Russia--2011 FDA Global Electoral Fairness Audit Report

2011 FDA Global Electoral Fairness Audit of Russias Republic Electoral SystemExecutive Summary: Russia received a failing overall score of 35 percent for electoralfairness. This score means that there are major deficiencies in most areas of Russiaselectoral legislation. In particular, the severe unfairness of Russias electoral finance lawscanceled out many instances of electoral fairness in Russias electoral legislation. Also,Russias 90 percent score for equality of political content could not overcome the negativeimpact of Russias electoral finance laws in all other areas of the FDA audit. Electoral Fairness Audit Completed July 6, 2011

About the Foundation for Democratic Advancement:The Foundation for Democratic Advancement ("FDA")s mission is to advance fair andtransparent democratic processes wherever elections occur. The FDA believes that fairerelectoral systems and a more informed public will help ensure the election of candidates whotruly represent the will of the people. The FDA fulfills its mission by performing detailedelectoral audits on political candidates and parties to inform the public, objectively andimpartially, about their electoral choices. Also, the FDA audits electoral legislation in terms offairness and equity, and conducts ground level assessments of democratic processes. (For moreinformation on the FDA visit: www.democracychange.com)Purpose of Electoral Fairness Audit:The purpose of the FDA’s electoral fairness audit (the “Audit”) is to determine a grade andranking for electoral fairness in Russia at the federal level of government. (This Audit is part ofthe FDA’s global audit of electoral fairness involving all countries which hold politicalelections.)This non-partisan, independent determination aims to give the citizens of Russia an informed,objective perspective of the fairness of the Russian federal electoral system.The views in this electoral fairness audit are the views of the FDA only.The FDA’s members and volunteers are in no way affiliated with the Russian Central ElectionCommission or any of the Russian registered/non-registered political parties.The Audit represents an independent assessment based on objectivity, transparency and non-partisanship. The FDA assumes no responsibility or liability for any errors in the calculation ofits audit results or inaccuracies in its research of relevant Russian legislation.Methodology of the Electoral Fairness Audit:The FDA focuses on four key areas of electoral fairness:1) Laws and regulations on the political content of media including newspapers, broadcasters andonline media before, during, and after elections;2) Laws and regulations on the equality of candidates’ and parties’ influence before, during andafter elections, such as national televised debates, restrictions on candidate nominations, partyregistration requirements, etc.;3) Laws and regulations on electoral finance, such as party and campaign donation limits, thirdparty spending limits etc.; and4) Laws and regulations on the equality of voter say before, during, and after an election. TheFDA looked at how Russian laws and regulations promote equality of voter say in the media, atthe polling booth, through electoral finance and constitutional laws etc.The FDA decided to audit these four areas of electoral fairness because, in our opinion, they areoften ignored or overlooked by the international community in determining electoral fairness.Foundation for Democratic Advancement

Moreover, these four areas cover broad aspects of the electoral process in which fairness couldbe compromised significantly.The FDA acknowledges that electoral laws and regulations may not necessarily correspond to theimplementation of those laws and regulations or the public’s response to them. Theimplementation and response could be positive or negative, in terms of electoral fairness.Nevertheless, laws and regulations provide the framework for the electoral system and anindication of electoral fairness.A further study which tracks the actions of mainstream media and the enforcement or non-enforcement of electoral laws and regulation, for example, would provide a more reliable overalldetermination of electoral fairness.The FDA researched current Russian legislation, in relation to four areas of electoral fairnessbeing examined. Following which, the FDA audited the research results via the FDA electoralaudit team and established FDA scoring scales for the four areas of electoral fairness beingaudited.Weighting and Scoring:Overall, the FDA scoring is guided by an inherent valuation of the concepts of soundness andrelevancy.Each area of electoral fairness has a score range between 0 and 10, and each area is countedequally.The total averaged score will provide an indication of the electoral fairness in Russia.The FDA electoral audit team deliberated on the research on each area of electoral fairness, andthen attempted to reach consensus on the final score. Where no consensus could be reached, theindividual scores of the team were averaged.The final score for each area must be supported by more sound reasons and correspond to theestablished FDA scoring scale.FDA Researchers:Mr. Stephen Garvey, FDA founder and executive director, bachelors degree in Political Science(University of British Columbia), and masters degree in Environment and Development(University of Cambridge).Ms. Larisa Vortman, teaching diploma (University of Foreign Languages in Irkutsk, RussiaFDA), specialization French and English, FDA volunteer and researcher, and Russian citizen.Foundation for Democratic Advancement

FDA Electoral Fairness Audit Team:Chief Electoral Auditor:Mr. Stephen Garvey, FDA founder and executive director, bachelors degree in Political Science(University of British Columbia), and masters degree in Environment and Development(University of Cambridge).Electoral Auditors:Mr. James Cheung, bachelor degree in Commerce (University of Calgary) and FDA volunteer.Mr. Daniel McDermott, FDA technical and marketing executive, researcher, and fourth yearPolitical Science major (University of Calgary).Ms. Gillian Hunter, third year Law major (University of Edinburgh), FDA volunteer, andScottish citizen.Mr. Davood Norooi, Masters degree in mining engineer (University of Tehran), former employeeof the National Iranian Oil Company, FDA volunteer, and Iranian citizen.Mr. Geoff Thiessan, bachelor degree in English (University of Calgary), Surface LandAdministrator, former freelance reporter, and FDA volunteer.Ms. Larisa Vortman, teaching diploma (University of Foreign Languages in Irkutsk, RussiaFDA), specialization French and English, FDA volunteer and researcher, and Russian citizen.Editorial Advisors:Mr. Dan McDunn, bachelor degree in English (University of Toronto) and FDA consultant.Mr. Geoff Thiessan, bachelor degree in English (University of Calgary), Surface LandAdministrator, former freelance reporter, and FDA volunteer. (Mr. Thiessan assisted with editingthe draft of the Russian Report.)Information Sources:The following information was consulted and utilized in this audit report:All-Russia Movement for Human Rights. (The FDA read their information on Russian elections:http://www.rightsinrussia.info/institutions/human-rights-groups/in-their-own-words/movement-for-human-rights-moscow )Electoral Legislation and Process (Charts and Illustrations to the Contents of the Federal Law ofthe Russian Federation “On the Basic Guarantees of Electoral Rights and the Rights of Citizensto Participate in Referendum”) http://www.cikrf.ru/cikrf/eng/law/chart/Federal Law «On the Election of the President of the Russian Federation»Federation of European Employers, FedFF Review of Minimum Wages Rates—Russia (January2011)Foundation for Democratic Advancement

“Income inequality is becoming dangerous,” Published: 1 November, 2010, 05:35Edited: 1 November, 2010, 12:06, Russia Today.Russian Central Electoral Commission.Russian Federation: Changes in Election Law Concern Broadcast MediaNatalie Boudarina,Moscow Media Law and Policy Centre IRIS 2002-8:10/20RUSSIAN FEDERATION FEDERAL LAW ON THE ELECTION OF THE PRESIDENTOF THE RUSSIAN FEDERATIONas amended on July 24, 2007 Adopted by the State Duma on December 24, 2002,Approved by the Federation Council on December 27, 2002Federal Law No. No. 19-FZ of January 10, 2003RUSSIAN FEDERATION FEDERAL LAW "ON BASIC GUARANTEES OFELECTORAL RIGHTS AND THE RIGHT OF CITIZENS OF THE RUSSIANFEDERATION TO PARTICIPATE IN A REFERENDUM"(as amended on September 27, December 24, 2002; June 23, July 4, 2003)Adopted by the State Duma on May 22, 2002;Approved by the Federation Council on May 29, 2002Federal Law No. 67-FZ of June 12, 2002RUSSIAN FEDERATION FEDERAL LAW "ON POLITICAL PARTIES"(as amended on April, 26, 2007)Adopted by the State Duma on June 21, 2001;Approved by the Federation Council on June 29, 2001Federal Law No. 95-FZ, July 11, 2001Russian Federation Federal Law, Federal Law "On Basic Guarantees of Electoral Rights and theRight of Citizens of the Russian Federation to Participate in a Referendum" 2002Russian Law of the Russian Federation "On Mass Media"No. 2124-1 of December 27, 1991 as of December 8, 2003Wikipedia, Elections in Russia© 2011, Foundation for Democratic AdvancementAll rights reserved.Foundation for Democratic Advancement728 Northmount Drive NWPO Box 94Calgary, AlbertaCanada, T2K 1P0info@democracychange.comFoundation for Democratic Advancement

Table of Contents:Chapter 1: Political Content of Media 8Executive Summary 8Research Excerpts 8Score 13Rational 13Chapter 2 Equality of Political Candidate and Party Influence 15Executive Summary 15Research Excerpts 15Score 48Rational 48Chapter 3: Equality of Electoral Finance 50Executive Summary 50Research Excerpts 50Score 60Rational 60Chapter 4: Equality of Voter Say 61Executive Summary 61Research Excerpts 61Score 62Rational 62Chapter 5: Overall Audit Results 63Chapter 6: Analysis 64

Chapter 7: Conclusion 66Chapter 8: Recommendations 67Appendix: FDA Global Audit Results 68

Chapter One: Political Content of MediaChapter one will focus on the research and audit results of Russian laws and regulations withrespect to the political content of media, including newspapers, broadcasters and on-line media,before, during and after elections.Executive Summary:Russia received an exceptional score of 90 percent for equality of political content of media andbroadcasters. Russia’s public media and broadcasters are required legally to be impartial andprovide equal and free opportunity for political candidates and parties, and the private media andbroadcasters are required legally to be near impartial. Also, the Russian public has the right ofreply in cases of negative media information, and the Russian internet has no legal restrictions onits political content. The 90 percent score as opposed to a 100 percent reflects primarily the lackof complete impartiality of the private media and broadcasters.Research Excerpts:The following excerpts were identified by the FDA researchers as relevant. The FDA researchersmade some excerpts bold to emphasize high relevance:Public media and broadcasters must be impartial, and provide equal access and opportunity to allregistered political candidates and parties.The act distinguishes between two kinds of information. The first one is election propaganda,which can be disseminated only by candidates and parties. The second one is information on thecourse of campaigns, which the mass media can disseminate.The Act introduced a list of actions considered as election propaganda if carried out during acampaign period. Among them are appeals to vote for or against a candidate or a party,distribution of information with an obvious prevalence of information about a candidate, party,election block in combination with any comments, expressions of preference concerningsomebody from among the candidates, parties, election blocks, description of the possibleconsequences of the election of a candidate or party, etc.Article 16.1. Suspension of the Activity of a Mass Medium for Breach of the Law of the RussianFederation on Elections and Referenda.If within the period of an election campaign or a referendum campaign after the entry into forceof a court decision on bringing the editor-in-chief or the editorial board of a radio or TVprogram, of a periodical or of other organization engaged in the production of a mass medium(hereinafter referred to as organization engaged in the production of a mass medium) toadministrative responsibility for violating the law of the Russian Federation on elections andreferenda, this editor-in-chief or this organization repeatedly violates the law of the RussianFederation on elections and referenda, the Central Election Commission of the Russian Foundation for Democratic Advancement Page | 8

Federation and, if the products of a mass medium are intended for dissemination on the territoryof a subject of the Russian Federation, likewise the election commission of the appropriatesubject of the Russian Federation, shall be entitled to address the federal executive body incharge of registration of mass media with a proposal to suspend the activity of a mass mediumused for the purpose of committing said offences. Said federal executive body within a five-dayterm from such an address, but at latest on the day, preceding the ballot day - while if such anaddress takes place on the day preceding the ballot day and on the ballot day, then immediately -shall verify with the participation of the interested parties the facts stated in the address and shallfile with a court of law an application for suspension of the activity of the mass medium used forcommitting said violations or shall direct to the appropriate election commission a reasonedrefusal to file said an application with a court of law. A reasoned refusal to file an applicationwith court for suspension of the activity of a mass medium shall not impede taking other punitivemeasures provided for by law of the Russian Federation, including a warning, against theorganization engaged in producing said mass medium.The federal executive body in charge of registration of mass media shall not be entitled to refuseto apply to a court of law on the basis of a proposal of the appropriate election commission tosuspend the functioning of a mass medium, if the editor-in-chief or the organization, engaged inproducing the mass medium, has committed in the course of one election campaign (referendumcampaign) more than two violations of the law of the Russian Federation on elections andreferenda that entailed imposition of an administrative penalty on the basis of court decisions,that came into effect.The applications to suspend the activity of a mass medium, referred to in this Article, shall beconsidered by a court of law in the procedure and within the terms established for theproceedings concerning the cases on the protection of the electoral rights and the right toparticipate in a referendum of the citizens of the Russian Federation.The activity of a mass medium shall be suspended by a court of law, for the reasons provided forby this Article, until the time when the poll at the elections or at a referendum is over, or thetime, when a recurring poll is over, if a recurring poll is held.For the purposes of this Article, as a breach by the editor-in-chief or by the organization, engagedin the production of a mass media, of the law of the Russian Federation on elections andreferenda shall be understood the violation by this editor-in-chief or by this organization of theprocedure, established by these law for informing voters and referendum participants or forwaging an election campaign or a referendum campaign, which are punished by the law onadministrative offences.For the purposes of this Article, there shall not be deemed as a breach of the law of the RussianFederation on elections and referenda the dissemination by a mass medium of materials andreports for whose contents the editor-in-chief or the organization, engaged in producing the massmedium, bear no responsibility according to the legislation of the Russian Federation on themass media. Foundation for Democratic Advancement Page | 9

Article 16.1. was added by Federal Law No. 94-FZ of July 4, 2003.Article 1. Freedom of Mass Communication.In the Russian Federation, the retrieval, receipt, production and dissemination of masscommunication, the foundation of mass media, the possession, use and disposal of these media,the manufacture, acquisition, storage and use of technical facilities and equipment, raw andauxiliary materials designed for the production and spread of products of mass informationmedia; shall not be liable to restrictions, with the exception of those prescribed by the legislationof the Russian Federation on mass media.Article 3. Inadmissibility of Censorship.No provision shall be made for the censorship of mass information, that is, the demand made byofficials, state organs, organization, institutions or public associations that the editor’s office of amass medium shall get in advance agreement on a message and materials (except for the caseswhen the official is an auditor or interviewee) and also for the suppression of the disseminationof messages and materials and separate parts thereof.No provision shall be made for the creation and financing of organizations, institutions, organs oroffices whose functions include the censorship of mass information.Article 4. Inadmissibility of Misuse of the Freedom of Mass Communication.No provision shall be made for the use of mass media for purposes of committing criminallyindictable deeds, divulging information making up a state secret or any other law-protectivesecret, the performance of extremist activities, and also for the spreading of broadcastspropagandizing pornography or the cult of violence and cruelty.It shall be prohibited to use-in the television, video and cinema programs, in documentary andfeature films, and also in information computer files and in the programs of the processing ofinformation texts belonging to special mass information media concealed in-sets influencing thesubconscious of human beings and/or affecting their health.It shall be prohibited to disseminate in mass media, as well as in via computer networksinformation on the means, methods of development, production and use, places of trade ofnarcotics, psychotropic substances and their precursors, propagating of any advantages of use ofseparate narcotics, psychotropic substances, their analogues and precursors with the exception ofadvertising of narcotic means and psychotropic substances, included in lists II and III inaccordance with the Federal Law “On Narcotic Means and Psychotropic Substances”, - in massmedia, targeted for the medical and pharmaceutical workers, as well as any other information,dissemination of which is prohibited by federal laws.Article 4 of the present Law was changed by Federal Law No. 114-FZ of July 19, 1995.The third paragraph was added by Federal Law No. 90-FZ of June 20, 2000. The firstparagraph was changed by Federal Law No. 112-FZ of July 2002. Foundation for Democratic Advancement Page | 10

