The Conversion Of The Defence Industry In The Russian Federation

Original Language Title: О конверсии оборонной промышленности в Российской Федерации

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Spconsumed by Federal Law of 22.08.2004 N 122-FZ (from 1 January 2005) Russian Federation FEDERAL LAW OF THE RUSSIAN FEDERATION 20 March 1998 Approved by the Federation Council on April 1, 1998 (In the wording of the Federal Law dated 10.01.2003 N 8-FZ) This federal law establishes the legal framework and principles of state policy for the conversion of the defence industry, the rights and duties of public authorities OF THE PRESIDENT OF THE RUSSIAN FEDERATION Capacity-building, scientific and technological capacity and labour resources of the converted organizations and the provision of social protection to the employees of the converted organizations. This Federal Law regulates the relations of the State authorities of the Russian Federation, the authorities of the constituent entities of the Russian Federation, the converted organizations, the employees of the converted organizations Conversion of the defence industry. CHAPTER I. GENERAL PROVISIONS Article 1. Key concepts For the purposes of this Federal Law, the following basic concepts are used: conversion of the defence industry (further conversion)-the process of institutional, legal, regulatory, technological, scientific, technological and socio-economic transformation of the defence industry to partially or completely reorient the civilian production of previously employed in the defence industry Capacity-building, scientific and technological capacity and labour resources Defense Industry Organizations; Convertible Organization-Organization of Defense Industries, Scientific and (or) Manufacturing Activities for Federal Public Needs in the Field of Maintenance The defense and security of the Russian Federation are being reduced or terminated and activities are being carried out to develop new technologies, including dual-use technologies, civilian production and recycling arms and military equipment; Industry-the organization, regardless of the organizational and legal form and the form of ownership, which carries out scientific and (or) production activities to ensure the federal state needs in the field of maintaining the defense capability, and OF THE PRESIDENT OF THE RUSSIAN FEDERATION Scientific research in the field of armaments and military equipment; Development, production, testing, repair and maintenance of weapons and military equipment, including rocket and space used in the armed forces of the Russian Federation, other troops, military units and bodies; of dual use-technologies that can be used in the creation of both arms and military equipment and civilian products; federal targeted conversion programme-socio-economic, legal, organizational and other measures for the implementation of public policy in the Subjects of conversion and restructuring of the defence industry; regional target programme for conversion-socio-economic, legal, organizational and other activities to support the state authorities of the entity The Russian Federation for the conversion of defence industry organizations located in this subject; the level of conversion of the defence industry organization is a complex indicator that determines the depth of conversion, level of surge capacity, technology factor dual use, other parameters that depend on or according to the numerical value of which determines the amount of government support to the converted organization; conversion depth-a measure that defines a relationship Volume of production (works, services) reduced from defence production to total production of output (works, services) of the converted organization at the previous start of conversion year; level of change capacity-a metric that defines a change in attitude The volume of mobilization capacity to the total production capacity of the converted organization in the current year as compared to the previous start of the conversion year; double-use technology factor-the indicator, the determinative share of dual-use technologies in the technological process of the converted organization, as well as the proportion of technologies to be applied in the conversion process. Article 2. Legal regulation of conversion Legal regulation of conversion is carried out in accordance with the Constitution of the Russian Federation, this Federal Law, other federal laws and other regulatory measures. OF THE PRESIDENT OF THE RUSSIAN FEDERATION Property and related personal non-property relations based on equality, autonomy of the will and ownership of their participants and arising from conversion are regulated by civil law. Article 3. The purpose of the conversion process is to: To ensure the technical re-equipment of industry through the efficient use of the scientific, technical and productive capacities of the organizations of the defence industry for the production of highly technological and competitive products (work, services); providing social protection to employees of converted organizations released in connection with conversion, including through the establishment of a Additional jobs in the converted organizations; to ensure scientific and technological progress through priority development of knowledge-intensive productions; development of export potential of the defence industry; reduce economic dependence on imports by creating and developing production similar to imported products; creating new competitive technologies, materials and equipment. Article 4. The main principles for the conversion process are: The main principles of conversion are: the preservation of the potential of the defence industry at a level that guarantees the defence and security of the Russian Federation; State responsibility for the social and economic consequences of its conversion decisions; State support for conversion through the provision of convertible budget organizations reimbursable and budgetary allocation, State guarantees, giving priority, under other equal conditions, to public procurement orders (work, services) for public needs in the converted