RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/RUS/33/Rev.1
18 May 2000
(00-2047)
Working Party on the Accession
of the Russian FederationOriginal:  English
ACCESSION OF THE RUSSIAN FEDERATION
Information Regarding the Development of
Foreign Trade Legislation of the Russian Federation
Revision
The Permanent Mission of the Russian Federation has submitted the following information
regarding the development of foreign trade legislation in the Russian Federation since the informalmeeting of the Working Party held on 27 October 1999, with the request that it be circulated to
members of the Working Party.
__________
Development of Foreign Trade Legislation in the Russian Federation
In accordance with the WTO practice with respect to acceding countries, the Russian
delegation informs the Working Party on a regular basis of the development of the Russian Federation
economy and of any changes in foreign trade regulations. See documents Nos. L/7410,
WT/ACC/RUS/2, WT/ACC/RUS /9, WT/ACC/RUS/16, WT/ACC/ RUS/27, WT/ACC/RUS/31,
WT/ACC/RUS/33, etc.
Below is a brief review of the key foreign trade laws and regulations adopted in the Russian
Federation between 15 October 1999 and 1 May 2000.
At the same time, given that a considerable period of time has passed since the last Working
Party (16 – 17 December 1998) during which time the Russian delegation has submitted a massive
number of documents concerning legislative developments in various sectors of trade in goods and
services, a brief overview of the main legislative and normative legal acts included in
WT/ACC/RUS/33, WT/ACC /RUS/34/Rev.1, WT/ACC/RUS/37 documents is also given below.
1. General Provisions
1.1 Taxation
Federal Law No. 154-FZ “On the Introduction of Amendments and Addenda to the First Part
of the Tax Code of the Russian Federation” took effect on 9 July 1999. This Law essentially specifies
and provides details regarding a considerable number of the provisions of the Tax Code. For instance,
Article 5 of the Law states that all and any changes to tax legislation shall come into force no earlier
than a month after their official publication.
On 1 January 2000 the Budget Code of the Russian Federation came into force.WT/ACC/RUS/33/Rev.1
Page 2
The above two laws are major achievements in terms of greater stability and transparency of
fiscal and tax legislation of Russia.
Federal Law 2-FZ of 2 January 2000 revised previously existing excise rates effective
1 April 2000 by increasing them by 30 – 40 per cent for alcoholic products, by 25 per cent for beers
and by 100 per cent for tobacco products. The basic principle of Russian excise legislation, however,
remained: excise rates are the same for Russian-made and foreign goods.
New designs for excise levy tags, the use of which is mandatory for alcoholic products,
tobaccos and tobacco products, were introduced under Resolutions of the Government of the Russian
Federation No 1008 “On Excise Levy Marks” dated 4 September 1999, No. 1428 dated 23 December1999, and No. 17 dated 6 January 2000. The above resolutions also provide a new procedure for
selling such marks. The resolutions did not make an y revolutionary changes to the previous procedure
but merely summarised all developments in this sector since 1994.
Effective 2 January 2000 Federal Law 36-FZ was enacted to amend the Law of the Russian
Federation “On VAT”. The most important amendment concerns the list goods eligible for reduced
VAT rate of 10 per cent (as against the base rate of 20 per cent) which is now to be enacted by federal
laws as opposed to the previously existing practice under which it was the Government which
approved such list. The list appearing in Law 36-F Z is more extensive compared with the earlier in
effect. Among items that have been added are meat  and sea-food, sugar, fish and fish products, eggs
and children’s footwear.
We are emphasising that imported goods are subject to VAT at the same rates as domestic
produce.
1.2 Federal and regional authorities
Particular importance is attached to Federal Law No. 4-FZ “On Coordination of International
and Foreign Economic Relations of the Subjects of the Russian Federation” dated 4 January 1999,
which lays down the general procedure for maintaining foreign economic relations for the Russian
Federation regions.
Federal Law No. 107-FZ “On the Principles and the Procedure for the Demarcation of the
Objects of Jurisdiction and of the Powers Between the State Power Bodies of the Russian Federation
and the State Power Bodies of the Subjects of the Russian Federation” dated 27 May 1999 details the
mechanics of supremacy of the Constitution of the Russian Federation and federal laws over regional
laws.
