04.05.2005 ? It is our pleasure to inform you that the Federal Migration Service of the Russian Federation (?FMS?) has terminated the previously established moratorium with regard to provision of Employment permits to foreign legal entities operating in Russia through accredited representative / branch offices (subsidiaries).

As you may be aware, the FMS, since February 25, 2005 has been refusing, without any prior official notice and explanation, to accept documents and, thus issue Employment permits to Russian subsidiaries of foreign companies.

The FMS officials provided controversial explanations in this regard. The most common explanation of the situation was that the Legal Department of the FMS was observing the legislation in order to work out its official position concerning legal grounds for employment of foreign individuals for Russian subsidiaries of foreign companies.

In the end of April 2005 the FMS has finally confirmed the possibility for foreign companies to employ foreign individuals to work with their Russian subsidiaries, thus terminated the moratorium. The FMS has also confirmed that the procedures for obtaining Employment permits by Russian subsidiaries of foreign companies remain the same.