MediaThe election legislation includes detailed provisions governing the conduct of electronic andprint media during the campaign, inter alia providing for free and paid broadcast time and printspace to all political parties registered in the elections on equal conditions for campaign purposesand obligations of state-controlled and private media. The law also requires equal media accessfor all parties, and that news items on election events must be separate from editorialcommentary.2. Informational materials carried by the mass media or disseminated by other methodsshall be objective and accurate and shall not violate the equality of the candidates.5. In TV and radio news programs and in the publications carried by the print media reportsconcerning election campaigning events organized by candidates, their agents, political parties,groups of voters shall be presented exclusively in the form of separate news items, without anycomments. Such news items shall not be paid for by candidates, their agents and authorizedrepresentatives for financial matters, by political parties, groups of voters. They shall not givepreference to any candidate and shall not discriminate against (infringe the rights of) anycandidate, in particular with regard to the length of time devoted to the coverage of his electioncampaigning or amount of space allocated to such reports in the print media.(as amended by Federal Law No. 93-FZ of July 21, 2005)6. Journalists, other creative workers and officials of a mass media organization who engaged inthe activity aimed at the informational support of the election of the President of the RussianFederation in accordance with the legislation on the election of the President of the RussianFederation may not be fired by the employer and may not be transferred without their consent toother jobs during the election campaign in the election of the President of the Russian Federationand for one year after the end of this election campaign, save the case where a disciplinary actionwas taken against them in accordance with the labor legislation of the Russian Federation andthis action was not appealed to a court or was declared lawful and appropriate by a court.(as amended by Federal Law No. 93-FZ of July 21, 2005)6. The print media outlets founded by the legislative (representative), executive and judicialbodies of state power, bodies of local self-government exclusively for the publication of theirofficial materials and reports, regulations and other acts shall not publish any electionpropaganda materials or editorial articles covering the activity of candidates, political partieswhich nominated candidates and groups of voters.(as amended by Federal Law No. 93-FZ of July 21, 2005)During the 2000 presidential elections four presidential candidates made serious accusationsagainst Grigoriy Yavlinskiy to the effect that his extensive newspaper and television coverageexceeded the first- round limit of RUR 26 million (ca. USD 670.000).In Russian presidential elections the election law gives each candidate 80 minutes of free airtime on work days on television and radio. This saves each candidate ca. RUR 10 million incampaign funds. [Very significant free airtime as compared, for example, to Canada, where only Foundation for Democratic Advancement Page | 11

two minutes are free airtime are guaranteed, and dominant parties get significantly more paidairtime—though with limits—a maximum of 95.5 minutes to the Conservative Party in 2008 and9 minutes, for instance, to the Canadian Action Party. So 80 minutes of Russian free and equalairtime is significant.)The total weekly minimum amount of space which the editorial office of each nationalstate-run periodical is to provide to registered candidates free of charge must be not lessthan 5 percent of the total weekly volume of the given publication in the period establishedfor election campaigning in such mass media. [Leaves 95% up to the state-run periodical]The editorial office of the periodical must declare the total amount of space to be provided forelection campaigning purposes in this periodical free of charge not later than 20 days afterofficial publication of the decision to call (hold) the election.Registered candidates have full discretion to determine the manner in which they will use thespace provided to them in periodicals free of charge (Clause 2, Article 44 of the Federal Law«On the Election of the President of the Russian Federation»).The total length of paid air time so reserved must not be less than the total length of freeair-time but must not exceed this air-time more than twice.[Potential of 240 minutes of total airtime: 4 hours divided by 2 minute segments: 120 televisionsegments.]4. Election campaigning shall not be conducted and no election propaganda materials shall beproduced and distributed by:1) federal bodies of state power, bodies of state power of the subjects of the Russian Federation,other state bodies, bodies of local self-government;2) persons occupying state offices or municipal elective offices, state or municipal civil servants,persons who are members of the governing bodies of organizations regardless of the form ofownership (in organizations where the highest governing body is the general meeting – membersof bodies which manage the activity of these organizations), with the exception of politicalparties, when such persons are discharging their official duties and/or when they take advantageof their office and official position to conduct election campaigning;(Sub–Clause 2 as amended by Federal Law No. 93-FZ of July 21, 2005)3) military units, military establishments and organizations;4) charitable and religious organizations and organizations founded by them as well as membersof and participants in religious associations when they are performing rites and ceremonies;(as amended by Federal Law No. 93-FZ of July 21, 2005)5) election commissions, voting members of election commissions;6) foreign nationals, stateless persons, foreign organizations;(as amended by Federal Law No. 93-FZ of July 21, 2005)6.1) international organizations and international public movements;(Sub–Clause 6.1 was added by Federal Law No. 93-FZ of July 21, 2005)7) members of the press when they are engaged in their professional activities; Foundation for Democratic Advancement Page | 12

8) persons in respect of whom it was established by a court decision that they violated therestrictions imposed by Clause 1, Article 56 of the Federal Law “On Basic Guarantees ofElectoral Rights and the Right of Citizens of the Russian Federation to Participate in aReferendum” during the election campaign in the election of the President of the RussianFederation.(Sub–Clause 8 was added by Federal Law No. 64-FZ of April 26, 2007)5. Persons who occupy state offices or municipal elective offices shall be prohibited fromconducting election campaigning on the channels of the TV and radio broadcasting organizationsand in the print media unless these persons are registered as candidates, authorizedrepresentatives of political parties which nominated registered candidates.(as amended by Federal Law No. 93-FZ of July 21, 2005)6. It shall be prohibited to involve persons, who have not attained to the age of 18 years as ofvoting day, in election campaigning, in particular to use pictures and statements of such personsin election propaganda materials except as otherwise provided by Sub–Clause 5, Clause 7 of thisarticle. (as amended by Federal Law No. 93-FZ of July 21, 2005)Electoral Fairness Audit Results for Media and Broadcasters:Score:The FDA electoral fairness audit team reached consensus on a score of 9/10Rational for Score:Russian private media and broadcasters are not permitted to produce and disseminate electionpropaganda. However, media and broadcasters can disseminate election propaganda of politicalcandidates and parties for 28 days prior to an election.Russian private media and broadcasters can disseminate information on the course of an election,which may take the form of propaganda material.Members of the Russian media are not permitted to produce and disseminate their own electionpropaganda during their professional duties.Russian public media and broadcasters must be impartial and provide equal access andopportunity to political candidates and parties.Russian public and private media and broadcasters must provide equal and free opportunity forprint time and/or air time for political candidates and parties to rebuttal any negative criticismdirected at them.Political candidates and parties are given an opportunity to review election propagandaadvertisements prior to them being on TV, radio, and/or printed. Foundation for Democratic Advancement Page | 13

Media and broadcast companies with senior members who are affiliated with a political partycannot be involved in the dissemination of election propaganda.The score of 90 percent reflects the impartiality of the public Russian media and broadcasters,the near impartiality of the private Russian media and broadcasters, and the ability of candidatesand parties to respond media criticism. The score would have been higher, if the private mediaand broadcasters were required to be impartial as is the case in Venezuela and Lebanon.Foundation for Democratic Advancement Page | 14

Chapter Two: Candidates’ and Parties’ InfluenceChapter two will focus on the research and audit results of Russian laws and regulations withrespect to the equality of candidates and parties’ influence before, during and after elections.Executive Summary:Russia received a failing score of 20 percent for the equality of candidate and party influence.The failing score is based on severe inequality in electoral finance laws which favor significantlywealthy citizens, legal entities, candidates, and parties. Though there are many areas of electoralfairness in Russian electoral legislation, such as lot drawing, free air time, free print space, andimpartial public media, the elements of fairness are canceled out by the unfairness of theelectoral finance laws. For example, free air time is linked to paid air time, and thereby favorswealthy candidates and parties, and state electoral subsidies for candidates and parties favordominant candidates and parties.Research Excerpts:The following excerpts were identified by the FDA researchers as relevant. The FDA researchersmade some excerpts bold to emphasize high relevance:Election propaganda on TV broadcasting channels begins 30 days prior to voting day.2. The election campaigning may be conducted:1) on the channels of the TV and radio broadcasting organizations and in the print media;2) by means of public campaigning events;(Sub–Clause 2 as amended by Federal Law No. 93-FZ of July 21, 2005)3) by producing and distributing printed, audio-visual and other election propaganda materials;4) by other means which are not prohibited by law.3. Election campaigning on the channels of the TV and radio broadcasting organizations and inthe print media shall be conducted in the form of public debates, discussions, roundtables, pressconferences, interviews, speeches, demonstration of TV stories and video films about registeredcandidates and in other forms which are not prohibited by law. A candidate, political party maydetermine by themselves the contents, form and methods of their election campaigning conductthe election campaigning by themselves and involve other persons in the election campaigning inaccordance with the procedure established by the Russian Federation laws.(as amended by Federal Law No. 93-FZ of July 21, 2005)4. Election campaigning shall not be conducted and no election propaganda materials shall beproduced and distributed by:1) federal bodies of state power, bodies of state power of the subjects of the Russian Federation,other state bodies, bodies of local self-government;2) persons occupying state offices or municipal elective offices, state or municipal civil servants,persons who are members of the governing bodies of organizations regardless of the form of Foundation for Democratic Advancement Page | 15

ownership (in organizations where the highest governing body is the general meeting – membersof bodies which manage the activity of these organizations), with the exception of politicalparties, when such persons are discharging their official duties and/or when they take advantageof their office and official position to conduct election campaigning;(Sub–Clause 2 as amended by Federal Law No. 93-FZ of July 21, 2005)3) military units, military establishments and organizations;4) charitable and religious organizations and organizations founded by them as well as membersof and participants in religious associations when they are performing rites and ceremonies;(as amended by Federal Law No. 93-FZ of July 21, 2005)5) election commissions, voting members of election commissions;6) foreign nationals, stateless persons, foreign organizations;(as amended by Federal Law No. 93-FZ of July 21, 2005)6.1) international organizations and international public movements;(Sub–Clause 6.1 was added by Federal Law No. 93-FZ of July 21, 2005)7) members of the press when they are engaged in their professional activities;8) persons in respect of whom it was established by a court decision that they violated therestrictions imposed by Clause 1, Article 56 of the Federal Law “On Basic Guarantees ofElectoral Rights and the Right of Citizens of the Russian Federation to Participate in aReferendum” during the election campaign in the election of the President of the RussianFederation.(Sub–Clause 8 was added by Federal Law No. 64-FZ of April 26, 2007)5. Persons who occupy state offices or municipal elective offices shall be prohibited fromconducting election campaigning on the channels of the TV and radio broadcasting organizationsand in the print media unless these persons are registered as candidates, authorizedrepresentatives of political parties which nominated registered candidates.(as amended by Federal Law No. 93-FZ of July 21, 2005)6. It shall be prohibited to involve persons, who have not attained to the age of 18 years as ofvoting day, in election campaigning, in particular to use pictures and statements of such personsin election propaganda materials except as otherwise provided by Sub–Clause 5, Clause 7 of thisarticle.(as amended by Federal Law No. 93-FZ of July 21, 2005)3. Eligible for election to the office of President of the Russian Federation shall be a citizen ofthe Russian Federation who is not younger than 35 years of age and has permanently resided inthe Russian Federation for not less than 10 years4. A citizen of the Russian Federation who resides or stays outside the territory of the RussianFederation during the preparation and conduct of the election of the President of the RussianFederation shall have the same rights in the election of the President of the Russian Federation asother citizens of the Russian Federation. Foundation for Democratic Advancement Page | 16

Right to Nominate Candidates for the Office of President of the Russian Federation1. Candidates for the office of President of the Russian Federation (hereafter "candidates") maybe nominated by voters, political parties entitled by Federal Law No. 95-FZ of July 11, 2001 "OnPolitical Parties" (hereafter "Federal Law On Political Parties") to participate in elections andnominate candidates (hereafter "political parties"), by electoral blocs or by way of self-nomination. A citizen of the Russian Federation may nominate himself as a candidate if his self-nomination is supported by a group of voters.In Russian presidential elections the election law gives each candidate 80 minutes of free airtime on work days on television and radio. This saves each candidate ca. RUR 10 million incampaign funds. [Very significant free airtime as compared, for example, to Canada, where onlytwo minutes are free airtime are guaranteed, and dominant parties get significantly more paidairtime—though with limits—a maximum of 95.5 minutes to the Conservative Party in 2008 and9 minutes, for instance, to the Canadian Action Party. So 80 minutes of Russian free and equalairtime is significant.]A registered candidate can choose the form of the election campaign, but half of the free air timemust be given to televised debates between contenders. The campaign is also broadcast byregional television. Moreover, candidates can also buy time on both private and state- ownedtelevision channels. . Any expenses incurred by TV and radio broadcasting companies in theprovision of free air-time to registered candidates are covered from the current budgetary fundingof the relevant broadcasting organization.The total length of paid air time so reserved must not be less than the total length of freeair-time but must not exceed this air-time more than twice.[Potential of 240 minutes of total airtime: 4 hours divided by 2 minute segments: 120 televisionsegments.][*Free airtime linked to the ability to match with paid airtime.]Each registered candidate is entitled, for a charge, to use the reserved air time within its sharegiven by the division of the total length of reserved air time by the total number of registeredcandidates (Clauses 12, 13, Article 49 of the Federal Law «On the Election of the President ofthe Russian Federation»). Therefore, all registered candidates are entitled to equal shares ofthe reserved paid air-time. It should be noted that the law does not require paid air-time(unlike free air-time) to be provided only in the prime hours. [paid airtime, unlike freeairtime, does not have to be in the prime time.]Enforcement of airtime laws:The information concerning the rates and terms of payment for air-time must be published by theTV and radio broadcasting company not later than 30 days or 22 days (in the event of earlyelection) after the day of official publication of the decision to call (hold) the election of thePresident of the Russian Federation. This information along with the notice of readiness toprovide air-time to registered candidates is submitted by the national TV and radio broadcastingcompanies to the Central Election Commission of the Russian Federation and by the regional and Foundation for Democratic Advancement Page | 17

municipal TV and radio companies to the election commission of the Subject of the RussianFederation.In the election of the President of the Russian Federation registered candidates are entitledto free space in the national state-run periodicals which come out at least once a week, thesaid space to be provided to them on equal terms and conditions (size of the space to beprovided, place on the page, type, etc.) (Clause 1, Article 50 of the Federal Law «On the Electionof the President of the Russian Federation»).The total weekly minimum amount of space which the editorial office of each national state-runperiodical is to provide to registered candidates free of charge must be not less than 5 percent ofthe total weekly volume of the given publication in the period established for electioncampaigning in such mass media. The editorial office of the periodical must declare the totalamount of space to be provided for election campaigning purposes in this periodical free ofcharge not later than 20 days after official publication of the decision to call (hold) the election.Registered candidates have full discretion to determine the manner in which they will use thespace provided to them in periodicals free of charge (Clause 2, Article 44 of the Federal Law«On the Election of the President of the Russian Federation»).Political Money and CorruptionIn November 1995 the General Prosecutor’s Office of the Russian Federation investigated thetransfer, sanctioned by the prime minister, of USD 10 million and RUR 75 billion (ca. USD 16,7million) to Russian public television (ORT). It appears that the Russian Government paid withstate budget money for the governing bloc’s campaign advertisement. Moreover, in the 1996presidential elections prominent enterprises which had not sponsored Yeltsin’s campaignsufficiently were declared bankrupt and insolvency procedures were initiated against them. Atthe same time presidential supporters were forgiven for tax evasion.After the 2000 presidential elections in Russia, Boris Berezovsky accused President Putin ofusing profits from the Swiss-based firms Andava and Focus Service, both working with Aeroflot,to finance the pro-Kremlin Unity (Yedinstvo) party and the presidential campaign. Moreover,Berezovsky acknowledged that he had transferred cash from Aeroflot to “fund the presidentialcampaign”Political parties participation in federal elections(Extract from Federal Law No. 95-FZ of July 11, 2001 "On Political Parties")A political party is a public association created for enabling citizens of the Russian Federationto participate in the political life of society by shaping and expressing their political will, toparticipate in public and political events, in elections, referenda and also for representing theinterests of citizens in the bodies of state power and bodies of local self-government. Foundation for Democratic Advancement Page | 18

A political party shall meet the following requirements: • a political party shall have regional branches in more than a half of the subjects of the Russian Federation; only one regional branch of the given political party may be created in any one subject of the Russian Federation • a political party shall have not less than fifty thousand party members and regional branches, each with not less than five hundred party members, in more than a half of the subjects of the Russian Federation. Each one of the other regional branches shall have not less than two hundred and fifty members of the political party. A citizen of the Russian Federation may be a member of only one political party. A member of a political party may be registered with only one regional branch of the given political party at the place where he or she resides permanently or most of the time; • the leading and other bodies of a political party, its regional branches and other structural subdivisions shall be located in the territory of the Russian Federation. • 2. When publishing (making public) the results of opinion polls related to the election of the President of the Russian Federation the mass media, citizens and organizations announcing such results shall indicate the organization which conducted the poll, the time when it was conducted, the number of respondents (sample size), how the information was gathered, the region where the poll was conducted, the precise wording of the question, the statistical assessment of a possible error and the person (persons) who ordered the poll and paid for the publication of its results.(as amended by Federal Law No. 93-FZ of July 21, 2005) • 3. For five days before voting day and on voting day it shall be prohibited to publish (make public) the results of opinion polls, forecasts of the outcome of the election or other studies related to the given election of the President of the Russian Federation, in particular in the public information-telecommunications networks (including the Internet). • 8. Election campaigning expenditures shall be paid exclusively from the electoral funds of registered candidates, save the cases where free air time and free print space is provided to registered candidate and to political parties in accordance with the procedure set forth in Articles 51 – 53 of this Federal Law. Payment of expenditures incidental to election campaigning in favor any candidate from the electoral funds of other candidates shall be prohibited. • (as amended by Federal Law No. 93-FZ of July 21, 2005)9. Not later than 20 days before voting day, a political party which nominated a candidateregistered by the Central Election Commission of the Russian Federation shall publish itselection program in at least one national state print media outlet, post it on the Internet andwithin the same period shall submit a copy of the said publication to the Central ElectionCommission of the Russian Federation, indicating the URL of the web site on which the electionprogram of this political party is posted. Publication of such election program shall be carried out Foundation for Democratic Advancement Page | 19

with the use of the free print space provided to the political party or such publication shall bepaid for from the electoral fund of the candidate.(as amended by Federal Laws No. 93-FZ of July 21, 2005), No. 64-FZ of April 26, 2007)Article 50. Campaigning Period1. Election campaigning shall commence from the day of nomination of a candidate and end at00:00 hours local time one day before voting day.(as amended by Federal Law No. 93-FZ of July 21, 2005)2. Election campaigning on the channels of the TV and radio broadcasting organizations and inthe print media shall be conducted in the period which begins 28 days before voting day andends at 00:00 hours local time one day before voting day. In the event of a repeat vote electioncampaigning shall be conducted within the period indicated in Clause 5 of this article.(as amended by Federal Law No. 93-FZ of July 21, 2005)3. Any election campaigning shall be prohibited on voting day and a day before.4. Printed propaganda materials (leaflets, posters, etc.), which were earlier displayed outside thepremises of election commissions and polling stations at a minimum distance of 50 meters fromthe entrance thereto in accordance with the procedure established by the federal law, shall remainin place on voting day.(Clause 4 as amended by Federal Law No. 93-FZ of July 21, 2005)Article 51. General Terms and Conditions for Election Campaigning on the Channels of TV andRadio Broadcasting Organizations and in Print Media1. Air time on the channels of the TV and radio broadcasting organizations and space in the printmedia may be made available to registered candidates in accordance with the procedureestablished by this article, Articles 52 and 53 of this Federal Law, free of charge (free air time,free print space) or for a charge.2. Free air time and free print space shall be also provided to political parties which nominatedregistered candidates in accordance with the procedure established by this Federal Law.(as amended by Federal Law No. 93-FZ of July 21, 2005)2.1 Free air time, free print space shall not be provided:1) to political parties which nominated registered candidates which are in arrears to the state TVand radio broadcasting organizations and state print media as of the day of the officialpublication of the decision to call the election of the President of the Russian Federation, inconnection with the provision of free air time, free print space to these political parties (electionblocs comprising these parties) during the earlier election of deputies of the State Duma of theFederal Assembly of the Russian Federation or the earlier election of the President of the RussianFederation; Foundation for Democratic Advancement Page | 20

