A unitary enterprise () is a

government-owned corporation A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...

Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...

and some other

post-Soviet states The post-Soviet states, also referred to as the former Soviet Union or the former Soviet republics, are the independent sovereign states that emerged/re-emerged from the dissolution of the Soviet Union in 1991. Prior to their independence, they ...

. Unitary enterprises are

business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ...

entities that have no ownership rights to the assets that they use in their operations. This form is possible only for state and municipal enterprises, which respectively operate state or municipal property. The owners of the property of a unitary enterprise have no responsibility for its operation and vice versa.

Russia

Federal Law No. 161-ФЗ "''On State and Municipal Unitary Enterprises''" (amended July 13, 2015), defines the legal status of unitary enterprises in Russia. The

State Duma The State Duma is the lower house of the Federal Assembly (Russia), Federal Assembly of Russia, with the upper house being the Federation Council (Russia), Federation Council. It was established by the Constitution of Russia, Constitution of t ...

passed this law on October 11, 2002, and

President President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...

Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...

signed it on November 14, 2002. The assets of unitary enterprises belong to the Government of Russia, federal government, to a Russian Federal subjects of Russia, federal subject, or to a municipality. A unitary enterprise holds assets under economic management (for both state and municipal unitary enterprises) or under operative management (for state unitary enterprises only), but has limited property rights over the assets. The term "unitary" specifies the assets as indivisible, i.e., they may not be distributed among the participants in any way. Property granted to a unitary enterprise can be sold or otherwise alienated only with the consent of the state or municipal property owner. The existence of unitary enterprises is a legacy of the Soviet era, when the state owned the means of production. The managers of state enterprises often have close ties to the state agencies which established them, a situation that can lead to legal and political problems. A unitary enterprise is independent in economic issues and obliged only to give its profits to the state. Unitary enterprises have no right to set up subsidiaries, but they can, with the owner's consent, open branches and representation offices. Though government entities own the unitary enterprises, the enterprises themselves work on the basis of commercial accounts and of commercial legislation. They come under ministerial responsibility but are off-budget. They may be auxiliary to a ministry's activity, such as a printing house under the Ministry of Education (Russia), Ministry of Education or a production facility for police equipment under the Ministry of Internal Affairs (Russia), Ministry of Internal Affairs. Unitary enterprises have a distinct legal status, different from regular market-sector corporations. Some of the largest federal state unitary enterprises include Russian Post, and All-Russia State Television and Radio Broadcasting Company, while large non-federal unitary enterprises include Moscow Metro, Mosgortrans and Saint Petersburg Metro.

References

Types of business entity Economy of Russia Unitary Enterprises of Russia, Government-owned companies, Russia Government-owned companies of Russia, * {{Russia-stub

Russia

See also

References