14 Aug 2009 15:14

Russian Financial Agency will not be set up as state corporation - Kudrin

MOSCOW. Aug 14 (Interfax) - The planned Russian Financial Agency will not be set up in the form of a state corporation, Deputy Prime Minister and Finance Minister Alexei Kudrin said.

"We will find a more appropriate organizational and legal form of functioning for this enterprise," Kudrin told journalists.

President Dmitry Medvedev recently ordered an investigation into the effectiveness of the state corporations as an organizational and legal form.

On August 7 Medvedev ordered Prosecutor General Yury Chaika and Konstantin Chuichenko, the head of the presidential administration's control department, to conduct a comprehensive check of operations at the state corporations.

Medvedev ordered particular attention be paid to "the targeted nature and effectiveness of the use of the state property and finances that have been transferred to them, as well as the correspondence of the activities of the state corporations to the goals contained in the federal laws on their formation."

The president further ordered that proposals, "to include the advisability of further use of the state corporation as an organizational and legal form," be prepared based upon the results of the check, which is to be completed by November 10, 2009.

However, on Friday the media, citing Deputy Finance Minister Dmitry Pankin, reported that the Finance Ministry had reached agreement with the Economic Development Ministry, Federal Financial Market Service (FFMS) and Central Bank on a draft bill to form the Russian Financial Agency (RFA) as the eighth state corporation.