MOSCOW (Russian Film Business Today) –On 18 March in Moscow’s World Trade Center, within the framework of the business forum “Competitive Capabilities of Film Production in Russia,” Alexander Golutva, the deputy director of the Federal Agency for Culture and Cinematography and president of the Producer’s Guild of Russia, told Russian film industry professionals of the key particulars of government policy in the area of developing film production infrastructure in the Russian Federation.

“Today, representatives from the world of private business are more involved in talking of their plans related to the development of filmmaking infrastructure than in taking any specific actions,” Golutva observed in this brief appearance on his 60^th birthday, “The recoupment period for funds invested in this sector has turned out to be longer than investors’ estimates. Major business figures are now investing funds very cautiously in filmmaking because for many of them, cooperation with members of the filmmaking community has turned out to be disappointing…

Nevertheless, in our country, there are extensive facilities for providing film production services, the activity of which deserves rather high ratings. Today, we need to increase the production capacities of these film studios and equip them with the latest technologies. We also need to keep prices for their services within confines that correspond to the real financial capabilities of clients, i.e. Russian film producers, and provide for a smooth transition from generation to generation in the area of skill formation.”

Golutva also admitted that the process of securitization of many film studios is “slow, unwieldy and not always correctly carried out,” which has diminished the business community’s interest in developing Russian production facilities. If previously there was no end of potential investors in this area, then now certain film market players have decided to build their own studios. Since there is a real danger of major film studios being converted to other uses, it was decided to retain government ownership of the countries film studio facilities for the mid-term, halting their privatization when necessary, as well as retaining a share of charter capital equal to 25% +1 share in all other film studios being privatized according to the projected privatization plan.

The government will retain control of FGUP (Federal Government Unitary Enterprise) Kinoconcern Mosfilm (its strategic stats has been confirmed by the Russian government), OAO Lenfilm, OAO TPO (Creative Production Union) Tsentralnaya Kinostudiya Detskikh i Yunosheskihk Filmov Imeni M. Gorkogo (Gorky Film Studios), OAO Tsentr Natsionalnogo Filma (Center of National Film) and OAO Sverdlovskaya Kinostudiya (Sverdlovsk Film Studio). In the near future, the management of the latter four film studios will be obligated to present business plans for their development, capitalization, retooling, management development, etc.

At the end of the meeting, Golutva answered the questions of those present. Film business figures were mainly interested in various aspects of government support for film production – particularly with regard to film debut projects – as well as issues associated with entry into the government register of film professions which were not previously indicated therein – for example, composers.

Golutva bemoaned that existing Federal Law No 94-FZ “On placement of orders for supply of goods, performance of work, rendering of services for state and municipal needs” does not facilitate improvement of the artistic quality of films receiving government support.

“We have gone through all echelons of authority, including the president,” said he, “Every one of them admits that the law developed by the Economic Development and Trade Ministry is not perfect, but for the time being, no new proposals related to changes in the sphere of government support have produced any response. Nevertheless, I am confident that already this year, the situation will change for the better.

Russian Film Business Today will keep track of events as they unfold.