205:, or to a municipality. A unitary enterprise holds assets under economic management (for both state and municipal unitary enterprises) or under operative management (for state unitary enterprises only), but has limited property rights over the assets. The term "unitary" specifies the assets as indivisible, i.e., they may not be distributed among the participants in any way. Property granted to a unitary enterprise can be sold or otherwise alienated only with the consent of the state or municipal property owner.
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Though government entities own the unitary enterprises, the enterprises themselves work on the basis of commercial accounts and of commercial legislation. They come under ministerial responsibility but are off-budget. They may be auxiliary to a ministry's activity, such as a printing house under the
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to the assets that they use in their operations. This form is possible only for state and municipal enterprises, which respectively operate state or municipal property. The owners of the property of a unitary enterprise have no responsibility for its operation and vice versa.
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The existence of unitary enterprises is a legacy of the Soviet era, when the state owned the means of production. The managers of state enterprises often have close ties to the state agencies which established them, a situation that can lead to legal and political problems.
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A unitary enterprise is independent in economic issues and obliged only to give its profits to the state. Unitary enterprises have no right to set up subsidiaries, but they can, with the owner's consent, open branches and representation offices.
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Yefremova, Maria; Yakovleva, Svetlana; Henderson, Jane (2014).
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Some of the largest federal state unitary enterprises include
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All-Russia State
Television and Radio Broadcasting Company
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or a production facility for police equipment under the
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181:On State and Municipal Unitary Enterprises
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294:. Kluwer Law International B.V.
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