OREANDA-NEWS. November 13, 2009. The instruction comes after the audit of state corporations’ activities showed that the current legislation does not set common criteria for defining a state corporation as a form of legal entity’s incorporation.

In a number of cases, the lack of proper oversight of state corporations’ activities has led to them making ineffective use of the state assets transferred to their control.

The President instructed the Prime Minister to present proposals on transforming the state corporations that operate in a competitive environment into organisations with a different organisational and legal status. The Government needs to determine the life time of state corporations not operating in a competitive environment and draft proposals on legislative guarantees of the transparency of their activities and full-fledged state control over their operations.

The Government has also been instructed to draw up performance criteria to assess the efficiency of state corporations’ activity and provisions on state representatives on their supervisory boards.

The deadline for carrying out these instructions is March 1, 2010.