Amendments to the tax legislation

Federal Law No. 368-FZ as of December 27, 2009 abolishes taxation of dividends paid out by subsidiaries to parent companies (before in order to apply zero income tax rate to dividends it was required that the cost of a share in the charter capital of a subsidiary acquired by a parent company exceed 500 million rubles).

Federal Laws No. 257-FZ as of November 09, 2009 and No. 256-FZ as of November 09, 2009 ratified Conventions on Double Taxation and the Prevention of Tax Evasion between the Government of the Russian Federation and the Governments of the Republic of Botswana and the Kingdom of Saudi Arabia, respectively.