Presidential Decree No. 362 dated 18 March 1999 acquires particular significance in this
context. The Decree suspended Resolution No. 645 of the Head of Administration of the Belgorod
Oblast of 16 December 1998 restricting the export of unprocessed agricultural products from the
Oblast, as it contradicted the Constitution and the Civil Code of the RF. It was suggested that theHead of the Belgorod Oblast Administration bring his decision into conformity with Russian
legislation.WT/ACC/RUS/33/Rev.1
Page 3
2. Market Access
2.1 Tariff Measures
Since December 1998 to date the Government of the Russian Federation adopted about 30
resolutions which adjust 645 import customs tariff rates. The overwhelming majority of these
adjustments (627) were reductions (some of them considerable) of import customs tariff rates.
This reduction in rates concerned first and foremost high technology equipment and
component parts which are not produced in Russia or are produced in limited supply. In addition, for
the purposes of more effective customs payments collection, the number of import tariff peaks has
been cut back drastically over the past year and a half.
All changes in duty rates were summarised in the new import customs tariff of the Russian Federation
which was introduced on 1 April 2000 by Government Resolution No. 148 dated 22 February 2000
and was submitted by the Russian delegation to the WTO Secretariat and all member-states
concerned. The Russian customs tariff uses a 10-digits goods nomenclature based on the HarmonisedSystem of Description and Codification of Goods 1996.
In 1999, the Government of the Russian Federation took a series of decisions regarding the
introduction of export tariffs. Application of export tariffs is an unpopular measure, but a necessity in
the face of the task to increase the revenues of th e federal budget of Russia. In view of the above,
export duties are restricted to those goods, the exporters of which started gaining “super profits” due
to the nearly fivefold escalation of the Ruble rate to the U.S. Dollar.
Thus, export duties were imposed in the amount of 6.5 per cent of the customs value on the
export of certain types of fish and fish products, alcohol, oil and derivatives, a number of organic andnon-organic chemical products, fertilisers, unprocessed leather, coniferous and deciduous timber,
paper, ferrous, non-ferrous and precious metals. Increased duty rates were fixed for some very small
groups of commodities (non-ferrous metals scrap, seeds of oil-yielding plants, valuable varieties of
hard-leafed timber). There are no export duties for finished products.
On the whole the export tariff has a purely fiscal function. According to Federal Law No.
227-FZ of 31 December 1999 “On the Federal Budget for 2000” customs payments contribute 34 percent in the total revenues of the Federal Budget. Ex port duties constitute half of the total amount of
customs payments.
2.2 Non-Tariff Measures
Resolution of the Government of the Russian Federation No. 1539 of 25 December 1998
enacted the “Regulations on the Procedure for Importation into and Exportation from the Russian
Federation of Medicaments and Pharmaceutical Substances”, according to which the import of
medicines is performed under licenses issued by the Ministry of Trade of Russia (which were
formerly issued by the Ministry of Health), whereas export of such goods does not require a license.
Resolution No. 18 of the Government of the Russian Federation “On Additional Measures for
the State Regulation in the Procurement, Realisation and Export of the Wood of Valuable Forest
Species” dated 5 January 1999 introduced automatic unrestricted licensing for export of valuable
varieties of hard-leafed trees.
By Resolution No. 609 of the Government of the Russian Federation “On Amending the
Decision of the Government of the Russian Federation No. 1471 dated 7 December 1998” dated 7
June 1999 the Government simplified the procedure for licensing imports of tobacco and tobaccoWT/ACC/RUS/33/Rev.1
Page 4
products. According to this Resolution licensing is not required for samples of tobacco and tobacco
products imported for testing, analysis and certification.
Government Resolutions No. 1450 and 1451 of 31 December 1999 imposed a temporary ban
on export from Russia of agricultural products included in the nomenclature of humanitarian aidprovided by EC and the USA. This ban will be maintained throughout the period of such aid
provision. The ban was introduced pursuant to the requirement of the countries supplying
humanitarian aid and Russia’s international undertakings in this respect.
