Thus, according to the data of the Ministry for Trade and Economic Development, over 9 months of by financial indicators of federal target programs fulfillment at the expense of the federal budget funds is behind the figures of 2006. This is accounted for by the late beginning of fulfillment of the majority of federal programs in connection with the absence of financing in the first quarter of 2007. It was the lag with the elaborating of the necessary legislative act that was pointed out among the reasons for the delay in federal target programs execution. The responsibility for this was laid with the report by the vice-minister of the Ministry for Trade and Economic Development A. Belousov on “customers who coordinate the programs of the ministry and departments that submit proposals and execute federal target programs”.
At the meeting as a result of the discussion the Chairman of the Government of the Russian Federation instructed to make deep analysis of programs financing and elaborate the suggestions either to correct or stop these programs fulfillment. The Ministry for Trade and Economic Development was commissioned with preparation of the corresponding suggestions by March 2008.
On 20 September at the meeting of the Government of the Russian Federation 2 most important issues were discussed among others: draft of the plan of actions of the Government of the Russian Federation as to realization of the main statements of the Programs for social and economic development of the Russian Federation for a middle-term run 2006-2008 and the draft for the plan of legislative activity of the Government of the Russian Federation for 2008. Not dwelling on detailed characteristics of the measures that are to be taken in concordance with these two documents, we are to note that in the first document, among other things, the preparation of Concept for long-term social and economic development of the Russian Federation up to the period of 2020 is planned.
Legislative regulation of the concept for social and economic development of the Russian Federation for the long term is based on the Federal law from 20.07.1995 No 115-ÔÇ “On government prognosis and programs of social and economic development of the Russian Federation”. According to the law, every five year a Concept for social and economic development of the Russian Federation for long term should be elaborated in Russia. It is in the concept of the social and economic development of the Russian Federation where the possible aims for social and economic development of the Russian Federation, ways and means to achieve the aims mentioned should be defined. For a long time the long-term programs in Russia were not adopted but instead concepts for the country’s social and economic development for middle-term prospect were elaborated. The procedure for the development of the prognosis of social and economic development and the concept for social and economic development of the Russian Federation for a long-term run were defined by the Government of the Russian Federation. However such a procedure has not been adopted by the Government of the Russian Federation.
It is evident that legislative regulation of the government strategic planning is inadequate. For instance, the algorithm for definition of the goals of society development aims for a long-term run as well as procedures for their selection is yet unclear. The Government of the Russian Federation is yet to fill this gap.
Legal aspects of supporting exports of hi-tech products through the creation of the public corporation «Rostekhnologia» A. Kireeva In last quarter’s overview we discussed issues relating to the creation of a Russian nanotechnologies corporation and the possible legal consequences of the adoption of Federal Law “On the Russian Nanotechnologies Corporation” of 19 July 2007, No 139 - FZ. In this overview, we are going to further develop the theme of legislative changes in the sphere of innovations, while placing the main focus on the analysis of Federal Law “On the State Corporation «Rostekhnologia» of 23 November 2007, No 270 - FZ. Based on this Law, one more state-owned structure must be founded, to receive from the federal budget substantial funding allocated to hi-tech development.
According to Article 3 of the Law, the purpose the State Corporation (SK) «Rostekhnologia» will be “to promote the development, production and export of hi-tech industrial products by providing support, on the domestic and foreign markets, to Russian organizations – developers and manufacturers of hi-tech industrial products, and by attracting investments to organizations belonging to different branches of industry, including the defense-industrial complex”.
The Corporation’s main functions are determined as follows:
• assistance to organizations belonging to different branches of industry, including the defenseindustrial complex, in the development and manufacturing of hi-tech industrial products;
• ensuring of the access to the domestic and foreign markets and of the sales on the domestic and foreign markets of hi-tech industrial products, as well as of the commodities and results of intellectual activity associated with the creation of those products;
• participation in the implementation of government policies addressing the Russian Federation’s cooperation with foreign states in the sphere of military technologies and government armaments program;
• attraction of investments to organizations belonging to different branches of industry, including the defense-industrial complex, and among other purposes, for the purpose of creating competitive samples of hi-tech industrial products, including military products;
• realization, in the interests of organizations belonging to different branches of industry, including the defense-industrial complex, of promotion, exhibitions and marketing activity, participation in the organization and conduct of exhibitions (or displays) of sample products designed for civil, military and dual use in and outside the territory of the Russian Federation;
• assistance to organizations belonging to different branches of industry, including the defenseindustrial complex, in the conduct of applied studies in promising areas of the development of science and technologies and in the implementation in industrial production of advanced technologies in order to raise the development standards of Russian hi-tech industrial products and to shorten the periods and reduce the costs of their creation;
• assistance to the activity of the organization acting a state intermediary in foreign trade of military products;
• performance of other functions, in accordance with federal laws and decisions of President of the Russian Federation.
Thus, in contrast to the previously created state-owned structures, such as the Russian Venture Company and the Russian Nanotechnologies Corporation, the activity of the new corporation encompasses, among other aspects, also the commercialization of military and dual-purpose developments.
In additition to the aforesaid, the new Federal Law is intended to make more precise the list of organizations engaged in foreign trade of military products, as well as the RF President’s powers relating to the creation of specialized organizations – intermediaries in foreign trade in this sphere. In fact, the aim of its adoption and of the creation of the State Corporation “Rostekhnologia” is to unite the activities of a number of defense-industrial and research organizations.
