Russia’s President Dmitry Medvedev has proposed a new initiative to improve the current system of subsidising the domestic film industry.

At present, all the state funds, provided by the government for the support of the national film industry, are distributed by a special State Film Fund. However many of the films that receive state support aren’t popular with local audiences.

According to Renat Davletyarov, one of Russia’s leading film producers, the current system of state support doesn’t stand up to scrutiny and does not take into account the profitability of projects. In this regard there is a need to modernise it.

Concrete proposals, regarding with the alternative way of funds’ distribution, have not yet been presented, but changes could take several forms.

According to some Russian producers and directors, there is a need return to the Soviet system, when all the scripts of films applying for state support were considered by a special editorial board, appointed by the government, and which was comprised of industry experts.

At the same time, another way of funds’ distribution could be based on the use of the European experience and in particular the French model, where the films to receive state support are selected by an independent council of experts, which is rotated annually.

The first proposals are expected to be presented by the Russian Ministry of Culture by July, while the adoption of a new mechanism may take place from 2012.

This year the government plans to provide more than 4 billion rubles ($130 million) for the support of the domestic film industry of which 2.5 billion will be distributed among the leading film studios, while the rest will be invested in numerous socially significant projects, including the art-house sector.

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