[MUSIC] Hello, My name is Diana Zhmulina. I am an assistant Professor PhD in law and work for Saint Petersburg State University. I'm glad to present to you a course named Legal Aspects of Conducting Business in Russia. This course is designed for a persons, foreign nationals who intend to start up their business in the Russian federation and gives a general overview on the most important issues such as Russian political, legal, and judicial systems. Foreign investment policy of the Russian government, the most common forms of legal presence for foreign investors in the Russian federation, regulation of business activity and some other. Let's start with observing Russian political system. Russia is a federal republic, it consists of 85 constituent entities. There are six categories of constituent entities. These are constitutionally determined as equal members of the federation. There are 22 republics, 46 regions, 1 autonomous region, 9 territories, there are 4 autonomous districts are located, and 3 cities of federal significance. The republics are the homelands for various ethnic groups and enjoy a certain degree of regional autonomy. A republic may establish its own official language apart from Russian. In government borders, local governments, and state institutions of the republic, it's used together with the Russian language. The main document of the republic is named constitution unlike a charter for all other constituent entities. Each constituent entity has got it's own constitutional charter, political institutes, and local legislation. So, constituent entities have their own jurisdiction and competent to enact legislation. The constitution of Russian federation provides for the division of competencies between the federal and the regional authorities. First, there are matters that are regulated exclusively by the federal legislation. For example, financial monetary credit and customs regulation. Foreign trade relation, civil procedural, arbitrates procedural legislation, and some other aspects, determined in the 71st article of the Constitution of the Russian Federation. Then there are matters of joint jurisdiction. Such as issues of possession, use, and management of land, water and other mineral resources, establishment of general guidelines for taxation, administrative labor, family legislation, and other issues. Determined by the 72nd article of the constitution of the Russian Federation. On matters of joint jurisdiction, legislation and other regulations of the constituent entity are subordinate to federal ones. Regional rules that fail to comply with federal ones are not enforceable. All other matters fall into exclusive jurisdiction of the constituent entities. In addition, federal and regional authority may conclude treaties on allocation of competencies. For a moment, approximately half constituent entities have concluded such treates. Russia is also divided into eight federal districts with the aim of ensuring, federal control over regional affairs. Each federal district consists of several constituent entities. There is an authorized representative of the president of the Russian Federation in each federal district. State power in the Russian Federation is divided into legislative power, executive power, and judicial power. Legislative, executive, and judicial bodies are independent but there is a system of checks and balances. State power is exercised by federal authorities and the authorities of constituent entities. Federal authorities we will in details observe in the following slide. As for constituent entities, State power is exercised by bodies formed by them in accordance with federal and their own legistration. There is as well legislative, executive, and judicial borders. The lowest government level in the Russian Federation is a local or municipal government. Action at the level of municipal districts, towns, or villages. It's regulated by the federal law on general principles of organisations of local self government in the Russian Federation, number 131 on the 6th of October 2003. Local governments are not a part of state authority. They are independent within the scope of their own authority, but such scope is quite limited. For example, some issues on taxation, federal state power is exercised by the president of the Russian Federation, the government of the Russian Federation, the Assembly of the Russian Federation, and the Courts. The system of government is similar to the mixed presidential and parliamentary regime. The president, who is elected by general election for a period of six years is the head of the state. His power is quite expansive. He appoints and dismisses the prime minister and the members for the government, dismisses the government, dissolve the legislature, nominates the judges, federal judges, judges of the supreme and constitutional courts. Nominates the chairman of the central bank and nominates the general prosecutor. Being the head of the executive power branch, he may preside over meetings of the government. However, unlike an American president, he is not considered as the head of the government. In legislative area, he has go the right to initiate, to sign, and to veto legislation. The legal status of the government is similar to the Western cabinet structure. The legislature, the Federal Assembly, is a permanent working body and consists of two separate chambers. The State Duma and the Federation Council which have different powers and responsibilities. The Federation Council is the higher chamber and consists of two representatives from each constituent entity of the Russian Federation. This chamber is obliged to examine all laws passed by the state Duma on budgetary talks and other fiscal issues. As well as issues dealing with war and peace, and with treaty ratification, and other laws on its discretion. The jurisdiction of the Federation Council includes also the approval of border changes between the constituent entities. Approval of presidential decrees on introduction of the state emergency and martial law, uses of the armed force beyond Russia's territory, call for presidential elections, and removing the president from office by impeachment. The State Duma is the lower chamber and it's main duty is to pass legislation which then go to the Federation Council to be approve. The State Duma consist of 450 members that are elected for a term of five years. 22 members are elected by party list for a proportional electoral system. The remaining 225 members are elected in single member election districts using the first, past, the post system. Their judiciary consists of the constitutional court of the Russian Federation, the supreme court of the Russian Federation, Arbitrazh courts, courts of general jurisdiction, and specialized courts. We will, in details observe them in the fifth module.
