1 Mikhail Kaykov Vice-President of Russian Builders Association President of the Railway Constructors Union Vienna March-10-11, 2011 Technical regulation of the construction sphere in Russia

Regulation efficiency (APEC data) ► technical regulation (non-tariff) allows to increase the share of profits by an average of 0,26% of GDP. allows to increase the share of profits by an average of 0,26% of GDP. ► tariff regulation allows to increase the share of profits by an average of 0,14% of GDP. 2

Agreement between Russia and EU p. 55 ► The parties accept an important condition of economic ties strengthening between Russia and the Community is the approximation of legislation. Russia should provide a gradual convergence of its laws with EU legislation. ► Approximation of the laws will, in particular, apply to the following areas: (...), health and human life (...), environmental protection, consumer protection, technical regulations and standards (...). 3

4 Federal act «About Federal Act amending «About thechnical regulation» dd № 385:  The opportunity for a transitional period before the adoption of technical regulations impose requirements for products and related requirements of its processes used in the states of the Customs Union and the European Union;  Usage of international standards, regional standards and regional codes of practice, standards and codes of practice of foreign countries to comply with the technical regulations;  AT THE SAME TIME:

p 5.1. Features of technical regulation in the security of buildings and structures ► ( the Federal Law dd N 384-FL) ► Features of technical regulation in the security of buildings and structures established by the Federal Law "Technical Regulations on the Safety of buildings and structures."  List of national standards and codes of practice, as a result of which is provided on a mandatory basis compliance (RF Government Statement dd. June-21, 2010 № 1047-p) ► Contrary to the New and Modular approach in building the EU - Directive 89/106/ES and decisions of the Commission under the President of the Russian Federation dd. January-20,

The results of the technical regulation reform in construction for 8 years ► Refusal of mandatory SNiPs registration by Ministry of Justice in 2003 in connection with the entry into force of the Federal Law № 184 “On technical regulation”. ► Absence of a law "On accreditation” and single accreditation body - 16 systems, is discussed since President of Russia Decree from January 2011 on a single organ. ► A new approach in construction under line with Directive 89/106/ES (voluntary application of standards and conformity assessment EN mandatory requirements notified bodies). ► Obligation of SNiPs since July 2010 ► Obligation of SNiPs since July ► The absence of notified authorities institute in the amendments dd. October-20, 2010, has been discussed since 2002 ► The absence of notified authorities institute in the amendments dd. October-20, 2010, has been discussed since

Trade barriers are a obstacle to the development of the European economy Construction industry in Russia in

Improving Product quality and European Competitiveness Quality police Global approach New approach Old approach * 1994 * 1989 * 1985 * 1983 * 1979 * Events of non-regulatory nature Events of regulatory nature Russia

Directive 89/106 /ЕС Voluntary standards EN One of the priorities - attracting foreign investment in Russian infrastructure projects under PPP ≠ 9 Notification bodies Mandatory codes of practice 16 accreditation systems Technical Regulations Voluntary standards Projects insurance

10 Directive 89/106/ЕСС Eurocodes – norms of construction engineering EN and ISO standards for materials Voluntary Eurocodes – as integration tool Directive and the Eurocodes refer to the harmonized European and international standards (about 2500). Directive 89/106/ESS of EU member states law approximation on building products establishes the essential requirements for safety of construction products Eurocodes (Standards EN) serve to unify the design methods in accordance with the requirements of the Directive Harmonsation Presumption of conformity Presumption of suitability

Harmonized standard ► Simplifies and speeds up the procedure of conformity assessment, especially when it is necessary to prove compliance with a number of Directives. ► Publication in the Official Journal confirms that the EU Commission has established the sufficiency of the harmonized standard for execution of basic requirements. ► The use of harmonized standards can only be voluntary ► The use of harmonized standards can only be voluntary. ► Any other way of proving compliance with the essential requirements of Directive is more expensive and much time- taking. 11

12 Eurocodes structure 10 themes folders EN 1990 EN 1991 EN 1992 EN 1993 EN 1994 EN 1995 EN 1996 EN 1999 EN 1997 EN 1998 Safety of buildings Воздействия на конструкции конструкции Design (on types of constructions) Geotechnical design Eurocodes are so called base of normative and technical documents covering the design of all (!) facilities including railway tunnels, bridges and other structures.

13 significantly to improve the competitiveness of construction companies and design organizations in the world market to ensure a common understanding of the design process, to ensure common criteria and design methods that meet the necessary safety requirements to facilitate the exchange of services in the field of construction, to achieve the necessary economic benefits will be to use the best knowledge and experience of many countries that participated in the drafting of the Eurocodes to develop a common framework for research and development in the construction industry, to give an opportunity to prepare uniform designing accessories and software The use of the Eurocodes will give some opportunities Eurocodes advantages

14 Methods for Conformity Assessment Russian Standard Application rules Functional Requirements Specification (or its parts) Functional Requirements EU Standard Methods for Conformity Assessment Basic principles of standardization in the EU and Russia ≠ 14

Structure of building energy consumption, constructed in accordance with the new building regulations in Finland : а) single-family homes with a total power consumption (thermal and electric energy) 78 кВтh/(м2yearly) б) office building – 123 кВтh/(м2yearly) Structure of building energy consumption, constructed in accordance with the new building regulations in Finland : а) single-family homes with a total power consumption (thermal and electric energy) 78 кВтh/(м2yearly) б) office building – 123 кВтh/(м2yearly) 15

