23:43 GMT +3 hours27 November 2014
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Medvedev orders look at activity of Russian state-run businesses

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Russian President Dmitry Medvedev has ordered two top officials to conduct a thorough review of the activity of state-run corporations, the presidential press service said on Friday.

MOSCOW, August 7 (RIA Novosti) - Russian President Dmitry Medvedev has ordered two top officials to conduct a thorough review of the activity of state-run corporations, the presidential press service said on Friday.

Medvedev expects Prosecutor General Yury Chaika and Konstantin Chuichenko, in charge of the presidential audit office, to submit proposals following their check into "the expediency of the future use of such business structures as state-run corporations," a Kremlin statement said.

The president said special attention should be given to the spending of funds and the use of state property, as well as the corporations' compliance with federal regulations.

There were media reports suggesting that state corporations could eventually be abolished. The business daily Kommersant said in March that the idea was proposed, in particular, by a presidential council on codification and improvement of civil legislation.

In accordance with a draft concept, state corporations are to be reorganized as legal and business entities without the special status and privileges that they have now.

Medvedev ordered in July 2008 that such a concept be drawn up.

At present there are seven state corporations in Russia - the national development bank Vnesheconombank (VEB), Russian Technologies (Rostekhnologii), Rosnano, the Deposit Insurance Agency (ASV), the Fund for Reforming the Housing and Utilities Sector, the Rosatom nuclear power corporation, and Olimpstroi, which is building facilities for the Sochi 2014 Winter Olympics.

In addition, a law was passed in July on the establishment of a state company, Russian Highways (Avtodor), to develop the country's highway network.