organizations, as well as through other measures; provide State support to the defence industry for conversion to volume determined on the basis of the main conversion guidelines and the level of conversion of the organization; Effective application of process conversion processes, Used by organizations of the defence industry; orientation of the converted organizations to priority scientific and technical tasks by increasing efficiency in the use of released productive capacity and labour resources; Rational use of natural resources and environmental protection against man-made impacts; the creation and widespread use of integrated conversion and conversion management methods; Create an economic environment for the converted organizations in order to preserve and develop high technologies for the production of science-based, technologically sophisticated civilian products, competitive in domestic and foreign markets. Article 5. Reasons for conversion 1. The grounds for the conversion are the decision of the President of the Russian Federation, the decision of the Government of the Russian Federation to reduce or terminate scientific and (or) production activities for the provision of federal state needs in the of the Russian Federation on certain areas (nomenclature of products, works, services) or in certain defence industry organizations adopted in accordance with Article 7, paragraph 1 of this Federal Law. Grounds for the reduction or termination in the organization of the defense industry of scientific and (or) production activities for the provision of federal state needs in the field of defense and security The Russian Federation shall terminate the obligations of the parties to the State contract (contract) for the performance of the activity or the modification of such obligations. Unreleased in connection with such termination or reduction of activity, the production capacity can be converted by the organization of the defence industry in agreement with the Government of the Russian Federation or authorized to do so By the Government of the Russian Federation, the federal authorities in the field of conversion (hereinafter referred to as federal authorities in the area of conversion). Converted organizations to harmonize their decisions on the conversion of released production capacities are subject to review within one month of the date of receipt. 2. The beginning of conversion is considered to be the year in which the scientific and (or) production activity of the federal state needs in the field of defense and security is reduced or terminated in the organization OF THE PRESIDENT OF THE RUSSIAN FEDERATION The completion of the conversion is considered to be the year of completion of the conversion programme. If the investment programme of conversion is not agreed upon in accordance with the established procedure with the federal executive authority in the area of conversion, the conversion period of such an organization shall be fixed for not more than two years. Chapter II. PUBLIC ADMINISTRATION IN THE FIELD OF CONVERSION AND FINANCE OF CONVERSION Article 6. The State administration for the implementation of the conversion 1. The State administration in the area of conversion is carried out by the Government of the Russian Federation directly and (or) through the federal executive authorities in the area of conversion. 2. Federal authorities in the area of conversion within their powers: develop proposals on public policy for conversion; implement the State Policy on conversion; participates in the decision of the Government of the Russian Federation in the development and implementation of a federal target programme for conversion and federal targeted programmes in related fields; are jointly developed with the federal agencies concerned of the executive branch and the organizations of the proposal for state support for conversion and submit them to the Government of the Russian Federation; organize research, development and design work for the civilian population Appointments, including work on the development of dual-use technologies, the introduction of military technologies in the production of goods (work, services) of civilian use, the creation of production of goods (work, services) on the basis of released production capacity; develop activities for the most effective use in the conversion of released production facilities, the scientific and technical potential and labour resources of the defence industry organizations, and coordinate implementation Such activities; , together with interested federal executive authorities and organizations, are involved in the development and implementation of measures to facilitate investment by the organizations, including foreign investment; provides a Convertible Organizations of compensation and the implementation of social protection measures for their employees; implement other federal laws, regulations of the President of the Russian Federation and normative legal acts. OF THE PRESIDENT OF THE RUSSIAN FEDERATION Article 7. State conversion planning 1. State planning for conversion is based on: Russian military doctrine; federal programme for the development, creation and production of weapons and military equipment for a period of 10 years; of the Russian Federation's other federal programmes; Russian Federation's military-technical cooperation programmes with foreign States in accordance with international treaties of the Russian Federation. Conversion rates, which indicate the amount of anticipated reduction and (or) cessation of scientific and (or) production activities to ensure federal public needs in the area of defence and security The Russian Federation, in line with those activities (nomenclature for products, works, services) and organizations of the defence industry, is defined for the medium term and is specified for the short term. The conversion rates for the medium term are to be resubmitted to the defence industry organizations at least two years prior to the start of the conversion. 