The Conversion Of The Defence Industry In The Russian Federation

Original Language Title: О конверсии оборонной промышленности в Российской Федерации

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102015277

Expired-the Federal law dated 13.04.98 N 60-FZ z and c o n RUSSIAN FEDERATION about the conversion of the defence industry in the Russian Federation (as amended by the Decree of the President of the Russian Federation from 24.12.93 N 2288) this law determines the legal basis for the activity of defence and related enterprises, associations and organizations in the context of reducing or ending the Defense orders and the consequent conversion of their production capacities , scientific and technical capacity and human resources.
The law regulates the relationship of public administration bodies of the Russian Federation and bodies of public administration national-State and administrative-territorial formations with businesses, associations and organisations in the conversion process and guarantees the protection of the interests of all its participants in the conditions of market relations, the use of economic methods of management.
The law stipulates the procedure for resolution of legal, economic and social issues arising in the process of conversion, and focuses on the most efficient use of civilian use of production capacities, the scientific and technical capacity and human resources to conversion of enterprises.
R a w d e l 1 General provisions Article 1. Basic concepts and definitions 1. Under the conversion of defence industries (hereinafter referred to as conversion) in this law refers to partial or complete reorientation in the manner prescribed by this Act, the order released production capacity, scientific and technical capacities and labour defence and related enterprises, associations and organizations from military to civilian purposes.
2. Konversiruemoe enterprise production, research-and-production association, a plant design or research organization, as well as any other company, regardless of the form of ownership held by scientific and (or) production for military purposes (i.e. manufacturing, design, research, testing, repair and maintenance of weapons and military equipment, components, materials and special technological equipment for them, as well as production, processing, disposal, storage of special kinds of raw materials for the production of armament and military equipment used in the armed forces, security bodies and law enforcement agencies of the Russian Federation), where this activity is reduced or terminated and, in this context, measures are being taken for the production of civilian products and disposal of military equipment.
Konversiruemymi in accordance with this law are also defense enterprises, for which decided to halt their activities or elimination because of the techno-economic inexpediency of their redevelopment.
Article 2. Conversion principles 1. The reason for reducing or eliminating the Defense enterprise production activity for military purposes are decisions of State authorities of the Russian Federation, as well as the reduction in the budget for this purpose.
2. The main principle of work of the converted enterprises is the use of high-tech defense industry for the manufacture of products, capable to compete on the international market.
3. Freed in the conversion process capacity, scientific and technological potential and labour defence industries are involved in the implementation of priority State targeted programmes of socio-economic development of the Russian Federation. This takes into account the needs of the national economy, the proposals of the converted enterprises, scientific-technical and production reserves, accumulated on the converted enterprises, professional skills of employees, specialization of enterprises and their technical equipment.
4. Konversiruemye Enterprise provide on a contractual basis at the expense of funds allocated for defence purposes, creation, preservation and development of the mobilization capacity, in accordance with the tasks, as approved by the Government of the Russian Federation, as well as maintaining the necessary support staff.
5. The conversion shall be carried out in full compliance with all the norms of social protection of the employees of the converted enterprises stipulated by legislation of the Russian Federation.
R a w d e l 2 Organization, planning and funding for Defense conversion Article 3. Defence order planning and conversion

