Chapter II. Arrangement of Commercial Space Activity Article 5. Competence of the Federal Executive Body Responsible for Space Activity 1. The Federal Executive Body responsible for space activity jointly with the Federal Executive Body for Defense, other Federal executive bodies and the Russian Academy of Sciences, within their competence, are responsible for state regulation and coordination of commercial space activity. 2. The Federal Executive Body for Space Activity shall: - provide state support of commercial space activity in line with the national space policy of the Russian Federation; - develop and implement jointly with other interested Federal executive bodies arrangements that ensure effective commercial space activity beneficial for the national interests; - on agreement with the Federal Executive Body for Defense and other interested Federal executive bodies, and the Russian Academy of Sciences, include in the Draft Federal Space Program commercial projects implemented with the state financial support on the state and commercial basis; - coordinate establishment and placement of contracts on commercial programs and projects introduced in the Federal Space Program of the Russian Federation including those on international commercial space projects; - prepare, jointly with the Federal Executive Body for Defense and other Federal executive bodies, proposals to the Council of Ministers of the Russian Federation on issues of granting legal entities and natural persons the right to use objects of the space infrastructure in the interests of the implementation of commercial space programs and projects; - prepare, jointly with the Federal Executive Body for Defense and other Federal executive bodies, proposals to the Council of Ministers of the Russian Federation on the establishment of the national and foreign economic market infrastructure in the field of space activity; - regulate and execute foreign economic activity in the field of exploration and use of space by means of signing international commercial agreements on with foreign partners on international space programs and projects; - coordinate foreign economic activity in the field of exploration and use of space irrespective of the form of property of enterprises and organizations; - establish, jointly with the Federal Executive Body for Defense and other interested Federal executive bodies, minimum rates for compulsory insurance of commercial space activity that ensures insurance payments for damage caused to third parties; - participate in maintaining space product export control; - register all types of commercial space activities performed by organizations of the industry; - coordinate and control commercial space projects in terms of the compliance of projects with the existing procedures for the development and operation of space means; - approve business-plans (programs) and statements of work for commercial space projects materializes with the state financial support, and approves, jointly with the Federal executive body for defense, annual plans for commercial launches of launch vehicles and spacecraft; - perform other functions in the field of commercialization of space activity and commercial space activity assigned by the Council of Ministers of the Russian Federation. 3. Revenues received by the Federal Executive Body for Space Activity from the realization of commercial space products developed with the participation of this Federal body are budgetary funds to be distributed in a special order in accordance with fund distribution rates established by the Council of Ministers of the Russian Federation on the submission of the Federal Executive Body for Space Activity. 4. The Federal Executive Body for Space Activity directs revenues from commercial space activity in accordance with the distribution rates for support of commercial space projects, investments to the rocket and space industry, development of production and scientific test base and social security of the personnel of space infrastructure objects. Article 6. Competence of the Federal Executive Body for Defense The Federal Executive Body for Defense shall: - submit to the Council of Ministers of the Russian Federation proposals on commercial use of dual-use space means, space technologies and space infrastructure agreed upon with the Federal Executive Body for Space Activity; - control commercial use of space means and space technologies with the aim to prevent damage to defense interests of the Russian Federation, submit jointly with the Federal executive body for space activity proposals to the President of the Russian Federation and the Council of Ministers on limitation or ban of space activity that causes such a damage; - participate, on contractual basis, in commercial space activity including preparation and launch of launch vehicles with spacecraft aboard, space vehicle in-flight control, operation of facilities and other services; - approve, jointly with the Federal Executive Body for Space Activity, annual plans for commercial launches of launch vehicles with spacecraft aboard; - participate in space product export control activity; - interact, within its competence, with the Federal Executive Body for Space Activity on issues of commercialization of space activity and commercial space activity. The Federal Executive Body for Defense has the right to get its share of profit resulted from realization of space products in accordance with the scope of its participation in the deal. The Federal Executive Body for Defense shall use such a profit to finance construction and purchase of apartments for service men above those funds allocated from the Federal Budget. Article 7. Conditions for Introduction of Commercial Space Projects in the Federal Space Program The Federal Executive Body for Space Activity shall form, jointly with the interested Federal executive bodies, the Federal Space Program and include in it national and international space projects implemented with state financial support with the following taken into account: - scientific, technical and economic interests of the state, manufacturer and user of space products; - economic efficiency of commercial space projects; - economic situation in the country; - state of the space science and industry; - interests of commercial structures and investors; - situation in the domestic and world space market; - capacities of the space infrastructure. Article 8. Commercial Organizations as contractors and subcontractors 1. A commercial space project customer (hereinafter called customer) - either Russian or foreign legal entity - can invite other Russian or foreign legal entities or natural persons having the license for the relevant type of space activity as contractors and subcontractors for research and development activities. 2. Flight tests and putting space means into operation shall be performed under procedure established by the Council of Ministers of the Russian Federation.