2. to political parties which nominated registered candidates if they are legal successors ofpolitical parties or other public associations which were in arrears to the state TV and radiobroadcasting organizations and state print media in connection with the provision of free air time,free print space to these political parties or public associations (election blocs which comprisedthem) during the earlier election of deputies of the State Duma of the Federal Assembly of theRussian Federation or the earlier election of the President of the Russian Federation and whichfailed to repay their debt in full as of the day of the official publication of the decision to call theelection of the President of the Russian Federation;3) registered candidates nominated by the political parties referred to in Sub–Clauses 1 and 2 ofthis clause.(Clause 2.1 was added by Federal Law No. 93-FZ of July 21, 2005)3. Registered candidates, political parties which nominated registered candidates shall not usefree air time, free print space for election campaigning in favor of other registered candidates.(as amended by Federal Law No. 93-FZ of July 21, 2005)4. In the event of a repeat (runoff) vote air time, print space shall be provided to the tworegistered candidates on whom the repeat vote is to be conducted.5. The state and municipal TV and radio broadcasting organizations and the state and municipalprint media shall ensure equal terms and conditions of election campaigning for registeredcandidate, political parties which nominated registered candidates, in particular for thepresentation of their election programs to voters.(as amended by Federal Law No. 93-FZ of July 21, 2005)7. The non-state TV and radio broadcasting organizations and the non-state print mediaregistered not less than one year before the day of the official publication of the decision to callthe election of the President of the Russian Federation and the non-state print media founded bypolitical parties (or their structural divisions) and registered less than one year before the day ofthe official publication of the decision to call the election of the President of the RussianFederation may provide paid air time and paid print space to registered candidates and politicalparties which nominated registered candidate if such organizations and print media comply withthe requirements set forth in Clauses 8 and 9 of this article. Other non-state TV and radiobroadcasting organizations and non-state print media shall not provide air time, print space toregistered candidate, political parties which nominated registered candidates.(Clause 7 as amended by Federal Law No. 93-FZ of July 21, 2005)8. The terms of payment for the provision of air time, print space shall be the same for allregistered candidates to whom air time and print space were provided. This requirement shall notapply to the print media founded by candidates, political parties which nominated candidates. Inthis Federal Law the "print media founded by candidates” means print media founded not lessthan one year before the commencement of the election campaign by a citizen (citizens) of theRussian Federation who participates (participate) in the election of the President of the RussianFederation as a candidate (candidates)..(as amended by Federal Law No. 93-FZ of July 21, 2005) Foundation for Democratic Advancement Page | 21

9. Information about the rates charged (in the Russian Federation currency) for air time, printspace and other terms of payment shall be announced by the TV and radio broadcastingorganizations, the print media not later than 30 days after the day of the official publication ofthe decision to call the election of the President of the Russian Federation. Within this period thisinformation and a notice of readiness to provide air time, print space to registered candidatesshall be submitted to:the Central Election Commission of the Russian Federation – by the national TV and radiobroadcasting organizations and the national print media;the election commissions of the subjects of the Russian Federation – by the regional andmunicipal TV and radio broadcasting organizations and the regional and municipal print media.10. Non-state and municipal TV and radio broadcasting organizations and print media,specialized TV and radio broadcasting organizations and print media and state print media whichare published less than once a week may refuse to provide air time, print space for electioncampaigning. Such refusal shall be expressed in the form of non-submission of the noticementioned in Clause 9 of this article to the relevant election commission within the periodestablished by this clause.11. The TV and radio broadcasting organizations and the print media (regardless of the form ofownership) which provided air time, print space to registered candidates, political parties whichnominated registered candidates shall keep separate records of their amount and cost inaccordance with the forms and procedures of such record–keeping established by the CentralElection Commission of the Russian Federation. Within 10 days after voting date, the data thusrecorded shall be submitted to:(as amended by Federal Law No. 93-FZ of July 21, 2005)the Central Election Commission of the Russian Federation – by the national TV and radiobroadcasting organizations and the national print media; the election commissions of thesubjects of the Russian Federation – by the regional and municipal TV and radio broadcastingorganizations and regional and municipal print media.14. The mass media organizations shall keep the documents relating to provision of free and paidair time and print space, mentioned in Clauses 11 – 13 of this article, for not less than three yearsafter voting day.Article 52. Terms and Conditions for Election Campaigning on Television and Radio1. Registered candidates, save the candidates mentioned in Clause 2.1, Article 51 of this FederalLaw, shall be entitled to free air time on the channels of the state TV and radio broadcastingorganizations, which is to be provided to them on equal terms and conditions (length of theprovided air time, airing time, etc.). Political parties which nominated registered candidates, withthe exception of the political parties mentioned in Clause 2.1, Article 51 of this Federal Law,shall be entitled to free air time on the channels of the state TV and radio broadcastingorganizations which is to be provided to them on equal terms and conditions.(Clause 1 as amended by Federal Law No. 93-FZ of July 21, 2005) Foundation for Democratic Advancement Page | 22

3. The total amount of free air time which each national state TV and radio broadcastingorganization allocates on each of its channels for election campaigning shall be not less than onehour on business days within the period established by Clauses 2 and 5, Article 50 if this FederalLaw. The total amount of free air time which each regional state TV and radio organizationallocates on each of its channels for election campaigning shall be not less than 30 minutes onbusiness days within the period established by Clauses 2 and 5, Article 50 of this Federal Lawand, if the total broadcasting time of this organization is less than two hours a day – not less thanone–fourth of the total broadcasting time. If, as a result of provision of free air time, eachregistered candidate, each political party which nominated a registered candidate is to receivemore than 60 minutes of free air time, the total amount of free air time which each TV and radiobroadcasting organization is to make available for election campaigning shall be reduced to 60minutes multiplied by the number of registered candidate, political parties which nominatedregistered candidates.(Clause 3 as amended by Federal Law No. 93-FZ of July 21, 2005)4. Free air time shall be provided within broadcasting periods viewed or listened to by thegreatest number of persons, as determined by the given TV and radio broadcasting organization.5. One third of the total amount of free air time provided by the state TV and broadcastingorganizations, with the exception of free air time made available in the event of a repeat vote,shall be allocated for election campaigning to political parties which nominated registeredcandidates. These political parties shall choose the form of election campaigning at theirdiscretion and may, by mutual agreement or at the suggestion of the TV and radio broadcastingorganizations, conduct joint campaigning events or make the air time allocated to them availableto the registered candidates which they nominated.7. Registered candidates may participate in joint campaigning events on the channels of thenational state TV and radio broadcasting organizations only in person. Representatives ofregistered candidates shall not be allowed to participate in joint campaigning events, save asotherwise provided by Clause 8 of this article.For the refusal to accept for consideration the complaint challenging the constitutionality ofClause 8 of Article 52 see Ruling of the Constitutional Court of the Russian Federation No. 299–O of September 30, 2004.8. If, owing to compelling circumstances (illness, performance of official duties), a registeredcandidate cannot take part in a joint campaigning event on the channel of the national state TVand radio broadcasting organization, his agent may participate in the joint campaigning eventinstead of him.9. The agent of a registered candidate may participate instead of the registered candidate in jointcampaigning events held on the channels of regional state TV and radio broadcastingorganizations.10. The registered candidate may refuse to take part in a joint campaigning event not later thanfive days before the program is to be aired and if the program is scheduled to be aired less thanfive days after lot–drawing – on the day of lot–drawing. Foundation for Democratic Advancement Page | 23

(as amended by Federal Laws No. 93-FZ of July 21, 2005, No. 64–FZ of April 26, 2007)11. In the cases provided for in Clauses 7 and 10 of this article, the amount of air time allocatedfor a joint campaigning event shall not be reduced even if only one participant is able toparticipate in the event. Non–participation of any registered candidate in a joint campaigningevent shall not result in an increase in the amount of free air time allocated to this candidate inaccordance with Clause 12 of this article.(as amended by Federal Law No. 93-FZ of July 21, 2005)12. The remaining part of the total amount of free air time (if any) shall be distributed not laterthan 32 days before voting day between registered candidates, save the registered candidatesmentioned in Clause 2.1, Article 51 of this Federal Law and the registered candidates whorefused to use free air time, on the equal terms and conditions (length of air time, airing time,etc.). The free air time provided in accordance with Clause 5 of this article shall be distributedbetween political parties which nominated registered candidates and applied for participation inlot–drawing to be conducted in accordance with Clause 2.1, Article 51 of this Federal Law, savethe political parties mentioned in Clause 2.1, Article 51 of this Federal Law.(Clause 12 as amended by Federal Law No. 93-FZ of July 21, 2005)13. Lot–drawing to determine the dates and time when election propaganda materials ofregistered candidate and political parties, joint campaigning events are to be aired free ofcharge on the channels of the national state TV and radio broadcasting organizations shallbe conducted by the Central Election Commission of the Russian Federation with theparticipation of TV and radio broadcasting organizations. Lot–drawing to determine thedates and time when propaganda materials of registered candidate and political parties,joint campaigning events are to aired free of charge on the channels of the regional stateTV and radio broadcasting organizations shall be conducted by the election commissions ofthe subjects of the Russian Federation with the participation of TV and radio broadcastingorganizations. Lot–drawing shall be conducted after the registration of candidates iscompleted but not later than 30 days before voting day, or, in the event of a repeat vote, notlater than one day from the day on which a repeat vote is announced. The lot-drawingprocedure may be witnessed by persons mentioned in Clause 1, Article 23 of this FederalLaw. The results of lot-drawing shall be recorded in a protocol. The air time distributionschedule determined on the basis of lot-drawing results shall be published in the nationaland regional state print media.(as amended by Federal Laws No. 93-FZ of July 21, 2005, No. 64–FZ of April 26, 2007)14. The state TV and radio broadcasting organizations shall reserve air time to be used byregistered candidates for election campaigning on a paid basis. The rates and the terms ofpayment shall be the same for all registered candidates. The total amount of paid air time to bereserved by each TV and radio broadcasting organization shall not be less than the total amountof free air time but shall not exceed this amount by more than two times.15. A registered candidate shall be entitled, for a charge, to receive reserved air time within thelimits of its part to be found by dividing the total amount of the reserved air time by the totalnumber of the registered candidates. Foundation for Democratic Advancement Page | 24

16. The dates and time when joint campaigning events and/or election propaganda materials ofregistered candidates are to be aired on a paid basis shall be determined by means of lot-drawingto be organized by the state TV and radio broadcasting organizations with the participation ofinterested persons on the basis of written applications for participation in the lot-drawing fromregistered candidates. The lot-drawing shall be conducted within the period established byClause 13 of this article. The lot-drawing procedure may be witnessed by members of the CentralElection Commission of the Russian Federation, members of the election commission of asubject of the Russian Federation and the persons mentioned in Clause 1, Article 23 of thisFederal Law.(as amended by Federal Law No. 64–FZ of April 26, 2007)24. Transmission of election propaganda materials and joint campaigning events on the channelsof TV and radio broadcasting organizations shall not be interrupted, in particular by commercialsadvertising goods and services.(Clause 24 as amended by Federal Law No. 64–FZ of April 26, 2007)25. Transmission of election propaganda materials and joint campaigning events on the channelsof TV and radio broadcasting organizations shall not be interrupted for transmission of other TVand radio programs, other election propaganda materials.(Clause 25 as amended by Federal Law No. 64-FZ of April 26, 2007)Article 53. Terms and Conditions for Election Campaigning Through Print Media1. Registered candidates, with the exception of the candidates mentioned in Clause 2.1, Article51 of this Federal Law, shall be entitled to free space in the national state print media which arepublished at least once a week, on the following terms and conditions: equal amount of providedprint space; the same place on the page; the same type size; and other terms and conditions.Political parties which nominated registered candidates, with the exception of the political partiesmentioned in Clause 2.1 Article 51 of this Federal Law, shall be entitled to free print space in thenational state print media published at least once a week, on equal terms and conditions.3. The total minimum weekly amount of free print space which each national state print mediaoutlet is to provide to registered candidates, political parties which nominated registeredcandidates shall be not less than 5 percent of the total weekly print space of the givenpublication. The information about the total amount of free print space to be made available by aprint media outlet for election campaigning in the aforementioned period shall be announced bythe print media outlet not later than 20 days after the official publication of the decision to callthe election of the President of the Russian Federation.(as amended by Federal Law No. 93-FZ of July 21, 2005)4. One half of the total amount of free print space declared by a national state print media outletshall be distributed in accordance with the results of lot-drawing mentioned in Clause 6 of thisarticle in equal parts between all registered candidates, with the exception of the registeredcandidates mentioned in Clause 2.1, Article 51 of this Federal Law.6. Lot-drawing to determine the dates for free publication of election propaganda materials ofregistered candidates, political parties which nominated registered candidates shall be organized Foundation for Democratic Advancement Page | 25

by the national state print media with the participation of interested persons after completion ofthe registration of candidates but not later than 30 days before voting day. The lot-drawingprocedure may be witnessed by members of the Central Election Commission of the RussianFederation and the persons mentioned in Clause 1, Article 23 of this Federal Law. The results oflot-drawing shall be recorded in a protocol.7. National and regional state print media which are published at least once a week shall reservespace for publication of election propaganda materials of registered candidates on a paid basis inthe period established, respectively, by Clauses 2 and 5, Article 50 of this Federal Law. The ratesand the terms of payment shall be the same for all registered candidates. The total amount of paidspace to be reserved by each national print media outlet shall not be less than the total amount offree space to be made available in accordance with Clause 3 of this article but shall not exceedthis amount by more than two times. The total minimum weekly space to be reserved by eachregional state print media outlet shall be not less than 5 percent of the total weekly space of thegiven print media outlet in the period established, respectively, by Clauses 2 and 5, Article 50 ofthis Federal Law.8. Each registered candidate shall be entitled, for a charge, to use the reserved print space withinits share determined by dividing the total amount of reserved print space by the total number ofregistered candidates.9. The dates when election propaganda materials are to be published shall be determined bymeans of lot-drawing organized by the print media outlet with the participation of interestedpersons on the basis of written applications for participation in the lot-drawing from registeredcandidates. Lot-drawing shall be conducted within the period established by Clause 6 of thisarticle. The lot-drawing procedure may be witnessed by members of the Central ElectionCommission of the Russian Federation, members of the election commission of a subject of theRussian Federation and the persons mentioned in Clause 1, Article 23 of this Federal Law. Theresults of lot-drawing shall be recorded in a protocol.10. Municipal print media as well as state print media published less frequently than once aweek, which complied with the provisions of Clause 9, Article 51 of this Federal Law, shallprovide print space to registered candidates for a charge. The rates and the terms of paymentshall be the same for all registered candidates. The total amount of print space to be provided toregistered candidates in the said print media shall be determined by these print media at theirown discretion. The date of publication of election propaganda materials of each registeredcandidate shall be determined by means of lot-drawing to be organized by the said print mediawith the participation of interested persons on the basis of written applications for participationin the lot-drawing from registered candidates. Lot-drawing shall be conducted within the periodestablished by Clause 6 of this article.11. If a registered candidate, a political party which nominated a registered candidate refuses touse print space after the lot-drawing, they shall inform the given print media outlet to this effectnot later than five days before the date when the election propaganda material is to be published,and the print media outlet may use the released print space at its discretion.(as amended by Federal Law No. 93-FZ of July 21, 2005) Foundation for Democratic Advancement Page | 26

