 1 December 1998 to 1 January 2000.
1. Federal Law No. 4-FZ of 4 January 1999 "On Coordination of International and Foreign
Economic Relations of the Subjects of the Russian Federation";
2. Federal Law No. 8-FZ of 6 January 1999 "On the Introduction of Amendments and Addenda
into the Federal Law On Communications";
3. Federal Law No. 39-FZ of 25 February 1999 "On Investment Activity in the Russian
Federation Pursued in the Form of Capital Investments";
4. Federal Law No. 97-FZ of 6 May 1999 "On Tenders for the Placement of Orders for the
Supply of Goods, Performance of Works,  Provision of Services for State Needs";
5. Federal Law No. 116-FZ of 23 June 1999 "On Amending the Federal Law "On the
Privatization of State Property and on the Fundamentals of the Privatization of Municipal
Property in the Russian Federation";
6. Federal Law No. 117-FZ of 23 June 1999 "On th e Protection of Competition on the Financial
Services Market";
7. Federal Law No. 118-FZ of 24 June 1999 "On Amending the Federal Law "On the Procedure
for Exit from the Russian Federation and Entry in the Russian Federation";
8. Federal Law No. 126-FZ of 5 July 1999 "On Amending the Law On Banks and Banking
Activity";
9. Federal Law No. 160-FZ of 9 July 1999 "On Fore ign Investment in the Russian Federation";
10. Federal Law No. 165-FZ of 16 July 1999 "On the Fundamentals of Compulsory Social
Insurance";
11. Federal Law No. 176-FZ of 17 July 1999 "On Postal Communication";
12. Federal Law No. 183-FZ of 18 July 1999 "On Export Control";
13. Federal Law No. 204-FZ of 20 November 1999 "On Amending  the Law of the Russian
Federation "On the Organization of Insurance Business in the Russian Federation";WT/ACC/RUS/34/Rev.1
Page 2
14. Resolution of the Government of the Russian Federation No. 1488 of 11 December 1998 "On
the Medical Insurance of Foreign Citizens Staying Temporarily in the Russian Federation and
Russian Citizens Departing from the Russian Federation";
15. Resolution of the Government of the Russian Federation No. 180 of 16 February 1999 "On
the Procedure for Regulating the Admission and Use of Global Mobile Personal SatelliteCommunications Systems on the Telecommunications Market of Russia";
16. Resolution of the Government of the Russian Federation No. 228 of 26 February 1999 "On
the Leasing of Engineering Products in the Agroindustrial Complex of the Russian Federation
through the Use of Federal Budget Resources";
17. Resolution of the Government of the Russian Federation No. 472 of 27 April 1999 "On the
Licensing of Certain Kinds of Auditing Activities in the Russian Federation";
18. Resolution of the Government of the Russian Federation No. 556 of 20 May 1999 "On the
Endorsement of the Regulations on Licensing the Activities of Handling Hazardous Waste";
19. Resolution of the Government of the Russian Federation No. 698 of 26 June 1999 "On
Holding Tenders for the Right to Surface Television and Radio Broadcasting as well as the
Elaboration and Development of a New Radi o Frequency Channel for the Purposes of
Television  and Radio Broadcasting".
20. Resolution of the Government of the Russian Federation No. 900 of 4 August 1999 "On
Approval of Regulations on Certification of Members of the Seagoing Ship’s Complement";
21. Resolution of the Government of the Russian Federation No. 1085 of 23 September 1999 "On
Amending the Regulations on Foreign Citizens  and Persons without Providing Guarantees of
the Availability of Means for Their Residence on the Territory of the Russian Federation andExit from the Russian Federation Endorsed by the Decision of the Government of the Russian
Federation No. 1142 of 1 October 1998".
Comments
1. Federal Law No. 4-FZ of 4 January 1999 "On Coordination of International and Foreign
Economic Relations of the Subjects of the Russian Federation"
The Law prescribes general procedure of coordination of international and foreign economic
relations of the subjects of the Russian Federation, encompasses legal guarantees of ensuring rights
and legitimate interests of the subjects of the Russian Federation in the establishment anddevelopment of international and foreign economic relations.
2. Federal Law No. 8-FZ of 6 January 1999 "On the Introduction of Amendments and Addenda
into the Federal Law "On Communications"
Regarding access to the Russian market for communications services, the Law requires to
give priority to the domestic production and to the operation of communications equipment
manufactured in the Russian Federation in accordance with national research and technology policy.
