The Ministry of Defense Will Begin the Military Construction Reform in Russia
OREANDA-NEWS Vladimir Putin approved a plan to establish a public law company in the construction sector in the interests of the armed forces. It will replace the currently existing military eight Federal state unitary enterprises and three joint-stock companies, completely eliminating the "commercial component in the activities of a single contractor." These are the latest changes designed to solve the problems that have been accumulating for years in the subordinated military Federal Agency for special construction (SpetsStroy). It was liquidated in 2017 after a series of high-profile scandals.
The fact that the Ministry of Defense will create a public law company, specializing in military construction, several sources in the military Department and the government told. The decision was approved by President Vladimir Putin at the end of December 2018: "work has been organized to allocate the category of construction of objects of defense and security of the state in a separate legal unit." A source in the Ministry of Defense said that now developed a "road map" of the creation and development of the public law company, is preparing for registration and formation of the legal framework.
The creation of the public law company (the conventional name "Military construction complex") will complete the transformation of the military construction carried out by the Ministry of Defense after the elimination of Spetsstroy in September 2017.
Now in Russia there are two structures with the organizational form of the public law company - the Fund for the protection of the rights of shareholders and the "national environmental operator" of the state Corporation Rostec. "Military construction complex" will be the third such company: it is the form of the public law company that allows not to impose a penalty on its property and not to recognize bankruptcy. The system of special accounts opened in the reference Bank in the field of state gas, will provide an increased level of control over the expenditure of funds, one source said. The public law company is an independent legal form of a unitary non-profit organization, the founder of which will be the Russian Federation, and the powers of the owner will take over the Ministry of Defense. The structure of the public law company will represent the company itself with its headquarters in Moscow, branches in military districts, in the Northern fleet and the so-called project block.