12. Non-state print media, which complied with the provisions of Clause 9, Article 51 of thisFederal Law, shall provide print space to registered candidates on equal terms andconditions. The non-state print media which failed to comply with the provisions of Clause 9,Article 51 of this Federal Law shall not be allowed to provide print space to registered candidatesfor election campaigning purposes. Non-state print media may refuse to provide print spacefor election campaigning purposes.15. Election propaganda materials published in accordance with this article shall not beaccompanied by any editorial comments, by headlines and illustrations which have notbeen agreed with the relevant registered candidates, relevant political parties whichnominated registered candidates.(as amended by Federal Law No. 93-FZ of July 21, 2005)16. All propaganda materials published by the print media shall indicate the registered candidatefrom whose electoral fund the given publication has been paid for. If propaganda materials havebeen published free of charge in accordance with Clause 1 of this article, the publication shallindicate this fact and shall name the registered candidate, the political party which nominated aregistered candidate who/which have been given the possibility to publish these materials. Theresponsibility for compliance with this requirement shall be borne by the print media outlet.(as amended by Federal Law No. 93-FZ of July 21, 2005)17. The print media which publish propaganda materials shall not give preference to anyregistered candidate, any political party which nominated a registered candidate bychanging their circulation and frequency of publication. This requirement shall not applyto the print media founded by registered candidates, political parties which nominatedregistered candidates.(as amended by Federal Law No. 93-FZ of July 21, 2005)1. State bodies and bodies of local self-government shall render assistance to registeredcandidates and their agents, political parties which nominated registered candidates in theorganization and holding of public campaigning events.2. Notifications of the organizers of rallies, demonstrations, marches and picketing shall be filedand considered in accordance with the procedure established by the Russian Federation laws.3. On the basis of an application from registered candidates, political parties which nominatedregistered candidates, premises, which are suitable for public campaigning events in the form ofmeetings and are owned by the state or a municipality, shall be made available, free of charge, bytheir owners, possessors to a registered candidate and his agent, representatives of a politicalparty, for the time to be established by the election commission of a subject of the RussianFederation or, on its instructions, by a territorial election commission, to hold meetings withvoters. Election commissions shall ensure equal terms and conditions for registered candidates,political parties which nominated registered candidates to hold such events.4. If the premises mentioned in Clause 3 of this article or premises owned by an organizationwith a charter (pool) capital, in which the state, a subject of the Russian Federation and/or a Foundation for Democratic Advancement Page | 27

municipality have a stake (contribution) exceeding 30 percent thereof as of the day of the officialpublication of the decision to call the election of the President of the Russian Federation, weremade available for holding a public campaigning event to one of registered candidates, one ofpolitical parties which nominated registered candidates, the owner, possessor of the premisesshall not refuse to provide the premises to other registered candidates, other political partieswhich nominated registered candidates, on the same terms and conditions.7. No election campaigning shall be allowed on the territory of military units, in militaryorganizations and institutions, save the case where the only building (premises) suitable fororganizing public campaigning events in the form of meetings is located within the territory of amilitary unit or in a military organization or institution. Upon the request of the relevant electioncommission the commander of the military unit shall make available such building (premises) toregistered candidates, their agents, representatives of political parties which nominated registeredcandidates for meeting with voters – servicemen. Such meetings shall be organized by thecommander of the military unit together with the election commission of a subject of the RussianFederation. Other registered candidates or their agents, representatives of other political partieswhich nominated registered candidates shall be notified about the place and time of the meetingnot later than three days before the meeting.Article 55. Terms and Conditions for Production and Distribution of Printed, Audio-Visual andOther Election Propaganda Materials1. Candidates shall be free to issue and distribute printed, audio-visual and other electionpropaganda materials in accordance with the procedure established by the Russian Federationlaws. All election propaganda materials must be produced on the territory of the RussianFederation.(as amended by Federal Law No. 93-FZ of July 21, 2005)2. All printed and audio-visual election propaganda materials shall indicate the name, legaladdress and taxpayer identification number of the organization (the surname, first name andpatronymic of a natural person and the name of the subject of the Russian Federation, raion, city,other population center where the natural person resides) which (who) produced these materials,the name of the organization (the surname, first name and patronymic of the natural person)which (who) placed an order for the production of the given materials and information about thenumber of copies made, the date of issue, the payment for the production of these materials fromthe relevant electoral fund.(as amended by Federal Law No. 93-FZ of July 21, 2005)3. Prior to their distribution printed propaganda materials or their copies and copies of audio-visual propaganda materials, photographs shall be submitted by a candidate to the CentralElection Commission of the Russian Federation or to the election commission of a subject of theRussian Federation on the territory of which these materials are to be distributed. Along with thesaid materials it shall be necessary to present information concerning the location (residenceaddress) of the organization (natural person) which (who) has produced and ordered thesematerials.(as amended by Federal Law No. 93-FZ of July 21, 2005) Foundation for Democratic Advancement Page | 28

4. Repealed. – Federal Law No. 64–FZ of April 26, 2007.5. Election propaganda materials shall not be produced without prepayment from a relevantelectoral fund or in violation of the requirements of Clauses 2 and 4 of this article.6. Distribution of election propaganda materials in violation of the requirements set forth inClause 3 of this article and Clause 7, Article 49 of this Federal Law shall not be allowed.7. Not later than 30 days before voting day, on the recommendation of the election commissionof a subject of the Russian Federation or a territorial election commission, the bodies of localself-government shall designate and fit out special places for displaying printed electionpropaganda materials on the territory of each electoral precinct. Such places shall be locatedwhere they can be conveniently visited by voters and shall be arranged so that voters could readthe displayed information. Registered candidates shall be allocated equal areas for displayingtheir printed election propaganda materials. The area of such places must be sufficient to displayinformation materials of election commissions and printed election propaganda materials ofcandidates. Candidates may receive a list of places designated for the display of printed electionpropaganda materials from the appropriate territorial election commissions.8. In cases which are not provided by Clause 7 of this article election propaganda materials maybe displayed (posted, placed) inside premises, on buildings, structures or at other sites only withthe written consent of their owners, possessors and on the terms and conditions set by them. Atthe sites owned by the state or a municipality or an organization with a charter (pool) capital inwhich the stake (contribution) of the Russian Federation, a subject of the Russian Federation or amunicipality exceeds 30 percent thereof as of the day of the official publication of the decision tocall the election of the President of the Russian Federation placement of election propagandamaterials shall be carried out on equal terms and conditions for all registered candidates. Nocharge shall be paid for the placement of election propaganda materials at a site owned by thestate or a municipality.(as amended by Federal Law No. 93-FZ of July 21, 2005)9. Printed election propaganda materials shall not be put up (posted, displayed) on monuments,obelisks, buildings, structures and premises of historic, cultural or architectural value, inside thepremises of election commissions and polling stations or at a distance of less than 50 metersfrom the entrance thereto.(as amended by Federal Law No. 93-FZ of July 21, 2005)10. Organizations, individual entrepreneurs which/who provide advertising services shallensure equal terms and conditions for registered candidates to display their electionpropaganda materials.(as amended by Federal Law No. 93-FZ of July 21, 2005)12. The election commission which was informed about production or distribution of falseprinted, audio-visual and other election propaganda materials or about distribution of electionpropaganda materials in violation of the provisions of Clauses 2 – 4, 8 9 and 11 of this Article,shall take appropriate measures and may request the law enforcement and other authorities to put Foundation for Democratic Advancement Page | 29

an end to unlawful election campaigning activities and seize unlawful election propagandamaterials.2. While conducting election campaigning, candidates, their agents and authorizedrepresentatives for financial matters, political parties, their agents and authorized representativesas well as other persons and organizations shall not bribe voters: give voters money, gifts andother things if they are not intended as remuneration for the performance of organizational work(collection of voter signatures, participation in election campaigning); remunerate or promise toremunerate voters, who performed the said organizational work, depending on the voting results;sell goods at reduced prices; distribute free or charge any goods other than printed materials(including illustrated materials) and badges specially produced for the election campaign; renderservices free of charge or at reduced rates. While conducting election campaigning, candidates,their agents and authorized representatives for financial matters, political parties, their agents andauthorized representatives as well as other persons and organizations shall not influence votersby promising them money, securities, other material benefits (in particular depending on thevoting results) and shall not render any services to voters otherwise than on the basis of thedecisions of bodies of state power and bodies of local self-government taken in accordance withthe Russian Federation laws.(as amended by Federal Law No. 93-FZ of July 21, 2005)3. During the period of the election campaign, it shall not be allowed to organize lotteries orother risk-based games in which prizes or participation in winning prizes depends on votingresults, election results or which are otherwise connected with the election of the President of theRussian Federation.(Clause 3 as amended by Federal Law No. 93-FZ of July 21, 2005)5. Candidates, their agents and authorized representatives for financial matters, political partieswhich nominated candidates, their agents and authorized representatives as well as theorganizations registered after the commencement of the election campaign, which are founded,owned, possessed by these persons and/or political parties or have them as members of theirgoverning bodies (in organizations where the highest governing body is the general meeting – asmembers of the bodies which manage the activity of these organizations) shall not carry out anycharitable activities during the period of the election campaign. In the course of the electioncampaign other individuals and legal entities shall not carry out any charitable activities upon therequest, on the instructions or on behalf of the said candidates, political parties, agents andauthorized representatives and shall not conduct any election campaigning simultaneously withcharitable activities. The said candidates, political parties, agents and authorized representativesshall be prohibited from asking other natural persons and legal entities to render material orfinancial assistance or services to voters.(Clause 5 as amended by Federal Law No. 93-FZ of July 21, 2005)5.1. Propaganda materials shall not contain commercial advertising.(Clause 5.1 was added by Federal Law No. 64-FZ of April 26, 2007)5.2. The air time, provided to registered candidates, political parties which nominatedregistered candidates on the channels of the TV and radio broadcasting organizations for Foundation for Democratic Advancement Page | 30

presenting their propaganda materials, shall not be used by them for the followingpurposes:1) to call for voting against any candidate (candidates);2) to describe possible negative consequences if any candidate is elected;3) to disseminate information with a clear emphasis on some candidate (candidates), somepolitical party which nominated a registered candidate, accompanied by negativecomments;4) to disseminate information conducive to the formation of a negative attitude of voterstowards any candidate, any political party which nominated a registered candidate.(Clause 5.2 was added by Federal Law No. 64-FZ of April 26, 2007)6. If mass media organizations publish (make public) propaganda or informationalmaterials (including such materials containing true information) which may damage thehonor, dignity or business reputation of any candidate, the business reputation of anypolitical party which nominated a candidate, these media organizations shall provide suchcandidate, such political party with a possibility to publish (make public), free of charge, adenial or some other explanation in defense of their honor, dignity or business reputationbefore the end of the campaigning period. In order to make public the said denial or someother explanation the candidate, the political party shall be provided with air time at thesame time of the day at which the initial information was aired; the amount of such air timeshall not be less than the amount of the air time allocated for airing the initial information,and, in any case, it shall not be less than two minutes. When a denial or some otherexplanation is to be published, its text shall be printed in the same font, placed in the samepart of the page and the amount of print space allocated to it shall not be less than theamount of print space allocated to the text refuted by the denial. The failure to providesuch candidate, such political party with a possibility to publish (make public) a denial orsome other explanation before the end of the campaigning period may serve as a groundfor bringing the mass media organization, its officials to responsibility under the RussianFederation laws. The requirements set forth in this clause shall not apply to thepresentation of propaganda materials by registered candidates, political parties when theyuse free and paid air time, free and paid print space in accordance with this Federal Law.(Clause 6 as amended by Federal Law No. 93-FZ of July 21, 2005)7. The law enforcement and other bodies shall be obliged to take measures to stop unlawfulpropaganda activities, prevent production of false and unlawful printed, audio–visual and otherelection propaganda materials and seize such materials, identify the producers of the saidmaterials and the source from which they are paid for and promptly inform the Central ElectionCommission of the Russian Federation, the election commission of a subject of the RussianFederation about the facts established and measures taken.8. Election commissions shall exercise control over the compliance with the proceduresestablished for election campaigning and shall take measures to eliminate their violations. If false Foundation for Democratic Advancement Page | 31

printed, audio-visual and other election propaganda materials are disseminated or if electionpropaganda materials are disseminated in violation of the requirements set forth in Article 55 ofthis Federal Law, if any TV and radio broadcasting organization or any print media outlet fails tocomply with the election campaigning procedures established by this Federal Law, the relevantelection commission shall be obliged to apply to the law enforcement authorities, a court, thefederal body of executive power charged with the performance of regulatory functions in thesphere of mass communications and ask them to stop unlawful propaganda activities, seizeunlawful election propaganda materials and bring to responsibility such TV and radiobroadcasting organization or print media outlet, their officials and other persons under theRussian Federation laws.(Clause 8 as amended by Federal Law No. 93-FZ of July 21, 2005)6. The cost of free air time and free print space shall be determined by multiplying theamount of air time and print space, provided to political parties in accordance with Clause5, Article 52 and Clause 5, Article 53 of this Federal Law, by the rates charged for air timeand print space, as fixed and published by the TV and radio broadcasting organizationsand the print media in accordance with Clause 9, Article 51 of this Federal Law. If free airtime was used for participation in joint campaigning events, the sums to be paid by eachpolitical party falling within Clause 3 of this article shall be determined by the state TV andradio broadcasting organizations in equal parts in proportion to the total number of theparticipants (political parties) in each of these joint campaigning events for which free airtime was provided to a political party. The cost of the provided free air time and printspace shall not be paid if a political party officially refused to use such air time and printspace in accordance with the procedure and at the time specified by Clause 18, Article 52and Clause 11, Article 53 of this Federal Law.(Clause 6 as amended by Federal Law No. 93-FZ of July 21, 2005)Chapter XI. COMPLAINTS ABOUT VIOLATIONS OF ELECTORAL RIGHTS OF CITIZENSAND RESPONSIBILITY FOR VIOLATION OF LEGISLATION ON THE ELECTION OFTHE PRESIDENT OF THE RUSSIAN FEDERATION5. The registration of a candidate may be cancelled by the Supreme Court of the RussianFederation on the basis of a petition of the Central Election Commission of the RussianFederation or a petition of other registered candidates not later than five days before voting dayin the following cases:1) new circumstances have come to light, which constitute a ground for the refusal of theregistration of the candidate in accordance with Sub–Clauses 1, 1.1, 4, 6, 9, 10, 11 or 12, Clause2, Article 39 of this Federal Law. “New circumstances” shall mean the circumstances whichexisted when a decision was taken to register the candidate but which were not known and couldnot be known to the Central Election Commission of the Russian Federation;2) the candidate has repeatedly taken advantage of his office or official position; Foundation for Democratic Advancement Page | 32

3) it has been established that voters were bribed by the candidate, his agent or authorizedrepresentative for financial matters or by some other person or organization acting on theirinstructions;4) campaign expenditures made by the candidate from sources other than his electoral fund toachieve a definite result in the election of the President of the Russian Federation exceed 5percent of the maximum limit on all expenditures from an electoral fund of a candidateestablished by this Federal Law;5) expenditures made by the candidate from the electoral fund exceed by more than 5 percent themaximum limit on all expenditures from an electoral fund of a candidate established by thisFederal Law;6) the candidate has failed to observe the restrictions imposed by Clause 1 or 1.1, Article 56 ofthe Federal Law "On Basic Guarantees of Electoral Rights and the Right of Citizens of theRussian Federation to Participate in a Referendum";7) it has been established that the candidate concealed information about his record ofconviction;8) campaign expenditures made by the candidate from sources other than his electoral fund forthe federal electoral district to achieve a definite result in the election of the President of theRussian Federation when the candidate runs simultaneously in several electoral districts exceedby more than 5 percent the maximum limit on all expenditures from all electoral funds of thiscandidate, established by Clause 10, Article 58 of this Federal Law9) expenditures made from all electoral funds of the candidate running in several electoraldistricts exceed by more than 5 percent the maximum limit on all expenditures from all electoralfunds of the candidate, established by Clause 10, Article 58 of this Federal Law;10) the candidate has repeated failed to observe the restrictions imposed by Clause 5.2, Article56 of this Federal Law;11) it has been established that in the period mentioned in Sub–Clause 4, Clause 5.2, Article 3 ofthis Federal Law (but before receiving the status of a candidate) this citizen committed actsindicated in Sub–Clause "g," Clause 7, Article 76 of the Federal Law "On Basic Guarantees ofElectoral Rights and the Right of Citizens of the Russian Federation to Participate in aReferendum."2. After the Central Election Commission of the Russian Federation takes a decision on theresults of the election of the President of the Russian Federation, a court may reverse thisdecision on the basis of at least one of the following facts determined by the court:(as amended by Federal Law No. 93-FZ of July 21, 2005)1) the campaign expenditures made by the candidate, who has been declared elected, fromsources other than his electoral fund exceed 10 percent of the maximum limit on all expenditures Foundation for Democratic Advancement Page | 33

