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Reform and furtherdevelop defense industries (2002-2006)

Resolution # 713 of the Governmentof the Russian Federation, dated 11.10.2001



Increasing the yieldof the Soil in Russia

Resolution # 780 of the Governmentof the Russian Federation, dated 9 Nov., 2001



Culture of Russia Program

Resolution #955 of the Government of the Russian Federation, dated 14.12.2000



Program for thedevelopment of commodities markets infrastructure in the RussianFederation

Resolution # 593 of the Governmentof the Russian Federation, dated 15.06.98



Development ofTourism in the Russian Federation

Ordnance # 2090- of the Governmentof the Russian Federation, dated 17 Dec. 1999



Development ofNuclear Power Engineering in the Russian Federation

Resolution # 815 of the Governmentof the Russian Federation, dated 21 July, 1998



Energy Saving inRussia

Resolution # 80 of the Governmentof the Russian Federation, dated 24 Jan., 1998


2. Regional Programs


Program Title

Ref. Number and Date of ProgramApproval

Time frameworks,Years



Regional Administration’s Resolution # 800 dated17.12.1999



Saccharine disease(diabetes)

Resolution # 424 by Head ofRegional Administration (Governor) of 25.10.2000



High priority measures to combat TBin Kaliningrad Oblast

Regional Administration’s Resolution # 607 of27.12.2000




Resolution # 627by Head ofRegional Administration (Governor) of 19.10.1999



Kaliningrad Regional Center forcontinuous education Program

Resolution # 311 by Head ofRegional Administration (Governor) of 14.08.2000



Protection of Children’s Rights who require stateprotection

Law # 62 of Kaliningrad Oblastdated 14.07.2001

2001- 2005


Professional development, retraining, socialrehabilitation and integration, creation of new jobs and resettlement of militaryservice people and theirfamily members upon retirement for 1998-2005

Regional Duma’s Resolution # 5 of15.01.1998



Seed farming

Resolution # 665 by Head ofRegional Administration (Governor) of 02.11.1999



Costs related to the creation andmaintenance of State Town-Planning Cadastre at the expense of revenues from theland tax

Resolution # 401 by Head ofRegional Administration (Governor) of 23.08.2000



Program for the designing of anIntegrated Town-Planning System in Kaliningrad Oblast and its individualparts

Resolution # 322 by Head ofRegional Administration (Governor) of 15.08.2000



Regional Crime Combating Program inKaliningrad Oblast for 1999-2003

Resolution # 501 by Head ofRegional Administration (Governor) of 24.08.1999



Program for Long-Term Improvementof Materiel and Logistical Support System for the Kaliningrad Regional Officeof the RF Federal Service of Tax Police for 2001-2003

Law # 267 of Kaliningrad Oblast of25.10.2000



Development of Tourism

Law of Kaliningrad OblastOn Tourism in Kaliningrad Oblast and Concept for the Development ofTourism in Kaliningrad Oblast for the Period Up To 2005



State Support Program for SmallBusiness in Kaliningrad Oblast for 2001-2002

Law of Kaliningrad Oblast, June2001



Chief of Staff,

Government, Russian Federation

Minister, Russian Federation

I. Shuvalov

Annex 4

Measures to develop andimprove the normative
and legal base required to implement theProgram

The Program implementation has itsspecificity because there is a Special Economic Zone in Kaliningrad Oblast.Despite a 10-year period expired since its establishment (Regulation on theSpecial Economic Zone in Kaliningrad Oblast (Yantar Free Economic Zone) approved bythe Resolution of the Council of Ministers of the RSFSR No. 497 of September25, 1991), no comprehensive legal concept of its functioning has been developedthat would take into account both regional interests and interests of theRussian Federation as a whole. As a result, in Kaliningrad oblast businesspromotion through the establishment of special administrative, fiscal, customsand financial benefits, which is generally accepted in the worldwide practiceof similar (integrated) zones, runs against the priority of more generalbusiness activity regulating principles contained in the federal legislation.As a consequence, incentives and privileges were granted inconsistently,sometimes they were cancelled and restored alternately which made theperformance of the Special Economic Zone highly dependent on currentsocio-economic and political changes and did not contribute to any noticeableimprovement of the investment climate.

