Putin has signed into law the long-term regulation of tariffs

The law was passed by the State Duma on 21 December 2012 and was approved by the Federation Council on 26 December 2012.

According to the document the control of tariffs shall be regulated on the basis of long-term control parameters, set for a period of not less than three and not more than five years in the manner prescribed by the Government of the Russian Federation.

Pursuant to the Federal Law, in the case of any changes in the long term rates or the control parameters, any necessary gross proceeds or establishment of tariffs based on the long-term control parameters and which differ from those set or approved under the concession agreement, or any losses of income of the regulated companies is subject to reimbursement from the budget of the Russian Federation (unless there is an observed significant deterioration in economic conditions).

In the case of significant deterioration in economic conditions the Government of the Russian Federation shall be entitled to adopt a resolution on changes to the long-term rates, control parameters or the size of any required gross revenues without compensating the lost revenue from the budgets of the regulated companies, and to set the parameters of such changes.