On 17 April 2009, the State Duma (lower house of the Federal Assembly) adopted in the first reading Draft Law No. 145626-5 "On Combating Unlawful Use of Insider Information and Market Manipulation" (Draft Law).

The Draft Law seeks to improve the legal framework for combating unlawful use of insider information and market manipulation on stock, currency and commodity markets. It is planned that the law will enhance investor confidence and encourage the development and international competitiveness of those markets.

The provisions of the Draft Law will apply if they are adopted by the State Duma in three readings, approved by the Federation Council (upper house of the Federal Assembly), signed by the President, and officially published.

On 23 April 2009, the Central Bank issued Directive No. 2219-U regarding the mandatory reserves for various obligations of credit organisations. The Directive entered into force on 23 April 2009.

Russian credit organisations are required to deposit certain reserve funds on non-interest bearing accounts with the Central Bank. Currently, such mandatory reserves for a credit organisation's obligations of each category (that is, those to non-resident banks in rubles or foreign currency; those to individuals in rubles; and other obligations in rubles or foreign currency) are set at 0.5%.

The Directive provides that these mandatory reserves will be gradually increased and will be:

On 23 April 2009, the Central Bank issued Directive No. 2222-U decreasing the refinancing rate. The Directive entered into force on 23 April 2009.

The Central Bank decreased the refinancing rate from 13% per annum to 12.5% per annum. The new rate applies as of 24 April 2009.

The Central Bank sets the refinancing rate for its financing of commercial banks. The rate is also used for calculating interest on commercial loans (if the rate is not specified in an agreement), tax payments, and in other cases as provided by law.

On 9 April 2009, the President signed Federal Law No. 56-FZ amending Article 825 of the Civil Code. The Law will enter into force on 26 April 2009.

The Law allows all commercial entities to act as financial agents under factoring agreements. Previously the Civil Code required financial agents to be licensed entities (but the Law on licensing did not provide for licensing of factoring activities).

On 25 March 2009, the State Duma (lower house of the Federal Assembly) adopted in the first reading Draft Law No. 154719-5 on Government reporting on anti-crisis measures.

Under the Draft Law, the Government will have to submit to the State Duma quarterly reports on the implementation of measures in support of the financial market, labour market and economic sectors. The purpose of reporting is to ensure the transparency of state anti-crisis activities.

Notably, on 6 April 2009, the Prime Minister, Vladimir Putin, reported to the State Duma on the Government's performance in 2008 addressing, among other things, anti-crisis measures already adopted and those planned.

The report is available on the Prime Minister's website (for the English version of the report, click here).