Goznak will become a joint stock company. What will change?
Goznak’s reorganization will not affect the Company’s manufacturing activity or fulfillment of obligations to the customers
On June 4, 2014 the President of the Russian Federation Vladimir Putin signed Decree No. 404 “About Open Joint-Stock Company “Goznak”. According to the President’s Decree, the Government of the Russian Federation should accomplish all procedures concerning the transformation of Federal State Unitary Enterprise “Goznak” into Open Joint-Stock Company “Goznak” in 18 months. The Director of Corporate Governance and Legal Groundwork of Goznak Oleg DMITRIEV answered questions that Goznak’s partners and its product consumers would like to ask in connection with the event.
– What does the reorganization of Goznak mean for the citizens of Russia?
– Sectoral federal state unitary enterprises occupy quite a noticeable position in our state’s economy, especially in case they are a part of the so-called backbone organizations, i.e. bear a direct relation to the fulfillment of important state programmes of various levels and various sectoral directionalities.
However, nothing will change for ordinary citizens – Goznak remains an enterprise with strict accounting of products, their constant high quality is preserved and tightest deadlines of obligations are fulfilled.
– The shape of an open joint-stock company implies certain judicial and commercial liberties. Will this “democratization” affect the security strictness that Goznak is so valued for among the customers?
– “Certain judicial and commercial liberties” connected with the transformation of Federal State Unitary Enterprise “Goznak” into Open Joint-Stock Company “Goznak” will by no means decrease the requirements specified to the manufactured products, information confidentiality, guarantees or the scheduled times of the execution of orders.
– Who will possess the shares of Goznak?
– After the reorganization of Goznak into an open joint-stock company 100% of shares will belong to the Russian Federation. Together with that, the Government of the Russian Federation will submit offers regarding the inclusion of the open joint-stock company into the list of strategic enterprises and strategic joint-stock companies in accordance with the established order within a month after the state registration of Goznak JSC.
– Are there other large and important for the whole country enterprises with the similar form of ownership in Russia?
– Today there are a lot of successful companies with the same form of ownership in Russia important for both the state economy and the world economy: “Gazprom” JSC, “Rosneft” Petroleum Company JSC, Russian Railways JSC etc.
– What are the after-effects that Goznak’s partners, suppliers, project developers and other contractors should expect?
– After the reorganization Goznak JSC will be the legal successor of Federal State Unitary Enterprise “Goznak” in all rights and obligations (including contractual), there are no foreseen aftereffects due to it.
– How will the reorganization affect Goznak’s relationship with the customers (the Bank of Russia, other central banks, customers of excise and federal special stamps, postage stamps, wholesale paper purchasers, customers of small-scale wholesale lots of products – diplomas, medals
– Arrangements connected with the reorganization of Goznak into an open joint-stock company will not affect the manufacturing activity of the enterprise, and its work will not be interrupted for a single day.
– What is the reason of the reorganization of Goznak? Why are similar processes carried out with other Russian enterprises?
– The aim of the reorganization of Federal State Unitary Enterprise “Goznak” into Open Joint-Stock Company “Goznak” is to increase the effectiveness of its work, provide efficient utilization of the federally owned property, receive the dividends of the company’s federally owned shares. Goznak JSC should become a market-oriented company able to develop additional directions of activity, enter new markets, having better opportunities for adapting its activity to the constantly changing market conditions.
– What is the world practice for foreign enterprises similar to Goznak?
– Every country has its own history, there are a lot of variants. The Bureau of Engraving and Printing of the USA is a fiscal enterprise, but the US Federal Reserve System the form of ownership of the shares is private – joint-stock with a special status of the shares; at the same time it is owned by the state and under the control of the Congress. In England until recently there existed both private De La Rue (an open company, the shares of which were quoted on change) and a printing works which was a subdivision of the Bank of England; for a long time it was the only company entitled to print the English pounds. And only a few years ago the Bank of England sold its printing works to De La Rue. In Germany the state-run Bundesdruckerei exists together with Giesecke & Devrient owned by a family. In Russia so far there is no company corresponding to Goznak at least approximately in printing, especially in the field of security printing.
Decree No. 404 “About Open Joint-Stock Company “Goznak” stipulates the preservation of continuity and permanence of Goznak’s activity.
The Enterprise counts its history since 1818, when the Expedition of Storing State Papers (Goznak since 1919) was founded according to the Decree of Emperor Alexander I. The company’s history has not been interrupted for a day in either the legal sense or, most importantly, in the human dimension.
The Decree of the President of the Russian Federation has stipulated the traditional activity directions of the company – the production of banknotes, circulation and commemorative coins, state awards of the Russian Federation, forms of documents proving the identity of the citizen of the Russian Federation within the territory of the Russian Federation and outside, the state security papers, excise and special stamps, postage stamps, special kinds of security paper (including paper with watermarks, forms of documents of strict accounting) approved by the President, the Government or federal executive bodies of the Russian Federation – as its priorities.
At the same time, the list of the priority activity directions of the company was enlarged in the Decree of the President of the Russian Federation. Personalization, storage and processing of documents in the interests of the governmental agencies were included into it additionally. Goznak has been developing this new direction of its activity for the last few years. The Decree of the President of the Russian Federation has confirmed the importance of this work for the state document circulation.
Goznak JSC should become a market-oriented company able to develop new activity directions, enter new markets, have great opportunities for adapting its activity to the constantly changing market conditions.
The reorganization of Federal State Unitary Enterprise “Goznak” into an open joint-stock company with the 100% share of the state will contribute to the application of cutting-edge technologies and the best corporate standards of management inherent to joint-stock companies.
It is planned to accomplish the reorganization of Federal State Unitary Enterprise “Goznak” into Open Joint-Stock Company “Goznak” in December 2015.