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Eduard Anatolyevich Pichugin

Eduard A. Pichugin, the general director of Lenfilm Studios.
He is a board member of the Union of Cinematographers in Russian Federation; President of "Kinoalliance", the National Association of the Cinema Professional Organizations; the board member of the Producers Guild of Russian Federation. He has been engaged in promoting movie presentations and building cinema theaters since 1999. He holds a degree as a Candidate of Economic Sciences, wrote and defended the thesis on “Cash Flow Management in the Cinema Industry” within the framework of his major – “Finance and Credit”. He is a founder of the federal movie theater chains "Kronverk Cinema" and "KINO CITY".


The Ministry of Culture repeals the use of the tender system in the film industry


Presently, operating by the 94th federal law, filmmakers can no longer make calls for tenders. 


According to the Ministry of Culture, the ban on calling tenders “ensures greater transparency in the procedures for allocating funds”, in which representatives of cinema audiences would take part in.  Details on the mechanisms of the new allocation were not disclosed.  Earlier, members of the film community had been involved in financial decisions as experts, for example, they played a large role in the film “pitching” to the Ministry of Culture and the Cinema Fund.


Representatives of the Russian film industry reacted differently to the initiative of the Ministry of Culture.  Producer and director of “STV” Sergei Selyanov, welcomed the new subsidy system:


“In comparison with the old crooked and ugly system, the new 94th law on subsidies is a very good thing.  I was witness to the issues involved in the production of animation studios and art schools.  In these institutions they receive grants at a smaller price due to the old system.  Over time entire businesses having a hold on these guys, order and win the tenders from real export organizations, keeping the shares themselves.”


Eduard Pichugin, CEO of Lenfilm Studios, considers this and other decisions of the Ministry of Culture “tactful, but not strategic” and therefore cannot dramatically change the state of affairs in Russian cinema:


“The situation needs to change in order to increase funding.  I recall that the general line of the budget to support the cinema is virtually unchanged.  If you add up all the funds allocated by the Ministry of Culture and the National Cinema Fund the value would be equal to that of an American blockbuster.”



The Ministry of Culture plans to take other measures to increase the share of the Cinema Funds’ capitals from 31% to 40%, and plans to increase the amount of state production of short documentary films (39-44min)-up to 2 million rubles. 


In addition to the Ministry of Culture’s establishment of funding the national production of animated films, they now, excluding the Cinema Fund, represent 15% of the total budget limit.  Furthermore, all kinds of films (fiction, non-fiction, animation) determined that the amount of state support will not be more than 65% of the total cost of production.  The Ministry of Culture will continue to monitor the shares of the Russian films at the box office.  In 2014 the predicted amount is no less than 18%.  A high bar has been set in the past year, considering the top ten highest grossing Russian projects included three domestic films— «Stalingrad», «Elki 3» и «Legend № 17».


There is also an effort to support national cinema due to the missed quotas, an effort that has been described by the authorities as necessary.  One of the measures will be the Ministry of Cultures’ promotion of Russian cinema trailers, which will primer at the beginning of ever season in every theater of the country.  The first such film will be advertised at the end of 2013.



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