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<P align="center"><font color="#660000"><b><font face="Arial, Helvetica, sans-serif" size="4" color="#990000">Frequent
Legal Issues for Contractors on <br>
Sakhalin Oil and Gas Projects<br>
</font></b></font><font size="2" face="Arial, Helvetica, sans-serif">(Appearing soon in the Russian Energy Law Journal)</font></p>
<p align="center"><font color="#990033" size="2" face="Arial, Helvetica, sans-serif"><strong>X.
Annual Quotas for Foreign Employees and the Sakhalin Administrations</strong></font></p>
<p align="left"><font size="2" face="Arial, Helvetica, sans-serif"><em>Presented
by <a href="../subpage/attorneys.html#dm">Denis
Marchenko</a>,
senior associate attorney in the Yuzhno-Sakhalinsk branch office of Russin & Vecchi. </em></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The employment of
foreign citizens in Russia is limited each year by an annual quota
system.
The Russian Government determines quotas for
each calendar year, based on proposals from the executive bodies of subjects
of the Russian Federation. These proposals must be based on a preference
for the use of national labor resources, and must take into consideration
the condition of the labor market, the demographic situation within the
subject federation, and the subject’s capabilities with respect
to accommodating foreign citizens. <font size="1">(124)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The annual quota
for 2003 was established in the amount of 530,000 foreign employees.
<font size="1">(125)</font> President Putin expressed his dissatisfaction
with this amount due to the fact that the actual amount of foreign
employees working in
Russia currently exceeds 10 million, and establishing such a nominal
quota would likely lead to further illegal use of foreign labor forces
in Russia. Nonetheless, the annual quota established for 2004 is 213,000
foreign employees <font size="1">(126)</font>, approximately half that
of the previous year. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Regional authorities
play a significant role in the process of establishing the quota, as
most
stages of this process fall within the competence
of subjects of the Russian Federation. The executive bodies of each subject
are charged with creating inter-departmental commissions (“Commission”),
which coordinate the activities of all regional bodies involved in the
process. <font size="1">(127)</font> In the Sakhalin Region, such a Commission
was formed on October 8, 2003 and is called the Commission on Recruitment
and Employment of
Foreign Employees of the Sakhalin Region Administration. </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Employers also play
a significant role in this process, as the decision regarding quota
amounts begins with a review of employer input pertaining
to their need for foreign employees. Employers planning to recruit foreign
citizens should file applications regarding the necessity of hiring foreign
employees for vacant and newly created positions with the Commission
before June 1 of the year preceding the year, for which the quota is
being established. <font size="1">(128)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Upon receipt of all
employers’ applications,
the Commission forwards them for consideration to the respective territorial
executive bodies,
the Russian Federation Ministry of Internal Affairs, and the territorial
employment bodies of the Russian Federation Ministry of Labor. <font size="1">(129)</font> With
regard to territorial executive bodies, for example, if an applicant
is involved
in construction, its application will be forwarded to an executive body
regulating construction.</font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">These bodies analyze
the applications within their competence and return them to the Commission
with their comments regarding the reasonability
of the number of foreign workers requested by employers and their own
proposals for quota amounts. <font size="1">(130)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The Commission decides
on a final quota amount for the respective subject of the Russian Federation.
This decision must be reached based on information
received from the respective executive bodies, and must take into account
the opinion of employer associations, professional unions, and the principle
of priority of use of national labor resources. <font size="1">(131)</font> The
Commission then forwards its final decision to the Governor of the subject
or to the Governor’s
deputy for signature and forwarding to the Russian Federation Ministry
of Labor for consideration. <font size="1">(132)</font></font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif">The decisions received from all Russian subjects are then considered
at the federal level and the Russian Government reaches a final decision
regarding the amount of the annual quota for foreign employees.<br>
<font size="1"> </font></font></p>
<p><font size="1" face="Arial, Helvetica, sans-serif"> (124)
Law on Legal Status, Article 18, Section 1.<br>
(125) Enactment
No. 782 of the Russian Federation Government “On Approval of
the Quota for Issuing Invitations for Entering the Russian Federation by Foreign
Citizens for Employment Purposes,” October 30, 2002, Section 1.<br>
(126) Enactment
No. 658 of the Russian Federation Government “On Approval for
2004 of the Quota for Issuing Invitations for Entering the Russian Federation
by Foreign Citizens for Employment Purposes,” November 3, 2003.<br>
(127) Enactment
No. 23 of the Russian Federation Ministry for Labor and Social Development “On
Approval of the Procedure for Preparation and Consideration of Proposals on Determining
the Quota for Issuing Invitations for Entering the Russian Federation for Performing
Labor Activity to Foreign Citizens,” April 29, 2003, Section 1 (“Quota
Enactment”).<br>
(128) Quota
Enactment, Section 3.<br>
(129) Quota
Enactment, Section 4.<br>
(130) Quota
Enactment, Section 5.<br>
(131) Quota
Enactment, Section 8.<br>
(132) Quota
Enactment, Section 9.</font><br>
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<td width="29%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_XI.html">Next</a></font></strong></div></td>
<td width="36%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="chapter_IX.html">Previous</a></font></strong></div></td>
<td width="35%"><div align="center"><strong><font size="2" face="Arial, Helvetica, sans-serif"><a href="RusEnergyLaw_index.html">Table of Contents</a></font></strong></div></td>
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