WT/ACC/SPEC/RUS/25/Rev.3
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ANNEX I
Table 1: Exchange Restrictions on Current Currency Operations
(Based on the information received from the International Monetary Fund with regard to the IMF Executive Board meeting of 2 May 2003 to conduct the 2003 Article IV Consultation with the Russian Federation)
Background / The Russian Federation accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement with effect from 1 June 1996. Since then, however, the Russian authorities have imposed a number of exchange measures that are subject to approval under Article VIII because they give rise to exchange restrictions on the making of payments and transfers for current international transactions and/or multiple currency practices. Most of these measures were imposed in August 1998, in order to stem capital flight and stabilize the exchange rate in the wake of the financial crisis. Over time, the scope and impact of these restrictions have been reduced, and a number have been eliminated altogether.The Russian authorities recently submitted a new draft Foreign Exchange Law to parliament. If adopted in its current form, this law would open the capital account significantly, and IMF staff expects that this would have a positive effect on economic performance and trade. Fund staff will monitor developments in order to advise the authorities and the Board on the implications of the new law and related regulations with regard to exchange restrictions and multiple currency practices.
Remaining exchange restrictions / Russia’s exchange restrictions subject to approval under Article VIII of the Fund’s Articles are as follows:
Conversion operations through non-residents’ S accounts. These are special accounts for non-residents used for GKOOFZrelated transactions. Before balances arising from such transactions can be repatriated, funds have to be transferred to a non-interest bearing transit account for a fixed period. As a result, the repatriation of interest earnings and other current proceeds from GKO/OFZ investments would be made with delay and at unfavourable terms.
Repatriation restrictions on ruble balances of non-residents not participating in the GKO/OFZ novation. The rules governing the repatriation of ruble balances are similar to those described above with respect to the S-accounts. They apply to ruble balances arising from GKO/OFZ investments, which matured before 31 December 1998.
Restrictions on advance import payments. The authorities do not freely permit the making of all advance payments that are required under valid import contracts.
Use of a more depreciated exchange rate for repatriation of S-account balances. Non-residents who participated in the GKO/OFZ novation are allowed to repatriate part of the proceeds by purchasing foreign currency in special auctions arranged by the CBR at a depreciated exchange rate.
Restrictions on non-residents’ N-accounts. These are non-resident bank accounts used for trade and some bond-related transactions. Existing restrictions limit the ability of non-residents to effect moderate amounts of amortization from the proceeds of bond transactions.
Economic significance / The above remaining exchange restrictions and multiple currency practices subject to approval under Article VIII of the Fund’s Articles affect relatively few transactions, and do not have a significant impact on the balance of payments:
1.The limits on repatriation of interest payments affect modest amounts as the stocks in these accounts have declined, while the holding period has also been reduced.
2.The percentage of deposits that is required for advance payments on imports has been reduced to 20 percent and applies to advance payments of more than 90 days. This affects only a small percentage of payments.
3.The number of special auctions that give rise to the multiple currency practice has been reduced and they affect relatively modest amounts (several million dollars in the recent auctions, with a premium of under 1 percent).
IMF Executive Board discussion / Under Fund policy, the Executive Board generally may approve exchange restrictions and multiple currency practices if it is satisfied that they are imposed for balance of payments reasons, are not discriminatory, and their use will be temporary while the member is seeking to eliminate the need for them (i.e. including a timeframe for removal).
The Executive Board did not grant approval of the exchange restrictions and/or multiple currency practices listed above when it concluded the 2003 Article IV consultation with the Russian Federation on 2 May 2003. In fact, the Executive Board, in concluding the consultation, encouraged the Russian authorities to remove the remaining exchange restrictions and multiple currency practices subject to Article VIII. The Executive Board welcomed the new legislative proposals to liberalize foreign exchange transactions and urged the authorities to ensure that a strengthening of the financial system and better enforcement of prudential norms go hand in hand with liberalization. It considered that, in the current environment of sizable capital inflows, the authorities should avoid introducing new controls.