For similar reasons, and following the signing by th e Russian Federation of two agreements on trade
in steel products with the USA, the Russian Government imposed quota on the supplies of certain
steel products to the American market under Resolutions No. 1261 and 1262 dated 14 November1999. These quota are implemented in the course of actual export operations whereby priority rights
belong to manufacturers irrespective of their forms of ownership.
For the purpose of protection of Russia’s national interests Federal Law No. 61-FZ “On the
Temporary Ban on the Imports of Ethyl Alcohol” dated 31 March 1999 introduced a ban on import ofalcohol derived from any type of raw materials, from 1 May 1999 till 1 January 2002. Considering
how important revenues from tax payments on strong alcoholic beverages production are for the
Federal Budget of Russia, and considering also th e continuous campaign to prevent illicit production
of alcoholic beverages, the Russian delegation believes that the said Law is entirely consistent with
provisions of Article XX of GATT-94.
In order to prevent disintegration of the domestic oil derivatives market of the Russian
Federation (between May and August 1999 prices for gasoline, diesel fuel and fuel oil increased by
2.5 times, and the volume of exports of these products from Russia was equally augmented) and
bearing in mind the strategic importance of fuel supplies for successful sowing and harvesting ofagricultural products and accommodating the needs of Northern and back-country regions of the
Russian Federation, the Government of Russia issued Resolution No.281 dated 29 March 2000
according to which, as a temporary measure, export of certain types of oil derivatives can be
performed only after the monthly requirement of their supply to the national market has been fulfilled.
Proposals are currently being prepared in respect of possible replacement of the mechanism
provided under Resolution 281 and achievement of tasks therein indicated by introducing flexibleexport duties for oil derivatives adjusted according to the seasonal demand on the Russian market and
the world market prices.
Effective 9 December 1999 measures of state regulation of import into and export from
Russia of ozone-unfriendly products were reinforced in full compliance with the provisions of 1987Montreal Protocol. Thus, the goods indicated in Lists A and B of the Montreal Protocol can be
imported into or exported from Russia only as long as they present raw materials for production of
other chemical products or if such goods are transferred trough the territory of the Russian Federation
in accordance with transit regime.
Differentiated customs treatment is instrumental in the facilitation of market access for
foreign goods (this issue is addressed in Resolution No. 908 of the Government, 8 August 1999) and
simplification of customs procedures. Among the most notable instruments in this respect are: Order
No. 450 dated 17 July 1999, Order No. 573 “On Am endments and Supplements to Order No. 450 of
the State Customs dated 30 August 1999, and Order No. 676 of the State Customs Committee of theRussian Federation dated 6 October 1999 providing a simplified procedure for customs control and
clearance of products imported by shipping and forwarding firms in express mode. Order No. 49 of
the State Customs Committee dated 21 January 2000 provides simplified procedures for registration
of and control over goods imported into Russia under the free-warehouse regime. This developmentWT/ACC/RUS/33/Rev.1
Page 5
will help expedite the goods traffic and create favourable environment for international trade
development.
Order No. 531 of the State Customs Committee dated 12 August 1999 stating that effective
10 April 2000 imports of poultry from countries whic h do not have overland borders with Russia have
to enter through one of 30 seaport customs posts.
The intent of this Order is not to hinder the trade flow with technical barriers or provide
preferential treatment for countries having an overland border with Russia (these countries are not  the
producers of poultry). Its only purpose is to discourage the practices used by male fide Russian
importers taking advantage of the relative transparency of Russian overland borders and the difference
in taxation of poultry in Russia and the neighbouring countries to avoid payment of taxes to theRussian Federation budget in due amount.
Finally, Order No. 831 of the State Customs Committee of Russia dated 1 December 1999
and effective 3 April 2000 provides the entirely voluntary registration of participants of foreign trade
activity. Those legal entities and natural persons which apply to the customs authorities and pass theexamination for “customs history” (i.e. will be found to have paid the customs payments in due
fashion, in time and in full) shall be given a registration card granting them eligibility for using the
accelerated customs clearance procedure in the future, a kind of “green corridor”. This mechanism of
registration of good faith and permanent foreign trade participants is entirely voluntary (i.e. absence
of registration card does not constitute grounds for refusal of admission to customs clearance). Asimilar procedure is used in many countries and is aimed at discouraging the use of one-night firms.
