The Conversion Of The Defence Industry In The Russian Federation

Original Language Title: О конверсии оборонной промышленности в Российской Федерации

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Spconsumed by Federal Law 13/04/98 N 60-FZ A to the Russian Federation A conversion of the defence industry in the Russian Federation Russian Federation of 24.12.93 g. N 2288) This Law defines the legal basis for the activities of defence and related enterprises, associations and organizations in the context of the reduction or termination of defence orders and related activities Conversion of their production capacity, scientific and technological capacity and labour resources. The law regulates the relations between the State administration bodies of the Russian Federation and the State administration of national-state and administrative-territorial entities with enterprises, associations and organizations. organizations in the process of conversion and guarantee the protection of the interests of all its participants in the context of market relations, the use of economic management methods. The law provides for the resolution of legal, economic and social issues arising in the process of conversion and aims at the most effective use of productive capacities, scientific and technical the potential and the labour resources of the enterprises to be converted. P E L 1 General Article 1. Concepts and definitions 1. Under the conversion of the defence industry (hereinafter referred to as "conversion"), this Act refers to the partial or total reorientation of the released production capacities, scientific and technical capacity and labour, in accordance with the Act Resources of defence and related enterprises, associations and organizations from military to civilian use. 2. Business-to-business, scientific and production association, plant, design or research organization, as well as any other enterprise regardless of the form of ownership that is occupied by the scientific and (or) production activities for military purposes (i.e. production, development, research, testing, repair and maintenance of arms and military equipment, components, materials and special technological equipment for them, and extraction, processing, recycling, storage of special species materials and materials for the production of weapons and military equipment used in the armed forces, security and law enforcement agencies of the Russian Federation), which reduce or terminate these activities In this connection, activities are being carried out on the production of civilian goods and the disposal of military equipment. Conversions under this Act are also defence enterprises that have been decided to terminate their activities or to liquidate them because of the feasibility of reprofiling them. Article 2. Conversion principles 1. The decision of the State authorities of the Russian Federation, as well as the actual reduction of budget expenditures for these purposes, are grounds for the reduction or cessation of the production activities for military purposes. 2. The main principle of the work of the converted enterprises is the use of high technologies of the defense complex for the production of products able to compete in the external market. 3. Industrial production capacity, science and technology capacity and the labour resources of the defence industries are being brought to the attention of the Government's priority social and economic development programmes of the Russian Federation. This takes into account the needs of the national economy, the proposals of the converted enterprises, the scientific-technical and industrial projects accumulated in the converted enterprises, the professional skills of employees, specialization of enterprises and their enterprises. Technical equipment. 4. The enterprises that are being versionable shall provide, on a contractual basis, with funds allocated for defence needs, creation, preservation and development of mobilization facilities in accordance with the assignments approved by the Government of the Russian Federation, as well as Maintaining the necessary maintenance personnel. 5. The conversion is carried out in full compliance with all social protection standards for employees of the converted enterprises, which are provided for in the legislation of the Russian Federation. P E L 2 Organization, Planning and Financing of Conversion Defense Industry Article 3. Defence order and conversion planning 1. Planning the state defense order for the development, production and delivery of weapons and military equipment (hereinafter referred to as the defence order) is based on the military doctrine of the Russian Federation and its basic principles. On the basis of the military doctrine of the Russian Federation, adopted by the Supreme Soviet of the Russian Federation, the Ministry of Defence of the Russian Federation, with the participation of relevant ministries and departments, enterprises, associations and organizations, develops Long-term programmes for the development of weapons and military equipment, programs for creation, preservation and development of mobilization capacities. Similar programmes are being developed by the security and law enforcement agencies of the Russian Federation. In accordance with these programs, long-term contracts are concluded and a defence order is approved. These long-term programmes are also used for the formulation of public conversion programmes and are communicated to the converted enterprises for conversion planning and production management.