3. Federal Law No. 39-FZ of 25 February 1999 "On Investment Activity in the Russian
Federation Pursued in the Form of Capital Investments"
The Law determines the legal and economic framework of investment activities undertaken in
the form of capital investments in the Russian Federation and provides guarantees for an equal
protection of the rights, interests and property of participants in investment activities undertaken in theform of capital investments, irrespective of their ownership form.
Article 4 of the Law provides that investors should make capital investments in the Russian
Federation using their own and/or attracted funds in compliance with the Russian legislation.WT/ACC/RUS/34/Rev.1
Page 3
Investors may be individuals, legal entities, associations of legal entities without legal personality
formed under a joint activity agreement, government  agencies, local governments as well as foreign
business entities.
4. Federal Law No. 97-FZ of 6 May 1999 "On Tenders for the Placement of Orders for the
Supply of Goods, Performance of Works,  Provision of Services for State Needs"
This Law shall regulate the relationship ar ising between the purchasing entities (state
customer) and bidders (suppliers or contractors) in the course of a tender for the placement of orders
for the supply of goods, performance of work or provision of services for state needs.
Regarding the participation of foreign suppliers or contractors in such bidding, the Law
determines that foreign suppliers of goods, works or services may submit their bids in the event that
the production of such goods, works or services for state needs in the Russian Federation is non-
existent or economically inadvisable.
5. Federal Law No. 116-FZ of 23 June  1999 "On Amending the Federal Law "On the
Privatization of State Property and on the Fundamentals of the Privatization of Municipal
Property in the Russian Federation"
The Law provides that the sole executive auth ority of an open joint-stock company with over
25 per cent of shares state- or municipally owned is  not entitled to enter into transactions involving
alienation of shares which had been contributed to the authorized capital of the company, or
potentially entailing such alienation or constitution of trust with regard to such shares without a prior
written consent of the public property administration authority to have formed the authorized capital
of such company. This requirement remains effective in respect of the company throughout the
privatization period or until the number shares belonging to the state or a municipal entity reduces toor under 25 per cent of the total number.
6. Federal Law No. 117-FZ of 23 June 1999 "On the Protection of Competition in the Financial
Services Market"
The present Law regulates the factors affectin g competition in the securities market, the
banking services market, insurance services market and other financial services markets.
The Law provides the definition of a dominant position in the financial services marketplace
for a financial organisation.
No agreements, irrespective of form, or coordinated action between financial organisations, or
between financial organisations and federal, regional and local executive authorities shall be allowed
(except agreements and coordinated action between financial organisations and the Bank of Russia) if
such agreements or coordinated action result or may result in restricting competition in the financial
services market.
Financial organisations shall notify the federal antimonopoly authority of any forms of
agreement or decisions concerning coordination of their actions with other financial organisations,
authorities or any legal entities. Associations of financial organisations may be formed subject to prior
consent of the federal antimonopoly authority.
Federal, regional and local authorities and the Bank of Russia shall not be entitled to adopt
regulatory legal acts aimed at creating unreasonably unfavourable environment for certain financial
organisations.WT/ACC/RUS/34/Rev.1
Page 4
A prior consent of the federal antimonopoly authority shall be required for transactions
involving acquisition by legal and physical entities of over 20 per cent of assets and shares (interest)
in financial organisations.
7. Federal Law No. 118-FZ of 24 June 1999 "On Amending the Federal Law "On the Procedure
for Exit from the Russian Federation and Entry in the Russian Federation"
This Law contains the following provision:"In the event that a foreign citizen or person without citizenship applies for entry into the
Russian Federation for work purposes, a Russian visa may be issued to him only if there is a permit of
the federal executive body in charge of the migration service granted according to the procedureestablished by the Government of the Russian Federation."
8. Federal Law No. 126-FZ of 5 July 1999 "On Amending Article 28 of the Federal Law On
Banks and Banking Activity"
The following addendum is introduced in Article 28 of the Federal Law on Banks and
Banking Activities:
"Credit organizations shall establish correspondent relations with foreign banks registered on
the territories of off-shore areas of foreign states, in accordance with the procedure providedby the Bank of Russia."
9. Federal Law No. 160-FZ of 9 July 1999 "On Foreign Investment in the Russian Federation "
This Federal Law determines the key guarantees of foreign investors’ rights of their
investments and return thereon and the terms and conditions of foreign investors’ business activities
in the Russian Federation.
However, the Law does not apply to the relations  involving foreign investments in banks and
other credit organizations and insurance organizations and to the relations involving foreign
investments in non-profit organizations for the attainment of a certain goal of public utility, whether
educational, charitable, scientific or religious.