2.3 Trade Remedies Measures
The mechanism of application of special safeguard, antidumping and countervailing measures
is provided under Federal Law No. 63-FZ “On Measures for Protection of Economic Interests of the
Russian Federation in Respect of Foreign Trade in Goods” of 14 April 1998.
For the purposes of effective implementation of the provisions of the aforesaid Federal Law
three regulatory documents were developed and approved by the following Resolutions of the
Government of the Russian Federation: (1) No. 183 “On the Special Features of Definition of
Material Injury to a Branch of the Russian Economy as a Result of Dumping Imports” dated 16February 1999; (2) No. 184 “On the Special Features of  Definition of Material Injury to a Branch of
the Russian Economy when a Foreign State (an Alliance of Foreign States) Subsidises Goods
Imported to the Russian Federation, and Determination of the Amount of the Subsidy” dated 16
February 1999; and (3) No. 274 “On the Regulations  for Conducting Investigations Prior to the
Introduction of Safeguard  Measures, Antidumping  or Countervailing Measures” dated 11 March
1999.
The above documents allowed the creation a legal framework for the application of safeguard
measures, antidumping and countervailing measures in the Russian Federation which was earlier
unavailable.
Based on the results of the investigation Government of the Russian Federation introduced
temporary 15 per cent special duties for starch syrup for a term of 2.5 years under Resolution No. 209
dated 10 March 2000.
Based on the preliminary results of the investigation, the Government of the Russian
Federation has introduced by Resolution No. 241 dated 23 March 2000 provisional 10 per cent special
duties for raw sugar through 15 June 2000. The investigation is still in progress.WT/ACC/RUS/33/Rev.1
Page 6
An investigation is underway to establish in fact the material injury suffered by Russian
producers due to the growing imports of steel pipes.
3. State Trading Enterprises
No developments have occurred in this section of foreign trade legislation of Russia as
compared with the previous period.
4. TBT
Government Resolution No. 498 “On Approving the Regulations on the State Committee of
the Russian Federation for Standardisation and Metrology” of 7 May 1999 endorsed the Regulationson the State Committee of the Russian Federation for Standardisation and Metrology.
Resolution No. 766 of the Government of the Russian Federation “On the Approval of the
List of Products that may be subject to procedures of conformity declaration, and of the procedure for
the adoption of the conformity declaration and its registration” was adopted on 7 July 1999, to definea list of low risk goods (over 250 items) in respect of which a declaration of the producer
(manufacturer, supplier of services) may be sufficient to demonstrate their conformity to regulatory
requirements so that a conformity certificate would not be necessary. When registered such
declaration has equal legal force with a conformity certificate.
Thus, producers of different goods acquire the option of either completing the necessary
certification procedures or submitting their own declaration. This decision of the Government serves
to simplify the access of foreign goods to the Russian market.
This approach (use of self-declaration) was carried on by Resolution No. 1104 of the
Government of the Russian Federation dated 2 October 1999, which inserted declaration on
conformity of the producer (manufacturer, supplier of services) in all respective normative legal acts
regulating this sphere.
Notably, Federal Law No. 212-FZ dated 17 December 1999 introduced the same less costly
form of assurance of conformity – self-declaration of conformity – to the provisions of the Law “On
Protection of Consumers Rights”.
5. SPS
Federal Law No. 52-FZ “On the Sanitary and Epidemiological Welfare of the Population”
dated 30 March 1999 took effect replacing the corresponding 1991 Law. The Federal Law set forth
sanitary requirements in respect of products imported to the Russian Federation (Article 16) and
defined circumstances under which such products are subject to preliminary registration (Article 43).
Letter No. 13-8-01/400 of the Ministry of Agricu ltural Products of Russia “On the Procedure
of Import and Use of Imported Animal Products” of 8 April 1999 laid down the procedure for import
to the Russian Federation and use of imported animal products (beef and beef sub-products, pork and
pork sub-products, small cattle meat and sub-products , poultry and poultry products, fish and seafood,
horse-flesh, game and exotic animals meat).
