Energy & Environmental: Update


Water supply (concessions): On 7 December 2011 the President signed Federal Law No. 416-FZ “On Water Supply and Water Disposal”. The Law establishes a legal framework for governing activities in relation to water supply and water disposal in Russia through centralized and decentralized water systems. The Law, in particular, sets out the requirements to guarantee the quality of drinking water and defines the powers of federal and regional authorities, as well as the rights and obligations of organizations involved, and specifies environmental protection measures. In certain cases the Law prohibits privatization of facilities of centralized water supply and water disposal systems although it reinforces the possibility for private investors to operate water facilities, including on a basis of concession agreements.

The Law also sets out the procedure for tariff regulation. In particular, it envisages the possibility for establishing tariffs based on the principle of maintenance of return on the invested capital.

The Law will enter into force on 1 January 2013, save for certain provisions.

On 22 December 2011 the Government issued Resolution No. 1107 on maintenance of a register of fuel and energy complex facilities.

Following the recently adopted Federal Law “On Safety of Fuel and Energy Complex Facilities” (see our update for 22-28 August 2011), fuel and energy complex facilities in Russia must be included in a register maintained by the Ministry of Energy. The Resolution approves the procedure for establishing and maintaining the register. In particular, fuel and energy complex facilities, which were classified by their potential level of hazard, are to be included in such register along with a list of information which is specified in the Resolution. Such information must be provided at the request of federal and regional authorities and owners of such facilities.

The Resolution will enter into force from the date when the Government Resolution establishing criteria and the procedure for conducting classification of a fuel and energy complex facility enters into force (the date is unknown).

For further information please contact Igor Ostapets, Grigory Chernyshov or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .