👛 Foreign Film Distribution to Face New Levies in Russia

Russia is preparing a regulatory overhaul of its theatrical distribution sector, designed to establish a new funding pipeline for national cinema. The country plans to introduce mandatory financial levies on the distribution and screening of foreign films.

The initiative was announced by filmmaker and Chairman of the Russian Filmmakers’ Union, Nikita Mikhalkov. The generated revenues will be channeled directly into supporting and refinancing the domestic film industry. The incoming regulations will target both box office revenue shares and the underlying distribution architecture itself.

“This will provide substantial assistance to our cinematography, as a percentage of the box office from foreign pictures will be reinvested into the refinancing of domestic cinema. Furthermore, an ‘entry ticket’ fee will be introduced—simply for a specific foreign title to be reviewed and considered for theatrical release,” Mikhalkov explained.

He emphasized that such protectionist frameworks are not a Russian invention and have been successfully deployed globally for decades—notably in France and China. At the same time, Mikhalkov clarified that the measure does not aim to entirely isolate the market, nor will it lead to the disappearance of high-quality international content from Russian cinemas.

Currently, the Filmmakers’ Union is collaborating on the draft legislation with relevant agencies of the Russian Government. The precise economic parameters of the levies, including the final percentage deductions and the baseline cost of the “entry ticket” for foreign releases, will be determined by film industry economists in the near future.

Source: TASS