Purpose: the purpose of the article consists in statement of management approach to development of utilities supply processes based on conflict situations decision – making search. It had appeared in the period of the transition from the planned and directive management to market development. Methods: the research methodology is based on the system analysis of full life cycle processes functioning, forecasting of complex systems development, mathematical modeling of processes of services supply and innovative and investment projects modeling as well as development of supplying services processes. Results: the results of the work are concentrated in the presentation of systemic-functional approach to managing the development of processes of municipal services, able to resolve conflict situations in this sphere. Conclusions and Relevance: the traditional management approach on the basis of elimination of "bottlenecks" and emergencies prevailing within planned and directive system at its transformation in the market conditions has led to accumulation of conflict situations and unsolvable problems. The offered systemic-functional approach based on forecasting of full life cycle of the modernized processes and the services providing systems allows to consider costs of modernization, prime cost and quality of the rendered services.

Purpose: justification of expediency of application of the concept of business simulation for effective prevention and mitigation of consequences of crisis of the industrial enterprise and for ensuring his sustainable development in the conditions of stagnation of branch. Methods: during the research methods of the analysis of a financial condition of the enterprises, the structural analysis and business simulation are used. Actual data about work of the industrial enterprises are attracted from official statistical sources and from materials of long-term consulting practice of authors. Results: stagnation of the domestic industry and lack of effective industrial policy force the enterprises having growth potential to conduct independent search of ways of recovery from the crisis and increase in the stability. The modern economic thought suggests to use the "theory of firm" which has confirmed the solvency for the solution of these tasks. The research has shown that and subsequently to eliminate with one of tools of this theory capable to weaken considerably the factors causing crisis, to provide effective development of the enterprise, the concept of business simulation is. Conclusions and Relevance: results of a research prove that for prevention of crisis of the industrial enterprise, overcoming his consequences and creation of conditions of his sustainable development, not only the package of measures for financial improvement or restructuring, but in general modification of a business model of the enterprise as the decision directed to elimination of all range of factors of insolvency of business is necessary.

Purpose: the main objective of preparation of article consists in formation of conceptual reasons for the new approach to administrative-territorial division of the Russian Federation corresponding to the relevant calls facing the country in the modern economic conditions. For achievement of this purpose in article the following research tasks are delivered and successfully solved: 1) to create new approach to administrative-territorial division of the Russian Federation on the basis of stability of her subjects; 2) to develop conceptual model of acceptance of the administrative decision on enlargement of regions by use of the modern methods of the quantitative and qualitative analysis of nature of regional development and a status of an economic security of the territory; 3) to define composition and structure of regional clusters, to give their characteristic in specific parametric space; 4) to develop recommendations about formation of administrative decisions on enlargement of regions taking into account specifics of development of the territories in a section of each cluster. Methods: by preparation of article general scientific methods of researches, such as systematization, generalization, cause-effect analysis and also receptions of the quantitative are used (hierarchical and iterative methods, statistic analysis) and qualitative (methods of the spatial analysis, theory of image identification) analysis. The new conceptual model based on synthesis of qualitative and quantitative methods of assessment of effectiveness of association of territories is developed for achievement of the goal of a research. According to the offered model making decision on association of the region is carried out in four steps. At the first stage justification of expediency of integration of territories is carried out and the general concept of association of regions is formed; at the second stage – holding a procedure of the cluster analysis and registration of results of a clustering by definition of uniform groups of regions on the basis of identification of similarity of the quantitative values characterizing stability of development of regions and a condition of indicators of their economic security; at the third stage – diagnostics of proximity of objects in a cluster on the basis of the principle of territorial contiguity and formation of the list and structure of regions concerning which the procedure of integration can be recommended; at the fourth stage – development of recommendations of integration of regions for stability of territorial subjects of the Russian Federation and ensuring economic security of the Russian Federation. Results: the new approach to administrative-territorial division of the Russian Federation on the basis of stability of subjects assuming that in case of making decision on combining of regions the requirement of increase in level of stability of development of the territories and their economic security shall act as the purpose and the expected result of process is developed. The conceptual model of making decision on enlargement of regions concretizing logic and content of process which application in practice of public administration by regional development will allow to provide framing of adequate approaches to administrative-territorial division of the Russian Federation is created. The recommendations concerning making decisions on combining of regions allowing to consider adequately specifics of social and economic development and level of an economic security of the territories are provided. Conclusions and Relevance: the researches conducted in article represent development of scientific ideas of the modern approaches to administrative-territorial division of the Russian Federation. Practical application of the received results will allow to enhance procedures of acceptance of administrative decisions concerning enlargement of regions taking into account the current trends in development of the country and on this basis to ensure steady positive social and economic dynamics and an economic security of the Russian Federation.

Purpose: the aim of the paper was to assess the level of involvement of the Eurasian economic Union (hereinafter EAEC) into the global economy. Methods: methods of system and synthesis analysis, structural-logical, economic-statistical, comparative and retrospective analysis were used in the study. Results: the structure of the global economy as a range of functional subsystems was presented. The indicators of involvement of countries into the global economy for each functional subsystem were suggested. The levels measuring the range of involvement of the country in global economy for each functional subsystem were proposed. The level of engagement of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia into the global economy for each functional subsystem was assessed. The value of the levels of involvement of the EAEC countries were summarized in the table. Conclusions and Relevance: the EAEC countries are characterized by a low level of involvement in the global economy for most of the functional subsystems. The greatest number of lowest values were concentrated in such subsystems as the global transnational production and the global monetary system. Low values of involvement levels were obtained in all countries in the global transnational production subsystem, which indicated a lack of development of the transnational production of the EAEC countries. Low values of involvement levels were received in the world monetary subsystem in all countries, except Russia, showed the average level of involvement, due to the presence of the share of the ruble in the total turnover of the global foreign exchange market for currency pairs in the year 2016. A set of the best values were obtained in the common information space subsystem, where all the countries except Kyrgyzstan, showed an average level due to criterion – percentage of individuals using the internet, instead of the criterion, reflecting the development of infrastructural capacity. Russia was characterized by a higher level, and Kyrgyzstan, by a lower level of involvement in the global economy compared to other countries of the EAEC.

Purpose: the article examines the main problems associated the new regulatory acts of Malaysia – the Financial Services Act of 2013 and the Islamic Financial Services Act of 2013; The characteristics of the legal status of the "Ombudsman for financial services" are listed, types of financial disputes subject to settlement under the "financial ombudsman scheme" are listed, parties to the financial dispute are identified. To achieve this goal, the article must solve the following tasks: to determine whether there are institutions in Malaysia that provide services for resolving financial disputes; to investigate the main problems associated with the definition of the concept and types of financial dispute, the conditions for the transfer of a financial dispute to the competent authority. Methods: this article is based on an interdisciplinary concept of research, which allowed to distinguish the distinctive features of the legal regulation of the settlement of financial disputes in Malaysia. Results: according to the provisions of the new laws of Malaysia, namely the Financial Services Act of 2013 and the Islamic Financial Services Act of 2013, a financial dispute should be understood as a dispute, to which the parties are a financial consumer and a financial service provider provider. Financial disputes include disputes in the field of insurance and Islamic insurance, as well as disputes over bank cards, bank accounts, ATMs, Internet banking, mobile banking, and others. The main body for the settlement of financial disputes is the Financial Ombudsman. The competence of the financial ombudsman is limited by the amount of the claim of 250,000 ringgit (about 4.5 million rubles), under insurance claims – 10,000 ringgit, in the field of unauthorized transactions – 25,000 ringgit. The procedure for resolving a financial dispute, which in Malaysia is referred to as the "scheme of a financial ombudsman", is established by the Central Bank of Malaysia. Conclusions and Relevance: the materials presented in the article show the special role of arbitration in resolving domestic and international financial disputes. The practical application of its results will improve the Russian legislation in the field of resolving financial disputes.

Purpose: to study the feasibility of building a national innovation system on the principles of rational self-sufficiency of the domestic economy. Methods: during research following methods were applied: comparative and correlative analysis, correlations, decomposition, and economic analysis. As an analytical and evidence materials used for international comparisons, as well as normative-legal documents regulating innovative activities in the Russian Federation. Results: international experience suggests that the most common way of ensuring innovative development of the country is to attract investments in advanced technological States. Passed a similar path in Germany, Japan, South Korea, and China. However, in today's Russia, such a solution is impossible for two reasons. The first is the already accumulated level of foreign investment in the industry, exceeding the threshold of national security. And the second is the reluctance to contribute to the economic progress in our country, conducting an independent policy on the part of developed States of the world under US control. In these circumstances, the only way is to build a national innovation system (NIS), relying primarily on its own strength, especially because all the necessary prerequisites and resources are in place. Conclusions and Relevance: results of the study indicate the presence of necessary and sufficient conditions for the formation of a national innovation system focused on the use of internal potential of economy of the Russian Federation. The challenge is in choosing the right principles of its construction.

Purpose: the purpose of this article is to analyze the Russian experience in using public-private partnership mechanism (further – PPP) for the supply and maintenance of rolling stock for Moscow public transport vehicle fleet under the «Life Сycle Сontract» (further – LLC). Overview of LLC, benefits, strengths and weakness identification are needed to achieve the objectives. Methods: methodological and theoretical background of the article based on feasibility study of LCC implementation projects as well as practical experience of LCC in CUE «Mosgortrans» and CUE «Moscow Metro». Information based on official data from Ministry of Economic development of the RF, Moscow Mayor official website, Moscow City Investment Agency. Results: research into LCC in PPP system, strengths and weaknesses identification will allow to minimize risks and to improve system. Conclusions and Relevance: this article proves that LCC model under the tready of of rolling stock procurement and maintenance contracts for Moscow public transport can provide a city with the new generation rolling stock, increase comfort and safety, obtain additional reliability assurance and timekeeping, remain high properties of rolling stock during exploitation period.

Purpose: the for a long time Finland’s national innovation system (NIS) had been being one of the most successful and effective in the world. But some years ago the situation changed: Finland’s NIS run into system crisis. And today Finnish government tries to work out anticrisis innovation policy. So the purpose of this article is to show up the innovation policy instruments which are able put an end to the crisis and to determine conditions of their successful use. Methods: the article is based on the national innovation systems concept and government policy-mix aimed at the NIS development. Results: the authors show up how Finnish government looks for optimal policy-mix to overcome the crisis, demonstrate in details complementary components of the relevant innovation policy, describe conditions for their success and effectiveness to consider whether they are useful in other countries. Conclusions and Relevance: to overcome the NIS crisis the Finnish government uses such instruments as strategic programs of socio-economic development with targets which can’t be achieved without adequate high technology and innovative development complemented by incentives to make business innovate actively. The conditions of such policy success are: 1) such feature of Finnish society as all stakeholders of economic development consensus on one issue: the main factor of development are innovations; 2) anticrisis stage of Finnish innovative policy is based previously accumulated knowledge and know-how.

Purpose: carrying out the analysis of the regulation of the crypto-currency, its legal provisions and risks, which will allow us to study this phenomenon more deeply for the purpose of Russia's financial security in the modern world financial system, taking into account the essence of the nature of the crypto-currency. Methods: when studying the role of state regulation of electronic money (crypto-currency), a dialectical method of scientific cognition was applied. Calculating and analytical methods of observing, measuring, analyzing and comparing indicators characterizing the state regulation of crypto-currencies in the Russian Federation, strengths and weaknesses, opportunities and threats to use and regulate crypto currency. Results: the authors conducted the analysis of the crypto-currency market, studied the experience and peculiarities of the state regulation of the crypto-currencies, examined and proposed strengths and weaknesses, opportunities and threats to use and regulate crypto-currencies. Conclusions and Relevance: in the process of studying the experience of regulating crypto currency in foreign countries, we found some similar features. First, each country seeks to create a favorable climate for the development of new technologies (detached) and sees a high potential for using technology not only in the private sector, but also in the public sector. Secondly, the crypto-currency market is growing at a high pace, and the state, without adapting the tax code to the modern challenges of the digital economy, receives less revenue in the budget, since the crypto-currencies are out of legal jurisdiction. Thirdly, today there are more than 1 thousand different crypto-currencies, therefore, it is necessary to develop common standards for the regulation of crypto-currencies.