Decision dd. October-15, 2010 from 16 th Russian Union of Industrialists and Entrepreneurs Committee Meeting of Technical Regulation, Standardization and Conformity Assessment Decision dd. October-15, 2010 from 16 th Russian Union of Industrialists and Entrepreneurs Committee Meeting of Technical Regulation, Standardization and Conformity Assessment ► in the sphere of technical regulation (which should be limited only with consumer goods in circulation on the market, withdrawing from it, all kinds of industrial equipment and construction). ► Paragraph 2, Article 1 of the draft agreement about common principles and rules of technical regulation in the Republic of Belarus, Kazakhstan and the Russian Federation as follows: "This Agreement shall not apply to buildings and facilities, and moreover establish and apply sanitary, veterinary and phytosanitary measures; Taken decision are not matching to the new modular approach and the EU Directive and 89/106/ES, the decisions of the Governing Board of the President of the Russian Federation dd

17 It’s necessary to take an Agreement between states of Customs Union and EU and technical regulations at the supranational level  DEVELOP TECHNICAL REGULATIONS "General Product Safety’’;  INTRODUCE AN NOTIFIED (COMMISSIONERS) BODY INSTITUTE;  METHOD REFERENCES TO STANDARDS IN TECHNICAL REGULATIONS;  ONE BODY FOR ACCREDITATION AND LAW FOR ACCREDITATION IN RUSSIA; Allow to harmonize LEGISLATION On Technical Regulation and the EU Customs Union, the EurAsEC and the CIS.  DEVELOP TECHNICAL REGULATIONS "General Product Safety’’;  INTRODUCE AN NOTIFIED (COMMISSIONERS) BODY INSTITUTE;  METHOD REFERENCES TO STANDARDS IN TECHNICAL REGULATIONS;  ONE BODY FOR ACCREDITATION AND LAW FOR ACCREDITATION IN RUSSIA; Allow to harmonize LEGISLATION On Technical Regulation and the EU Customs Union, the EurAsEC and the CIS.

EU Directives New and Global Approach ACCREDITATION PRODUCER AND NOTIFIED BOY PRODUCER First part First and third part DECLARATION OF CONFORMITY DECLARATION OF CONFORMITY CERTIFICATE OF COMPLIANCE 18 CONFORMITY ASSESMENT

CONFORMITY ASSESSMENT SCHEME - STANDARD STRUCTURE CERTIFICATION BASED ON MODULAR APPROACH (Decision number 768/2008/ES on July 9, 2008) А п - 1 Аа1 п но 1 Аа2 п но 1 G п H п Hbis п но Cbis C п - п но п 3 D 3 E 3 F п - п п 1 Dbis 1 Ebis 1 Fbis п - п но п B п 2 Development Module selection Application П – producer НО – notified body 1- declaration of conformity 2 – certificate of conformity EC type 3 – declaration of compliance as its approved 4 – certificate of Compliance relating to the tests 5 – Certificate of Conformity for the project 19

Conformity Assessment New and Global approach  creation and production of new products or products (goods, works and services) with new consumer properties;  application of new building technologies and manufacturing technologies materials.  amended dd , the preliminary introduce standards and standards organizations (lobbying business) as evidence that contradicts the practice of the EU (not to undergo public review and can not be applied in a mandatory field). 20

21 National and European regulatory and technical documents in the construction sphere ► Using the CEN regulations, the State Standard of Belarus and their existing translation versions in Russia. ► Direct introduction of European standards on the territory of Russia is possible only through an integrated transfer system- wide CEN standards for construction:  2500 EN and ISO standards relating to construction and integrated security;  application of EN to the object of regulation in EU countries by means of a complex of interrelated standards and rules of EN with a reference method;  the difference with the Russian national system: ► in terms, definitions and notations ► in methodological approaches to the calculations and tests ► in metrological basis ► in the construction standards

Steps to create an alternative system of technical regulation in the construction industry ► The implementation of EU directives relating to the construction (13 directives) in the territories of the CU, the EurAsEC, CIS. ► Translation and implementation of the Eurocodes and the adoption by the European Commission and CEN nationally determined parameters for the conditions of the CU, the EurAsEC, CIS, based on TSN. ► Updated estimate and the regulatory framework. ► Implementation of EU experience with PPP including Life Cycle Contract (LCC). ► Usage of the European experience construction risks insurance. ► European standards implementation could be cost-effective in a frame of a project, such as VSM1 with the organization of the reproduction of construction technologies and building materials. 22

Construction work group decision IRT EU-Russia in Cannes dd. November -13, 2008, experts’ projects forum in Novocherkassk dd. May-31, 2010, dd. October-22, 2010 in Helsinki. Apply to the Government of the Russian Federation, and to the European Commission to provide with financial support program for the adoption of harmonized EU standards in construction as a Russian national standards and to recommend to the SPC for Russia Summit EU - Brussels, December 2010: Apply to the Government of the Russian Federation, and to the European Commission to provide with financial support program for the adoption of harmonized EU standards in construction as a Russian national standards and to recommend to the SPC for Russia Summit EU - Brussels, December 2010: ►... Need to implement existing European standards in areas where there are no Russian standards. Should start with areas that are key to modernization. ►... Need to identify areas where standards and technical regulations between the EU and Russia are different, for the further lifting of obstacles. Need to introduce international standards wherever possible. 23

24 Thank you for your attention! Mikhail Kaykov Vice-President of Russian Builders Association President of the Railway Constructors Union Vienna March-10-11, 2011