The Law also provides a guarantee against changes in Russian Federation legislation
unfavourable to a foreign investor or business entity  with foreign investments. The guarantee is non-
application of new federal laws or other regulatory legal acts of the Russian Federation, as well as
amendments and additions to any current laws (in such cases as stipulated in Article 9 of the Law).The provisions of Article 9 apply to any business en tity with foreign investments, if foreign investors’
share(s) in or contribution to the charter or participatory capital of such entity exceeds 25 per cent or
any business entity with foreign investments which carries out a priority investment project,
irrespective of foreign investors’ share(s) in or contribution to the charter or participatory capital of
such entity.
The Law set forth that exemptions of a restrictive nature may be imposed on foreign investors
by federal laws only to the extent necessary in order to protect the foundations of constitutional order,
morality, the health, rights or legal interests of other persons or to ensure national defense or security.WT/ACC/RUS/34/Rev.1
Page 5
10. Federal Law No. 165-FZ of 16 July 1999 "On the Fundamentals of Compulsory Social
Insurance"
The Law defines an insurer as a non-profit entity created under federal laws on concrete types
of mandatory social insurance for the purpose of securing the rights of persons insured undermandatory social insurance in respect of the occurrence insured.
11. Federal Law No. 176-FZ of 17 July  1999 "On Postal Communication"
The Law provides a number of requirements in respect of postal service operators:
− the activity of postal service operators is subject to licensing. The licence covers the
whole complex of operations comprising the complete operating cycle of postal
services, including acceptance, processing, shipment and delivery of mail and
transportation of escort. Licensing of any of the operations within the complete
operating cycle as separate types of activities is not allowed;
− no restrictions are imposed on the organizational or legal form of postal service
operators; postal services suppliers enjoy equal rights in respect of providing public
postal services irrespective of their organizational and legal form;
− state assistance is granted to postal services suppliers in order to ensure reliable
functioning of postal service in the Russian Federation;
− postal services suppliers are expected to coordinate their activities with the state
authorities of the corresponding Russian Federation regions;
− investment in development of postal services is governed by the investment
legislation of the Russian Federation.
12. Federal Law No. 183-FZ of 18 July 1999 "On Export Control"
This Federal Law establishes the principles of pursuing government policy and the legal basis
of activities of Russian federal executive authorities in the field of export control and determines the
rights, duties and liability of participants in foreign trade activities.
This Federal Law applies to foreign trade activities with respect to goods, information, works,
services or intellectual products which can be used in the development of mass destruction weapons,
means for their delivery, other types of weapons and military equipment as concerns the
implementation of export control for the purposes identified by this Federal Law.
This Federal Law determines (Article 18) that the execution of foreign trade transactions
involving the transfer of controlled products and technologies to a foreign party are subject to such
foreign party’s written undertaking that such products and technologies will not be used for the
development of any mass destruction weapons or means of their delivery.
Such foreign trade transactions involving the transfer of controlled products or technologies
to a foreign party are subject to licensing. A licence should be issued by the federal executive
authority in accordance with the Federal Law "On Government Regulation of Foreign Trade
Activities".WT/ACC/RUS/34/Rev.1
Page 6
13. Federal Law No. 204-FZ of 20 November 1999 "On Amending  the Law of the Russian
Federation "On the Organization of Insurance Business in the Russian Federation"
This Law lifts the virtually only restriction on the access of foreign suppliers to the Russian
insurance market which limited the foreign interest in  the charter capital of a Russian insurer to 49 per
cent, thus expanding foreign presence in the Russian market.
At the same time, due to the rather complicated situation prevailing in the Russian insurance
market (in particular, the uncompleted formation of a modern system of insurance supervision,
consequences of the August 1998 financial crisis), certain regulatory measures are introduced for
insurance companies with a foreign interest exceeding 49 per cent (restrictions on life insurance,
mandatory insurance etc.).
The Law does not impair the interests of the companies with foreign participation which
already operate in the market, since the business environment will not change for such companies,
provided that the foreign interest in them is not increased above 49 per cent.
14. Resolution of the Government of the Russian Federation No. 1488 of 11 December 1998 "On
the Medical Insurance of Foreign Citizens Staying Temporarily in the Russian Federation and
Russian Citizens Departing from the Russian Federation"
In accordance with Article 8 of the RSFSR Law "On Medical Insurance of Individuals in the
Russian Federation", the Government of the Russian Federation resolves, inter alia , that in the event
that a foreign state imposes a regulation under which the procurement of medical insurance for the
period of their residence is a mandatory condition for Russian Federation citizens to enter its territory,
the Russian Federation Ministry of Foreign Affairs must, through the established procedure, consider
whether it is necessary to impose a similar condition with respect to the entry of such state’s citizensinto the Russian Federation.