According to the estimation made by General Director of the Federal State Unitary Enterprise (FGUP) “Rosoboroneksport” S. V. Chamazov, “the creation of the State Corporation “Rostekhnologia” of the basis of a federal law will make it possible to most adequately take into consideration the opportunities provided by the organizational – legal form of a state corporation, the specificity of its activity both in cooperation in the sphere of military technologies and in the sphere of development, production and export of hi-tech industrial products. “Rostekhnologia” will be conducive to improving the situation in Russian machine-building and in its most high-tech segment – the defense-industrial complex”28.
It can be assumed that the new state corporation will incorporate “Rosoboroneksport”, as well as all its current assets, dependent enterprises and affiliations, which include some big holding-type corporations and companies, such as the following ones:
• ‘Iindustrial Investments Group OJSK “Ob’edinennaia industrial’naia korporatsia [United industrial corporation] “Oboronprom”’ (holds a managerial position in respect to the OJSK “Vertolety Rossii” [Russia’s helicopters], • Sub-holding OJSK “Oboronitel’nye sistemy” [Defense systems] (manufactures anti-aircraft defense means and sophisticated radio-electronic complexes), • Leasing company (Closed-end Joint-Stock Company (CJSC)) “Oboronpromlizing” - engineering and supply of hi-tech metalwork equipment of leading international manufacturers, leasing of helicopters and helicopter equipment, as well as equipment and technologies for the enterprises belonging to Russia’s defense-industrial complex (DIC), • OJSK “AVTOVAZ”, OJSK “Corporation “VSMPO-AVICMA” (global leader in titanium production, whose products are supplied to the domestic and foreign markets, and are used by domestic aircraft- and engine-building enterprises), • CJSC “RusSpetsStal” (the basic company responsible for the creation of a metallurgical holding, consolidation and development of assets necessary for producing specialized steels and amalgamations), • CJSC “Kontsern “Vysokie Tekhnologii R” [“Concern Hi-Tech R”] (services in creation and use of databases and information resources, innovative products for civil use, including in the machine-building branch);
• CJSC “Industrial’naia energeticheskaia Kompania” [“Industrial Energy Company”] (supplies of electric power and gas to enterprises belonging to the DIC), CJSC “R.E.T.” Kronshtadt” (development and production of simulators and software, to be used in the navy, air forces and ground forces), and some others, as well as a number of defense-industrial assets”29.
On the whole, all these resources will make it possible for the newly created state corporation to nearly fully monopolize foreign trade in products and technologies for military and dual use.
In this connection, it would be interesting to note that its creation was motivated not so much by the necessity to increase the profitability of trade in hi-tech products relating to military industry, but by the need to develop hi-tech exports in general.
The creation of SK “Rostekhnologia” was preceded by a comprehensive analysis of Russia’s position on the international hi-tech market, which provided the basis for a feasibility study for the new corporation. The following facts, in particular, were pointed to in the aforesaid analysis30:
See, e. g., http://rusarm.ru/roe_ru/news/pr_rel/p_r_07_11_26_a.html See http://rusarm.ru/roe_ru/news/pr_rel/p_r_07_11_26_a.html See, e. g., http://www.gosrf.ru/print_1486.htm • the RF’s share on the international hi-tech market is no more than 0.5 %;
• the share of Russian machines and equipment in the total volume of international exports of finished hi-tech products is no more than 0.3 %;
• the share of hi-tech machine-building products in the structure of Russian exports is diminishing every year, and presently constitutes 5 % of the total volume of the Russian Federation’s commodity exports;
• more than 40 % of such exports is constituted by supplies of military products to foreign states.
Besides, in this analysis serving as a base for the adoption of Federal Law No 270-FZ, it is stated that the technological status of Russian machine-building is unsatisfactory: in respect to many of its developments and technologies, this country is frozen at the level of the 1970 – 1980s. Presently, only one quarter of the technologies applied in the machine-building branch correspond to the international level. The production of hi-tech and competitive products can only serve the needs of comparatively narrow market segments. The tool-making branch is in a critical state …”31.
It appears that the creation of SK “Rostekhnologia” can hardly be conducive to any improvement of the situation in civil machine-building, since nothing is said either in the Law or in any official plans or programs about any investments to be made in this sphere through SK “Rostekhnologia”.
It may be supposed that, quite simply, no investments are planned (or at least not reflected in a precise manner in official documents). However, the segment of Russian machine-building which operates most efficiently and is in demand on the international market, namely military products, will from now on be functioning under the control of the newly created corporation.
From the point of view of organization, the State Corporation “Rostekhnologia” is a juridical person established by the Russian Federation in the organizational – legal form of a state corporation. Its administrative bodies are as follows:
- the Supervisory Board of the State Corporation “Rostekhnologia” (the Supervisory Board of the State Corporation “Rostekhnologia” consists of nine members: four representatives of the President of the Russian Federation, four representatives of the Government of the Russian Federation, and the General Director of the State Corporation “Rostekhnologia”, whose post entitles him to be member of the Supervisory Board.
The members of the State Corporation “Rostekhnologia” are appointed by the President Russian Federation for a period of no more than five years);
- the Managerial Board of the State Corporation “Rostekhnologia” (the Managerial Board of the State Corporation “Rostekhnologia” consists of eleven members. The General Director of the State Corporation “Rostekhnologia” and the Deputy General Director of the State Corporation “Rostekhnologia” are entitled to be members of the Managerial Board by their status. The activity of the Managerial Board of the State Corporation “Rostekhnologia” is directed by the General Director of the State Corporation “Rostekhnologia”);
- the General Director of the State Corporation “Rostekhnologia” (the General Director of the State Corporation “Rostekhnologia” is appointed to his post and dismissed from his post by the President of the Russian Federation).