(Paragraph 1 is recognized Decree of the President of the Russian Federation N 2288) 2. On the basis of the republican budget of the Russian Federation, the relevant long-term programmes, the extension of existing contracts and competitions for the fulfillment of new orders are being clarified. 3. Refined defence order plans shall be notified to each of the converted enterprises at least two years prior to the start of the conversion. Start of conversion is considered to be the year from which the production, development of weapons and military equipment is actually reduced or terminated at the enterprise, or the conversion of non-commissioned capacity begins. Article 4. Conversion programs 1. The main role in the organization of transition from military to civilian production and development of conversion programs belongs to the defense enterprise. The basis for the development of the enterprise conversion programme is: armament and military technology development and production programmes, security and law enforcement programmes of the Russian Federation; programmes for the creation, conservation and development of mobilization capacity; Order for the development, production and supply of products and goods for critical public needs (including for the needs of the (...) (...) 2. The Ministry of Industry of the Russian Federation is in the process of developing and implementing State programmes of conversion. 3. Regional conversion programmes are developed by the executive authorities of national-State and administrative-territorial entities, as well as by the coordinating councils for conversion or other bodies facilitating processes -Realization of conversion in the region. 4. The participation of converted enterprises in State and regional programmes is strictly voluntary, based on the principles of economic interest and competition. Article 5. Financing and logistics conversion process 1. The order of financing and logistics of the defence order is determined by the contract of the order performer with the customer, concluded in accordance with the legislation of the Russian Federation. 2. The funding and logistics of State conversion programmes are established by these programmes. 3. The material interest of the head of the state convertible in improving economic performance (including the employment of employees) is ensured by the terms of the contract concluded under OF THE PRESIDENT OF THE RUSSIAN FEDERATION 4. A State conversion fund is being established to provide credit and State conversion programmes. The Supreme Council of the Russian Federation, when approving the republican budget of the Russian Federation, defines the sources and financing of the said fund. 5. Business enterprises are given the right to establish special central funds for research, development and design, as well as for the development of new products. These funds are generated from profits of up to 1.5 per cent of the cost of goods (works, services) of enterprises, with the exception of those payments from the taxable income tax base (profit tax). Article 6. Reorganization and privatization of convertiated enterprises 1. When fully converted to non-legal entities, as well as workshops, departments and other structural units of enterprises, they may be allocated to independent State enterprises with rights a legal entity. The decision to allocate to an independent state enterprise is taken at the general meeting of the working group of the unit by a majority of votes of the total number of its members. The allocation to an independent State enterprise is carried out in accordance with the legislation of the Russian Federation. 2. The labour collective of a fully converted public enterprise may apply for the privatization of its enterprise, participate through its representatives in the development of the privatization plan and benefit from the privatization of benefits, OF THE PRESIDENT OF THE RUSSIAN FEDERATION 3. The enterprise or its structural unit, with partial conversion, is privatized in accordance with the legislation of the Russian Federation and the State Privatization Programme. 4. The participation of foreign investors in the privatization of the converted enterprises is carried out in accordance with the State Privatization Programme, the RSFSR Law and the Russian Federation's legislation on privatization. 5. Enterprises or structural subdivisions of enterprises with mobilization purpose and are not used in the current production are not subject to privatization. P E D E 3 Social Security. Compensation and benefits to convertible enterprises Article 7. Social protection for employees of the converted enterprises 1. Citizens of the Russian Federation working in the converted enterprise, as well as those 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. Workers in the mining, metallurgical, radiochemical and special assembly plants of the uranium industry, released as a result of conversion, may receive unemployment benefits by decision of local Councils of people's deputies shall be extended for up to two years. 3. Employees who have been released in connection with the conversion and who have worked in the defence industries for at least 15 years are entitled to the use of departmental social facilities, to departmental medical care, to the preservation of In the Russian Federation, there is a need to provide housing and housing services in all regions of the Russian Federation. 4. Cities and towns, more than 20 per cent of the employed population of which are subject to dismissal as a result of conversion, may be given priority development status in accordance with article 17 of the RSFSR Act "About Employment in the RSFSR". 