15. Resolution of the Government of the Russian Federation No. 180 of 16 February 1999 "On
the Procedure for Regulating the Admission  and Use of Global Mobile Personal Satellite
Communications Systems on the Telecommunications Market of Russia"
This Resolution is approved in order to enhance the co-operation and partnership of Russian
operator and industrial companies in the implementa tion of international projects intended to develop
the new type of services, i.e. global mobile pers onal satellite communications, and to ensure further
development of the Russian Federation integrated communications network on the basis of new
technologies. In this connection, the Government of the Russian Federation resolves:
− to recognize, in principle, that the communications services offered by global mobile
personal satellite communications systems in the telecommunications market ofRussia may be used in accordance with the Russian legislation, provided that Russian
operator companies shall be established with an exclusive right to provide
telecommunications services of the relevant systems in the Russian Federation;
− to grant an exclusive right to provide confidential telecommunications services within
the global mobile personal satellite communications systems which are used in the
Russian telecommunications market to a designated Russian operator which shall be
responsible for the establishment and development of a special federal subsystem of
confidential telecommunications; and
− to issue licenses to Russian operator companies for the provision of
telecommunications services using any global mobile personal satellite
communications systems created by international companies only after the relevantWT/ACC/RUS/34/Rev.1
Page 7
company owning such system has provided the necessary internationally accepted
warranties.
16. Resolution of the Government of the Russian Federation No. 228 of 26 February 1999 "On
the Leasing of Engineering Products in the Agroindustrial Complex of the Russian Federation
through the Use of Federal Budget Resources"
The Resolution provides that for a financial leas ing company to be able to act as a lessor in
providing agricultural producers with machinery on the terms of a financial lease at the expense of
federal financial lease fund, its controlling interest should pertain to federal property and not be
alienable or otherwise transferable to third parties.
17. Resolution of the Government of the Russian Federation No. 472 of 27 April 1999 "On the
Licensing of Certain Kinds of Auditing Activities in the Russian Federation"
These Regulations, drawn up pursuant to the Federal Law "On the Licensing of Certain Types
of Activities", establishes the procedure for auditing licensing intended to ensure State control overcompliance with the requirements imposed upon such activities by the Russian legislation.
In order to obtain an auditing licence, a number of requirements must be complied with,
including as follows:
− an individual auditor must hold an auditor’s qualification certificate entitling him to
the relevant type of audit activities;
− a legal entity must have in its staff at least two auditors holding auditor’s qualification
certificates;
− at least a 51 per cent interest in the charter capital or charter fund of any auditing
entity must be owned by certified auditors and/or licensed audit entities.
18. Resolution of the Government of the Russian Federation No. 556 of 20 May 1999 "On the
Endorsement of the Regulations on Licensing the Activities of Handling Hazardous Waste"
These Regulations establishes the procedure for licensing any activity producing hazardous
waste as well as any activity involving the collection, utilization, neutralization, transportation or
disposal of hazardous waste.
The Regulations, inter alia , determines that a licence applicant must, in order to obtain a
licence, submit to the licensing authority, in particular:
− information on the professional skills of the specialists who are to implement the
licensed activity. If such information is unavailable, the licensing authority may
request to hold an examination of the specialists for their professional competence;
− resolutions from the territorial agencies of the Russian State Committee for
Environmental Protection, the Russian Ministry of Labor and Social Development,
the State Fire Prevention Service of the Russian Ministry of Internal Affairs, the State
Sanitary and Epidemiological Service of the Russian Federation and the Russian
Ministry of Civil Defense, Emergencies and Elimination of Natural Disaster
Consequences at the location where the relevant legal entity or individual
entrepreneur is registered and/or at the location of any territorially definite sites wherethe licensed activity is undertaken. In order to carry out the handling of any hazardous
waste resulting from mineral production and processing, resolution from theWT/ACC/RUS/34/Rev.1
Page 8
territorial agencies of the Russian Federal Committee for Mining and Industrial
Supervision should also be provided.
The licensing requirements and conditions may include qualification requirements for a
licence applicant or licensee, in particular, qualification requirements for employees of a legal entityor for a person who is an individual entrepreneur.
The licensing requirements and conditions may include requirements concerning compliance
with any special terms and conditions governing any object in or by means of which the licensed
activity is to be carried out.
