Suspended Action Federal Law of 24.12.2002 N 176-FZ; Federal Law of 23.12.2003 N 186-FZ Unspent Force-Federal Law of 22.08.2004 N 122-F RUSSIAN FEDERATION FEDERAL LAW On the Russian Federation's Development Budget adopted by the State Duma on 5 November 1998 Federation 12 November 1998 investors financing highly effective investment projects (hereinafter referred to as "investment projects"), either by providing them with State guarantees or by providing them with immediate means of return, futility and urgency. C t I am 1. OF THE PRESIDENT OF THE RUSSIAN FEDERATION The budget for the development of the Russian Federation (the Development Budget) is an integral part of the federal budget, which is formed in the capital expenditures of the federal budget and used for credit, investment and guarantee of investment projects in accordance with the procedure established by this Federal Law. 2. The amount of money allocated to the Development Budget is set by the federal law on the federal budget for the next fiscal year. 3. The credit, investment and guarantee of investment projects from the development budget shall be carried out under the conditions specified in Articles 5 and 7 of this Federal Law. C, I am 2. Sources of Budgets Development 1. The funds of the Development Budget are derived from the following sources: Internal and external borrowing of the Russian Federation for investment purposes; part of the federal budget revenues from the use and sale of property, of the federal budget; the federal budget revenues from the use and privatization of federal property created by the financing of investment projects from the Development Budget; federal budget revenues from previously produced budget Investment funds on conditions of return, futility and urgency; part of the federal budget receipts from the placement of government securities in a proportion to be determined by the federal budget law for the federal budget another financial year; 50 per cent of the amount of the excess of the actual income received from foreign economic activities over the income from such activities, established by federal law on the federal budget Fiscal year; other sources OF THE PRESIDENT OF THE RUSSIAN FEDERATION 2. The funds of the Development Budget are accumulated in special accounts of the bodies of the Federal Treasury of the Ministry of Finance of the Russian Federation in the institutions of the Central Bank of the Russian Federation. C but I am 3. The use of the budget of the budget development 1. The funds of the Development Budget are directed to: Financing of investment projects selected on a competitive basis in accordance with this Federal Law; The Federation of State Guarantees provided to investors from the Development Budget, in accordance with the procedure established by the Government of the Russian Federation. 2. The use of the Development Budget funds to finance investment projects is carried out exclusively on a competitive basis, on conditions of return, density and urgency. 3. The diversion of temporarily free funds of the Development Budget to financial transactions not related to the implementation of investment projects of the Development Budget is not allowed. C t I am 4. Managing the Development Budget 1. The Government of the Russian Federation is implementing the Budget for Development. 2. On instructions from the Government of the Russian Federation, the Commissioner for the Federal Government: operates the Development Budget; conducts analysis, evaluation and selection of investment projects for The provision of funds and state guarantees from the Development Budget; provides an agreed financing of investment projects with funds from investors and funds allocated from the federal budget; gives investors on behalf of the Government of the Russian Federation Federations of State guarantees from the Development Budget. 3. The activities for the administration of the Development Budget are regulated by this Federal Law, other federal laws and other normative legal acts of the Russian Federation. C but I am 5. Provision of State guarantees 1. State guarantees from the development budget, in accordance with this Federal Law, are an obligation of the Government of the Russian Federation to reimburse the creditor at the expense of the development budget part of the part actually made available to them. Funds to finance the investment project in case of non-repayment by the borrower (investor) of the main debt within the period set by the loan contract. 2. The provision of State guarantees from the development budget is carried out on a competitive basis. State guarantees from the Development Budget are provided to borrowers (investors) in favour of credit organizations, residents and non-residents of the Russian Federation on equal rights. 3. The Government of the Russian Federation establishes the ratio between the amount of state guarantees provided by the development budget and the amount actually provided by the creditor for the implementation of a specific investment project The Federation is under the federal law on federal budget for the next fiscal year and by this Federal Law. For different categories of investment projects, if such categories are provided for by the normative legal acts of the Government of the Russian Federation or the legislation of the Russian Federation, the said regulation may have different categories values. C t I am 6. Investment Contest Procedures The procedure for holding investment contests to either provide investors with state guarantees from the Development Budget or to allocate funds to investors by means of funds The Government of the Russian Federation sets out the Development Budget for financing investment projects on conditions of return, plateiness and urgency. C t I am 7. Modalities and procedures for providing investors with state guarantees from the Development Budget and the allocation of funds to investors of the budget of the budget investment projects 1. Providing investors with state guarantees from the Development Budget and providing funds to investors to finance investment projects from the development budget are implemented at: higher Relation of other investment projects to the federal budget for each ruble of the provided state guarantees from the Development Budget or the allocated funds to finance the investment project at the expense of the investment project Development Budget Tool; whether the borrower has its own cash At least 20 per cent of the total investment project funding, and major investment projects (at least $50 million)-at least 10 per cent of the volume; risk diversification Private capital (private co-investors and creditors ready to provide funds to finance the investment project with the State, including the investor's own funds not covered by the State) (...) (...) 