President signed law providing the opportunity of registering rights to foreign airplanes leased by Russian companies

Transport

Measures to support the transport industry in sanctions conditions will provide the opportunity of registering the rights to foreign aircraft leased by Russian companies, as well as issuing Russian airworthiness certificates to them. That will help Russian airlines to keep the foreign aircraft fleet and operate them on domestic routes.

In addition, the Government of the Russian Federation will be able to restrict the entry of the foreign states sea vessels, which have special restrictions on the entry into their ports of similar ships of the Russian Federation.

It is also expected to postpone the certification of technical means of ensuring transport security.

Amendments to the Budget Code

The law was developed to establish the grounds for providing subventions to the budget of the state non-budgetary fund of the Russian Federation from regional budgets, as well as to improve measures to support the regions to maintain the stability of the budget system of the Russian Federation.

By 1 January 2023, it is planned to remove the 3% limit on the amount of reserve funds for the constituent entities of the Russian Federation and municipalities.

“This will provide the regions with opportunities to form reserves to alleviate the consequences of rising prices for essential goods and building materials, as well as for the high-quality fulfillment of immediate financial obligations for payroll and other social obligations,” explained the Chairman of the State Duma Vyacheslav Volodin.

In addition, taking into account the instructions of the President on the introduction of payments to families with children aged from eight to 16 years old, it is proposed to fix in the budget legislation opportunities for providing subventions to the Pension Fund of the Russian Federation from regional budgets. As the Chairman of the Committee on Budget and Taxes Andrey Makarov said, families with more than 5 million children will receive money.

It is also expected to create an opportunity to use the funds released as a result of the restructuring of budget loans to finance regional projects. Regions will have more rights in setting goals and objectives for the use of these funds.

Investments

The amendments providing the resumption of the mechanism of special investment contracts format 1.0, as well as the possibility of reviewing the terms of existing agreements, including extending their term from 10 to 12 years, were also adopted. Investors will be able to extend the terms of these contracts if restrictive measures on the part of foreign counterparts have affected the implementation of investment projects.

Financial stability

The law, in particular, provides that by 31 December 2022, the size of the minimum package of shares will be increased from 1% to 5%, giving the owner the right to request documents from the joint-stock company, to challenge its transactions, actions of the joint-stock company or members of its board of directors. Also, Russian insurance agents are prohibited from dealing with insurers, reinsurers and insurance brokers from unfriendly countries.