19. Resolution of the Government of the Russian Federation No. 698 of 26 June 1999 "On
Holding Tenders for the Right to Surface Television and Radio Broadcasting as well as the
Elaboration and Development of a New Radi o Frequency Channel for the Purposes of
Television  and Radio Broadcasting"
These Regulations are approved in order to increase the efficiency of using the limited
national resources of the radio frequency range which are allocated for the purposes of surface
broadcasting and to satisfy to a fuller extent public demand for TV programs.
The Regulations, inter alia , provide that:
− activities to identify new radio frequency channels for the establishment of overland
air broadcasting must be carried out in accordance with the established procedure for
radio frequency designation/assignment in the Russian Federation for radio electronic
equipment of all purposes upon request of the Russian Federal Television and Radio
Broadcasting Service, legal entities or individual entrepreneurs duly registered in the
Russian Federation;
− legal entities and individual entrepreneurs duly registered in the Russian Federation
may participate in bigs.
20. Resolution of the Government of the Russian Federation No. 900 of 4 August 1999 "On
Approval of Regulations on Certification of Members of the Seagoing Ship’s Complement"
These Regulations are developed on the basis of the 1978 International Convention on
Standards of Training, Certification and Watchkeeping for Seafarers and the amendments made to the
Convention in 1995 (hereinafter, the "1978 Convention"). In accordance with the provisions of the
1978 Convention, it is provided that, instead of assigning titles to commanders, diplomas,
qualification certificates and specialist certificates will be issued to seafarers.
With respect to foreign citizens, the Regulatio ns determine that diplomas, qualification and
specialist' certificates should be issued to:
− foreign citizens who have graduated from seafarer schools in the Russian Federation;
− foreign citizens who work or worked aboard ships flying the national flag of the
Russian Federation; and
− foreign citizens in such cases as stipulat ed by any international treaties concerning
seafarer certification and training between the Russian Federation and other stateswhich are parties to the 1978 Convention.
The Regulations also provides that captain and commander certificates issued by a foreign
state which is a party to the 1978 Convention should be recognized by issuing confirmations
according to the rules determined by the Russian Federation Ministry of Transport.WT/ACC/RUS/34/Rev.1
Page 9
21. Resolution of the Government of the Russian Federation No. 1085 of 23 September1999 "On
Amending the Regulations on Foreign Citizens  and Persons without Providing Guarantees of
the Availability of Means for Their Residence on the Territory of the Russian Federation and
Exit from the Russian Federation Endorsed by the Decision of the Government of the Russian
Federation No. 1142 of 1 October 1998"
It is determined that "a duly issued medical insurance policy of a foreign citizen or person
without citizenship entering the Russian Federation from a country which has established, as a
mandatory condition for the entry of Russian citizens into its territory, the procurement of medical
insurance for the period of their residence" is required for such person to enter the Russian Federation.
Documents which have indirect correlation with
foreign providers' access to the Russian services market
1. Federal Law No. 46-FZ of 5 March 1999 "On Pr otection of  Rights and Legitimate Interests
of Investors at Securities Market";
2. Federal Law No. 119-FZ of 24 June 1999 "On the Principles and the Procedure for the
Demarcation of the Objects of Jurisdiction and the Powers between the State Power Bodies of
the Russian Federation and the State Power Bodies of the of the Subjects of the Russian
Federation ";
3. Federal Law No. 138-FZ of 8 July 1999 "On Amending the Civil Code of the Russian
Federation";
4. Federal Law No. 140-FZ of 8 July 1999 "On Amending the Federal Law "On Non-
Commercial Organizations";
5. Federal Law No. 144-FZ of 8 July 1999 "On th e Restructuring of Credit Organizations";
6. Federal Law No. 175-FZ of 17 July 1999 "On Amending the Law of the Russian Federation
"On the Employment of the Population in the Russian Federation";
7. Decree of the President of the Russian Fe deration No. 334 of 15 March 1999 "On Amending
the Procedures for the Obligatory Sale of a Part of Foreign Exchange Proceeds";
8. Resolution of the Government of the Russian Federation No. 387 of 5 April 1999 "On the
Licensing of Pharmaceutical Activities and Wholesale of Medicinal Preparations and
Medical-Purpose Articles";
9. Resolution of the Government of the Russian Federation No. 903 of 5 August 1999 "On
Regulation of Use of Telecommunication Equipment in Integrated Communications Network
of the Russian Federation";
10. Resolution of the Government of the Russian Federation No. 1084 of 2 September 1999 "On
the Approval of the Federal Rules for the Use of the Air Space of the RussianFederation";
11. Resolution of the Government of the Russian Federation No. 1280 of 20 November 1999 "On
Approval of Regulations on Licensing of Produ ction and Marketing of Seeds of Agricultural
Plants".
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