2. The allocation of funds from the Development Budget is carried out by: by crediting selected investment projects funded by investors ' own funds and other sources of financial resources supplement to the budget; through direct investment in the property of commercial organizations implementing investment projects, with an appropriate increase in the share of the state in the authorized capital of these organizations. 3. Crediting of investment projects is exclusively through payment of bills for goods, services necessary for the implementation of the mentioned projects, in volumes and on schedules, which are agreed with the Government of the Russian Federation The Federation is the federal executive. 4. The credit and guarantee of investment projects are being implemented in stages. At each stage, the share of the funds allocated from the Development Budget from the total funds required for the financing of the phase, or the proportion of the State guarantee from the Development Budget The creditors should not exceed the limit value set for investment projects in general by the Government of the Russian Federation in accordance with this Federal Law. 5. An individual investment project should be developed for each individual investment project, including a timetable for the transfer of funds to all co-investors, the amount and modalities of public participation in financing Investment project and return of money received from the Development Budget (tax schemes, or unconditional counter-guarantees of financial institutions, or other forms of return). C but I am 8. Reimbursement of funds invested Cash Development Budget Reimbursement of funds invested in the development budget is provided by: repayment by borrowers of loans granted by The Development Budget and the payment of interest for their use; return funds from disposal of assets used as collateral in the provision of State guarantees from the Development Budget or Realizing the financing of the investment project on conditions of return, In case of termination of the investment project due to the fault of the borrower and in other cases stipulated by the terms of the loan agreement between the borrower and the Government of the Russian Federation. C t I am 9. OF THE PRESIDENT OF THE RUSSIAN FEDERATION The constituent entities of the Russian Federation participate in the realization of the aims and purposes of the Development Budget by issuing opinions on the assumption of their obligations to provide State support to investment projects implemented at their disposal. Territories with the provision of State guarantees from the Development Budget or financed by refundability, payment and urgency in the budget of the Development Budget. State support for these investment projects by the constituent entities of the Russian Federation can be provided through the provision of state guarantees in accordance with the requirements of the law of the constituent entities of the Russian Federation. OF THE PRESIDENT OF THE RUSSIAN FEDERATION of the Russian Federation THE RUSSIAN FEDERATION 2. The Government of the Russian Federation may transfer to the executive authorities of the constituent entities of the Russian Federation the right to conduct investment contests of the Development Budget on certain categories of investment projects. The conditions and procedure for the transfer of this right shall be determined by the Government of the Russian Federation, unless otherwise stipulated by federal law. 3. State guarantees of the constituent entities of the Russian Federation may be provided as: to secure the obligations of the recipients of the Development Budget to the Government of the Russian Federation; The amount of funding for an investment project that is not covered by state guarantees from the Development Budget. Categories of investment projects for which the presence of the executive authorities of the constituent entities of the Russian Federation are mandatory in the submission of applications for participation in the investment competition, shall be determined by the Government of the Russian Federation. The Federation, unless otherwise established by federal law. C t I am 10. Monitoring of Development Budget 1. The control over the execution of the Development Budget in terms of the use of funds and state guarantees from the federal budget is carried out in a manner similar to the monitoring of the federal budget. The report on the execution of the Development Budget is submitted to the State Duma of the Federal Assembly of the Russian Federation as part of the performance report on the federal budget. 2. The Accounts Chamber of the Russian Federation is conducting a review of the financial activities of the Government of the Russian Federation on the use of the budget for development on behalf of the State Duma. The report of this inspection shall be submitted to the State Duma. C t I am 11. The entry into force of this Federal Law The present Federal Law shall enter into force on the date of its official publication. President of the Russian Federation B. Yeltsin Moscow, Kremlin November 26, 1998 N 181-FZ