from an electoral fund of a candidate established by this Federal Law or the candidate exceededby more than 10 percent the said maximum limit;2) the candidate, who has been declared elected, was bribing voters and this infraction does notmake it possible to establish the real will of the voters;3) in the course of election campaigning the candidate, who has been declared elected, failed tocomply with the requirements of Clause 1, Article 56 of this Federal Law and this infraction doesnot make it possible to establish the real will of the voters;4) the candidate, who has been declared elected, took advantage of his office or official positionand this infraction does not make it possible to establish the real will of the voters.3. A court of the appropriate level may also reverse the decision of an election commission on thevote returns in an electoral precinct, a territory, a subject of the Russian Federation, the decisionon the results of the election of the President of the Russian Federation in the event of theviolation of the rules for the preparation of voter lists, the procedure for the formation of electioncommissions, the voting and vote counting procedures (including obstruction of monitoring theseprocedures), the procedure for determining the election results, in the event of an unlawfulrefusal to register a candidate admitted as such after voting day; other violations of the electorallegislation of the Russian Federation, if such infractions do not make it possible to establish thereal will of the voters.The propaganda period commences after nomination of candidates (lists of candidates) and,therefore, a candidate or representatives of an electoral association (bloc) may engage inpropaganda activities already during collection of signatures. Propaganda in the mass mediamay the conducted only during the last month before election day.The period of election campaigns is now reduced to 80 - 110 days for federal elections (in thepast, this period was up to 150 days)The Russian Federation recognizes political diversity and a multi-party system. Based on thisconstitutional principle the state shall guarantee the equality of political parties before lawregardless of the ideology, objectives and goals set out in their constituent and programdocuments.The state shall guarantee the observance of the rights and legitimate interests of political parties.2. A political party shall meet the following requirements:a political party shall have regional branches in more than a half of the subjects of the RussianFederation; only one regional branch of the given political party may be created in any onesubject of the Russian Federation; a political party shall have not less than ten thousand partymembers and its regional branches in more than a half of the subjects of the Russian Federationshall have not less than one hundred party members in accordance with Clause 6, Article 23 ofthis Federal Law. Each one of the other regional branches shall have not less than fifty membersof the political party in accordance with Clause 6, Article 23 of this Federal Law; the leading and Foundation for Democratic Advancement Page | 34

other bodies of a political party, its regional branches and other structural subdivisions shall belocated in the territory of the Russian Federation.4. The objectives and goals of a political party shall be set out in its statutes and program.The main objectives of a political party shall be as follows: shaping of public opinion; politicalinstruction and education of citizens; expression of opinions of citizens on all issues of publiclife; making the general public and the bodies of state power aware of these opinions;nomination of candidates at elections to legislative (representative) bodies of state power andrepresentative bodies of local self-government, participation in elections to the said bodies and intheir work.2. The activity of political parties shall not infringe upon the human and civil rights and freedomsguaranteed by the Constitution of the Russian Federation.3. Political parties shall operate openly, the information on their constituent and programdocuments shall be available to the general public.4. Political parties shall provide for men and women, citizens of the Russian Federation ofvarious nationalities, who are members of a political party, equal opportunities of beingrepresented in the leading bodies of the political party, on the lists of candidates for deputies andfor other elective offices in the bodies of state power and bodies of local self-government.Article 9. Restrictions On the Creation and Activity of Political Parties1. Creation and activity of political parties shall be prohibited if their objectives or actionsaim at a forcible change of the fundamentals of the constitutional system, violation of theintegrity of the Russian Federation, undermining of the national security, formation ofmilitary and paramilitary units, incitement of racial, national or religious enmity.2. The inclusion in the statutes and programs of political parties of provisions advocatingthe ideas of social justice and the activity of political parties aimed at the protection ofsocial justice shall not be regarded as incitement of social enmity.3. The creation of political parties on a professional, racial, national or religious basis shall not beallowed.In this Federal Law "professional, racial, national or religious basis" shall mean the proclamationin the statutes and the program of a political party of such objectives as the advocacy ofprofessional, racial, national or religious interests and also the reflection of these objectives inthe name of a political party.A political party shall not consist of persons of one profession.4. Structural subdivisions of political parties shall be created and shall operate only on aterritorial basis. Structural subdivisions of political parties shall not be formed in the bodies ofstate power and bodies of local self-government, in the Armed Forces of the Russian Federation, Foundation for Democratic Advancement Page | 35

in the law enforcement and other government agencies, in the governmental and non-governmental organizations.5. The activity of political parties and their structural subdivisions shall not be allowed in thebodies of state power and bodies of local self-government (except for legislative (representative)bodies of state power and representative bodies of local self-government), in the Armed Forcesof the Russian Federation, in the law enforcement and other government agencies, in theadministrative apparatuses of legislative (representative) bodies of state power, in thegovernmental organizations. Political parties shall not interfere in the educational process ateducational establishments.6. In the territory of the Russian Federation the creation and activity of political parties of foreignstates and of their structural subdivisions shall not be allowed.7. If a state of emergency or martial law is imposed in the territory of the Russian Federation orin separate parts thereof, the activity of political parties shall be subject to the federalconstitutional law on the state of emergency or on martial law.Article 12. Organizing Committee1. In order to prepare, convene and hold the constituent congress of a political party, the citizensof the Russian Federation, eligible for membership in a political party, shall set up an organizingcommittee consisting of not less than ten persons.2. The organizing committee shall notify in writing the federal body of executive powerauthorized to carry out the state registration of political parties (hereafter "the federalregistration body") of its intention to create a political party and shall indicate thesuggested name of such party. The following shall be submitted to the federal registrationbody along with the said notification:a) information about not less than ten members of the organizing committee (full names,dates of birth, citizenship, contact telephones);b) the minutes of the meeting of the organizing committee indicating the purpose for whichthe committee has been formed; the period of its powers (not to exceed one year); itslocation; the procedure for the use of funds and other property of the organizingcommittee; information about the commissions member authorized to open a settlementaccount in which the funds of the organizing committee are to be deposited and to concludecivil-law contracts required to provide for the activity of the committee (hereafter "theauthorized representative of the organizing committee") (full name, date of birth, addressof residence, citizenship, series and number of the passport or an equivalent identity paper,contact telephone).3. On the day of receipt of the notification and other documents indicated in Clause 2 of thisArticle the federal registration body or its territorial agency (hereafter "the territorial registrationagency") shall issue to the authorized representative of the organizing committee a documentconfirming submission of these documents. . Foundation for Democratic Advancement Page | 36

4. Within a month upon receipt of the document indicated in Clause 3 of this Article theorganizing committee shall publish an announcement in one of or several national newspapers orperiodicals about its intention to create a political party and submission of the correspondingdocuments to the federal registration body.Article 20. Grounds for Denying the State Registration of a Political Party or Its RegionalBranch1. A political party may be denied the state registration if:a) the provisions of the statutes of the political party are contrary to the Constitution of theRussian Federation, federal constitutional laws, this Federal Law and other federal laws;b) the name and/or the symbols of the political party do not meet the requirements of Article 6and 7 of this Federal Law;Chapter IV. Internal Structure of a Political PartyArticle 21. Statutes of a Political Party1. A political party, its regional branches and other structural subdivisions shall function on thebasis of and in compliance with the statutes of the political party.2. The statutes of a political party shall contain the provisions defining:a) the objectives and goals of the political party;b) the name of the political party, including its abbreviated name, the description of its symbols(if any);c) the conditions and procedure for acquiring and losing membership in the political party, therights and duties of its members;d) the procedure for registration of members of the political party;e) the procedure for creation, reorganization and liquidation of the political party, its regionalbranches and other structural subdivisions;f) the procedure for election of the leading and supervisory-auditing bodies of the political party,its regional branches and other structural subdivisions, the period of powers and the competenceof the said bodies;g) the procedure for introducing modifications and amendments in the statutes of the politicalparty and its program;h) the rights of the political party, its regional branches and other structural subdivisions withregard to management of funds and other property; the financial responsibility of the politicalparty, its regional branches and other structural subdivisions; the reporting rules of the politicalparty, its regional branches and other structural subdivisions;i) the procedure for nomination by the political party of candidates (lists of candidates) fordeputies and for other elective offices in the bodies of state power and bodies of local self-government.j) the grounds and procedure for recalling candidates, registered candidates for deputies and forother elective offices in the bodies of state power and bodies of local self-government, nominatedby the political party. Foundation for Democratic Advancement Page | 37

Article 26. Rights of a Political PartySubject to the Russian Federation laws a political party may:a) freely disseminate information on its activity, propagandize its views, objectives and goals;b) participate in the preparation of decisions of bodies of state power and bodies of local self-government in the procedure and within the limits established by this Federal Law and otherlaws;c) participate in elections and referenda subject to the Russian Federation laws;d) create regional, local and primary branches, including such branches with the status of a legalentity, take decisions on their reorganization and liquidation;e) organize and hold meetings, rallies, demonstrations, marches, picketing and other publicevents;f) found publishing houses, news agencies, print shops, mass media and educational institutionsfor additional adult education;g) make use of state and municipal mass media on equal terms;h) form associations and unions with other political parties and other public associations withoutformation of a legal entity;i) defend its rights and represent the legitimate interests of its members;j) establish and maintain international ties with political parties and other public associations offoreign states, join international unions and associations;k) carry on business activity subject to the Russian Federation laws and the party statutes.A political party may engage in other activities specified by the Russian Federation laws.Article 27. Obligations of a Political Party1. A political party shall:a) carry on its activity in conformity with the Constitution of the Russian Federation, federalconstitutional laws, federal laws and other statutory acts of the Russian Federation and the partystatutes;b) every year submit to the registration authorities the information about the number of itsmembers in each of its regional branches, about continuation of its activity and the location of itspermanent leading body and the copies of the following financial documents filed with the taxauthorities of the Russian Federation: the consolidated financial statement of the political partyand the financial statements (accounting reports) of its regional branches and other structuralsubdivisions with the status of a legal entity (hereafter "registered structural subdivisions);c) admit representatives of registration authorities to public events (including congresses,conferences or general meetings) held by the political party, its regional branches and otherstructural subdivisions;d) notify in advance the election commission of the appropriate level about organization ofevents connected with the nomination of its candidates (lists of candidates) for deputies and forother elective offices in the bodies of state power and bodies of local self-government and admitrepresentatives of the election commission of the appropriate level to these events.2. Every year, a political party and its regional branches shall submit to the registrationauthorities the information about the number of registered candidates for deputies and for otherelective offices in the bodies of state power and bodies of local self-government, nominated by Foundation for Democratic Advancement Page | 38

the political party, its regional branches and other structural subdivisions (including suchnominations made within an election bloc) and also the information about the lists of candidatesfor deputies registered by election commissions. This information shall be submitted in the formof a copy of the protocol of election results certified by the election commission of theappropriate level.Article 30. Donations to a Political Party and Its Regional Branches1. A political party and its regional branches may accept donations in the form of money andother property from individuals and legal entities, provided these donations are duly documentedand their source is indicated.2. Donations to a political party and its regional branches in the form of money shall be made bymeans of non-cash transfers. Individuals shall be allowed to make cash donations to a politicalparty and its regional branches. The total amount of annual cash donations from a singleindividual shall not exceed ten times the minimum monthly wage, established by the federal lawas of March 1 of the year preceding the year in which the donations are made.3. No donations to a political party and its regional branches shall be allowed from:a) foreign states and foreign legal entities;b) foreign nationals;c) stateless persons;d) citizens of the Russian Federation under 18 years of age;e) Russian legal entities with foreign participation, if the foreign stake in their authorized capitalexceeds 30 percent as of the date on which the donation is made (for open joint-stock companies- as of the date of the list of shareholders for the previous year);f) international organizations and international public movements;g) bodies of state power and bodies of local self-government;h) state and municipal organizations;i) legal entities with an authorized capital wherein the state or municipal stake exceeds 30percent as of the date on which the donation is made;j) military units, military organizations, law enforcement agencies;k) charitable institutions, religious associations and organizations founded by them;l) anonymous donors;m) legal entities registered less than one year prior to the date on which the donation is made.4. The donations indicated in Clause 3 of this Article as well as donations which, whentransferred, cause the amount indicated in Clause 9 of this Article to be exceeded shall bereturned to the donors by a political party or its regional branch within a month of the date onwhich they were received or, should it be impossible to do so, they shall be transferred to thebudget revenues of the Russian Federation.5. A legal entity donating money to a political party or its regional branch shall transfer themoney to the account of the political party or its regional branch at a credit institution, indicatingthe information required under the rules of non-cash settlements established for legal entities and Foundation for Democratic Advancement Page | 39

shall make a note in the payment order indicating that the donation does not come within therestrictions on donations imposed by Clause 3 of this Article.6. A citizen of the Russian Federation donating money to a political party or its regional branchshall transfer the money to the account of the political party or its regional branch at a creditinstitution personally from his own funds, producing a passport or an equivalent identity paperand indicating his full name and date of birth in the payment order or the money transfer. If acitizen of the Russian Federation makes a cash donation to a political party or its regional branchas provided in Clause 2 of this Article, the full name and date of birth of the donor shall beindicated in the credit slip.7. If a donation is made in kind, a political party or its regional branch shall assess its value inmoney in conformity with the Russian Federation laws and shall enter the relevant information,including the information about the donor specified Clauses 5 and 6 of this Article, in theconsolidated financial statement of the political party or the financial statement of its regionalbranch.8. The amount of donations received by a political party, including donations to its regionalbranches, from one legal entity within one calendar year shall not exceed one hundredthousand times the minimum monthly wage established by the federal law as of March 1 ofthe year preceding the year in which the donations were made. The amount of donationsreceived by a political party, including donations to its regional branch, from oneindividual within one calendar year shall not exceed ten thousand times the minimum wageestablished by the federal law as of March 1 of the year preceding the year in which thedonations were made.9. The total amount of annual donations received by a political party or its regional branchshall not exceed ten million times the minimum monthly wage established by the federallaw as of March 1 of the year preceding the accounting year. The amount of annualdonations received by a regional branch of the political party shall not exceed two hundredthousand times the minimum monthly wage established by the federal law as of March 1 ofthe year preceding the accounting year.Article 31. Economic Activity of a Political Party1. A political party shall be independent in dealing with economic aspects of its activity,including labor remuneration, business activity, receipt and disposition of funds and otherproperty.2. Members of the apparatus of a political party, its regional branches and other structuralsubdivisions, working under a labor contract, shall be covered by the Russian Federation laws onlabor and social insurance.A political party, its regional branches and other structural subdivisions may conclude contractswith members of the party apparatus for a term not exceeding the term of office of the leadingbodies of the political party, its regional branches and other structural subdivisions. Foundation for Democratic Advancement Page | 40

3. To create financial and material conditions for achieving the objectives and goals set out in thestatutes and the program of a political party, the political party, its regional branches and otherstructural subdivisions may conduct the following types of business activity:a) information, advertising, publishing and printing activities aimed to propagandize their views,objectives, goals and to publicize the results of their activities;b) production and sale of souvenirs with the symbols and/or the name of the political party andproduction and sale of books and printed materials;c) sale and leasing of movable and immovable property owned by the political party;4. A political party, its regional branches and other structural subdivisions shall not engage in anykinds of business activity other than those listed in Clause 3 of this Article.5. The revenues from the business activity of a political party, its regional branches and otherstructural subdivisions shall not be distributed among the members of the political party and shallbe used only for the purposes stipulated in its statutes.6. The results of the economic activity of a political party, its regional branches and otherstructural subdivisions shall be shown in the consolidated financial statement of the politicalparty and the financial statements of its regional branches and other registered structuralsubdivisions.7. A political party, its regional branches and other structural subdivisions may engage incharitable activity.Article 32. Kinds of State Support for Political Parties1. The federal bodies of state power, bodies of state power of the subjects of the RussianFederation and bodies of local self-government shall provide support for political parties,their regional branches and other structural subdivisions on equal terms and conditionsby:a) ensuring equal terms and conditions and equal guarantees of access to state-run andmunicipal mass media;b) providing state-owned and municipal premises and means of communication on equalterms and conditions similar to those under which they are provided to state and municipalinstitutions;c) ensuring equal terms and conditions for participation in election campaigns, referenda,public and political events.2. State support shall be also provided for political parties in the form of state financing inconformity with Article 33 of this Federal Law.3. State financing of a political party shall be suspended if the activity of the political party issuspended or if the political party fails to comply with the requirements of Article 34 of thisFederal Law. Foundation for Democratic Advancement Page | 41

