Using regional budget money to buy shares of Sverdlovsk Gubernskiy Bank is against the law, says Ural Regional Legislation Institute

22 March 2007 (10:50)

The total amount of regional budget expenditures related to public property management might rise from 500 million RUR to 900 million, Sverdlovsk Region Minister for Public Property Management Alexei Molotkov announced at the extraordinary meeting of Sverdlovsk Region Duma. These extra expenditures are largely needed to buy assets important to state projects. One expense item includes buying shares of Sverdlovsk Gubernskiy Bank. The law on regional public property management and privatization in 2007 that has already been approved of by the Duma and will now have to be considered by the House of Representatives states that this would cost 94,500,000 RUR.

However, a committee of experts from Ural Regional Legislation Institute looked at the project on March 13, 2007 and questioned the legitimacy of buying the bank’s shares, since the Russian Federation subjects are not allowed to buy stocks of close joint stock companies. The experts also say this limitation was mentioned in the decree of Sverdlovsk Region House of Representatives as of May 12, 2005.

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