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

Regulation efficiency (APEC data) ► technical regulation (non-tariff) allows to increase the share of Regulation efficiency (APEC data) ► technical regulation (non-tariff) 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 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

Federal act «About Federal Act amending «About thechnical regulation» dd. 30. 12. 2009 № Federal act «About Federal Act amending «About thechnical regulation» dd. 30. 12. 2009 № 385: q 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; q 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; q AT THE SAME TIME: 4

p 5. 1. Features of technical regulation in the security of buildings and structures p 5. 1. Features of technical regulation in the security of buildings and structures ► (the Federal Law dd 30. 12. 2009 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, 2010. 5

The results of the technical regulation reform in construction for 8 years ► ► The results of the technical regulation reform in construction for 8 years ► ► ► Refusal of mandatory SNi. Ps 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 2005. 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 SNi. Ps since July 2010 The absence of notified authorities institute in the amendments dd. October-20, 2010, has been discussed since 2002 6

Trade barriers are a obstacle to the development of the European economy Construction industry Trade barriers are a obstacle to the development of the European economy Construction industry in Russia in 2011 7

Improving Product quality and European Competitiveness Events of non-regulatory nature Quality police Global approach Improving Product quality and European Competitiveness Events of non-regulatory nature Quality police Global approach New approach Old approach * 1979 * 1980 * 1983 * 1985 * 1989 * 1994 Events of regulatory nature Russia 2011 8

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

Voluntary Eurocodes – as integration tool Harmonsation Presumption of conformity Directive Eurocodes – norms Voluntary Eurocodes – as integration tool Harmonsation Presumption of conformity Directive Eurocodes – norms of 89/106/ЕСС construction Presumption of engineering suitability EN and ISO standards for materials 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 and the Eurocodes refer to the harmonized European and international standards (about 2500). 10

Harmonized standard ► Simplifies and speeds up the procedure of conformity assessment, especially when 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 ► Any other way of proving compliance with the essential requirements of Directive is more expensive and much timetaking. 11

Eurocodes structure 10 themes folders Safety of buildings EN 1990 Воздействия на конструкции EN Eurocodes structure 10 themes folders Safety of buildings EN 1990 Воздействия на конструкции EN 1991 EN 1992 EN 1993 EN 1994 EN 1995 EN 1996 EN 1999 EN 1997 EN 1998 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. 12

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

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

Structure of building energy consumption, constructed in accordance with the new building regulations in 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 к. Вт • h/(м 2 • yearly) б) office building – 123 к. Вт • h/(м 2 • yearly) 15

Decision dd. October-15, 2010 from 16 th Russian Union of Industrialists and Entrepreneurs Committee 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. 01. 20. 1910 16

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

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

CONFORMITY ASSESSMENT SCHEME - STANDARD STRUCTURE CERTIFICATION BASED ON MODULAR APPROACH (Decision number 768/2008/ES CONFORMITY ASSESSMENT SCHEME - STANDARD STRUCTURE CERTIFICATION BASED ON MODULAR APPROACH (Decision number 768/2008/ES on July 9, 2008) Development А п - Аа 1 п но п п но Аа 2 Cbis 1 Application Module selection B п но C 2 D E F П – producer Dbis НО – notified body 1 - declaration of conformity Ebis 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 Fbis G H Hbis п п но п но 1 1 1 3 3 3 1 1 4 1 1 5 19

Conformity Assessment New and Global approach creation and production of new products or products 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. Ø amended dd. 20. 10. 2010, 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). Ø 20

National and European regulatory and technical documents in the construction sphere Using the CEN 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 systemwide 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 21 ►

Steps to create an alternative system of technical regulation in the construction industry ► 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 Eur. As. EC, 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 Eur. As. EC, 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 VSM 1 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 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. 23

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