4. In the event of liquidation of a political party, its regional branch or other structuralsubdivisions, the state support for the given political party, its regional branch or other structuralsubdivision shall be discontinued as of the date on which the court decision on liquidation of thepolitical party, its regional branch and other structural subdivision comes into legal force or as ofthe date on which the authorized body of the political party adopts the relevant decision. In theevent of reorganization of a political party, its regional branch or other structural subdivisions,state support for the given political party, its regional branch and other structural subdivisionshall be discontinued as of the date on which a corresponding entry is made in the unified stateregister of legal entities.Article 37. Recognition of a Political Party As Participating in Elections1. A political party shall be deemed as participating in elections in one of the following caseswhere voting at the elections is conducted on:a) a registered federal list of candidates for deputies of the State Duma of the Federal Assemblyof the Russian Federation, which was nominated by the political party (or the election bloc inwhich it is comprised);b) candidates for deputies of the State Duma of the Federal Assembly of the Russian Federation,who were nominated by the political party (or the election bloc in which it is comprised) andregistered in not less than 5 percent of single-mandate electoral districts;c) a registered candidate for President of the Russian Federation, who was nominated by thepolitical party (or the election bloc in which it is comprised);d) registered candidates for the office of the top executive of a subject of the Russian Federation(head of the highest executive body of state power of the subject of the Russian Federation), whowere nominated by the political party (including a party within an election bloc) in not less than10 percent of the subjects of the Russian Federation;e) registered candidates (lists of candidates) for deputies of legislative (representative) bodies ofthe subjects of the Russian Federation, who were nominated by the political party (including aparty within an election bloc) in not less than 20 percent of the subjects of the RussianFederation;f) registered candidates (lists of candidates) for deputies of bodies of local self-government, whowere nominated by the political party (including a party within an election bloc) in more than ahalf of the subjects of the Russian Federation.2. A political party, which did not participate in elections during five consecutive years asprovided in Clause 1 of this Article, shall be subject to liquidation in accordance with Article 41of this Federal Law. Chapter IX. Suspension of Activity and Liquidation of Political PartiesArticle 38. Control Over the Activity of Political Parties1. The control over the observance by political parties, their regional branches and otherstructural subdivisions of the Russian Federation laws and over compliance of the activity of apolitical party, its regional branches and other structural subdivisions with the provisions, Foundation for Democratic Advancement Page | 42

objectives and goals set out in the statutes of the political party shall be exercised by registrationauthorities.The said authorities may:a) not oftener than once a year examine the documents of political parties and their regionalbranches, which confirm the existence of the regional branches and the number of members ofthe political parties;b) send their representatives to public events (including congresses, conferences or generalmeetings) held by a political party, its regional branches and other structural subdivisions toadopt the statutes and the program of the political party, introduce modifications andamendments in these documents, elect the leading and supervisory-auditing bodies of thepolitical party, nominate candidates for deputies and for other elective offices in the bodies ofstate power and the bodies of local self-government, reorganize and liquidate the political partyand its regional branches;c) issue a written warning to a political party, its regional branch or other registered structuralsubdivisions (indicating the concrete reasons for doing so) if they carry on an activity which iscontrary to the provisions, objectives and goals set out in the statutes of the political party. Thepolitical party, its regional branch or other registered structural subdivisions may appeal thiswarning to a court. If a warning is issued to a regional branch or some other registered structuralsubdivision of a political party, the territorial registration agency shall immediately inform to thiseffect the federal registration body and the leading body of the political party;d) apply to a court for suspension of the activity or for liquidation of a political party, its regionalbranch or other registered structural subdivisions in pursuance of Clause 3, Article 39; Clause 3,Article 41; Clause 3, Article 42 of this Federal Law.2. The control over the sources of income of political parties, their regional branches and otherregistered structural subdivisions, over the amount of funds received by them and over thepayment of taxes shall be exercised by the tax authorities of the Russian Federation.Article 39. Suspension of the Activity of a Political Party, Its Regional Branch and OtherStructural Subdivisions1. If a political party violates the Constitution of the Russian Federation, the federalconstitutional laws, this Federal Law and other federal laws, the federal registration body shallissue a written warning to the political party, indicating the committed violations, and shall set aperiod for removing these violations, which shall be not less than two months. If the politicalparty fails to remove these violations within the prescribed period and does not appeal thewarning of the federal registration body to a court, the activity of the political party may besuspended for a period of up to six months by a decision of the Supreme Court of the RussianFederation on the basis of an application of the federal registration body.2. If a regional branch or some other structural subdivision of a political party violates theConstitution of the Russian Federation, federal constitutional laws, this Federal Law and otherfederal laws, the appropriate territorial registration agency shall issue a written warning to thisregional branch or the other structural subdivision of the political party, indicating the committedviolations and shall set a period for removing these violations, which shall be not less than one Foundation for Democratic Advancement Page | 43

month. If the regional branch or the other structural subdivision of the political party fails toremove these violations within the prescribed period and does not appeal the warning of theterritorial registration agency to a court, the activity of the regional branch or the other structuralsubdivision may be suspended for a period of up to six months by a decision of the supremecourt of the republic, a territorial or regional court, the court of a city of federal significance, thecourt of an autonomous region or autonomous district on the basis of an application of theappropriate territorial registration agency.3. The registration authorities may apply to a court for suspension of the activity of a politicalparty, its regional branch or other structural subdivisions following the issuance of two writtenwarnings as provided in Sub-Clause "c," Clause 1, Article 38 of this Federal Law, unless thesewarnings have been appealed to a court in the procedure established by law or have been foundto be contrary to law by a court. The federal registration body or a territorial agency shall notapply to a court for suspension of the activity of a political party, its regional branch or otherstructural subdivisions while the court is considering the complaints against such warnings.4. If a local or a primary branch of a political party is not a legal entity, the responsibilityestablished by this Federal Law for violations committed by this local or the primary branchshall be borne by the respective regional branch of the political party.5. The activity of a political party, whose federal list at the election of deputies to the State Dumaof the Federal Assembly of the Russian Federation was admitted for distribution of deputymandates, shall not be suspended on the grounds, set forth in Sub-Clauses "d" and "e," Clause 3,Article 41 of this Federal Law, during four years from voting day at the said elections.6. It shall not be allowed to suspend the activity of a political party in the period from the day ofofficial publication of a decision to call (hold) elections of deputies to the State Duma of theFederal Assembly of the Russian Federation or the election of President of the RussianFederation to the day of official publication of the election results, except for the cases providedby Clauses 1, 4 and 5, Article 9 of this Federal Law.7. It shall not be allowed to suspend the activity of a regional branch of a political party in theperiod from the day of official publication of a decision to call (hold) elections of deputies to thelegislative (representative) body of the given subject of the Russian Federation, the top executiveof the given subject of the Russian Federation (head of the highest executive body of state powerof the given subject of the Russian Federation) to the date of official publication of the electionresults, except for the cases provided by Clauses 1, 4 and 5, Article 9 of this Federal Law.Article 40. Consequences of Suspension of the Activity of a Political Party, Its RegionalBranch and Other Structural Subdivisions1. If the activity of a political party, its regional branch or some other structural subdivision hasbeen suspended for a period established by a court decision, the rights of the political party, itsregional branch or the other structural subdivision as a founder of mass media shall besuspended, they shall be forbidden to make use of state-run and municipal mass media; organizeand hold meetings, rallies, demonstrations, marches, picketing and other public events; Foundation for Democratic Advancement Page | 44

participate in elections and referenda; use bank deposits, except for making payments required tocarry on the economic activity of the political party, its regional branch or the other structuralsubdivision, pay compensation for losses (damages) caused by their actions, pay taxes and finesand make settlements under labor contracts.2. If, within the period of suspension of the activity of a political party, its regional branches orsome other structural subdivision, established by a court decision, the violations because ofwhich such suspension was imposed have been removed, the political party, its regional branchor the other structural subdivision shall resume their activity upon expiration of the said period.3. If a political party, its regional branch or some other structural subdivision fail to remove theviolations because of which their activity was suspended, the federal registration body or theterritorial registration agency which applied to a court for suspension of the activity of thepolitical party, its regional branch or the other structural subdivision shall apply to theappropriate court for liquidation of this political party, its regional branch or the other structuralsubdivision.Article 41. Liquidation of a Political Party1. A political party may be liquidated by a resolution of its supreme leading body - its congressor by a decision of the Supreme Court of the Russian Federation.2. The resolution of the congress of a political party on liquidation of the political party shall beadopted in the procedure established by Clause 1, Article 25 of this Federal Law and the statutesof the political party.3. A political party may be liquidated by a decision of the Supreme Court of the RussianFederation if the political party:a) fails to meet the requirements of Clauses 1, 4 and 5, Article 9 of this Federal Law;b) fails to remove the violations because of which its activity was suspended within the periodestablished by the court decision;c) does not participate in elections as provided in Article 37 of this Federal Law;d) does not have regional branches with not less than one hundred party members in more than ahalf of the subjects of the Russian Federation;e) does not have the necessary number of members established by Clause 2, Article 3 of thisFederal Law.4. An application for liquidation of a political party shall be filed with the Supreme Court of theRussian Federation by the federal registration body.5. A political party whose federal lists at the elections of deputies to the State Duma of theFederal Assembly of the Russian Federation was admitted for distribution of deputy mandatesshall not be liquidated on the grounds provided in Sub-Clauses "d" and "e," Clause 3 of thisArticle during four years from voting day at the said elections.6. It shall not be allowed to liquidate a political party by a decision of the Supreme Court of theRussian Federation in the period from the day of official publication of a decision to call (hold) Foundation for Democratic Advancement Page | 45

elections of deputies to the State Duma of the Federal Assembly of the Russian Federation, theelection of President of the Russian Federation to the day of official publication of the electionresults, except for the cases provided by Clause 1, Article 9 of this Federal Law.Article 42. Liquidation of a Regional Branch and Other Structural Subdivisions of aPolitical Party1. A regional branch and other structural subdivisions of a political party may be liquidated by adecision of the body of the political party duly authorized by its statutes, by a court decision andalso in the event of liquidation of the political party.2. Liquidation of a regional branch or other structural subdivisions of a political party by adecision of the body of the political party duly authorized by its statutes shall be carried out onthe grounds and in the procedure established by the statutes of the political party. The saidauthorized body shall immediately notify the federal registration body about its decision inwriting and the federal registration body shall make an appropriate entry in the unified stateregister of legal entities.3. A regional branch or other structural subdivisions of a political party shall be liquidated by acourt decision if:a) they fail to meet the requirements of Clauses 1, 4 and 5, Article 9 of this Federal Law;b) within the period established by the court decision they fail to remove the violations becauseof which their activity was suspendedc) the regional branch of a political party does not have the number of party members requiredunder Clause 2, Article 3 of this Federal Law.4. An application for liquidation of a regional branch or some other structural subdivision of apolitical party shall be filed with the supreme court of a republic, the territorial or regional court,the court of a city of federal significance, the court of an autonomous region or autonomousdistrict by the federal registration body or by an appropriate territorial registration agency.5. It shall not be allowed to liquidate a regional branch of a political party by a court decision inthe period from the day of official publication of a decision to call (hold) elections of deputies tothe legislative (representative) body of the subject of the Russian Federation, election of the topexecutive of the subject of the Russian Federation (head of the highest executive body of statepower of the subject of the Russian Federation) to the day of official publication of the electionresults, except for the cases provided by Clause 1, Article 9 of this Federal Law.Article 43. Appealing Court Decision to Suspend the Activity of or Liquidate a PoliticalParty, Its Regional Branch or Other Structural Subdivisions1. A court decision to suspend the activity of or liquidate a political party, its regional branch orsome other structural subdivision may be appealed in the cases and in the procedure establishedby the federal law. Foundation for Democratic Advancement Page | 46

2. If a court decision to suspend the activity of or liquidate a political party, its regional branch orsome other structural subdivision is reversed, the state shall compensate the political party for alllosses sustained by it as a result of unlawful suspension of its activity, the activity of its regionalbranch or the other structural subdivision or unlawful liquidation of the political party, itsregional branch or the other structural subdivision.Article 44. Reorganization of a Political Party, its Regional Branch and Other StructuralSubdivisions1. A political party shall be reorganized by a resolution of the congress of the political party to beadopted in the procedure established by Clause 1, Article 25 of this Federal Law and the statutesof the political party.2. A regional branch and other structural subdivisions of a political party shall be reorganized bya resolution of the congress of the political party or by a decision of the body of the politicalparty duly authorized by its statutes. A regional branch of a political party may not take adecision on its own reorganization.Article 45. Consequences of Liquidation and Reorganization of a Political Party1. In the event of liquidation of a political party, its property remaining after settlement of itsliabilities shall be:a) used for achievement of the goals set out in the statutes and the program of the political partyif it was liquidated by a decision of the congress of the political party;b) transferred to the budget revenues of the Russian Federation, if the political party wasliquidated by a court decision.2. In the event of reorganization of a political party, its property shall be disposed of in theprocedure established by the Civil Code of the Russian Federation with respect to reorganizationof legal entities.3. Upon termination of activity of a political party in the event of its liquidation or reorganizationthe state registration certificate of the political party shall be annulled and the political party shallbe removed from the unified state register of legal entities.Misuse of election propaganda and election campaign:• appeal to seize power, to violent change of the constitutional system and disintegration ofRussian Federation, propaganda of war;• propaganda of social, racial, national, religious hatred and enmity;• misuse of freedom of the mass media in other ways as specified by RF laws.January 2011 Minimum wage rate:Russian Federation 4,611 roubles RUB 01.06.2011Russian rubles per month, for all workers nationwide. Russias minimum wage was last changedin 2008. Foundation for Democratic Advancement Page | 47

Electoral Fairness Audit Results for Equality of Candidates and Parties:Score:The FDA electoral fairness audit team reached consensus on a score of 2/10.Rational for Score:Though there is a high threshold to become a registered Russian political party, the FDA believesthe threshold is justified because of the privileges of registration such public electoral subsidies,free air time and print space, guaranteed access to public media and broadcasters, and equalaccess to private media and broadcasters.There are no dissemination of polls five days before an election, and election campaigning is notpermitted a day before and on the Election Day. In the FDA’s opinion, these measures help createa fair playing field for political candidates by protecting voters against election propaganda.Candidates and parties have an opportunity to review election propaganda prior to itsdissemination in the public domain. Also, they have an equal and free opportunity to respondpublicly to negative election information disseminated by media and broadcaster networks.These provisions help create a fair playing for candidates and parties, by reducing the negativeseffects of election propaganda and information propaganda.Though there is significant free air time available to candidates and parties, it is undermined bylinking free air time to paid time.Lot drawing of free air time and print space and specific equal conditions for free print spacehelp create an equal advertising opportunities for political candidates and parties.State financing of political candidates and parties based on number of votes cast favors dominantcandidates and parties.There are very high maximums for political donations by citizens and legal entities. Thesemaximums favor significantly wealthy candidates and parties. Party donations in one year from legal entity: 100,000 x minimum wage (4611 Rubles)= 461,100,000 (16,450,525.34 USD) Party donations in one year from citizen: 10,000 x minimum wage (4611 Rubles)= 46,110,000 (1,645,052.53 USD)Similarly, the very high contribution level for candidates to their own campaign favors wealthycandidates. Candidates can only contribute 15% of the maximum limits on all expenditures from the candidates’ electoral fund. ($2,137,279 USD) Foundation for Democratic Advancement Page | 48

The score of 20 percent reflects the severe inequality of electoral finance through very highlimits, and the linkage between free air time and paid air time. Though there is significant andinnovative equality in the electoral legislation such as lot drawing, free air time, and free printspace, the excessiveness of the electoral spending limits and linkage between free air time andpaid air time, which favor dominant and wealthy candidates and parties, negate most elements ofequality. Foundation for Democratic Advancement Page | 49

Chapter Three: Electoral FinanceChapter three will focus on the research and audit results of Russian laws and regulations withrespect to the equality of Russian laws and regulations with respect to electoral finance.Executive Summary:Russia received a failing score of 0 percent for electoral finance laws. The score is based onsevere inequality in the Russia’s finance laws, in which wealthy citizens, legal entities,candidates, and parties are favored significantly. For example, free air time is linked to paid airtime, and thereby favors wealthy candidates and parties. State subsidies for political candidatesand parties favor dominant candidates and parties, and the excessive donation limits favorsignificantly wealthy citizens and legal entities. The unfairness of Russia’s electoral finance lawsis compounded by Russian income inequality.Research Excerpts:The following excerpts were identified by the FDA researchers as relevant. The FDA researchersmade some excerpts bold to emphasize high relevance:Funding of the Election of the President of the Russian Federation1. Expenses on the preparation and conduct of the election of the President of the RussianFederation shall be paid from the funds allocated from the federal budget.2. Candidates shall set up their own electoral funds for financing their election campaign.Small direct party subsidies from government—in 1996, less than 5% of political parties totalincome.In the Russian 2000 presidential election, each candidate could spend ca. RUR 26 million(ca. USD 920,000) in the first round of the election and RUR 34 million (ca. USD1,200,000) inthe second round. In the case of acting president Vladimir Putin’s campaign, total contributionsto his electoral fund topped RUR 29.886.720 (ca. USD 1.030.000), and part of this amount wasreturned to the contributors.Institutional donations represented ca. 55 percent of the incomes Our Home is Russia party (ca.USD 1,3 million) and 49 percent of the income of the Liberal Democratic Party of Russia(LDPR) (ca. USD 1,1 million).During the 1996 presidential elections contributions from corporate donors played the mostimportant role, representing more than 72 percent of the total candidates’ income (ca. USD 10.6million). Foundation for Democratic Advancement Page | 50

