MOSCOW (Russian Film Business Today) – On Aðril 16, 2008, Decree No. 503-r, issued by Viktor Zubkov, the Russian Prime Minister, confirmed the amendments made to the Second Forecast Plan (program) of privatization of federal property for 2008–2010, which was approved by Directive of the Russian Federation Government No. 543-r, dated April 29, 2007.

According to Decree No. 503-r, the Creative Production Association Gorky Central Film Studio of Children’s and Youth Films will be auctioned this year, with 91,147 shares, or 100% of the studio’s capital, for sale.

In 2005, the specialized agency the Russian Federal Property Fund (RFFI) was already in the process of preparing an auction to sell the shares in Gorky Film Studio, as per Presidential Decree No. 389 “On Reorganization of Federal State-Owned Film Studios,” dated April 4, 2001, Federal Law No. 178-FZ “On Privatization of State and Municipal Property,” dated December 21, 2001 and Directive of the Russian Federation Government No. 1113-r, dated August 25, 2004.

The privatization proposed in 2005 included 68,561 shares, or 75% of charter capital minus one share. Therefore, the blocking stake of 25% plus one share remained in state ownership, which, according to the law on joint stock companies, was an obstacle to the company’s conversion. Nevertheless, the auction schedule for March 16, 2005 never took place. A new auction date has not yet been announced.

Decree No. 503-r also stipulates the sales 100% of charter capital of state-owned companies Sovexportfilm, Kinokomplekt and the Informkino agency. In addition, the federal state-owned unitary enterprises such as Respublikansky Filmokombinat (Republican Film Combine) and Opytnoye Proizvodstsvo Nauchno-issledovatelskovo Kinofotoinstituta (NIKFI – Pilot Production of the Scientific Research Cinema-Photo Institute) will also be privatized.

Russian Film Business Today is keeping track of developments.