The Russian government may slash benefits to the national film industry if the box office share of domestic features falls below 18.2%.
Among the planed measures is the abolishment of the 0% VAT for tickets to foreign films and the introduction of quotas for screening of domestic films in cinemas.
Russian Prime Minister Dmitry Medvedev helped initiate the proposals, saying that current state benefits for local film should be abolished or transformed.
According to Medvedev, benefits such as 0% VAT on tickets were introduced to promote national films domestically but has not achieved that goal.
And despite an increase in financial support, domestic films in Russia are increasingly being pushed aside by US blockbusters.
Minister of Culture Vladimir Medinsky has stated there is a need to introduce quotas on the screening of Russian films in national cinemas – a proposal previously put forward in January but thrown out.
In a recent report, Romir Movie Research revealed that domestic films at the Russian box office had plunged from 27.6% in 2007 to just 16% in 2011.
The state proposals have sparked criticism from local film producers. Igor Tolstunov, head of Profit Studio, said more considered measures are needed to support the Russian film industry as opposed to implementing emergency measures.