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New financial conditions for touring of Russian theaters

Russian ministry of culture (MinCult) has changed the financial conditions for touring. The new federal agenda “Major touring” include new criterion defining financial support allocated to Russian theaters in order to help the bear costs associated with touring. For example, new rules preclude opportunity to fly in business class and receive fixed royalties for each performance. The business class will be available only honored artists (so called people’s artist) and art directors.

In other words the system providing allocation of financial support to cover expenditures linked with tour (administrative costs, remunerations, salary etc.) is to be revised and changed. The aim of document, according to the MinCult’s comment, is to settle some standards. For example, to introduce the standard expenditure rates for tour organizational costs. The remuneration rate paid for performance (show or play) would depend on net receipts, but it is to be fixed in order to exclude misunderstanding, different interpretations and contractual prices for performance.

The MinCult proposed to introduce individual standards for each type of theater. For example, for The Bolshoi Theater, Mariinnsky Theatre, The Theater of Nations and some others, the remuneration for performance is not to be more than 60% of gross receipts. The exception is provided for the cases if gross receipts less than 600 thousands – the remuneration can be higher than 60% but not more than half of a million. If the performance costs more than 3 million Roubles the remuneration can’t be more than 50% of gross receipts.

Children theaters are in better conditions. They can take more than 70% from the gross receipts as remuneration, but the maximum ticket price can’t exceed 250 Roubles. When theaters draft their tour list they should include there the most popular shows or performances. But this requirement is optional, so far. The new rules also provide freight insurance – decorations theaters take in tours. Some of the decoration can be very expensive and currently in the case of damage no monetary relief is provided.

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