1. planning of the State Defense order for development, production and supply of arms and military equipment (hereinafter referred to as the defence order) is based on the military doctrine of the Russian Federation and its fundamental principles. Based on the military doctrine of the Russian Federation, adopted by the Supreme Soviet of the Russian Federation, Ministry of Defense of the Russian Federation with the participation of relevant ministries and departments, enterprises, associations and organizations develops long-term programmes of development of weapons and military equipment, software creation, preservation and development of the mobilization capacity. Similar programmes are being developed by security bodies and law enforcement agencies of the Russian Federation.
In accordance with these programs are long-term contracts and approved the Defense order. These long-term programs are also used to compile public conversion programmes and shall be communicated to conversion to conversion planning and organization of production. (Para. 1 non-recognized and not subject to application of the Decree of the President of the Russian Federation from 24.12.93 N 2288)
2. on the basis of the Republican budget of the Russian Federation held clarification of the respective long-term programmes, the extension of the existing treaties and new contests orders.
3. Refined plans for defence order brought to each konversiruemogo company no later than two years prior to the conversion.
The beginning of the conversion was the year from which the enterprise actually is reduced or discontinued production, development of armament and military equipment either begins reshaping not imposed operational capacity.
Article 4. 1 conversion programme. The main role in the transition from military to civilian production and programming conversion belongs to the defence enterprise.
The basis for the development of the conversion program at the enterprise are: the programme for the development and production of weapons and military equipment, the activities of the security authorities and law enforcement agencies of the Russian Federation;
the program of creation, preservation and development of the mobilization capacity;
order to develop, manufacture and supply of products and goods for essential public needs (including for defence purposes).
2. develop and organize the performance of government programs of conversion implemented by the Ministry of industry of the Russian Federation.
3. regional programmes of conversion developed bodies of executive power of the national State and administrative-territorial entities, as well as on the conversion of coordinating councils or other bodies, contributing to the implementation of the conversion processes in the region.
4. participation of the converted enterprises in State and regional programmes is strictly voluntary, based on principles of economic interest and competition.
Article 5. Finance and logistics of the conversion process 1. The financing and logistics defense order is determined by the Executive order with the customer contract concluded in accordance with the legislation of the Russian Federation.
2. the procedure for the financing and logistical support of works on State programs for conversion is set by these programs.
3. Material interests of the State Enterprise konversiruemogo in improving economic indicators (including maintaining employment worker) is provided by the terms of the contract concluded in accordance with the legislation of the Russian Federation.
4. in order to ensure the implementation of government programs of crediting and conversion creates State Fund conversion. And funding sources of the Fund determines the Russian Federation Supreme Council in approving the Republican budget of the Russian Federation.
5. Konversiruemym enterprises have the right to create special centralized funds to finance research, development and design work, as well as to develop new types of products. These funds are derived from deductions from profits of up to 1.5 per cent of the cost of a commodity output (works, services) enterprises with the exception of those payments from tax base income tax (profit tax).
Article 6. Features of the restructuring and privatization of the converted enterprises

1. with the full conversion of enterprises merging and non-legal entities, as well as shops, departments and other structural subdivisions of enterprises, they can be distinguished as separate State enterprises as a legal entity. Decision on the allocation of an independent public enterprise was adopted at the general meeting of the labour collective units by the majority of voices from the total number of its members. Selection in an independent public enterprise is carried out in accordance with the legislation of the Russian Federation.
2. The staff fully konversiruemogo State enterprise may apply to privatize its enterprises to participate through their representatives in the development of a plan of privatization, when privatization of benefits provided by the legislation of the Russian Federation for members of labour collectives of the enterprises.
3. A company or its structural unit with partial conversion of privatized in accordance with legislation of the Russian Federation and the State program of privatization.
4. The participation of foreign investors in the privatization of the converted enterprises shall be carried out in accordance with the State program of privatization, the Act of the RSFSR "on foreign investments in RSFSR" and the legislation of the Russian Federation on privatization.
5. Enterprise or subdivisions of enterprises with State designation and is not used in the current production, are not eligible for privatization.
R a w d e l 3 social protection. Compensation and benefits konversiruemym enterprises Article 7. Social protection of the employees of the converted enterprises 1. Citizens of the Russian Federation, working for konversiruemom company, as well as released in connection with the conversion shall enjoy the right to social protection in accordance with this law and other legislative acts of the Russian Federation.
2. employees of mountain, metallurgical, radiochemical and special Assembly plants the uranium industry, once released as a result of the conversion, the period of receiving unemployment benefits under the decision of local Soviets of people's Deputies may be extended for up to two years.
3. Workers dismissed in connection with the conversion and worked in defense industries not less than 15 years, the right to use departmental objects of social sphere, the departmental health care, preserving the housing queue and priority to individual housing construction or entry into housing cooperatives in all regions of the Russian Federation.
4. Cities and towns, more than 20 per cent of the working population which falls under the dismissal as a result of conversion can be assigned the status of the territories of priority development in accordance with article 17 of the Act of the RSFSR "on population employment in RSFSR".
5. the dismissal of workers with konversiruemogo enterprises in connection with the conversion of an additional condition for dismissal, which necessarily recorded in the work book when registering records the reasons for dismissal.
6. The requirements set out in paragraph 5 of this article shall be distributed to the employees in accordance with paragraphs 5 and 6 of article 29 and paragraph 1 of article 33 of the labour code of the RSFSR.
7. For unemployed workers laid off with konversiruemogo of the enterprise in accordance with paragraphs 5 and 6 of this article, with the privatization of public enterprises, were entitled to all the benefits provided to members of the labor collective of the legislation of the Russian Federation and the State program of privatization.
Article 8. Compensation and benefits konversiruemym enterprises 1. Tax incentives to enterprises engaged in conversion, shall be established in accordance with the tax legislation of the Russian Federation.
2. Konversiruemye State enterprises of the Government of the Russian Federation shall have the right to part of the accelerated depreciation of fixed assets and, in the case of total withdrawal from them a defense order and when it is not possible to use these funds in the civil sphere-to bezamortizacionnoe write-off of highly specialized equipment.
3. While reducing order for production of armaments and military equipment, special production lines produced in specialized workshops and factories with rasstanovochnoj numbers, as well as in other cases, causing an objective increase in the cost of the product, the customer is obliged when renegotiating the contract on demand enterprises revise prices for products ordered on company calculations, ensuring profitability of production in new conditions and securing employees specified lines , workshops and productions made wages.
4. In case of non-compliance with the time limits provided for by this law bring to the defense industry source data on conversion damages caused by these businesses, including:

