Posted: Tue., May 20, 2008, 7:27am PT

Funding crisis hits Russian films

New minister closes film agency

Russian film producers face months of uncertainty after a key government funding agency was closed following the appointment of a new culture minister.

A new body will eventually replace the Federal Agency for Cinematography and Culture, which had been headed by Mikhail Shvydkoi. It will bring cultural policy and implementation under one roof after several years when the agency alone worked with filmmakers.

But such an arrangement is not yet in place, which means producers may not be able to push ahead with public funding bids for months.

The current situation will also delay a long-planned Russian-German co-production treaty that was almost complete after months of high-level negotiations.

"The Russians cannot afford to let this drag on too long as projects will get held up if there is no formal mechanism for putting in tenders for government financing," said Simone Baumann, a Leipzig-based producer who works closely with Russian partners.

Russian producers and distributors at Cannes were more relaxed about the matter. "We have lived through so many changes in our country that we are used to it," said Raisa Fomina, head of Moscow's Intercinema Agency. "I am sure that there will be no fundamental change really and that the same people will be back and that Russian film production will continue to be supported."


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