General Lebed received 93 percent of his income from 94 legal entities (ca. USD 2.65 million)while donations made up 90 percent of Yeltsin’s campaign fund (ca.USD 2.6 million). 110.000–150.000.During the 1996 presidential elections each of the 11 registered candidates received RUR 300million (ca. USD 60.000) of direct subsidies, which accounted for only 4.46 percent of the totalcandidates’ income (RUR 73.977 million) (Russian Central Electoral Commission 1996).The editorial offices of state-run periodicals are required to publish information concerning thesums contributed to and spent from the electoral funds, passed on to them by the Central ElectionCommission of the Russian Federation. The following information is subject to mandatorypublication: (a) information about any financial transaction which involves expenditure of money from the electoral fund in an amount exceeding by more than 2 thousand times the minimum monthly wage established by the federal law as of the date of official publication of the decision to call (hold) the election of the President of the Russian Federation5; (b) information about legal entities which donated sums to an electoral fund in an amount exceeding by more than one thousand times the minimum monthly wage; (c) information about the number of individuals who have made donations to the electoral fund, which exceed by more than 100 times the minimum monthly wage; (d) information about the sums returned to donors and the reasons for the return; (e) information about the sum total of contributions to and expenditures from the electoral fund (Clause 6, Article 58 of the Federal Law «On the Election of the President of the Russian Federation»).8. Election campaigning expenditures shall be paid exclusively from the electoral funds ofregistered candidates, save the cases where free air time and free print space is provided toregistered candidate and to political parties in accordance with the procedure set forth in Articles51 – 53 of this Federal Law. Payment of expenditures incidental to election campaigning in favorany candidate from the electoral funds of other candidates shall be prohibited. (as amended byFederal Law No. 93-FZ of July 21, 2005)6. The municipal TV and radio broadcasting organizations and the municipal print media mayprovide air time and print space to registered candidates for election campaigning for a charge.Article 58. Electoral Funds of Candidates1. Candidate shall be obliged to establish their own electoral funds.2. Electoral funds of candidates may be formed only by the use of the following financialresources:1) a candidates own money in the amount not exceeding 10 percent of the maximum limiton all expenditures from a candidates electoral fund established in accordance with thisFederal Law, and for candidates on whom a repeat vote is announced – not exceeding 15percent; Foundation for Democratic Advancement Page | 51

2) the sums allocated to a candidate by the political party which nominated him, whichshall not exceed 50 percent of the maximum limit on all expenditures from a candidateselectoral fund established in accordance with this Federal Law;(as amended by Federal Law No. 93-FZ of July 21, 2005)3) voluntary donations of individuals and legal entities in the amount not exceeding,respectively, 1.5 percent and 7 percent of the maximum limit on all expenditures from acandidates electoral fund established in accordance with this Federal Law, for eachindividual, each legal entity.3. The maximum limit on all expenditures of a candidate from his electoral fund shall notexceed 400 million rubles. 14,253,469.13 USD(as amended by Federal Law No. 93-FZ of July 21, 2005)4. The maximum limit of all expenditures of a candidate on whom a repeat vote wasannounced shall not exceed 500 million rubles.Article 57. Funding of the Preparation and Conduct of the Election of the Presidentof the Russian Federation (as amended by Federal Law No. 93-FZ of July 21, 2005)5. Repealed. – Federal Law No. 93-FZ of July 21, 2005.6. No donations to electoral funds of candidates shall be allowed from:1) foreign states and foreign organizations;(as amended by Federal Law No. 93-FZ of July 21, 2005)2) foreign nationals;3) stateless persons;4) citizens of the Russian Federation under 18 years of age as of voting day;5) Russian legal entities with foreign participation if such foreign participation accounts for morethan 30 percent of the charter (pool) capital of these legal entities as of the date of the officialpublication of the decision to call the election of the President of the Russian Federation (foropen joint–stock companies – as of the date of the list of persons entitled to participate in theannual general meeting of the shareholders for the preceding financial year);(as amended by Federal Laws No. 93-FZ of July 21, 2005, Federal Law No. 274-FZ ofDecember 30, 2006)6) international organizations and international public movements;7) bodies of state power, other state bodies and bodies of local self-government;(as amended by Federal Law No. 93-FZ of July 21, 2005)8) state and municipal institutions and organizations, state and municipal unitary enterprises;(Sub–Clause 8 as amended by Federal Law No. 93-FZ of July 21, 2005)9) legal entities with a charter (pool) capital in which the stake (contribution) of the RussianFederation, a subject of the Russian Federation and/or a municipality exceeds 30 percent thereofas of the date of the official publication of the decision to call the election of the President of theRussian Federation (for open joint–stock companies – as of the date of the list of persons entitledto participate in the annual general meeting of the shareholders for the preceding financial year);(as amended by Federal Laws No. 93-FZ of July 21, 2005, Federal Law No. 274-FZ ofDecember 30, 2006) Foundation for Democratic Advancement Page | 52

10) organizations established by the state bodies and/or bodies of local self-government (with theexception of joint-stock companies established by way of privatization); organizationsestablished by the legal entities mentioned in Sub–Clauses 5 and 9 of this clause; organizationswith a charter (pool) capital in which the stake (contribution) of the legal entities mentioned inSub–Clauses 5 and 9 of this clause exceeds 30 percent thereof as of the day of the officialpublication of the decision to call the election of the President of the Russian Federation (foropen joint-stock companies - as of the date of the list of persons entitled to participate in theannual general meeting of the shareholders for the preceding financial year);(as amended by Federal Laws No. 93-FZ of July 21, 2005, Federal Law No. 274-FZ ofDecember 30, 2006)11) military units, military institutions and organizations and law enforcement bodies;12) charitable organizations and religious associations as well as organizations established bythem;(as amended by Federal Law No. 93-FZ of July 21, 2005)13) anonymous donors. "Anonymous donor" means a citizen who has not indicated or indicatedincorrectly any of the following data in the donation payment document: the surname, first nameand patronymic, residence address; a legal entity which has not indicated or indicated incorrectlyany of the following data in the donation payment document: the taxpayers identificationnumber, corporate name, bank details;(as amended by Federal Law No. 93-FZ of July 21, 2005)14) legal entities registered less than a year before voting day;15) non-profit organizations if, during a year preceding the day of the payment of the donation toan electoral fund, they received sums of money or other property from:6.1. The non-profit organizations mentioned in Sub–Clause 15, Clause 6 of this article shall notbe allowed to make donations to electoral funds of candidates only if the sums of money or otherproperty received by these non-profit organizations were not returned by them to the foreignstates, bodies, organizations or natural persons, mentioned in the second – seventh paragraphs ofSub–Clause 15, Clause 6 of this article, which gave them these sums of money or other property(or, if these sums of money or this property could not be returned, they were not transferred tothe budget of the Russian Federation) before the day of payment of a donation to an electoralfund.7. The right to manage the resources of the electoral fund shall be exercised by the candidatewho formed the fund. The resources of the electoral fund shall be used only for the purposes forwhich the electoral fund is formed, namely:1) funding of organizational-technical arrangements for collection of voter signatures in supportof the nomination of the candidate, including labor remuneration of persons employed forcollection of voter signatures;2) election campaigning and payment for informational and consultative services;3) payment for other kinds of services rendered by citizens and legal entities of the RussianFederation and payment of other expenses directly related to the conduct of the electioncampaign by the candidate.8. A candidate shall not use any sums of money other than the sums received to his electoral fundto make payments for the services connected with his election campaign. A candidate may useFoundation for Democratic Advancement Page | 53

only those sums which were remitted by payers to the special electoral account of the candidateselectoral fund before voting day in accordance with the procedure established by this FederalLaw.9. In the event of additional nomination of candidates under the circumstances mentioned inClause 6, Article 39 and in Clause 5, Article 44 of this Federal Law the maximum limit on allexpenditures from the electoral fund of candidates registered earlier shall be increased 1.5 times.5. After presentation of documents required under and executed in accordance with this FederalLaw a branch of the Savings Bank of the Russian Federation shall, without delay, open a specialelectoral account for a candidate. No fee shall be paid for the banks services in opening andservicing an electoral account and the bank shall pay no interest on the money kept in the specialelectoral account. All sums shall be credited to a special electoral account in the RussianFederation currency.6. All financial operations via a special electoral account, save the return of unspent sums to theelectoral fund and crediting of sums remitted before voting day to this account, shall bediscontinued on voting day. Financial operations connected with the payment of expenses fromspecial electoral accounts of candidates who have not submitted registration documents to theCentral Election Commission of the Russian Federation in accordance with the procedureestablished by this Federal Law or whose registration has been refused or who have withdrawnthe statement expressing the consent to run or have withdrawn their candidatures or have beenrecalled by the political party or whose registration has been cancelled or annulled shall bediscontinued by the branches of the Savings Bank of the Russian Federation on the instruction ofthe Central Election Commission of the Russian Federation.7. The responsibility for violation of the procedure established by this Federal Law for acandidate to finance his election campaign shall be borne by the candidate personally.1. Voluntary donations to the electoral fund of a candidate shall be made by citizens of theRussian Federation from their own funds and shall be paid by them personally to post offices orcredit institutions upon production of the passport or an equivalent identity document. Whenmaking a voluntary donation the citizen shall indicate the following information about himself inthe payment document: the surname, first name and patronymic, date of birth, residence address,series and number of the passport or an equivalent identity document, citizenship.(as amended by Federal Law No. 93-FZ of July 21, 2005)2. Voluntary donations of legal entities to the electoral fund of a candidate shall be made bymeans of non-cash transfers to the special electoral account. When making a voluntary donationthe legal entity shall indicate the following information about itself in the payment order: thetaxpayers identification number, date of the registration, bank details, absence of restrictionsstipulated by Clause 6, Article 58 of this Federal Law.(as amended by Federal Law No. 93-FZ of July 21, 2005)4. A candidate may return any donation, with the exception of anonymous ones, to donors. If avoluntary donation was paid into the electoral fund of a candidate by a citizen or legal entity, Foundation for Democratic Advancement Page | 54

who/which are not allowed to make such donations or in violation of the requirements of Clauses1 and 2 of this article or in an amount exceeding the maximum limit on such donationestablished by Article 58 of this Federal Law, a candidate shall, within ten days after the donationwas received to his special electoral account, return to the donor the full donation or its part bywhich it exceeds the established maximum limit on donations (minus postage), indicating thereasons for the return. A candidate shall not be held responsible for acceptance of donations fromdonors who/which falsified the data required under Clauses 1 and 2 of this Article, if thecandidate was not informed in due time of the inadmissibility of these donations.6. Citizens and legal entities may render financial support to a candidate only through thecandidate’s electoral fund. Expenditure of any sums with the aim of achieving a definite result inthe election of the President of the Russian Federation shall not be allowed if these sums havenot been paid to a candidates electoral fund. No paid work shall be performed, goods sold, paidservices provided, if they are directly or indirectly related to the election of the President of theRussian Federation and aimed at achieving a definite result in the election, without documentaryconfirmation of the consent of a candidate or his authorized representative for financial mattersand without appropriate payment made from the electoral fund of the candidate. Settlementsbetween a candidate and legal entities for such performance of work (provision of services), suchsale of goods shall be effected only on a non–cash basis.7. Legal entities, their branches, representative offices and other divisions shall not, free ofcharge or at unreasonably low (high) rates, perform any work (provide any services) directlyor indirectly related to the election of the President of the Russian Federation and aimed atachieving a definite result in the election. Material support intended for achieving a definiteresult in the election may be provided to a candidate only if such support is paid for from thecandidates electoral fund.8. A citizen may, voluntarily and free of charge, perform work (provide services) for acandidate in the course of the election campaign without involvement of third persons.5. The Central Election Commission of the Russian Federation shall furnish copies offinancial reports of candidates to the mass media and shall publish these reports in theInternet within five days of the receipt of the reports. The state print media shall be obligedto publish the financial reports, received from the Central Election Commission of theRussian Federation, within three days of their receipt.6. At least once a week and, within a period of less than ten days before voting day, at least onceevery three operating days, the branches of the Savings Bank of the Russian Federation shallfurnish the Central Election Commission of the Russian Federation with the informationconcerning the sums credited to and withdrawn from the special electoral accounts, inaccordance with the forms established by the Central Election Commission of the RussianFederation. In this case, use may be made of SAS "Vybory." Periodically, but at least once everytwo weeks up to voting day, the Central Election Commission of the Russian Federation shallfurnish the information concerning sums contributed to and expended from the electoral funds tothe mass media for publication. The Central Election Commission of the Russian Federationshall disclose the information about the sums contributed to and expended from the electoral Foundation for Democratic Advancement Page | 55

funds, which it received from the branches of the Savings Bank of the Russian Federation, tocandidates and to the mass media upon their official requests.(as amended by Federal Law No. 93-FZ of July 21, 2005)7. Upon the request of the Central Election Commission of the Russian Federation and, for anelectoral fund of a candidate also upon the request of a candidate the branches of the SavingsBank of the Russian Federation shall, within three days or, during three days before voting day -immediately, furnish certified copies of primary financial documents confirming receipt of sumsto and their expenditure from electoral funds.8. The state print media shall be obliged to publish the information about the sums received toand expended from the electoral funds, released by the Central Election Commission of theRussian Federation. The following information shall be subject to mandatory publication:1) all financial operations which involve expenditure of sums from an electoral fund in anamount exceeding 200 thousand rubles;2) legal entities which made voluntary donations to any electoral fund in an amount exceeding400 thousand rubles;3) the number of citizens who made voluntary donations to an electoral fund in an amountexceeding 40 thousand rubles;4) sums returned to donors and the reasons for the return;5) the total amount of money received to an electoral fund and the total amount of moneyexpended therefrom.The provisions of Clause 9 of Article 62 as amended by Federal Law No. 274–FZ of December30, 2006 shall not apply to legal relationships arising in connection with the conduct of electionsannounced before the day of the entry into force of the said Federal Law (Federal Law No. 274-FZ of December 30, 2006).9. Within five days of receipt of an appropriate request from an election commission, the bodiesin charge or the registration of citizens of the Russian Federation at the place of their stay andresidence within the Russian Federation, the bodies of executive power in charge of the stateregistration of legal entities or authorized to register non-profit organizations shall, free ofcharge, verify the information indicated by citizens and legal entities when they were makingvoluntary donations to electoral funds of candidates and shall inform the given electioncommission of the results of such verification. This information shall be submitted in accordancewith the forms established by the Central Election Commission of the Russian Federation. In thiscase, use may be made of SAS “Vybory.” Upon the request of candidates, their authorizedrepresentatives for financial matters an election commission shall, without delay, furnish themwith the information which it has received as of the date of the request. If an electioncommission receives information about voluntary donations made in violation of therequirements of Clause 6, Article 58 of this Federal Law, this information shall be promptlymade known by the election commission to the candidates concerned or to their authorizedrepresentatives for financial matters.Article 63. Return of Money by Candidates, Political Parties(as amended by Federal Law No. 93-FZ of July 21, 2005) Foundation for Democratic Advancement Page | 56

1. Prior to filing the final financial report, a candidate shall return unexpended sums of hiselectoral fund to citizens and legal entities who/which made voluntary donations to hiselectoral fund, in proportion to the contributed amounts (less postal charges).2. After the expiration of 60 days from voting day, the branches of the Savings Bank of theRussian Federation shall, on the written instruction of the Central Election Commission of theRussian Federation, transfer the sums remaining in special electoral accounts to the federalbudget.3. A political party, which nominated a candidate who received less than 2 percent of the totalnumber of votes cast according to the vote returns and did not participate in a repeat vote, whichrecalled its candidate without compelling circumstances, which nominated a candidate whowithdrew his candidature without compelling circumstances or whose registration was cancelled,shall fully compensate the state TV and radio broadcasting organizations and the state printmedia for the cost of free air time and free print space provided to them. Payment of the cost offree air time, free print space shall be made from the political partys own funds.6. The cost of free air time and free print space shall be determined by multiplying the amount ofair time and print space, provided to political parties in accordance with Clause 5, Article 52 andClause 5, Article 53 of this Federal Law, by the rates charged for air time and print space, asfixed and published by the TV and radio broadcasting organizations and the print media inaccordance with Clause 9, Article 51 of this Federal Law. If free air time was used forparticipation in joint campaigning events, the sums to be paid by each political party fallingwithin Clause 3 of this article shall be determined by the state TV and radio broadcastingorganizations in equal parts in proportion to the total number of the participants (political parties)in each of these joint campaigning events for which free air time was provided to a politicalparty. The cost of the provided free air time and print space shall not be paid if a political partyofficially refused to use such air time and print space in accordance with the procedure and at thetime specified by Clause 18, Article 52 and Clause 11, Article 53 of this Federal Law.(Clause 6 as amended by Federal Law No. 93-FZ of July 21, 2005)5. Upon the request of an election commission its control-audit service shall:1) audit the financial reports of candidates, lower-level election commissions;2) request information concerning all matters within the scope of its competence and receive thisinformation from candidates, election commissions;3) verify information submitted by candidates about their property, income and the sourcesthereof, their monetary deposits, securities, shares of stock and other forms of participation in thecapital of commercial organizations, their property located outside the territory of the RussianFederation, including the property placed under trust management, other property liabilities;4) check compliance with the established procedure for funding election campaigning activities,other activities directly related to the election campaign of candidates;5) apply to federal bodies of executive power, other bodies of state power, other state bodies,organizations of all forms of ownership and also to citizens on all matters within the scope of itscompetence; request the necessary information and documents relating to the funding of theelection of the President of the Russian Federation. A response to applications of the control- Foundation for Democratic Advancement Page | 57

audit service shall be given and the requested materials provided within ten days or, five and lessdays before voting day and on voting day, immediately;6) document financial irregularities in the funding of the election of the President of the RussianFederation;7) request election commissions to call to account candidates, citizens and legal entities for theinfractions committed by them in funding the election campaign of candidates;8) engage experts for the performance of audits and for the preparation of reports and expertopinions;6. When exercising its powers the control–audit service may use SAS "Vybory."8. The amount of donations received by a political party, including donations to its regionalbranches, from one legal entity within one calendar year shall not exceed one hundredthousand times the minimum monthly wage established by the federal law as of March 1 ofthe year preceding the year in which the donations were made. The amount of donationsreceived by a political party, including donations to its regional branch, from oneindividual within one calendar year shall not exceed ten thousand times the minimum wageestablished by the federal law as of March 1 of the year preceding the year in which thedonations were made.9. The total amount of annual donations received by a political party or its regional branchshall not exceed ten million times the minimum monthly wage established by the federallaw as of March 1 of the year proceeding the accounting year. The amount of annualdonations received by a regional branch of the political party shall not exceed two hundredthousand times the minimum monthly wage established by the federal law as of March 1 ofthe year proceeding the accounting year.1. State support in the form of state financing from the federal budget shall be provided forpolitical parties to compensate for their financial expenditures on the basis of the results of theirparticipation in elections, in the procedure established by this Federal Law.2. Funds to be allocated from the federal budget for state financing of political parties shall beprovided for in the budget by a separate line in accordance with the budget classification of theRussian Federation.3. The total amount of funds to be allocated from the federal budget for state financing ofpolitical parties shall not be less than a sum equal to five thousandths of the minimum monthlywage established by the federal law as of March 1 of the year preceding the year in which thesefunds are to be allocated, multiplied by the number of voters on the voter lists at the latestelections of deputies to the State Duma of the Federal Assembly of the Russian Federation or atthe latest election of President of the Russian Federation.4. The funds allocated from the federal budget for state financing of political parties shall betransferred to settlement accounts of the political parties by means of annual lump-sum transfers.These funds shall be calculated and transferred by the federal treasury on the basis of theinformation about election results to be furnished to it by the Central Election Commission of theRussian Federation. Foundation for Democratic Advancement Page | 58

