Russian Ministry of culture wants to clear Russian market from “low-budget foreign movies”

Russian ministry of culture (MinCult) and Russian movie producers have agreed that in order to distribute movie in cinemas the distributor of such movie, regardless of whether this movie is of Russian production or foreign production, like Hollywood, must pay not less than 5 million Russian roubles for permission.

But this “price” is not a maximum. If the box-office of movie exceeds 200-300 million Russian roubles, the price of permission is to be defined as a percentage of total box-office in Russian distribution. It could be 3-5% from total box-office. Actually all details, defining total price for permission, are to be defined by governmental decree.

All payments for permission to distribute movie in Russian cinemas are to be paid to Russian Fund of cinema. This Fund will compensate expenditures on permission to Russian movie producers. In other words, as it is intended to do, Russian movie producers should receive their money, paid for permission to distribute movie in cinemas, back unlike other distributors, including distributors of Hollywood movies.

Currently the “price” of permission is 3,5 thousand Roubles. MinCult together with Russian producers want to make it higher in 1500 times. MinCult intends to draft legal proposal and present it to Russian government. The purpose of raising a price for “entrance ticket” to Russian market is to “clear” distribution from “low-budget foreign movies” and obtain additional funds for production of Russian cinemas. It sounds like Hollywood must pay production of Russian movies.

There are too much Hollywood movies in Russian cinemas and not all of them are of a good quality. Managing director of Russian Cinema Fund believes new proposal would create more cinema sessions for Russian movies because some foreign films will be out of distribution in cinemas in Russia. Russian minister of culture also stated that in future Russian Cinema Fund at its own discretion will compensate high “price” for entrance to Russian market to foreign “prominent films”. The draft law will not provide such kindliness.

In order to implement new idea in life the special commission will be formed in Russian Cinema Fund. This commission will consist of reputable filmmakers and critics. This commission will decide which movie should be “imposed” by new price and which movie should be free of it. As a result the minimum price for permission to distribute movies in Russian cinemas is 5 million roubles and if the box-office is very great the price get higher.