2. Government planning for conversion is provided by the Government of the Russian Federation on the basis of the federal target programme for conversion and other federal targeted programmes in related areas. The Government of the Russian Federation determines the procedure for the development and implementation of a federal target programme for conversion and federal targeted programmes in related fields. 3. OF THE PRESIDENT OF THE RUSSIAN FEDERATION Extrabudgetary sources can develop and adopt regional conversion programmes. Regional conversion programmes may be included in the federal target conversion programme. Coordination councils for the conversion of the executive authorities of the constituent entities of the Russian Federation may be formed to coordinate the implementation of the regional conversion programmes where necessary. Other contributing to the conversion of organs. 4. Convertible organizations are developing investment programmes for conversion. Investment programmes of conversion are accepted by the converted organization in agreement with the relevant federal executive authority in the area of conversion. Investment programmes for conversion are subject to review by the federal executive authority in the area of conversion within one month from the date of receipt. Article 8. Financing of conversion 1. Financing for conversion is financed by: federal budget funds; loans and loans subject to state guarantees; OF THE PRESIDENT OF THE RUSSIAN FEDERATION conversion; trust funds, accruing to the organizations to finance research, development and design work for civilian purposes; own and borrowed funds of the converted organizations; Russian and Foreign investors, including the equity funds of the contracting authorities ' civil service products, as well as other extrabudgetary sources. 2. In the federal budget, the federal target programme for conversion costs separately for: research, development and project organizations to convert civil works, including work on the development of dual-use technologies, the introduction of military technologies in the production of civilian products, the production of civilian products on the basis of released production capacity; Provision of funds from the federal budget on a reimbursable and reimbursable basis to finance investment programmes of conversion; compensation of convertible organizations and social payments to their employees. The size of these expenditures should be in line with the economic security requirements of the Russian Federation. 3. The funds of the federal budget on return and paid basis are provided to the converted organizations for the financing of investment programs of conversion of organizations based on the results of competitive selection of these investment programs in the order and on the basis of The conditions set by the Government of the Russian Federation are transferred to special bank accounts of the converted organizations. In the cases and in the order established by the Government of the Russian Federation, Russian organizations may be provided with related budgetary loans to finance targeted purchases from the converted organizations (...) (...) 4. Business-society organizations in the form of business associations in the cases and in the manner established by the Government of the Russian Federation may be provided with funds from the federal budget to finance investment costs. of the Russian Federation's participation in the authorized capital of the converted organizations by acquisition of a package of shares at the nominal value of a stake in the authorized capital With the sale of such shares (shares in authorized capital) on The auctions are in accordance with the legislation of the Russian Federation on privatization of state and municipal property. 5. State support for investment programs of conversion can be provided by the Government of the Russian Federation of State Guarantees for Funds Borrowed through a competitive examination by the Government of the Russian Federation (in the form of a loans and bonds) to be invested in such programmes. 6. Federal budget funds for research, development and design work for civilian purposes, including work on the development of dual-use technologies, introduction of military technologies in production of products Civil-appointment, the production of civilian products on the basis of the released production capacity, is provided to the converted organizations on a competitive basis. In the cases and in the manner prescribed by the Government of the Russian Federation, convertible organizations may be authorized to allocate a portion of the funds referred to in this paragraph for the financing of development and training activities. Production of new products (works, services) for civil purposes, including the modernization of equipment for the introduction of dual-use technologies. Article 9. Conversion funds 1. Continuous and earmarked funding for conversion is provided by the State Fund for Conversion, Trust Funds for the funding of research, development and design work for civilian purposes. 2. State Conversion Fund: provides funding for investment programmes for conversion from the federal budget; ensures the attraction and use of extrabudgetary sources, including State guarantees, financing of conversion programmes; provides other forms of government support to the organizations and supports the economic stabilization of defence organizations. Industry; exercised in the interests of the State other OF THE PRESIDENT OF THE RUSSIAN FEDERATION 3. The organizations are given the right to form trust funds for the financing of research, development, and projects of civil purpose, as well as for the development of new species (...) (...) Calculations of the converted organizations into the specified trust funds may be included in the cost of production (works, services) of these organizations, which is taken into account in the calculation of taxable profit, within the limits set by the law. of the Russian Federation. Article 10. Reorganization and privatization of Convertible Organizations 1. The Government of the Russian Federation is developing a state programme for the privatization of state property in the Russian Federation and the draft federal laws on the introduction of amendments and additions to the programme, taking into account the federal regulations. of the conversion programme. 