5. Political parties shall be entitled to funding from the federal budget in one of the followingcases:a) if the federal list of candidates nominated by the political party or by the election bloc withinwhich the political party participated in the elections of deputies to the State Duma of the FederalAssembly of the Russian Federation polled not less than three percent of the votes cast by votersin the federal electoral district, according to the election results;b) if, according to the results of the election of deputies to the State Duma of the FederalAssembly of the Russian Federation, not less than 12 candidates nominated by the political partyor by the election bloc indicated in Sub-Clause "a" of this Clause were elected in single-mandateelectoral districts (provided the federal list of candidates, nominated by this political party or bythis election bloc, polled not less than three percent of the votes cast by voters);c) if, according to the election results, the registered candidate for President of the RussianFederation, nominated by the political party or by the election bloc within which the politicalparty participated in the election of President of the Russian Federation, polled not less than threepercent of the votes cast by voters.6. State financing of political parties which participated in elections independently and comewithin Clause 5 of this Article shall be provided:a) on the basis of the election results at the election of deputies to the State Duma of the FederalAssembly of the Russian Federation - annually, in the amount equal to five thousandths of theminimum monthly wage established by the federal law as of March 1 of the year preceding theyear in which this financing is to be provided, multiplied by the number of votes cast for thefederal list of candidates nominated by the political party or for the candidates nominated by thepolitical party and elected to the State Duma of the Federal Assembly of the Russian Federationin single-mandate electoral districts, as provided by Sub-Clause "b", Clause 5 of this Article;b) on the basis of the election results at the election of President of the Russian Federation - inone sum equal to five thousandths of the minimum monthly wage established by the federal lawas of March 1 of the year preceding the year in which this financing is to be provided, multipliedby the number of votes cast for the registered candidate for President of the Russian Federationnominated by the political party.7. State financing of political parties which were comprised in an election bloc and come withinClause 5 of this Article shall be provided:a) on the basis of the election results at the election of deputies to the State Duma of the FederalAssembly of the Russian Federation - annually, in the amount equal to five thousandths of theminimum monthly wage established by the federal law as of March 1 of the year preceding theyear in which this financing is to be provided, multiplied by the number of votes cast for thefederal list of candidates nominated by the election bloc or for the candidates nominated by theelection bloc and elected to the State Duma of the Federal Assembly of the Russian Federation insingle-mandate electoral districts, as provided by Sub-Clause "b", Clause 5 of this Article;b) on the basis of the election results at the election of President of the Russian Federation -in one sum equal to five thousandths of the minimum monthly wage established by thefederal law as of March 1 of the year preceding the year in which this financing is to beprovided, multiplied by the number of votes cast for the registered candidate for Presidentof the Russian Federation nominated by the election bloc. Foundation for Democratic Advancement Page | 59

8. Allocations from the federal budget provided for in Clause 7 of this Article shall bedivided between the political parties comprised in an election bloc in equal parts, unlessotherwise determined by the election bloc at the time of its formation.9. The federal budget funds provided for in Clauses 6 and 7 of this Article shall be disbursed:a) on the basis of the election results at the elections of deputies to the State Duma of the FederalAssembly of the Russian Federation - not later than three months after the day of officialpublication of the election results and, subsequently, every year throughout the period of powersof the State Duma of the Federal Assembly of the Russian Federation of the given convocation;b) on the basis of the election results at the election of President of the Russian Federation - inone sum, not later than in a year after the day of official publication of the election results.10. Political parties may refuse state financing provided for in Clauses 3, 6 and 7 of this Article.If a political party refuses state financing, the funds allocated to the political party from thefederal budget on the basis of election results shall remain in the federal budget.Electoral Fairness Audit Results for Russian Election Finance:Score:The FDA electoral fairness audit team reached consensus on a score of 0/10.Rational for Score:In the FDA’s opinion, the donation limits for citizens and legal entities are very excessive.The donation limits for citizens and legal entities favor significantly wealthy citizens and legalentities.State financing of candidates and parties favor dominant candidates and parties.There is extensive regulation on the disclosure and monitoring of electoral expenditures.The score of 0 percent reflects the excessive donation and expenditure limits of Russia electoralfinance laws, whereby the laws favor very significantly wealthy candidates, parties, citizens, andlegal entities. Any elements of equality such as the extensive regulation on the disclosure ofelectoral finances are negated. Overall, the FDA determines that Russia’s electoral finance lawsare unequal completely. In comparison, the US received .5 percent score for electoral finance,and distinguished itself from Russia by having a lower limit on presidential candidatecontributions to their own campaigns: US limit of $50,000 USD and Russia limit of around $2million USD, lower donation limits for citizens, and unlimited expenditures for presidentialcandidates who use only private donations. http://democracychange.com/2011%20FDA%20Electoral%20Fairness%20Report%20of%20the%20United%20States.pdf Foundation for Democratic Advancement Page | 60

Chapter Four: Voter SayChapter four will focus on the research and audit results of Russian laws and regulations withrespect to the equality of voter say laws and regulations before, during and after an election.Executive Summary:Russia received a failing score of 30 percent for equality of voter say. The score is based on thefreedom of Russian citizens to express themselves politically on the internet, and their freedomto decide who they donate to. However, these freedoms are negated significantly by theunfairness of the electoral finance laws. Also, state subsidies of political parties, using Russiantax dollars, limit voter say by the state deciding which candidates and parties should besubsidized.Research Excerpts:The following excerpts were identified by the FDA researchers as relevant. The FDA researchersmade some excerpts bold to emphasize high relevance:A citizen of the Russian Federation may elect, be elected, or participate in a referendumregardless of the sex, race, ethnicity, language, origin, property and official status, place ofresidence, religion, beliefs, affiliation to public associations and other factors.1. The President of the Russian Federation shall be elected by citizens of the Russian Federationon the basis of universal, equal and direct suffrage by secret ballot.2. Participation of a citizen of the Russian Federation in the election of the President of theRussian Federation shall be free and voluntary. Nobody shall exert any influence on a citizen ofthe Russian Federation in order to compel him to participate or not to participate in the electionof the President of the Russian Federation and nobody shall interfere with free expression ofa citizens will.Right to Nominate Candidates for the Office of President of the Russian Federation1. Candidates for the office of President of the Russian Federation (hereafter "candidates") maybe nominated by voters, political parties entitled by Federal Law No. 95-FZ of July 11, 2001 "OnPolitical Parties" (hereafter "Federal Law On Political Parties") to participate in elections andnominate candidates (hereafter "political parties"), by electoral blocs or by way of self-nomination. A citizen of the Russian Federation may nominate himself as a candidate if his self-nomination is supported by a group of voters.Article 46Bodies of state power, bodies of local self-government shall not be entitled to inform votersabout candidates, political parties.3. For five days before voting day and on voting day it shall be prohibited to publish (makepublic) the results of opinion polls, forecasts of the outcome of the election or other studies

related to the given election of the President of the Russian Federation, in particular in the publicinformation-telecommunications networks (including the Internet).2. When publishing (making public) the results of opinion polls related to the election of thePresident of the Russian Federation the mass media, citizens and organizations announcing suchresults shall indicate the organization which conducted the poll, the time when it was conducted,the number of respondents (sample size), how the information was gathered, the region wherethe poll was conducted, the precise wording of the question, the statistical assessment of apossible error and the person (persons) who ordered the poll and paid for the publication of itsresults. (as amended by Federal Law No. 93-FZ of July 21, 2005)Fair barrier to entry for presidential candidates—35 years or older, minimum 10 years living inRussian Republic. Political parties, voters, and candidates (via self-nomination) can nominate apresidential candidate.Electoral Fairness Audit Results for Equality of Voter Say:Score:The FDA electoral fairness audit team reached consensus on a score of 3/10.Rational for Score:Russian citizens have reasonable freedom on the internet to express their political views.Presently, the Russian internet is not subject to the same electoral laws as the mass media andbroadcasters.Russian citizens have the freedom to decide which candidates and parties, if any, they donate to.Russian electoral finance laws favor significantly wealthy Russian voters.The score of 30 percent reflects the severe unfairness of Russian electoral finance laws, wherebya Russian citizen for example can donate over $200,000 USD to a candidate.Russian electoral finance laws favor significantly wealthy Russian citizens, and thereby givethem a significant advantage in terms of voter say over less wealthy Russian citizens. WithRussian minimum wage currently set at 4611 Rubles per month ($163 USD) and the averageRussian wages in rural areas $20,000 to 5,000 USD approx. and in Moscow $39,000 USDapprox. (according to the Average Salary Survey 2010/2011), most Russians would not be able toafford $10,000 USD in electoral donations, without even considering $200,000 USD.The freedom of Russian voters to express themselves on the internet and their freedom to donatehelps to lessen the unfairness of the electoral finance laws.

Chapter Five: Audit ResultsChapter five will set out the FDA’s scores for each of the areas of the Russian electoral system asset out above.1. Research and audit results for Russian laws and regulations on the political content of mediaincluding newspapers, broadcasters, online media, before, during, and after elections.9/102. Research and audit results for Russian Laws and regulations on the equality of candidates andparties influence before, during and after elections.2/103. Research and audit results for Russian laws and regulations on electoral finance.0/104. Research and audit results for laws and regulations on the equality of voter say before, during,and after an election.3/10Total score: 14/4035 percent

Chapter Six: AnalysisChapter six will provide analysis of the FDA’s findings.Russia’s overall electoral fairness score of 35 percent is a failing grade. The score means thatthere are severe deficiencies in electoral fairness in the constitutional and electoral foundation ofRussian democracy. (According to the FDA grade scale an F grade refers to unacceptable lawsand regulations for the country (numerous major deficiencies in most if not all of the following:laws and regulations on the equality of political news coverage on mainstream media (includingbroadcasters, newspapers), campaign finances, candidate and party influence, and voterinfluence) (Grade less than 50 percent))The lower grade, the more deficient will be the laws and regulations. In the context of Russia, itsoverall score of 35 percent is significantly better than Syria’s overall score 0 percent, and yetthere still exists serious shortcomings with Russia electoral legislation. Russia is 15 percent inthe failing zone.Further, despite Russia’s unacceptable score of 35 percent, Russia received a higher score thancountries like the USA (30 percent), Canada (25.75 percent) and Mexico (22.75 percent), and yetRussia received a significantly lower score than Venezuela (85 percent).Russia’s score of 0 percent for electoral finance equates to complete electoral unfairness inRussia’s electoral finance laws, in which wealthy citizens, legal entities, candidates, and partieshave significant electoral advantage over those citizens and organizations less wealthy. Thisdisparity is compounded by Russia’s income inequality. (According to Russia Today as anexample, from January to September 2010, 30.5 percent of the total volume of revenues of theRussian population went to 10 percent of the country’s richest individuals, and the 10 percent ofRussia’s poorest citizens received only 1.9 percent of total revenues.)Further, the inequality of Russia’s electoral finance laws impact, expansively, the electoralfairness scores for equality of candidate and party influence and equality of voter say.The section on political content of the media is the only section not to be impacted by Russia’selectoral finance laws. Russia received a 90 percent score for political content based onlegislated impartiality of public media and broadcasters, near legislated impartiality of privatemedia and broadcasters, and concrete and effective means for candidates and parties to refutenegative media information. However, the 90 percent score for political content did not takeRussia out of the failing zone for overall electoral fairness.Ironically, Russia’s electoral laws have many elements of electoral fairness and even innovation,but the severe inequality of the electoral finance laws overshadows those elements andinnovations. For example, free air time of 80 minutes for all registered political parties iscanceled out by equating free air time with paid air time, so that parties who cannot affordsignificant amounts of paid air time will be limited in the amount of their free air time.

In the FDA’s opinion, Russia’s electoral system is an example of how one main area of electoralunfairness can undermine most other areas of electoral fairness.

Chapter Seven: ConclusionChapter seven will provide a summary of the FDA’s findings.Russia’s electoral system, based on its constitutional, electoral and media laws, is in need ofsignificant reform. A failing overall score of 35 percent is unacceptable, and means that there aresevere deficiencies in the foundation of Russia’s democracy, which in turn will likely undermineRussian democracy.Fortunately, the shortcomings in Russia’s electoral system are in one area: electoral finance.Therefore, they may be more easily addressed than if they were in a number of areas.

Chapter Eight: RecommendationsChapter eight will set out the FDA’s recommendations on how Russia can improve its electoralfairness score and thereby its electoral fairness. 1) Russia’s electoral finance laws need significant reform: Electoral donation limits for citizens and legal entities need to be reduced to levels that are consistent with the average monthly incomes of Russian citizens. Russia’s state electoral financing needs to be dispersed equally to all registered candidates and parties, rather than based on number of votes received. Russia’s donation limits for political parties must be set at levels which all parties stand a chance of reaching, and that the Russian Electoral Commission should have the power and onus on it to intervene to ensure that all candidates and parties have the same amount of electoral funds. Russia’s free air time and free print space need to be disconnected from paid air time and paid print space. Candidates’ contribution limits to their own campaigns need to be reduced significantly so that wealthy candidates are not favoured.The FDA thinks that Russian people need to decide whether they want the wealthy minority oftheir country having a very significant say in who are Russia’s political representatives, or amajority of the Russian people having a significant say in who are Russia’s politicalrepresentatives.The FDA believes that electoral fairness is at the heart of pure democracy. The more fairelectorally a country is, the more democratic the country will be.Therefore, the FDA believes that by improving electoral fairness, pure democracy in Russia willbe advanced which in turn will improve the status of Russian people as a whole.The linkage between improved overall standard living and pure democracy lies in the positiveeffects from a fair and free society. Regardless, the FDA acknowledges that the people of Russianeed to decide their own future and the means to it. However, it is unclear to the FDA how theRussian people can decide their own future when the wealthy minority dominates elections.

AppendixFDA Global Audit Results as of August 2, 2011: FDA Global Electoral Fairness Audit Results Laws and regulations on the equality of political content of the media and broadcasters before, during, and after an election <-- failing range | passing range --> 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Russia Venezuela France Lebanon Azerbaijan Denmark Finland Sweden United States Canada Argentina Tunisia Yemen Bahrain Camerron Egypt Iran Libya Mexico Syria

FDA Global Electoral Fairness Audit Results Laws and regulations on the equality of candidate and political party influence before, during, and after an election <-- failing range | passing range --> 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% France Venezuela Finland Lebanon SwedenUnited States Azerbaijan Argentina Denmark Russia Canada Mexico Bahrian Cameroon Egypt Iran Libya Syria Tunisia Yemen

FDA Global Electoral Fairness Audit Results Laws and regulations on the equality of electoral (campaign) finance <-- failing range | passing range --> 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% France Venezuela Finland Argentina Denmark Lebanon Sweden Tunisia Azerbaijan Cameroon Canada MexicoUnited States Bahrain Egypt Iran Libya Russia Syria Yemen

FDA Global Electoral Fairness Audit Results Laws and regulations on the equality of voter influence before, during, and after an election <-- failing range | passing range --> 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% France Venezuela Argentina Mexico Canada Denmark FinlandUnited States Sweden Lebanon Russia Azerbaijan Bahrain Cameroon Egypt Iran Libya Syria Tunisia Yemen

FDA Global Electoral Fairness Audit Results Overall Electoral Fairness Audit Scores <--failing range|passing range --> 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% France Venezuela Finland Lebanon Denmark Russia Sweden ArgentinaUnited States Canada Azerbaijan Mexico Tunisia Cameroon Yemen Bahrain Egypt Iran Libya Syria

Russia--2011 FDA Global Electoral Fairness Audit Report

by Foundation for Democratic Advancement on Jul 06, 2011

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Russia--2011 FDA Global Electoral Fairness Audit Report — Document Transcript