This document details the procedure for import of the above goods from different countries.WT/ACC/RUS/33/Rev.1
Page 7
Effective 13 April 2000 a provisional ban on imports of animal products from China,
Republic of Korea, Vietnam and Japan was introduced due to dangerous epizootic situation in these
countries.
Federal Law 29-FZ “On Quality and Safety of Food Products” took effect on 2 January 2000.
According to this Law food products produced in Russ ia for the first time or imported into Russia for
the first time are subject to mandatory state registration.
Article 21 of the above Law requires conducting phytosanitary, veterinary and sanitary-
epidemiological control over foreign foodstuffs at cross-border stations or customs clearance stations.
Still, requirements in respect of foreign goods are the same as in respect of Russian-made goods.
6. TRIPS
Decree of the President of the Russian Federation No. 443 dated 29 February 2000 brought
back the Russian Agency for Patents and Trademarks (Rospatent) which is given the functions of apatent agency and legal protection of intellectual property rights.
For more effective prevention against infringements of intellectual property legislation, the
State Customs  Committee adopted Order No. 01- 14/632 “On Enhancing Control over the Movement
of Goods Containing Intellectual Property Obje cts” dated 27 May 1999 to approve the List of
Distinguishing Features of Counterfeit Products.
7. TRIMs
Federal Law No. 19-FZ “On the Introduction of Amendments and Addenda to the Federal
Law on Production Sharing Agreements” dated 7 January 1999 was adopted. This Law does a lot to
bring the provisions of Russian PSA legislation into conformity with the requirements of foreign
investors in terms of:
- simplification of the procedure for subsoil allocations (not just by federal laws);
- extension of their nomenclature.
- actual elimination of the “local component” for the purposes of purchase of
equipment.
Federal Law No. 32-FZ “On the Introduction to Legal Acts of the Russian Federation of
Amendments and Addenda Arising from the Federal Law on Production Sharing Agreements” was
adopted on 10 February 1999. The following Laws were amended to conform:
- “On Subsoil” which provides enhanced rights for foreign investors
- “On the Continental Shelf”
- “On State Regulation of Foreign Trade Activity” (export of goods under PSAs is not
restricted for quantity)
- “On Foreign Investment in the RSFSR”
- “On Motorways in the Russian Federation”
- “On Customs Tariffs” (goods imported and exported under PSAs are exempted from
customs duties)
- “On Fundamentals of the Tax System in the Russian Federation”
- “On Tax on Property of Enterprises”
- “On Value Added Tax”
- “On Tax on Revenues of Enterprises and Organizations”WT/ACC/RUS/33/Rev.1
Page 8
- “On Excises” (all goods except motorcars imported and exported under PSAs are
exempted from excise payment)
- “The Customs Code” (goods imported and exported under PSAs are exempted from
customs duties).
Federal Law No. 87-FZ dated 1 May 1999, Federal Law No. 106-FZ dated 31 May 1999,
Federal Law 198-FZ dated 20 November 1999, Federal Law 199-FZ dated 20 November 1999 and
Federal Law 1-FZ dated 2 January 2000 attribute the Kirinsk long-term block under the “Sakhalin-3”
project, about 30 oil and gas condensate deposits in Tomsk Oblast, hydrocarbon deposit of the
“Northern Territory”, Priobskoye northern oil field and Vankorskoye gas and oil field to subsoil
allocations that can be granted for use under PSAs.
These legislative provisions were further developed in the Resolution of the Government of
the Russian Federation No. 740 dated 3 July 1999 and No. 741 dated 8 July 1999, governing the
issues of regulation of the composition and procedure for compensation of costs of the foreign
investor under a PSA and the formation a nd use of the liquidation fund under a PSA.
Foreign investors received additional guarantees under Federal Law 20-FZ dated 2 January
2000 which amends the Subsoil Law. The Law details the procedure for holding tenders and auctions
and for granting the mineral license.
On 9 July 1999 Federal Law No. 160-FZ “On Foreign Investment in the Russian Federation”
took effect much to the improvement of Russia as a favourable investment environment. Thus, for
instance, Article 5 of the above Law provides expressly guaranteed remedies for foreign investments.
