Financial Control over the Activities of State-Owned Corporations in the Russian Federation

  • Saglar S. ASHTAEVA Department of Civil and Business Law, Kalmyk State University, Russia
  • Georgiy L. RUBEKO Department of Civil and Business Law, Kalmyk State University, Russia
  • Kermen V. LIDZHEEVA Department of Civil and Business Law, Kalmyk State University, Russia
  • Anna V. IVANENKO Department of Administrative and Financial Law, Volgograd Cooperative Institute of Russian University of Cooperation, Russia
  • Elvira O. OSADCHENKO Department of Administrative and Financial Law, Volgograd Cooperative Institute of Russian University of Cooperation, Russia

Abstract

State-owned corporations in Russia act today as independent subjects of legal relations, including the financial component. Taking into account the fact that the state-owned corporations were established at the expense of budgetary (public) funds at quite significant financial investments of the state in these structures, certain risks were associated with effective management of these assets. In this regard, the state deliberately and consistently provides effective legal regulation of financial control over corporate activities. Property, contributed by the Russian Federation, including financial means, served as the basis for economic development of corporations. The ambiguous situation with the transfer of all rights on federal property and the lack of necessary control over this property was widely criticized. In March 2008, the Expert Council of the Committee on Industrial Policy of the Russian Federation Council (Report of the Expert Council, 2007) concluded that the functions carried out by state-owned corporations can and should be performed either by federal executive bodies, or commercial organizations, whose capital partly belongs to the state.

