‘Sverdlovsk Region Government has no right to buy the additional share issue of Sverdlovsk Gubernskiy Bank. I don’t believe they will actually go through with it, since this acquisition will definitely be questioned by both regional and federal law-enforcement agencies. Our public prosecution bodies have to file more and more criminal suits related to abuse of power by various authorities nowadays,’ Sverdlovsk Region Duma Deputy Vladimir Taskaev says.

‘The government must distribute the budgetary funds fairly rather than get involved in commercial affairs. This money would be much better off spent on social welfare, for example, increased maternity payments and pensions,’ he notes.

The decision to buy the additional share issue of Sverdlovsk Gubernskiy Bank using 94,500,000 RUR was approved by the regional Duma on March 20, 2007, following the report by Sverdlovsk Region Minister for Public Property Management Alexei Molotkov presented at the extraordinary meeting of Sverdlovsk Region Duma.

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.