Article 9 of the Law for the first time in the Russian legislation contains a “Grandfather
Clause” for non-exacerbation of cumulative tax burden of foreign investors. Articles 15 – 17 detail thebenefits and guarantees available to foreign investors, including in respect of nationalisation.
On 25 February 1999 Federal Law No. 39-FZ “On Investment Activity in the Russian
Federation Pursued in the Form of Capital Investments” took effect.
This Law lays down the legal and economic framework of investment activity in the form of
capital investments in the territory of the Russian Federation, and sets forth guarantees of equalprotection of rights, interests and property for all the participants of investment activity in the form of
capital investments, irrespective of the type of ownership (including for foreign investors).
On 2 January 2000 the above Law was amended by  Federal Law 22-FZ which also introduced
a “Grandfather Clause”, according to which the cumulative tax burden of an investor performing apriority investment project is not subject to increasing during the pay-off period which, however,
cannot exceed 7 years.
            Federal Law No. 8-FZ dated 6 January 1999 amending the Law “On Communications”
emphasises priority enjoyed by communication devices produced in the Russian Federation under theframework of state research and development policy.  The provisions of this Law do not contain any
restrictions or prohibitions on the use of foreign-made communication facilities.
8. Government Procurements (GP)
During the reviewed period in the Russian Federation Federal Law No. 97-FZ “On Tenders
for the Placement of Orders for the Supply of Goods, Performance of Works, Provision of Services
for State Needs” was adopted on 6 May 1999.WT/ACC/RUS/33/Rev.1
Page 9
This Law regulates the legal relations arisin g between the organiser of a tender (state
customer) and bidders of a tender [suppliers (contractors)] in the course of tender for contracts for
deliveries of goods, performance of works and rendition 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 and 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.
This legislative act is the first Russian Law regulating this sphere and the regulation will continue to
be improved as the system of government procurements develops.
9. Services
9.1. Financial and Insurance Services
Federal Law No. 178-FZ “On Amending the Federal Law on Licensing Specific Kinds of
Activities” dated 26 November 1998 extended the list of types of activity subject to licensing in the
Russian Federation by including investment funds management.
On 5 March 1999 Federal Law No. 46-FZ “On Prot ection of Rights and Legitimate Interests
of Investors on the Securities Market” took effect. It provides state and public protection of rights andlawful interests of investors on the securities market and defines the procedure for and forms of
compensation for damage they incur through illegitimate activity of issuers of securities.
Resolution No. 472 of the Government of the Russian Federation “On the Licensing of
Certain Kinds of Auditing Activities in the Russian Federation” dated 27 April 1999 approvedcorresponding Regulations allowing foreign citizens to participate on a par with Russian citizens.
23 June 1999 was marked by adoption Federal Law No. 117-FZ “On the Protection of
Competition on the Financial Services Market”. This Law regulates legal relations affecting
competition on the market for securities, banking and insurance and other financial services, and
provides for protection of competition. It should be emphasised that its provisions extend to acts and
agreements made by residents of the Russian Federation in or outside of Russia.
Federal Law No. 204-FZ was adopted in 20 November 1999 to amend the Law “On
Organisation of Insurance Business in the Russian Federation”.
This Law provides the procedure for regulating  the access of foreign participants to the
insurance services market, namely, measures and provisions regulating the terms of creation of
insurance organisations with participation of foreign capital and the activity of the participants in the
insurance services market, including qualification, licensing and registration requirements in respect
of provision of services and restrictions concerning foreign suppliers of services.
The Law lifts what was virtually the only restriction on the access of foreign suppliers to the
Russian insurance market, which limited the foreign inte rest in the charter capital of a Russian insurer
to 49 percent, thus expanding foreign presence in the Russian market.
At the same time, due to a rather complicated situation 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 percent (restrictions on life insurance, mandatory insurance etc.).WT/ACC/RUS/33/Rev.1
Page 10
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 percent.
The requirements established under the Law are consistent with the interests of national
economy and defence, the need for gradual and substantiated provision of free access to the national
market for foreign investors. These requirements are aimed at protecting competitiveness of domestic
suppliers against the foreign suppliers and sustaining competition on Russian internal insurance
market.
