Russian government has decided to streamline country’s development institutions which “must work in full to achieve the national development goals”, Prime Minister Mikhail Mishustin said at a meeting with deputy prime ministers, government website reports.
The currently existing 40 such institutions “were all established to resolve specific tasks, to support innovation, small and medium-sized businesses, exports, regional development, housing construction and industry. These were needed to take definite actions that produced tangible results at one time,” PM noted. “However, new challenges have emerged. They require considerable adjustments to their work and future plans. The activities of these institutions have little to do with new national development goals. Common management mechanisms do not exist. Their functions largely overlap with those of the federal executive bodies and commercial companies.”
Mikhail Mishustin therefore suggested a dramatic overhaul of the development institutions in their entirety. For instance, “A large investment bloc based on VEB.RF state corporation will be established. The Corporation for Developing Small and Medium Enterprises (SME Corporation), the Russian Export Center, Russian Agency for Export Credit and Investment Insurance (EXIAR), Rusnano, Skolkovo Foundation, the Foundation for Assistance to Small Innovative Enterprises in Science and Technology (FASIE), the Fund for Infrastructure and Educational Programs, and the Industrial Development Fund will be transferred under its control.” Besides, “Some functions of another eight development institutions will be redistributed between VEB.RF and federal executive bodies. These development institutions will be eliminated.”
He further proposed “merging several development institutions with similar functions into larger institutions. This includes, in part, two leasing companies — State Transport Leasing Company (GTLK) and VEB-Leasing. A universal bank based on MSP Bank and the DOM.RF Bank will also be established. The Fund for Promoting Housing and Utilities Reform and the Fund for Protecting the Rights of Equity Holders will be united into an integrated Fund for Promoting Housing and Utilities Reforms. The Russian Fund for Basic Research (RFBR) will be attached to the Russian Science Foundation. In addition, the Russian Venture Company (RVC) will be placed under the control of the Russian Direct Investment Fund.” In his view, “This new organizational structure will preserve the strategically important organizations that are aimed at developing particular industries and supporting the national defense industry. These include Rosatom State Atomic Energy Corporation, Roscosmos State Corporation for Space Activities, Rostec State Corporation, Federal Road Agency (Rosavtodor), Rosagroleasing state owned agro industrial leasing company, the Russian Agricultural Bank (Rosselkhozbank), the Deposit Insurance Agency (DIA), the Russian Ecological Operator, DOM.RF integrated housing development institution, the Far East Development Corporation, and the North Caucasus Development Corporation. The North Caucasus Resorts joint-stock company will become the Tourist Corporation.”
“These changes,” Mishustin hopes, “will make development institutions more effective and reorient them towards achieving the national development goals.”