Published: October 09, 2014 | Moscow
The Russian government finds itself at the mercy of a shrinking economy and larger budgetary concerns, including promises to modernize its military and raise state salaries for investing any further in the ERA GLONASS ( Russian eCall) system. The Russian government has already sunk around 4 billion rubles ($100 million) into the development of the system but is now looking to domestic firms for funding as Russia’s budget tightens.
President Vladimir Putin has ordered the government to fund the development of the ERA GLONASS emergency response system to its completion and “not give up halfway,” by handing the responsibility off to private firms, according to the sources.
Deputy Finance Minister Andrei Ivanov also notified the Transportation Ministry on Sept. 25 that it needs to investigate attracting alternative sources of capital.
According to Kommersant, the daily newspaper in Russia, the Finance Ministry has proposed that Russia’s largest telecoms operators — MTS, VimpelCom, MegaFon and Rostelecom — in conjunction with Rostec, the government’s technology investment corporation, provide additional capital for commercializing ERA GLONASS’ infrastructure. The task is currently managed by the GLONASSjoint-stock compan. Twelve Russian companies are already involved in non-profit partnerships with Glonass, including the major telecoms operators and Russian Internet giant Yandex, Kommersant reported. Several of them have gone out of pocket to develop the emergency response system.
Source: The Moscow Times