Vedomosti

Customs problems

President Dmitry Medvedev's interest in modernization could bring real benefits to Russian business. To stimulate innovation, the president is willing to deprive the customs service of foreign exchange oversight and waive the transaction certificate requirement for foreign trade operations valued under $100,000.

Yesterday, at the Presidential Commission on Economic Modernization, Russian Venture Company (RVC) CEO Igor Agamirzyan laid out the impediments to venture investment and how they can be overcome. Among other problems, President Medvedev chose to focus on foreign trade issues and agreed that export regulation was too cumbersome and "absolutely non-transparent."

Measures, proposed by RVC, include two customs-related reforms:

The first one proposes raising the transaction certificate limit for foreign trade operations from $5,000 to $100,000. A transaction cannot be executed without a certificate, as banks are not allowed to make money transfers without it. The Central Bank requires that the certificate be obtained within three days, but according to the procedure, a signed contract must be submitted to the bank. Foreign companies are not used to signing such contracts; as a result, the process is often delayed.

Second, RVC has proposed relieving the customs service of the responsibility for foreign exchange operations. Currently, the customs service inspects export contracts for compliance with exchange legislation, including the proper execution of the transaction certificate and taxes on currency earnings. Essentially, these functions fall under the purview of tax authorities. As a result, the goods are held at the border for months, creating problems for cooperation with foreign partners due to the unpredictability of the delivery terms.

The low transaction value limit creates problems for any company on the market, not just for innovators. But the latter are affected the most. If a company wants to assemble computer motherboards and needs to purchase 100 different parts, it is required to obtain 100 separate transaction certificates. If the RVC proposal is approved, 80% of all cross-border transactions involving highly processed goods will be simplified.

Currently, to avoid the customs-related difficulties, internet and software companies are forced to register their foreign trade transactions at jurisdictions abroad, says Nikolai Mityushin, Investment Director at ABRT venture fund. Customs liberalization would be a smart decision.

Rossiiskaya Gazeta

Serbia draws up plan to return Kosovo

The parliament of Serbia has approved a resolution on further steps with regard to Kosovo. The document was endorsed with an overwhelming majority of votes, including from much of the opposition, which points to a common approach to the issue in Serbian society.

The MPs obliged the government to draft a resolution to be submitted to the UN General Assembly this fall. They also empowered the cabinet of ministers to take all necessary diplomatic measures to get it approved in New York. The MPs believe that a long-term and mutually acceptable decision and one not contradicting the Serbian constitution should be worked out on Kosovo. The efforts should be exclusively peaceful, and the decision a compromise reached through negotiations.

The resolution is a response to last week's advisory ruling by the U.N. International Court of Justice on whether or not Kosovo's self-proclaimed independence conflicts with the standards of international law.

Not surprisingly, the court's ruling evoked resonance throughout the world, especially in Serbia. The Serbian cabinet of ministers and Serbian President Boris Tadic issued sharply negative statements, saying they did not recognize the court's ruling and would work by all available diplomatic means for the territory's return to the country's jurisdiction. Speaking in parliament, Tadic said the decision had been a heavy blow to Serbia. The president said Belgrade is prepared to discuss any proposals on Pristina save two: a military operation and a rupture of ties with the European Union.

Radoslav Stojanovic, a Serbian professor of international law, believes there are over 80 cases in the world where ethnic or national groups want to separate, and the ICJ's conclusion equips them with legal arguments. He thinks the judges have sabotaged the importance of international law and set up a negative precedent.

Abkhazia and Nagorno-Karabakh responded differently. Abkhazia's Prime Minister Sergei Shamba and president of the self-proclaimed Republic of Nagorno-Karabakh Bako Saakyan both welcomed the ruling. They believe the arguments of these republics have a solid backing. But, Shamba said, should Abkhazia turn to the ICJ, it is not certain that the judges in The Hague would pass a similar ruling, since the West follows a policy of double standards.

Gazeta.ru

Russian spy unmasked in Czech Republic

A Russian spy has been exposed in the Czech Republic. He received information as head of staff to three generals. Those army generals have now been fired, while the agent managed to escape to Russia. According to Czech counter-intelligence, Russian agents have grown more active and are showing an interest in Czech weapons and energy.

The spy was called Robert R., and was employed as a psychologist in a government clinic. Robert's girlfriend held the rank of major and worked as head of staff for three high-ranking generals. One of the generals headed the Czech president's military office, one was the Czech NATO representative in Europe and the other was first deputy head of the General Staff of the country.

All three men, and the major who acted as an informant, were fired from the army in 2009. The spy, Robert, whom the secret services watched for five years, managed to flee to Russia.

It is not known if the major was working for the Russian agent knowingly or disclosed the information unintentionally. The nature of data and the extent of threat to the country's security are unknown.

