FEDERAL LAW NO. 92-FZ OF JUNE 28, 1997
        ON AMENDING ARTICLE 2 OF THE LAW OF THE RUSSIAN FEDERATION
        ON THE TAX ON THE PROFIT OF ENTERPRISES AND ORGANIZATIONS

     Adopted by the State Duma                              May  14, 1997
     Approved by the Federation Council                     June 10, 1997



     Article 1. Item 13, Article 2 of the Law of the  Russian  Federation
on the Tax on the Profit of Enterprises and Organizations (The Gazette of
the Congress of People's Deputies  of  the  Russian  Federation  and  the
Supreme Soviet of the Russian Federation, item 525, No.  11;  item  1976,
No. 34, 1992; item 118, No. 4, 1993; Collection  of  Legislation  of  the
Russian Federation, item 3304, No. 32, 1994;  item  1592,  No.  18,  item
2402, No. 26, 1995; items 4, 20, No. 1, 1996;  item  357,  No.  3,  1997)
shall be set forth as follows:
     "13. As the authorized capital of a joint-stock company is increased
due to the re-evaluation of fixed assets performed by the decision of the
Government of the Russian Federation, not subject to  taxation  shall  be
the value of the shares received by a legal entity being  a  shareholder,
such shares being distributed between shareholders by the decision of the
general meeting pro rata to the number of  the  shares  they  own,  or  the
difference between the face value of the new shares received in place  of
the original shares and the  face  value  of  the  initial  shares  of  a
shareholder.
     The profit from the sale by a legal entity being  a  shareholder  of
the shares received as a result of the said distribution or the  increase
in the face value of the shares, shall  be  determined  as  a  difference
between the sales price and the initially paid  value  of  these  shares.
Should the shares be sold, the said profit  shall  be  taxable  with  the
profit tax under the present Law.".
     Article 2. The present Federal Law shall come into  force  from  the
date of the official publication thereof.

     President of the Russian Federation                        B.Yeltsin
     Moscow, the Kremlin