LAW OF THE UNION OF THE SOVIET SOCIALIST REPUBLICS on the economic relations between the USSR, Union and Autonomous Republics

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Article 2…

1. Union and Autonomous Republics are authorized to decide economic and social issues outside the jurisdiction of the USSR, the Constitution of the USSR, legislation of the USSR and this law. 2. Union and autonomous republics, pursuant to the legislation of the USSR, on their respective territories:

possess, use and handle the land and other natural resources in compliance with their interests and the interests of the USSR;

adopt the laws and other normative acts regulating the conditions of the economic activities on the territory of the republic;

decide tax issues and perform budgetary activities;

regulate economic and social development on their territories and elaborate the general decision on the economic development and the ways for its realization;

regulate investment activity and conditions for the construction on the territory of the republic;

regulate the prices in compliance with the USSR pricing policy;

participate in the monetary flow; exercise the management of the state bank activity;

perform foreign economic activity respecting the obligations and commitments of the international treaties of the USSR and agreements between the USSR and the republics; conduct border and coastal trade, register the joint enterprises, international companies and organizations, and encourage foreign economic activity of the enterprises and organizations; form and manage currency reserves of the republic;

decide the issues of social development, employment of the population, regulation of the income of the population; secure the minimum wages established by the legislation of the USSR, pension rate and other social securities;

establish the norms of ecological protection and conduct the activity for environmental protection on the territory of the republic; issue licenses and restrictions on the activity of enterprises and organizations;

form the agencies for state management and determine their function.

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Article 3…

3. Union and autonomous republics, in compliance with the legislation of the USSR, determine the tax, dues and due payment on their territories, including the payment for the natural resources.

5. The agencies of the USSR, together with the agencies of the union and autonomous republics establish the funds for the regional development, reserves, innovations, environment protection and other public funds in order to finance scientific, economic, social and other programmes, as well as works on prevention and elimination of the natural disasters, catastrophes and accidents.

6. The State Bank of the USSR implements: the regulation of the monetary circulation based on the common currency of rouble, currency emission, setting of the rate to the foreign currency, setting of exchange procedures and regulations for purchasing and selling of foreign currency valuables; exercises unified credit policy in foreign economic relations.

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Article 5…

2. Union and autonomous republics are authorized to establish in the capital city of the USSR and capital cities of other union republics representational missions maintained at the expense of the budget of the republics.

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Article 6…

1. Union and autonomous republics participate in the decision-making process of economic character that is under the competence of the USSR through participation at the Congress of the People’s Deputies of the USSR, Supreme Council of the USSR, Presidium of the Supreme Council of the USSR, Council of Federation, Government of the USSR and other agencies of the USSR.

2. The supreme agencies of the state authority of the republics may raise the issue before the Committee of Constitutional Supervision regarding compliance of the legal acts of the state agencies and the Government of the USSR with the Constitution of the USSR and the USSR laws.

3.  The union and autonomous republics have the right to address to the President of the USSR and ask for abrogation of decree or resolution of the Council of Ministers of the USSR that runs counter to the economic interests of the republic.

4. The supreme agencies of the state management of union and autonomous republics have the right to file the protest to the Council of Ministers of the USSR on the acts issued by the agencies subordinated the Council of Ministers of the USSR that contradict economic interests of the republic. The Council of Ministers of the USSR shall consider the protest within a month term and make a final decision.

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5.  The dispute on economic issues between the government of the USSR, union and autonomous republics, also between the union republics, emerged in the course the implementation of the USSR laws, decrees and resolutions of the government of the USSR, shall be resolved by the Supreme Council of the USSR with respect of the recommendations of the Council of Federation.

Article 7…

1. The laws of the USSR and union republics, which secure the independent economic activity of the autonomous oblasts and okrugs, determine economic competence of the autonomous oblasts and okrugs.

2. Autonomous oblasts and okrugs pursuant to the legislation of the USSR on their respective territories possess, use and handle the land, other natural resources and properties under their ownership.

3. Autonomous oblasts and okrugs: assure the process of the social-economic development on their territories; independently form and implement their budget; carry out the measures for strengthening the fiscal base of the local self-governance; set and regulated the prices within their competence; participate in determination of limits and norms of the use of natural heritage on their territories; issue the licenses and restrictions for enterprises pursuant to the legislation of the USSR and union republic; conduct foreign economic activity; also manage the other issues within their competence.

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Article 8…

3. When implementing the decisions adopted in contradiction to the acting law without prior coordination with the union and autonomous republics that damaged the interests of the republic, the governing agencies of the USSR shall remove the negative consequences of those decisions and compensate the damage upon the request of the republic.

4. If the implementation of decisions of the union and autonomous republic damages the legal interests of other republic or the USSR, the damage shall be compensated by the republic, which adopted such decision.

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The President of the Union of the Soviet Socialist Republics M. Gorbachev.

10 April 1990

(Bulletin of the Congress of the People’s Deputies of the USSR and the Supreme Council of the USSR, M., 1990, # 16, p. 334-340)