Putin has deprived the Ministry of economic development control of strategic reserves

The Federal Agency for state reserves (Rosrezerv), which in 2004 was subordinate to the Ministry of economic development, came under the direct control of the Russian government. The corresponding decree was signed by President Vladimir Putin. The document on Wednesday, November 23, published on the official Internet portal of legal information.

A decision to withdraw from the jurisdiction of the economic development Agency that manages the secret strategic reserves of the country, taken a week after the conclusion of the former Minister of economy Alexei Ulyukayev under house arrest. In the decree, Putin’s decision is due to the order to “improve management of state material reserve and the optimization of the structure of the Federal bodies of Executive power”. Press Secretary of the head of the government Natalia Timakova has forwarded additional questions to the Kremlin. Press Secretary of the President Dmitry Peskov at the time of publication has not responded.

Administered by the Ministry of economic development remain the four agencies — the Federal property management Agency, Rosreestr, the Federal accreditation service and the Agency.

The reserve in its current form was established in 2004. Its predecessors were the Committee for state reserves (until 1999) and the Russian Agency for state reserves. The state reserve stocks are intended for mobilization needs, liquidation of consequences of emergency situations, state support for various sectors of the economy and regions of Russia in case of temporary disruption in the supply of raw materials, fuel, follows from the law on state reserve. In addition, the reserve contains reserves of food in case of imbalances between supply and demand on the domestic market, the document says.

The state reserve stocks are also used in the provision of humanitarian assistance. In particular, in the first half of November, the government said the reserve was transferred to the MOE, 40 tons of canned meat and fish, 136 tons of sugar and 704 tons of oil products for humanitarian aid to North Korea, which suffered from the floods, reported on the website of the reserve. The range and scope of material values in the state are state secrets, so the sale of the reserve and the purchases are made at closed auctions.

With 2015, the government uses material reserve as an additional source of income — selling stocks without immediate replenishment of the same amount. As a result of this interim policy related to the deterioration of the economic situation, the Treasury has received in 2015, the income from the sale of material valuables from the state reserve in the amount of RUB 44.6 bln (23% more than the previous year), this year expects to 39.4 billion rubles, follows from the budget materials. But adopted decision on realization of inventory without simultaneous equivalent substitution “has led to a significant reduction in the actual amount of accumulation of individual wealth and the risks of failing to maintain standards of minimum level for individual positions,” noted the government in the preparation of a draft budget 2017-2019 years, submitted to the Duma in late October. Therefore, the government intends to restore the material reserve to the level as of 1 January 2015 and for that reserved in the budget for 2017-2019 classified the provision for reserves replacement.

Thus from the explanatory notes to the budget indicate that in 2017 in the direction of “State material reserves” will be allocated from the budget 74.1 billion rubles., of which the open side of the budget are visible only to RUB 11.7 billion (the rest describes how to secret apps).

The reserve will become the third Federal Agency, directly subordinate to the government. Still, the Cabinet of Ministers were guided by the Agency of scientific organizations (FANO) and the Agency for the Affairs of nationalities. Any force or secret agencies directly subordinate to the government no — all such departments directly headed by Putin. It has nine secret and special services (in particular, SVR, FSB, FSO, National guard) and the Ministry of interior, Ministry of defense, Ministry of justice, Ministry of foreign Affairs.

The government fixed 16 “civilian” ministries, including the Ministry of economic development, Ministry of Finance, Ministry of industry and trade, Ministry of construction, etc., as well as four service — FAS, Rosstat, Rospotrebnadzor and Rostekhnadzor.