References

[1] Ashtaeva, S.S. 2015. Act of Corporation as the Main Factor in the Lapse of the Right of Participation in Corporations. Mediterranean Journal of Social Sciences 6(3): 170. doi:10.5901/mjss.2015.v6n3p169
[2] Ashtaeva, S.S., Ashtaev, Y.S., and Rubeko, G.L. 2015. The Legal Status and Responsibility of the State Corporations in the Russian Federation. Mediterranean Journal of Social Sciences, 6(3):200.
[3] Auditing Chamber of the Russian Federation. 2014. Support of small and medium-sized enterprises by Vneshekonombank is ineffective Available at: www.ach.gov.ru/activities/control/19616 (accessed 2 April 2016).
[4] Corporate Governance Code. 2014. Letter of the Bank of Russia No. 06-52/2463 of 10.04.2014 ‘On Corporate Governance Code’ Available at: www.consultant.ru/document/cons_doc_LAW_162007/ (accessed 2 April 2016).
[5] Decree of the Government of the Russian Federation No. 387 of 25 April 2012. 2012. About the Narrative Form Related to Investment of Temporarily Surplus Funds of State-owned Corporation, State-owned Company, and the Order of Presentation and Disclosure of these Records. In Collected Legislation of the Russian Federation.
[6] The Labour Code of the Russian Federation of 30.12.2001 No. 197-FZ. 2001. Rossiyskaya Gazeta, 31 December, 01.
[7] Federal Law No. 102-FZ of 07.05.2013 (amended on 22.12.2014). 2014. On Amendments into Legislative Acts of the Russian Federation in Connection with Adoption of the Federal Law ‘On Banning Certain Categories of Persons to Open and Have Accounts (Deposits), Keeping Cash and Valuables in Foreign Banks Located Outside the Russian Federation, and Owing and(or) Using Foreign Financial Instruments’ In Collected Legislation of the Russian Federation.
[8] Federal Law No. 177-FZ of 23.12.2003. 2003. On Insurance of Deposits of Individuals in Banks of the Russian Federation. In Collected Legislation of the Russian Federation.
[9] Federal Law No. 185-FZ of 21.07.2007. 2007. On Fund for Promoting Housing and Communal Services Reforming. In Collected Legislation of the Russian Federation.
[10] Federal Law No. 208-FZ of 26.12.1995 (as amended on 06.04.2015). 2015, On Joint-stock Companies. Available at: www.consultant.ru/document/cons_doc_LAW_8743/ (accessed 02.04.2016).
[11] Federal Law No. 211-FZ of 27.07.2010. 2010. On Reorganization of the Russian Nanotechnology Corporation. In Collected Legislation of the Russian Federation.
[12] Federal Law No. 270-FZ of 23.11.2007. 2007. On State Corporation for Promoting Development, Manufacturing and Export of High-tech Industrial Products ‘Rostekh’. In Collected Legislation of the Russian Federation.
[13] Federal Law No. 317-FZ of 01.12.2007. 2007. On Rosatom State Atomic Energy Corporation. In Collected Legislation of the Russian Federation.
[14] Federal Law No. 437-FZ of 29.12.2010 (edition of 21.07.2014). 2014. On Amendments for the Federal Law ‘On Noncommercial Organizations’ and Certain Legislative Acts of the Russian Federation. In Collected Legislation of the Russian Federation.
[15] Federal Law No. 7-FZ of 12.01.1996 (edition of 09.03.2016). 2016. On Non-Commercial Organizations. In Collected Legislation of the Russian Federation.
[16] Federal Law No. 82-FZ of 17.05.2007. 2007. On Bank for Development. In Collected Legislation of the Russian Federation.
[17] Gracheva, E.Y. 2002. Financial Control: the Sub-branch of Financial Law. Financial Law 2: 57-63.
[18] Gryaznova, A.G. et al. 2012. Finance Moscow: Finance and Statistics.
[19] Ivanov, O.B. and Stepashin, S.V. 2014. The Work Organization System of the Auditting Committee of the Board of Directors of a Large Holding type Company (exemplified from JSC ‘Russian Railways’). Economic Theory, Analysis, Practice 2: 55-66.
[20] Kazantsev, N.M. et al. 2009. Right and Financial Control. Moscow: Eksmo.
[21] Kozyrin, A.N. 2014. Legal Fundamentals of State and Municipal Financial Control in the Russian Federation. Reforms and Law 1:66-76.
[22] Order of the Federal Agency for State Property Management No. 86 of 20.03.2014. 2014. Methodical recommendations on organization of work of the auditing committees of boards of directors in joint-stock companies with involvement of the Russian Federation. Available at: www.rosim.ru/documents/194473/ (accessed 2 April 2016).
[23] Order of the Rosatom State Atomic Energy Corporation No. 1/1164 N-p of 03.12.2014. 2014. On Approval of the Regulations on the Management of Internal Audit. Available at: www.consultantplus.ru.
[24] Order of the Rosatom State Atomic Energy Corporation No.1/874 N-P of 15.09.2014. 2014. On Organization of Internal Control. Available at: www.consultantplus.ru.
[25] Order of the Rosatom State Atomic Energy Corporation No. 1/129-P of 11.02.2013. 2013. On Approval of the Regulations on the Control Committee of the Rosatom State Atomic Energy Corporation. Available at: www.consultantplus.ru.
[26] Putin, V.V. 2015. Speech of the President of the Russian Federation V. Putin at the enlarged meeting of the Collegium of the Auditing Chamber of the Russian Federation, January. Available at: www.news.kremlin.ru/news/47532 (accessed 28 April 2016).
[27] Report on the Inspection of the Auditing Chamber of the Russian Federation in 2012. 2012. Available at: www.ach.gov.ru/activities/annual_report/#96 (accessed 2 April 2016).
[28] Report on the Work of the Auditing Chamber of the Russian Federation in 2013. 2013. Available at: www.ach.gov.ru/activities/annual_report/#764 (accessed 2 April 2016).
[29] State Corporations in Contemporary Russia (2007) Report of the Expert Council under the Committee of the Russian Federation Council on Industrial Policy, Available at: www.prompolit.ru/files/289856/public_corporation.doc (accessed 2 April 2016).
[30] The Budget Code of the Russian Federation of 31.07.1998 No. 145-FZ (1998). In Collected Legislation of the Russian Federation.
[31] Vinnitsky, V.A. 2013. Public Property’ Moscow: Statut.
Published
2017-02-11
How to Cite
ASHTAEVA, Saglar S. et al. Financial Control over the Activities of State-Owned Corporations in the Russian Federation. Journal of Advanced Research in Law and Economics, [S.l.], v. 7, n. 6, p. 1294-1299, feb. 2017. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/603>. Date accessed: 23 nov. 2024.

Keywords

state-owned corporations; financial control; budgetary funds; state financial investments; Industrial policy