To change the situation, it is necessarythat amendments be made to certain federal laws that govern the performance ofthe Special Economic Zone in Kaliningrad Oblast.

The following legal and organizationalmeasures can be proposed regarding the Special Economic Zone in KaliningradOblast:

  • simplification of the effective customs procedures for exports andimports, currency importation and exportation by participants in the SpecialEconomic Zone and investors operating in the Special EconomicZone;
  • simplification of procedures for entry into, and exit from,Kaliningrad Oblast for foreign nationals and stateless persons working in orvisiting the Special Economic Zone;
  • legal endorsement of the special regime that applies toland;
  • introduction of beneficial rates for utilities;
  • establishment of flag ofconvenience ports;
  • free and urgent (within not more than 30 days) public examinationof project documentation required to implement Special Economic Zoneprojects;
  • exemptions for the tax on real estate for participants in theSpecial Economic Zone;
  • guarantee against any unfavorable changes in the laws of theRussian Federation for participants in the Special Economic Zone and investorsoperating in the Special Economic Zone.

In order to promoter investments, privilegescan also be provided for investors who grant loans at lower interest rates.

Priority should be given to the interests ofthe whole of the Russian Federation when additional fiscal (tax and customs)privileges are to be granted. It is advisable that such privileges be grantedselectively – only forthose participants in the Special Economic Zone that implement priorityprojects, strategically important for the whole country. The lines, or areas inwhich such projects are implemented must be limited and defined in thelegislation. They may include:

  • development and implementation of resource-saving (first of all,energy-efficient) technologies;
  • development and implementation of new power sources;
  • invention and introduction of new products and services that wouldallow to establish a temporary "production monopoly" on the worldmarket.

An alternative financial mechanism for thedevelopment of the Special Economic Zone can be established in the framework ofa special agreement between Kaliningrad Oblast and the RussianFederation.

To fight any malpractice associated with theillegal transfers of assets and funds from the privileged organizations, itwould be reasonable to establish legislatively a procedure for privilegerevocation (at a court of law) if certain economic performances aredegraded.

Along with generally accepted statisticalindicators of socio-economic development, special indicators should bedeveloped to capture how efficient the Special Economic Zone in KaliningradOblast will be, with due regard for its specific features.

With its enclave position, the strengtheningof economic ties, as well as those in the area of science and technology, withthe rest of the Russian Federation is of special importance for KaliningradOblast.

A well-balanced industrial policy isrequired in the Special Economic Zone, as well as promotion and development ofexport-oriented and import-substituting production plants working for thedomestic market of Kaliningrad Oblast and the whole of Russia.

Such areas as the agriculture, establishmentand development of tourist zones and business use of currently idle productionfacilities would be also relevant for the interests of the Russian Federationin Kaliningrad oblast.

Establishment, together with foreigncountries, of international (joint) free economic zones in Kaliningrad Oblast,whose specific features and performance criteria would be governed by aninternational treaty, seems very promising.

Legal Framework


Source ofLaw/Regulation

Time Framework, years

Entities Responsible forImplementation

Federal Level

Transportation System

Develop proposal concerning transitof fuel and power, goods and passengers between Kaliningrad oblast and the restof Russia as the Lithuanian Republic, the Latvian Republic and the Republic ofPoland pass over to the EU norms and regulations

Draft Resolution of theGovernment of the Russian Federation


Ministry of Energy, RF; Ministry ofTransport, RF; Ministry of Railroads, RF; Ministry of Defense, RF; StateCustoms Committee, RF; Federal Border guard Service, RF; Ministry of ForeignAffairs, RF; Administration of Kaliningrad Oblast

Draft Agreement to be entered into bythe Russian Federation and the Republic of Belarus OnUnification of Tariff Distances for the purposes of transportation of goodsalong Russian and Belo Russian railroads.

Draft Agreement between RussianFederation and the Republic of Belarus


Ministry of Railroads, RF; Ministryof Foreign Affairs, RF; Ministry of Economic Development and Trade, RF;Kaliningrad Railroad Agency; Administration of Kaliningrad Oblast

Develop proposals concerning theassignement for temporary use by the Kaliningrad Port Administration, Basin #3, of the Baltic Naval Base allowing vessels to enter the above vase pursuantto the procedure established in the federal legislation of the RussianFederation

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