conservation and maintenance costs of mobilization capacity, at social events to increase the cost of production as a result of reducing the production of armament and military equipment, amounts paid on sanctions suppliers of raw material, materials and components, and other damages caused by failure of geologists of unfinished products in the write-off of the tool, accessories, appliances and equipment that cannot be used for the production of civilian goods, are compensated by the Government of the Russian Federation from the funds of the Republican budget of the Russian Federation unless otherwise stipulated in the long-term contracts of enterprise with the customer.
5. Konversiruemym enterprises, producing in accordance with the conversion equipment programmes for the needs of the agro-industrial complex, subject to compensation for part of the overhead, providing a level of prices not above the world.
R a w d e l 4 foreign-economic activity of the enterprises in conditions of conversion of Article 9. Types of foreign economic activity 1. Konversiruemye enterprises have the right to carry out foreign economic activities, in accordance with the legislation of the Russian Federation.
While companies have the right to: export of raw materials, materials, equipment, released during conversion, if inability to use them for the production of civilian goods, taking into account the requirements of article 10 of this law;
import new equipment and technologies, as well as components for the production of civilian products;
transfer (Exchange and sale) in accordance with the established procedure of technology, licences, know-how, technical and scientific information that prior to the implementation of the conversion used in creating weapons and military equipment;
participation in conferences, symposiums, exhibitions and fairs with a demonstration of new materials, equipment, appliances, promotional descriptions of technologies that were previously used for the production of weapons and military equipment;
development, production and sale of weapons and military equipment under license in the manner prescribed by the legislation of the Russian Federation;
participation in cooperation with foreign firms for the development, production and sales of products for military purposes in accordance with the legislative acts of the Russian Federation providing military protection of the interests of the Russian Federation.
2. the activities of the enterprises with foreign investments shall be governed by the law of the RSFSR "on foreign investments in RSFSR" and other legislative acts of the Russian Federation.
Article 10. Protection of military-economic and scientific-technical potential of the Russian Federation 1. To prevent damage to the military-economic and scientific-technical potential of the Russian Federation in the implementation of konversiruemymi enterprises of foreign trade activities, as well as for the non-proliferation of weapons of mass destruction, these enterprises must abide strictly by the restrictions imposed on exports (transmission, Exchange) of products and technologies that have civilian appointment, but can be used to create weapons of mass destruction. Export restrictions (transfer, Exchange) of these products and technologies are installed by the Supreme Council of the Russian Federation and the Government of the Russian Federation.
2. In foreign economic activity of the enterprise konversiruemye are guided by the following provisions: export of strategic commodities, materials, the equipment operates on licenses issued in each case in accordance with the legislation of the Russian Federation;
transfer of technology, licences, know-how and scientific and technical information for production of civilian products and (or) their use in trade and science and technology ties with foreign firms is subject to ensure the protection of military and economic interests of the Russian Federation;
sale to other States of weapons and military equipment, special systems, complexes, functional blocks, nodes that are part of the armament and military equipment, as well as the technologies for their production is carried out in accordance with the procedure established by the Government of the Russian Federation.
The President of the Russian Federation, b. YELTSIN Moscow, Russia March 20, 1992 House Tips N 2551-I