Table 2: Progress in Privatization of Enterprises of State
and Municipal Ownership Within 19932001
Year / 1993 / 1994 / 1995 / 1996 / 1997 / 1998 / 1999 / 2000 / 2001No.of privatized enterprises of state and municipal ownership / 42,924 / 21,905 / 10,152 / 4,997 / 2,743 / 2,129 / 1,536 / 2,274 / 2,287
Including those by the form of property
Federal / 7,063 / 5,685 / 1,875 / 928 / 374 / 264 / 104 / 170 / 125
Subjects of the Russian Federation / 9,521 / 5,112 / 1,317 / 715 / 548 / 321 / 298 / 274 / 231
Municipal / 26,340 / 11,108 / 6,960 / 3,354 / 1,821 / 1,544 / 1134 / 1830 / 1,931
Table 3: Progress in Privatization of Enterprises of State
and Municipal Ownership Concerning Specific Areas of Activity Within 19932001
Area of activity / 19932001Industry
electric energy / 21,915
194
Agricultural Sector / 1,842
Transport
railway
auto road
pipeline
maritime transport
internal waterways
air transport
loading, unloading and expeditious services / 3,242
57
2,529
5
44
104
67
93
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 / 206
8,182
1,653
25,505
5,137
3,037
1,940
356
278
331
654
16,669
Total / 90,947
Source:Annual Report On Development of State sector of Economy in the Russian Federation in 2001, Goskomstat.
Table 3.1 Figures on Methods of Privatization of Federal Property in 2000
Number of shares packages of Federal property enterprises sold / 320On auction / 248
On particularized auction / 13
On tender / 32
In other ways / 27
US$11 billion.
Table 3.2: Volume of Production of Goods and Services,
produced by State-Owned Enterprises in specific areas in 2000
2000Share of production by state enterprises in total volume of production (goods and services), produced 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
Printing / 52.5
Table 3.3: 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
Table 4: 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 / Principles of setting of the prices
271121 / Natural gas (excluding as sold to the population) / The Federal Energy Commission / Setting of fixed prices of the limit level
271111
271129 / Accompanying oil gas and stripped dry gas, casinghead 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 Industry and Power Engineering of the Russian Federation[2]
271600 / Electric power and heat power / the Federal Service for Tariffs / Fixed tariffs or their limit levels
9301
9307
871000 / Products for defence purposes / The Ministry of Economic Development and Trade of the Russian Federation / Setting of fixed or approximate prices
7101
7103 / Raw diamonds and precious stones / The Ministry of Finance of the Russian Federation on agreement withthe Federal Service for Tariffsof the Russian Federation / Setting of the fixed price
9021 / Prosthetic and orthopedic appliances / The Federal Service for Tariffson submission of the Ministry o Health and Social Development and the Ministry of Finance of the Russian Federation / Setting of the profitability limit level
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 Federal Service for Tariffson submission of the Ministry of Agriculture of the Russian Federation / Setting of the minimum price
2208 / Ethyl alcohol from raw eatables produced on the territory of the Russian Federation / The Federal Service for Tariffson submission of the ministry of Agriculture of the Russian Federation / Setting of the minimum price
7131 / Transportation of crude oil and oil derivatives by trunk pipelines / the Federal Service for Tariffs / Setting of the maximum limit level
7112
741 / Transportation of cargoes, railway loading and unloading operations / The Federal Service for Tariffs / Setting of tariffs and fees for loading and unloading services
71111 7112 / Transportation of passengers, baggage, cargoes and mail by railway transport (except suburban traffic) / The Federal Service for Tariffs / Setting of tariffs and fees for loading and unloading services
741 / Loading and unloading operations in ports, port duties / The Federal Service for Tariffs on submission of the Ministry of Transport of the Russian Federation / Setting of the coefficient limit of raising of tariffs or profitability limit level
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 / Setting of the coefficient limit of raising of tariffs or profitability limit level
74610
74110
4190 / Aircraft, passengers and cargoes services in airports / The Federal Service for Tariffs / Setting of the coefficient limit of raising of tariffs or profitability limit level
74590 / Icebreaking fleet service / The Federal Service for Tariffson submission of the Ministry of Transport of the Russian Federation and on agreement with the Ministry of Finance of the Russian Federation / Setting of the coefficient limit of raising of tariffs or profitability limit level
74620 / Aeronavigation services of aircraft on the routes and on airfields / The Ministry of Transport of the Russian Federation / Setting of the coefficient limit of raising of tariffs or profitability limit level
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 Federal Service for Tariffs / Setting of a fixed tariff
75111
75112 / Domestic postal items: letters, post cards, parcels (only for State Post office) / The Federal Service for Tariffs / Setting of a fixed tariff