5. The dismissal of employees from the converted enterprise in connection with conversion is an additional condition for dismissal, which is necessarily recorded in the work book for the discharge of the reasons for dismissal. 6. The requirements set out in paragraph 5 of this article apply to employees who have been dismissed in accordance with article 29, paragraphs 5 and 6, and article 33, paragraph 1, of the Constitution of the RSFSR. 7. For unemployed workers dismissed from the converted enterprise in accordance with paragraphs 5 and 6 of this article in the privatization of State enterprises, all benefits granted to members of the labour force are covered. of the Russian Federation and the State Programme for Privatization. Article 8. Compensation and benefits to convertible enterprises 1. Tax benefits for enterprises engaged in conversion are established in accordance with the tax legislation of the Russian Federation. 2. State enterprises under the permission of the Government of the Russian Federation have the right to accelerate the depreciation of part of the main production funds and, if they are completely withdrawn from them, and if there is no possibility The use of these funds in the civilian field is for the elimination of highly specialized equipment. 3. In the reduction of the order for production of arms and military equipment produced on special production lines, in specialized workshops and in production with the number of units, as well as in other cases causing an objective increase The customer is obliged to renegotiate the price of the ordered goods at the request of the enterprise to ensure the profitability of the production in the new conditions and Preservation of the employees of these lines, workshops and production Level of remuneration. 4. In the event of failure to comply with the time frame for the conversion of the defence industry to the defence industry, including: preservation and maintenance costs -mobilization capacity, social activities, reimbursement of increase in production costs due to reduced production of arms and military equipment, amounts paid on sanctions of suppliers of raw materials, materials and components , { \cs6\f1\cf6\lang1024 } products { \cs6\f1\cf6\lang1024 } { \cs6\f1\cf6\lang1024 } { \b } unfinished products, with the write-off of tool, snap-in, instruments and equipment that cannot be used for the production of civilian products- OF THE PRESIDENT OF THE RUSSIAN FEDERATION 5. Conversions enterprises that issue equipment and machinery for conversion programmes for the needs of the agro-industrial complex provide compensation for part of the overheads that ensure that they are not higher than the world's prices. P E L 4 Out-of-economic activities of enterprises under conversion Article 9. Types of foreign economic activity 1. Conversions enterprises have the right to carry out foreign economic activities in accordance with the legislation of the Russian Federation. The enterprises have the right to: exports of raw materials, materials, equipment released during conversion, provided that they are not used for the production of civilian products, taking into account the requirements, that are contained in Article 10 of this Law; import of new equipment and technologies, as well as components for the production of civilian goods; transfer (exchange and sale) in accordance with the established order of technologies, licenses, Know-how, scientific and technical information that prior to the conversion used in the creation of weapons and military equipment; participation in conferences, symposiums, exhibitions and fairs with demonstration of new materials, equipment, instruments, advertising technologies that were previously used for -Production of arms and military equipment; development, production and sale of arms and military equipment under licences in accordance with the law of the Russian Federation; participation in cooperation with foreign countries Development, Production and Management of Military Products OF THE PRESIDENT OF THE RUSSIAN FEDERATION 2. The activities of enterprises with foreign investments are regulated by the Law of the RSFSR "On foreign investments in the RSFSR" and other legislation of the Russian Federation. Article 10. Protection of the military-economic and scientific-technical potential of the Russian Federation 1. In order to prevent damage to the military, economic and scientific and technological potential of the Russian Federation in the implementation of the foreign-trade activities and the non-proliferation of weapons of mass destruction The enterprises should be strictly guided by the restrictions placed on exports (transfer, exchange) of products and technologies that have a civilian pattern, but can be used to create weapons of mass destruction. Restrictions on the export (transfer, exchange) of these products and technologies are established by the Supreme Soviet of the Russian Federation and the Government of the Russian Federation. 2. In foreign economic activity, the converted enterprises are guided by the following provisions: Export of strategic raw materials, materials and equipment is carried out according to licenses issued on a case-by-case basis. OF THE PRESIDENT OF THE RUSSIAN FEDERATION Technical and scientific relations with foreign firms are subject to OF THE PRESIDENT OF THE RUSSIAN FEDERATION as well as the technologies of their production, shall be carried out in accordance with the procedure established by the Government of the Russian Federation. President of the Russian Federation ELTSIN Moscow, House of Soviet Russia 20 March 1992 N 2551-I