Special protection against creditors
The Government Sustained Economy Commission headed by First Deputy Prime Minister Igor Shuvalov has approved the preparation of amendments to legislation that supports budget settlements under state order with enterprises through special accounts. The proposals on introducing a special procedure for disbursing budget allocations for these purposes have been developed on a directive of Prime Minister Vladimir Putin, and the specific measures were developed by the Finance Ministry.
Initially the Government intends to establish the new mechanism in pilot projects with VEB, Sberbank and VTB. The first changes will be to the rules for holding tenders to award state orders and bankruptcy legislation. In the latter case it is about the protection of special business accounts against receivership and possible write-off of budget money in favour of other creditors. Thus the institution of state order special accounts may become permanent: the idea of special accounts for state orders could well have been implemented through Bank of Russia instructions, however, the proposed amendments to bankruptcy legislation indicate that state order money will be permanently protected against claims by creditors.
Clippings from Kommersant
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Over 55% of leading Russian companies are curtailing their real estate activities, according to the Russian Union of Industrialists and Entrepreneurs. The Vice President of RUIE, Alexander Murychev, said 40% of major investors will reduce their real estate investments and 15% will renounce them altogether in the near future.
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In April 2009 135,700 cars were sold in Russia, which is 53% less than in April of 2008, according to the European Business Association. The indicators for January through April are 525,800 cars, a drop of 44%.
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Through the beginning of 2009, 537,000 Russians were awarded regional titles and decorations. During the year the number of honoured citizens in the regions has doubled. This is the only category of social benefits that has registered a substantial increase for 2008.
By Dmitry Polonsky
