Section III. Economic Conditions of Space Activity Article 12. Financing Space Activities and Foreign Investments 1. Financing space activity in scientific and national-economy purpose shall be executed from the republican budget of Russian Federation in accordance with the Federal Space Program of Russia and figured in the republican budget of Russian Federation as a separate item. Financing space activity in purpose of defence and security of Russian Federation shall be provided by the republican budget of Russian Federation as part of defense expenditures. 2. Space activity shall be financed from the republican budget of Russian Federation in purpose-oriented manner through state customers for works to create and use space technics and shall be distributed between contractors in accordance with state contracts. The state customer and the contractor shall have the right to resort to non-budget sources of financing, including their own resources, provided this does not contradict the objectives of the space project. 3. The organizations and citizens involved in the implementation of space projects shall be, according to the established procedures, granted with state guarantees, soft credits, tax exemptions and other necessary privileges. 4. Foreign investments into space activity falling within the framework of the Federal Space Program of Russia, shall be guaranteed by the budget of Russian Federation, as well as by the assets and other property of Russian Federation. Foreign investments in space activity of organizations and citizens of Russian Federation shall be guaranteed by their assets or by their intellectual or other property. Article 13. The Russian Space Fund 1. The Russian Space Fund shall be established with the aim to support and promote space science and industry. 2. The assets of the Russian Space Fund shall be provided by: allocations from the republican budget of Russian Federation granted on a purpose-oriented basis as part of the financing of the Federal Space Program of Russia; extra-budgetary funds created by state customers for works to create and use space technics; part of the profit received by organizations and citizens at the expense of tax exemption granted in connection with space activity; profit resulting from the realization of space projects financed by the Russian Space Fund; insurance payments made by organizations and citizens involved in space activity in the form of obligatory or voluntary insurance; voluntary contributions of Russian and foreign organizations and citizens. The order of accumulation and spending of the resources of the Russian Space Fund shall be laid down in the Statutes of the Russian Space Fund. 3. The resources of the Russian Space Fund shall be directed towards financing the Federal Space Program of Russia, in coordination with the Russian Space Agency and other customers for works to create and use space technics, towards supporting space projects involving innovation and military conversion, as well as towards projects to use of the results of space activity, among others, for promoting science, education and culture. In the distribution of the resources of the Russian Space Fund priority shall be given to ground-breaking research projects and high efficiency economic, social and other projects. The resources of the Russian Space Fund shall also be employed to ensure risks connected with space activity and to eliminate the after-effects of accidents, that may result from such activity. 4. The Russian Space Fund shall operate in accordance with the Statutes approved by Council of Ministers the Government of Russian Federation in coordination with the Supreme Soviet of Russian Federation. Article 14. Creation of Space Technics 1. The state order for the creation of space technics shall be formed and placed in accordance with the Federal Space Program of Russia and the log-term program and annual plans of works to create and use military space technics. 2. The works under the state order shall be carried out in accordance with the technical assignment approved by the state customer, which shall form grounds, for the conclusion of the state contract between the state customer and the contractor. Under the state order, the contractor shall be responsible for the fulfilment of the requirements of the technical assignment by his co-contractors, in relation to which he shall act as the state customer. Under the state order, the contractor shall be obliged to exercise inventor's supervision at all stages of the creation and use of space technics on a contractual basis. 3. Property rights over space technics shall be transferred to the customer from the moment of signing the acceptance certificate, unless otherwise stipulated by the relevant agreement. The rights of organizations and citizens involved in the creation of space technics to further utilize such technics shall be specified in agreements, concluded by these organizations and citizens with the customer of the works. 4. Mixed companies shall be allowed to act as contractors under the state order, provide that the share of foreign capital in their statutory fund does not exceed 49 percent. Contractors under the state order shall be allowsed to involve foreign organizations and citizens as co-contractors, and shall be responsible for the latter fulfilling their obligations. Article 15. Use and Transfer of Space Technics 1. Space technics shall be allowed to be used according to its purpose, pending on its putting into exploitation. The order of using space technics for testing and the order of its putting into exploitation shall be stipulated by the legislation of Russian Federation. 2. The use of space technics shall be effected by the proprietor of such technics or by other organizations and citizens upon agreement with the proprietor. 3. Components of space technics may belong to several organizations and citizens, unless this disrupts the operational regime of the functioning of such space technics. Procedures for the use of space technics, components of which belong to several organizations and citizens, shall be governed by contracts between such organizations and citizens. 4. An organization exploiting space technics, which is in federal ownership shall provide, on a contractual basis, opportunities for the use of such technics by any interested organizations and citizens. In concluding agreements for the use of space technics, which is in federal ownership, preference shall be given to project under the Federal Space Program of Russia, and also to organizations and citizens of Russian Federation that offer the more beneficial terms of such use. 5. Space technics taken out of operation may be transferred to organizations whose main line of activities is directed at using the results of space activity in purposes of education and culture. Such technics may also be sold to organizations or citizens on a contractual basis. Article 16. Use of Space Technologies and Results of Space Activity 1. The use and transfer of space technics shall be effected with respect to the rights of intellectual property that are protected by the legislation of Russian Federation. 2. The fulfilment of the works to create space technics, including those under the state order, shall not bind the contractor to transfer technologies to the customer, unless otherwise specified by the agreement between the contractor and the customer. 3. Procedures and terms of the use of technologies developed while fulfilling the works to create and use of space technics, legal protection of which is not stipulated by the legislation of Russian Federation, shall be established under agreements between the interested organizations and citizens. 4. The property rights over the physical product created in outer space shall belong to the organizations and citizens possessing property rights in the components of space technics, with the use of which such product has been created, unless otherwise specified by relevant agreements. The property rights over the information product created as a result of space activity shall belong to the organizations and citizens, that have created such information product, unless otherwise specified by relevant agreements. The property rights of other organizations and citizens participating in space activity, in particular by providing transportation and other services, shall be stipulated by relevant agreements.