The press has described the spy scandal as the biggest in the country's history. Local counter-intelligence points to the growing activity of Russian agents in Central and Eastern Europe. At the end of 2008, the Czech security information service issued a report saying Russian intelligence had stepped up its activity in the Czech Republic, while the number of spies among diplomats had grown from one-half to two-thirds. Jane's Intelligence Review as early as 2004 carried the revelations by Czech counter-intelligence agents claiming that the Russian embassy in Prague was half-staffed with spies.

In June this year, the Czech secret services said that Russian spies were interested in Czech armaments (their interest was catalyzed by the Czech authorities' decision to deploy a radar which was part of the U.S. missile defense shield) and energy, for example, progress on the construction at the Temelin nuclear power plant.

The Czech Republic regularly exposes Russian agents and sends them home. The last such instance occurred in August 2009 when a deputy military attache of the Russian embassy was expelled from the Czech Republic, and another diplomat was recommended not to return from vacation. In 2006, the Czechs deported a spy who was gathering information on NATO and the EU.

RBC Daily

Number of complaints against employers grows

The crisis has taught Russians to more carefully read employment contracts and labor legislation in general. In the first six months of 2010, the Federal Service for Labor and Employment received 108,000 complaints over violations of labor rights and confirmed 53% of them.

However, analysts say that many more people cannot file official complaints because they do not have the right paperwork.

The consultative Public Chamber, whose role is similar to that of an oversight committee, will meet on Thursday to discuss the protection of labor rights. Analysts say this problem has overshadowed unemployment during the summer holiday season.

"People phone our hot line for legal help, mostly regarding wages and employment issues such as the hiring and dismissal procedures, vacations and sick leave," said Pyotr Bizyukov, head of socio-economic programs at the Center for Social and Labor Rights.

He said 47% of the callers had discussed their problems with labor inspectors but are still seeking additional legal advice.

The number of people complaining about their employers keeps growing. Yuri Gertsy, the head of the Federal Service for Labor and Employment, said on Tuesday that his service received 108,000 complaints over violations of labor rights in January-June and confirmed 53% of them, 2% more than in the same period of 2009.

Gertsy said people are mostly dissatisfied with their wages, working hours and vacation terms and also complain about the employers' attitude to their labor rights.

Nevertheless, the number of violations in this sphere, which increased dramatically last year due to the economic crisis, diminished in 2010. Fewer inspections were held but larger fines were meted out in January-June this year. Of the 93,500 inspections held in the reporting period, 61.7% were initiated by employee complaints.

The crisis has taught Russians to more carefully read labor legislation and in particular employment contracts, Pyotr Bizyukov said, adding that the problem lies primarily in these documents.

He says the number of complaints registered by the Labor and Employment Service would have been much larger if people were not required to provide documentary proof of violations of their rights and a correctly written employment contract.

The service does not accept complaints from people whose employment contracts contain mistakes or who have no such contracts. Many people don't know their rights, and some employers use this to their advantage.

Vzglyad

GAZ Group set to manufacture Mercedes-Benz limousines

GAZ Group, Russia's second-largest carmaker, could start manufacturing Mercedes-Benz E-class executive-size cars in Nizhny Novgorod, the Volga Federal District.

Corporate sources say a car-assembly contract is being negotiated between the automaker and Germany's Daimler AG, although GAZ Group officials deny these reports.

The company and Daimler AG are negotiating a contract for the assembly of Mercedes-Benz E-class executive-size cars at facilities currently manufacturing Volga Siber vehicles.

But the problem is that the potential partners have not yet reached agreement over payments due to the German automotive giant for each new car. A corporate source said production volumes had not yet been discussed, as the talks are at the initial stage.

The Volga Siber plant can manufacture 100,000 vehicles a year. The source added that GAZ Group had also negotiated with India's largest carmaker Tata Motors and U.S.-based automotive giant Chrysler, its longtime partner. Notably, production of Tata Indica hatchbacks was discussed.

The GAZ Group press service denied reports of the talks. Corporate spokesperson Yelena Matveyeva said the company was not in talks with Daimler AG, and that it was assessing various partnership opportunities with foreign automakers interested in its production facilities, workforce and extended car-dealership network.

The company prioritizes joint car production with General Motors, another U.S.-based automaker.

GAZ Group CEO Bo Andersson earlier said the company was looking for a strategic partner with which to launch production of passenger cars and light commercial vehicles. He said Volga Siber production facilities were not operating at full capacity, and that talks on their utilization by several companies were underway.

Andersson said these facilities could assemble vehicles on orders from other unspecified companies.

This past winter, the media said GAZ Group and Daimler AG were reportedly in talks to manufacture Mercedes-Benz Sprinter-type light commercial vehicles at the Russian company's facilities.

Analysts say possible talks between both companies are a positive signal for each party.

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MOSCOW, July 28 (RIA Novosti)