UPDATE: PM: Government to optimize development institutions

(Adds paragraph 7)

MOSCOW, Nov 23 (PRIME) -- The government will optimize Russian development institutions, Prime Minister Mikhail Mishustin said at a meeting with his deputies on Monday.

“According to an order of the president, the government will optimize development institutions so that they could work at full scale to reach the national development goals, set by an order of the president,” Mishustin said.

Functions of eight development institutions will be distributed between state development bank VEB.RF and federal state authorities, and the institutions will be eliminated, he also said.

Strategically important organizations including state nuclear company Rosatom, state space corporation Roscosmos, state industrial giant Rostec, the Federal Road Agency, state-run agricultural leasing company Rosagroleasing, Russian Agricultural Bank, the Deposit Insurance Agency (DIA), Russian Environmental Operator, national housing development institution DOM.RF, Corporation for Development of Far East, and Corporation for Development of North Caucasus will be maintained, Mishustin said.

VEB Leasing and State Transport Leasing Company (STLC) will merge, he added.

A large investment block will be established on the basis of VEB.RF that will control Federal Corporation for the Development of Small and Medium Business (SME Corporation), the Russian Export Center (REC), the Russian Agency for Export Credit and Investment Insurance (EXIAR), state-owned nanotechnology company Rusnano, Skolkovo Foundation, the Foundation for Assistance to Small Innovative Enterprises (FASIE), the Fund of Infrastructure and Educational Programs, and the Industry Development Fund, he said.

A source with VEB.RF told PRIME that the bank’s supervisory board will likely meet in the first half of December to approve the structure of the new state corporation involving Rusnano and Skolkovo. The meeting of the board was previously scheduled for late November.

RBC reported about the initiative earlier in the day citing sources.

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