On 7 May 2009 it was reported that the Supervisory Board of Vnesheconombank (VEB) decided to amend the procedure for granting subordinated loans. The information was published on the VEB's website.

Under Federal Law No. 173-FZ "On Additional Measures for the Support of the Financial System of the Russian Federation," dated 13 October 2008, VEB is entitled to grant subordinated loans to Russian credit organisations that meet the criteria set by the Law and VEB's Supervisory Board.

Thus, the list of criteria to be met by borrowers has been amended to include the requirement for their charter capital to be a minimum of RUB3.5 billion. In addition, borrowers are required to ensure on-lending of received funds to the real sector.

On 13 May 2009 the Central Bank issued Directive No. 2230-U decreasing the refinancing rate. The Directive entered into force on 13 May 2009.

The Central Bank decreased the refinancing rate from 12.5% to 12% per annum. The new rate applies as of 14 May 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 29 April 2009 the President signed Federal Law No. 74-FZ on placement and circulation of foreign securities in Russia. The Law entered into force on 16 May 2009.

The Law amends the Securities Market Law and the Law on Protection of Investors' Rights to significantly revise the legislative regulation of placement and circulation of foreign securities in Russia. In particular, the Law amends the rules for:

White & Case will issue a special update soon discussing the amendments introduced by the Law in more detail.

On 28 April 2009 the President signed Federal Law No. 73-FZ amending Federal Law No. 127-FZ "On Insolvency (Bankruptcy)," dated 26 October 2002 and Federal Law No. 40-FZ "On Insolvency (Bankruptcy) of Credit Organizations," dated 25 February 1999. The Law will enter into force on 5 June 2009.

The amendments seek to streamline the legal framework for making shareholders and managers of the debtor liable for the debtor's debts, and for challenging the debtor's transactions. In particular, they are intended to better protect creditors' rights by improving a legal basis for invalidating transactions which result in an outflow of the debtor's assets close to the debtor's bankruptcy. A bankruptcy manager will be able to challenge:

White & Case will issue a special update soon discussing the amendments introduced by the Law in more detail.