2. The manner, timing and limitations of the privatization of state property of the convertible are determined by the investment programme of the conversion of the organization. 3. Privatization of public property of convertible organizations is generally carried out through the conversion of such organizations into open joint stock companies and the sale of their shares in a commercial competition with investment and (or) social under article 16, paragraph 2, of the Federal Law on Privatization of State Property and the Basis of Privatization for municipal property in the Russian Federation " only in such a contest. The State Property Management Authority, when approving privatization plans, establishes the investment and/or social conditions of commercial tenders and the manner in which such conditions are fulfilled in accordance with the investment programmes of conversion. 4. In the process of privatization of the state property of the converted organizations based on the decision of the Government of the Russian Federation, shareholdings of publicly owned joint stock companies established by means of transformation of the converted organizations, up to 51 per cent of the authorized capital of such societies can be made as a contribution to the authorized capital: the economic society established on behalf of the Russian Federation by making these shares; open joint-stock company created by transforming the converted organization and being the lead performer in scientific and/or manufacturing cooperation with the participation of joint-stock companies, whose shares are moved to its authorized capital. 5. Conversions organizations in the form of State unitary enterprises and economic societies may, in the process of conversion, establish, in accordance with established procedures, the establishment of subsidiary State unitary enterprises on the basis of their structural units; or respectively, the subsidiary companies, provided that the technological integrity of defence production is preserved. 6. State property of the converted organization, which has a mobilization purpose and is not used in the production of goods (works, services), is not subject to privatization. Chapter III. SOCIAL PROTECTION OF PROCESSES CONVERTED ORGANIZATIONS, COMPENSATION AND ALLOWANTS CONVERSION-MERCENARIES Article 11. Social protection for employees of the converted organizations 1. Employees of converted organizations released in connection with conversion have the right to social protection in accordance with this Federal Law, other federal laws and other normative legal acts of the Russian Federation. OF THE PRESIDENT OF THE RUSSIAN FEDERATION 2. To ensure the social protection of employees of converted organizations released in connection with the conversion process, the period of receipt of unemployment benefits on the basis of decisions of the State authorities of the Russian Federation, the bodies The authorities of the constituent entities of the Russian Federation or local self-government bodies may be extended for more than two years. 3. Employees of converted organizations released in connection with the conversion process retain the right to use the objects of social infrastructure, the right to health care and the right to housing. 4. When employees are dismissed from the converted organizations due to the downsizing of the workforce, as well as the refusal of the employees of the converted organizations to continue working as a result of changes in the significant working conditions caused by the Conversion, the employment record of such workers, at the same time as the grounds for dismissal, makes a record that the reason for dismissal is conversion. 5. The requirements set out in paragraphs 1, 3 and 4 of this article apply to those who have been dismissed in connection with the conversion of employees of social infrastructure organizations serving the pre-forming defence industry organizations. Article 12. Compensation and benefits to convertible organizations 1. The compensation and benefits granted by the State to the converted organizations shall be established by this Federal Act and other federal laws. The laws of the constituent entities of the Russian Federation may establish additional benefits in relation to the benefits provided by the legislation of the Russian Federation, through the budgets of the respective entities. of the Russian Federation. 2. The organizations under the order and the conditions to be determined by the Government of the Russian Federation shall have the right to accelerate the amortization of part of the main production funds and, in cases of total withdrawal of the state defence order, and In the absence of the use of these funds in the production of goods (works, services) for their non-amortization and other organizations at the price specified by the parties, except for equipment, providing for the execution of mobilization orders (orders). 3. Conversions of the organization for the period of the investment programmes of conversion to profitability within the deadlines set by these programmes may be partially released in accordance with the legislation of the Russian Federation. or fully from the payment of tax on profits of enterprises and organizations, tax on property of enterprises, land tax. The benefits provided for in this paragraph shall be granted to convertible organizations in accordance with the tax legislation of the Russian Federation. The amount of such benefits is determined by the tax legislation of the Russian Federation. 4. The Russian Federation is provided with the assistance of the Russian Federation in connection with the reduction or termination of scientific and (or) production activities for the provision of federal state needs in the field of defence and security of the Russian Federation. State support in the form of non-refunnable compensation for: cost recovery (in whole or in part) to a compensation fund for workers released from defence industry organizations; compensation Loss of profits from withdrawal or reduction of state defence Order, if the condition for the reimbursement of such damages is provided for by a state contract (contract); Maintenance of the unbuyable state of the temporarily not loaded due to the reduction in defence production of unique equipment, Test stands and dual-use sites; social infrastructure facilities (in whole or in part). 