Russian Filmmakers Feel the Pinch

The decision by film production companies to cancel or postpone projects comes as a result of financial turmoil in Russian stock markets in September 2008 which resulted in leading exchanges closing on a number of occasions.

 Karen Shakhnazarov, Director General of Mosfilm, the country’s largest studio, reported that more than 20 of the 89 films it had in production had either been abandoned or postponed.   He said it was the first time that so many projects had been halted at one time since the financial crisis of 1998 when the government defaulted on bond repayments and sent the rouble into meltdown.

 Sergei Selyanov, the founder of Russia’s leading independent production companies, told Variety, ‘If the credit crunch continues relentlessly, we could see as many as 70% of project shelved in the coming year or so. Industry professionals — crews, technicians and others — must understand that to survive this crisis, prices for services must come down.’

 Vadim Goriainov, the co-founder of Moscow-based production company Red Arrow echoed Selyanov’s views.   ‘We are reviewing expensive projects and basically looking at making films that cost less than $2 million,’ he said.   ‘More expensive projects in the next year or so will simply be unrealistic.’

 Goriainov went on to point out that it cost more to shoot a film in Moscow than in New York.   Industry insiders felt this was because of unrealistic wage demands from cast and crew members.   ‘There is a lot of common sense coming out of this crisis,’ said one insider.   ‘It is a reality check for crews — technicians, electricians and gaffers in particular, who have been demanding ridiculous money. [ADD]

2008

Russia: 2008