9.2. Communications services
Resolution of the Government of the Russian Federation No. 698 dated 26 June 1999 states
that licensing of surface TV and radio broadcasting in RF cities populated by over 200 thousand
people must proceed only on a tender basis. This Resolution also approves the Regulations governing
such tender.
Great importance is attached to Government Resolution No. 88 dated 1 February 2000 which
confirmed the procedure for admission and use of foreign systems of satellite communications in the
Russian Federation. Various restrictions earlier operating in this sphere were lifted. Foreign systems
of satellite communications may be used in Russia for provision of commercial services and in
exceptional cases to satisfy state needs. These rights may be provided to foreign operators based onlicenses issued on condition of their compliance with the Russian requirements in respect of reliability
of transmissions.
Resolutions No. 157 and 158 dated 25 February 2000 serve further liberalisation of
telecommunications services in Russia. Pursuant to these resolutions, no permit of the statecommunications surveillance authority (Gosvyaznadzor) is required to purchase subscriber terminals
of personal satellite communications; the procedure fo r trade in radio-electronic and HF-devices in the
territory of Russia, and the procedure for exports and imports of such devices from and to Russia were
simplified considerably.
Resolution of the Government of the Russian Federation dated 3 May 2000 restructures the
procedures and increases the transparency of operations of Gosvyaznadzor.
9.3. Transport Service
30 April 1999 was marked by a major breakthrough as the Merchant Shipping Code of the
Russian Federation No. 81-FZ entered into force.
The 430 Articles of the Code regulate all legal relations arising out of commercial seafaring
including property relations, on the basis of the parity, free will and material independence of the
participants.
These Regulations were developed on the basis of the 1978 International Convention on
Standards of Training, Certification and Watchkeeping for Seafarers and the amendments made to the
Conventions 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 Regulations determine diplomas, qualifications and
specialist certificates should be issues to:WT/ACC/RUS/33/Rev.1
Page 11
- 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 provide that captain and commander certificates issued by a foreign
state which is a party to the 1978 Convention should be recognised by issuing confirmations
according to the rules determined by the Russian Federation Ministry of Transport.
Resolution No. 1084 of the Russian Government dated 22 September 1999 confirms detailed
rules of use of air space of the Russian Federation, which contain, among other things, a provision to
the effect that flights of foreign civil aircraft under international agreements shall be performed as
scheduled.
9.4 Other Types of Services
Over the period in question a number of resolutions was made in the Russian Federation concerning
the licensing of different types of activity. Below we reference the most important developments:
Number of Government Resolution Brief description
387 of 5 April 1999 On licensing of pharmaceutical activity and wholesale
trade in medical preparations
556 of 20 May 1999 On licensing of handling of hazardous waste
1227 of 5 November 1999 On licensing of trade in means of transportation
1280 of 20 November 1999 On licensing of production and marketing of seeds of
agricultural plants
1344 of 6 December 1999 On licensing of production, storage and supplies of spirit
containing non-food products
337 of 12 January 2000 On licensing of production of and wholesale trade in
tobacco products
We would like to emphasise that the above resolutions do not contain any restrictions on
participation of foreign physical and legal entities.
An important codifying function is performed by Government Resolution No. 326 dated
11 April 2000. The Resolution lists all sectors of services subject to licensing and indicates thoseauthorities (federal or regional) directly in charge of such licensing.
On 24 June 1999 Federal Law 118-FZ amending the Law “On Entry to and Exit from the
Russian Federation” was signed and took effect.
In the event that a foreign citizen or person without citizenship applies for entry into the
Russian Federation for work purposes, a Russian visa may be issued to him only if there is a permit of
the federal executive body in charge of the migration service granted according to the procedure
established by the Government of the Russian Federation”.
Federal Law 176-FZ “On Postal Communications” was adopted on 17 July 1999 and contains
the following provisions:WT/ACC/RUS/33/Rev.1
Page 12
- the activity of postal service operators is subject to licensing. The licensing covers the
whole complex of operations comprising the complete operating cycles 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 organisational or legal form of postal service
operators; postal service suppliers enjoy equal rights in respect of providing public
postal services irrespective of their organisational and legal form.
It remains a consistent policy of the Russian Federation to liberalise foreign trade activity and
to bring its national legislation into conformity with the WTO rules and regulations.
__________