WORLD PRESS TRENDS - World Association of Newspapers

RUSSIA
Regional (City) Newspapers No.177-FZ dated November 24,
1995, the federal budget annually allocates funds for financial
support of 1,950-1,980 newspapers included in the Federal
Register of Regional (City) Newspapers.
Recent subsidies have totalled:
In 2000 (and December 1999) 208 million roubles
In 2001: 270 million roubles (including 85 million roubles for
technical improvements)
In 2002: 224 million roubles (including 20 million roubles for
technical improvements).
Apart from these subsidies, budget funds (30-35 million roubles)
were allocated each year for support of ‘socially significant’
publications (such as publications for the handicapped, children
and teenagers, and educational and cultural titles).
These funds are used to cover part of the expenses of production
and distribution of the publications (such as newsprint, printing,
delivery); the amount of subsidy is based on average circulation.
Use of these funds is strictly controlled to avoid
misappropriation.
The federal budget for 2003 allocates over 267 million roubles
for such purposes, including 170 million roubles for support of
regional (city) newspapers, 40.3 million roubles for support of
socially significant periodicals and 55.8 million roubles for state
publications (Rossiyskaya Gazeta, Parlamentskaya Gazeta, and
Rodina magazine).
Another 100 million roubles are allocated for the support of
printing trades and book publishing under the Culture of Russia
federal programme.
Subsidies from the federal budget are received by around 12%
of printed titles – primarily small-circulation non-profit
periodicals.
The exact amount of subsidies granted to regional titles from
local budgets is unknown, but it significantly exceeds the
amount of federal subsidies and is not less than US$145 million
a year.
Discounts
on: post 0 rail 0 telephone 0 telegraph 0 telex 0
Discounts for advertising in newspapers vary between 3% and
30% depending of the quality of the title, its circulation and
readership. The standard agency discount is 15%. Additional
discounts usually range from 5% to 10% and depend on
frequency of placement.
Ownership
Does any law exist governing publishing-house ownership, or the
registration of shares in newspaper-publishing companies Yes,
Federal Law On Mass Media dated December 12, 1991
Is there any law prohibiting or restricting foreign companies or
individuals from owning shares, and in particular, the majority of
shares, of domestic daily newspapers No
Is there any law prohibiting daily newspaper or periodical publishers
from operating radio or television stations in the same locality No
So as to guarantee disclosure and transparency in the capital structure
and to avert silent partnerships, is there a law or rule making it possible
to determine who actually owns a publishing company Only the
Law on Joint Stock Companies. The new version of the Federal
Law on Mass Media is currently under development; it is likely
to include clauses relevant to this issue.
Is there an antitrust law limiting concentration in the daily press
No
Is further regulation of media concentration expected Yes. The new
version of the Federal Law on Mass Media is being developed,
and should come into force in 2003.
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WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003