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Home > News > President Orders Probe Into State Firms

August 10th, 2009

President Orders Probe Into State Firms

Abstract:
President Dmitry Medvedev on Friday ordered Prosecutor General Yury Chaika and the head of the Kremlin's oversight department, Konstantin Chuichenko, to open an investigation into state corporations, in a sign of growing skepticism over the institutions' role in the economy.

Medvedev ordered a sweeping investigation into how state corporations function, including their use of state assets and the degree to which their current activities correspond to federal law, according to a statement posted on the Kremlin's web site.

Conglomerate Russian Technologies, nanotechnology giant Rusnano, Olympic construction firm Olimpstroi, state lender Vneshekonombank, nuclear conglomerate Rosatom, the Housing Maintenance Fund and the Deposit Insurance Agency are all classified as state corporations.

In March, Medvedev's legal council on civil law said the special legal status accorded to state corporations was unnecessary and suggested that they operate under the same laws as private businesses.

Shortly afterward, Medvedev fired a broadside against Rusnano, criticizing its state corporation model and saying it would hamper innovation.

Source:
times.spb.ru

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