Education in Russia in the First Decade of the 21st Century - страница 3

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However, as the Law stipulates that educational organisations may be established in the legal forms provided by the civil legislation for non-profit organizations only (Article11.1 of the RF Law “On Education”), commercial organizations are not allowed to carry on educational activities and, therefore, education is not regarded as a commercial service.


2. Is providing paid education a commercial service according to national legislation?


RF Law “On education” №3266—1 dated 10 July 1992 stipulates the right of educational institutions to attract additional financial resources, within the limits of the procedure established by RF legislation, by selling additional educational and other services specified in the statutes of educational institutions (part 8, Article 41). But the fact of providing paid education services does not mean their commercial nature. To become commercial, they are necessary to be provided not just for attracting additional financial resources, but for profit. According to part 2, Article 46 paid educational activities are not considered as business, if the derived income is used for covering costs of the educational process (including salaries), its development and improvement in the educational institution. If there is no business activity, one can not speak about commercial services.

Article 46 applies only to non-governmental educational institutions. Federal and local government agencies are not free at the disposal of revenues from providing paid educational services at all. Revenues may be used in accordance with the statutory objectives only. Therefore, such institutions generally can not be considered as ones carrying out commercial activities by means of paid educational services. Their services, rather, should be recognized as non-profitable ones. In addition, Article 47 of the Law “On Education”, which determines the list of business activities of educational institutions, does not include the paid educational services in this list.


3. Please describe other activities provided by educational institutions and their qualification as (public) services or otherwise?


In addition to the purely educational activities, educational institutions in Russia carry out research and development work, library science, publishing and printing activities, they are involved in organizing recreational activities, including theatrical shows, sporting, cultural, educational, and recreational and holiday events, etc. Educational institutions may also have non-commercial educational enterprises for students doing industrial practical work. All this kinds of activities are considered as non-commercial ones only if received income is reinvested in the educational process of the institution, and if such activities are stipulated by the institutions’ charters (clause 3, Article 47 of the RF Law “On Education”).