7522
75232 / Domestic telegram (only for State Post office) / The Federal Service for Tariffs / Setting of a fixed tariff
75211 / Provision of a local telephone link (connection) to registered subscribers / The Federal Service for Tariffs / Setting of a fixed tariff
Table 5: List of Goods and Services for Internal Consumption for Which Prices are
Regulated by the Government of the Russian Federation and SubFederal Executive Bodies
HS code/CPC / Description of goods and services / Regulating body / Principles of setting of the prices
271112 / Natural gas distributed to the population and building cooperative societies / The Executive Bodies of the Subjects of the Russian Federation / Setting of fixed prices or their limit level
271111 / Liquiefied 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 (exept for thermal energy, produced by the organizations and supplying it to the wholesale market) / Regional Power Commissions on agreement with the Federal Energy Commission
Premium to a price (extra charges), fixed by organisations, carrying out regulated activity and who should provide of the retail (consumer's) markets of electric energy with suppliers of energy. / Regional Power Commissions
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 / Setting of the amount of mercantile markups
931
933 / Social services supplied to the population of the Russian Federation / The Executive Bodies of the Subjects of the Russian Federation / Setting of the amount limit of the mercantile markups
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 / Setting of tariffs and fees for loading and unloading operations
9703 / Funeral services / The Executive Bodies of the Subjects of the Russian Federation / Determining the amount of mercantile markups
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 6: List of Services for Internal Consumption for Which the
SubFederalExecutiveBodies Have the Right to Introduce
Regional Regulations Over Prices (tariffs) and Markups
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 / Setting of the amount limit of the mercantile markups
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 / Setting of the profitability limit level
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 / Setting of the tariffs and fees for loading and unloading operations
71213
71221 / Transportation of passengers and baggage by motor transport along intraregional and interregional routes (interrepublican routes within the Russian Federation), including taxi / The Executive Bodies of the Subjects of the Russian Federation
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 / Setting of tariffs and fees for loading and unloading operations
7113
741 / Services rendered on branch lines by enterprises of the industrial railway transport and other subjects (except for the organisations of the federal railway transport) / The Executive Bodies of the Subjects of the Russian Federation / Setting of the coefficient limit of raising of tariffs or limit level
Table 7: Licensing Fees Structure for Purchase, Storage,
Supplies, Exportation and Importation of Ethyl Alcohol and
Alcoholic Products and Alcohol-Containing Products
(in minimum wages) / Equivalent in Rubles
Purchase, storage and exports of ethyl alcohol and alcoholic products / 500 / 50,000
Exportation of alcohol products / 100 or 500 / 10,000 or 50,000
Importation, storage and supplies of ethyl alcohol and alcoholic products, alcohol-containing products. / 1,000 or 15,000 / 100,000 or 1,500,000
Table 8: Tariff Structure
Tariff rate (percent) / Number of tariff items0 / 46
5 / 3,989
10 / 1,890
15 / 3,120
20 / 1,824
25 / 108
30 / 5
above 30 / 93
Table 9: Tabulation of the Trade Weighted Average Customs Tariff Rates
Year / Percentage1995 / 16.0
1996 / 17.7
1997 / 13.3
1998 / 12.8
1999 / 11.7
2000 / 11.4
2001 / 11.1
Table 10: 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 percent of the customs value of the goods in Rubles
Additional customs charge for customs clearance / 0.05 percent of the customs value of goods in foreign currency
Customs charges for customs 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 a distance up to 50 km
for a distance from 50 to 100 km
for a distance from100 to 200 km
for a distance over 200 km
b)for each sea, river or air craft / - 2,000 Rubles
- 3,000 Rubles
- 4,000 Rubles
- 1,000 Rubles for every 100 km, but not less than 6,000 Rubles
- 20,000 Rubles irrespective of the haul distance
Table 11(a): Port Fees used in Commercial Seaports of
the Russian Federation by Group of Vessels
Group ofvessels / Vessels and floating facilities
A / Foreigngoing cargo vessels and facilities, including nonself propelled ones.
B / Coastaltraffic cargo vessels and facilities, including nonself propelled ones.
C / Foreigngoing interport ferries. Foreigngoing passenger ships.
D / Coastaltraffic interport ferries. Coastaltraffic passenger ships. Ice breakers not operated daytoday or rented by port sea administration (or seaport administration).
E / Lighters on board the lighteraboard 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 daytoday 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 11(b): Port Fees used in Commercial Seaports of the Russian Federation