Ministry of Economic Development of the Russian Federation
Ministry of Economic Development of the Russian Federation
The Federation Council has approved the law on the right to risk
24 July 2020 13:26

Today the Federation Council of the Federal Assembly of the Russian Federation has approved the law on establishing the acceptable level of financial risks in venture funding with the budget developed by the Ministry of Economic Development ("On amendments to the Federal law "On science and state scientific and technical policy"). The ammendments were prepared in accordance with the instructions of the President of the Russian Federation.

The document contains general provisions on the basic criteria for assessing risks in the implementation of innovative projects (technology readiness, industry specifics, prospects for commercialization, amount of funding). In order to consolidate the individual approach, it is planned to adopt a by-law, which will be used by the development institutions themselves to approve their own methods of risk assessment and management (the corresponding draft resolution has already been sent to the authorities).

In addition, the draft law offers a "portfolio" approach for evaluating the activities of development institutions, which is more flexible and corresponds to the venture specifics. "The evaluation of a venture fund should take into account the totality of investments in all projects, and not each separately. We specify that a venture fund is recognized as successful when the total value of the portfolio increases, but individual projects may be unprofitable," Deputy Minister of Economic Development Oksana Tarasenko stated.

According to Oksana Tarasenko, in general, the amendments should ensure "transparency" of the process of making and monitoring investment decisions when using budget funds to guarantee their targeted spending. "We propose to remove the risks of criminal liability from bona fide high-tech entrepreneurs and investors. At the same time, we are not talking about easing control over budget funds. We set clear "game rules" for participants of the venture market," the Deputy Minister said.

The amendments also expand the terminology of the law on science – first of all, they clarify the concept of an "innovation project", which will link venture financing with the commercialization of scientific results. Its "risky nature" is also emphasized.  

After approval by the Federation Council, the law is passed to the President of the Russian Federation for signature.

Дата публикации: July 24, 2020
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