5. Inversionable organizations may be provided with state support for the domestic market of products (works, services) produced by them as a result of the implementation of investment programmes of conversion in the form of: include, as an investment condition, the sale of privatizations in commercial competition of the obligations of the winners of commercial tenders to use civil goods to make investments in kind of the form, if the quality of the specified product is of high quality correspond to or exceed the characteristics of similar foreign products, or if the price of these products corresponds to or lower prices of similar foreign products; natural monopolies of reasonable costs for the acquisition by such subjects of conversion products for the purpose of technical re-equipment, modernization and expansion of production and the inclusion of these costs in the cost of goods of such entities, taxable profit; other Protectioners, including measures to be applied in the determination of the terms of the productionrelated agreement. (Paragraph 6 is excluded-Federal Law of 10.01.2003) N 8-FZ) 6. Costs of training, retraining and advanced training at educational institutions of employees released in connection with conversion and sent to educational institutions by the converted organizations within the framework of implementation Investment programs of conversion can be partly financed from the federal budget.(Paragraph 7 is considered in the wording of Federal Law dated 10.01.2003 N 8-FZ) CHAPTER IV. EXTERNALLY-ECONOMIC ACTIVITIES CONVERSION ORGANIZATIONS Article 13. Types of foreign economic activity Convertible organizations 1. The organizations have the right, in accordance with the law of the Russian Federation, to implement: export and other foreign trade transactions in relation to raw materials, materials, equipment released during the course of conversion, provided that they are not used for the production of civilian products; transfer (exchange and sale) of technologies, licenses, inventions, scientific and technical information that prior to the conversion used in the manufacture of weapons and military equipment; Participation in conferences, symposiums, exhibitions and fairs with the demonstration of new materials, equipment, appliances, advertising of technologies which, prior to conversion, were used in the manufacture of weapons and military equipment. 2. The Government of the Russian Federation, in accordance with its powers, directly or through the competent federal executive authorities and public organizations, can implement measures: for export development Conversion products (work, services) based on the provision of targeted (export) credits or guarantees for such loans, based on risk insurance, as well as on the basis of the provision of foreign trade information and the promotion of conversion products (works, services) on the external market; Convertible organizations in attracting foreign investment, highly efficient foreign technologies and acquiring foreign equipment for the production of civilian products; other measures for assistance Development of foreign economic activity of the converted organizations. Article 14. Protection of the military, economic and scientific and technological potential of the Russian Federation To prevent damage to the military, economic, scientific and technological potential of the Russian Federation and to prevent The proliferation of weapons of mass destruction in the carrying out of convertible foreign economic activities: State regulation and export control of foreign trade activities of convertible organizations in the manner prescribed by law OF THE PRESIDENT OF THE RUSSIAN FEDERATION The federal laws and decrees of the President of the Russian Federation, such as limiting the combined share of foreign citizens, may be established by federal laws and decrees of the President of the Russian Federation. participation in the charter capital of economic societies; Foreign participants in the acquisition of shares in joint-stock companies that have been established in the privatization process; the restriction of attracting foreign investors as financial advisers, auditors, appraisers, and representatives of sellers, Deposits, clearing and settlement centres in the process of privatization of state property of convertible organizations. Chapter V RESPONSIBILITY FOR VIOLATION ARTICLE 15. Liability for violation of this Federal Law Persons guilty of violation of this Federal Act are liable in accordance with the legislation of the Russian Federation. Chapter VI: FINAL PROVISIONS Article 16. The procedure for the introduction of this Federal Act 1. This law shall enter into force on the date of its official publication. 2. From the date of the entry into force of this Federal Law to be repealed: Russian Federation Law on Conversion of Defense OF THE PRESIDENT OF THE RUSSIAN FEDERATION 964); Order of the Supreme Soviet of the Russian Federation on the procedure for the enactment of the Russian Federation Act on the Conversion of Defence OF THE PRESIDENT OF THE RUSSIAN FEDERATION 965). Article 17. Bringing legal acts of the Russian Federation into conformity with this Federal Law Propose to the President of the Russian Federation and instruct the Government of the Russian Federation to bring The conformity with this Federal Law of the normative legal acts issued by them. The Government of the Russian Federation shall ensure that the federal organs of the executive branch of their normative legal acts are in conformity with this Federal Law. " The Russian Federation's legal acts prior to bringing them into conformity with this Federal Law shall be applied in part not contrary to this Federal Act. President of the Russian Federation B. Yeltsin Moscow, Kremlin 13 April 1998 N 60-FZ