Purpose: the main purpose of the publication is to examine comprehensively the financial and economic aspects of the strategic management of the industrial cluster by the example of the clusters of the Corporation “Rostec” with the participation of enterprises of the defense industry complex. Methods: the methodology of the research is based on the collection and analysis of initial data and information, the article uses a systematic approach to the study of socio-economic processes and phenomena. The research is based on modern theory of competition, innovation, as well as the modern paradigm of cluster development of the economy. In preparing the study, practical materials from Corporation “Rostec”. Results: the article gives the notion of industrial cluster, outlines the the prospects for using the cluster approach in the implementation of import substitution programs. Industrial clusters are considered as a source of preservation of a unique engineering culture, the revival of the engineering class. The creation of clusters is very promising in the defense industry complex, where clusters are identified as the most important source of diversification of the complex. Separate financial and economic aspects of strategic management industrial cluster are discussed in more detail on the example of cluster initiatives of Corporation “Rosteс”. It is noted that for the development of “Rostec” industrial clusters, it is planned to form centers of key competencies by creating conditions for the development of highly effective cooperative and synergetic relationships among the cluster participants. Formed clusters will be able to demonstrate higher rates of economic growth. In addition, focused funding will allow more efficient distribution of federal budget funds, as well as investor funds, aimed at technological development of cluster participants. To achieve these goals, it was recommended to ensure proper selection of key financial and economic aspects of cluster operation. Conclusions and Relevance: the article draws a general conclusion that among the reasons for the failure of industrial cluster initiatives, an inappropriate choice is made of the forms and sources of functioning, the wrong choice of such financial and economic aspects of strategic management as organizational and legal form, organizational structure, the way of organization of joint stock relations, dividend policy of the cluster, etc. The search for effective solutions in terms of the financial and economic aspects of the strategic management of the industrial cluster is largely related to providing continuous and, to the extent possible, a full-fledged (up to 100% of the needs of the cluster) financing from private capital. For this purpose, among other things, the legal and organizational-economic aspects of the relationship between the cluster members and its founders should be thoroughly worked out. To do this, it is recommended to determine the distribution of the burden of financing the cluster, the responsibilities in this area, clarify the system of financial management of the cluster, determine the financial guarantees of participants, including the distribution of financial results (dividends). Given the proper choice of ways to organize joint stock, financial and dividend relations, the concept of cluster-type cluster developed by “Roctec” corporation can ensure the effective and successful strategic development of industrial clusters.

Purpose: the purpose of this paper is to identify the effects from holding the world championship "Formula One" on the territory of Krasnodar Krai on regional nationwide scales. Methods: the methodological framework of this paper comprises: content analysis, public analysis findings in the sphere of sports business organizations development, empirical and sociological (enumeration) methods. Results: in this regard, the author of this paper identifies a multiplicative effect from the operation of a global company "Formula One" in Russia through the prism of fashion, social, economic, industrial, infrastructure, investment and integration effects. This allows to draw a conclusion that "Formula One" in Russia as a sports and entertainment mega-event leads to the development of the national economy through small and medium business over race service and arrangement (recreation, hotel complex, restaurants, cafes, entertainment complexes, shopping malls, transportation terminals, railway interchange, additional points in the airport and etc.). It is proved that Sochi profile as a world-famous resort encourages the emerging of additional businesses. These and other factors allow Sochi to solve the economic problem of the post-Olympic heritage. The effects of “Formula One” on nationwide and regional scales are represented by a diagrams. Conclusions and Relevance: practical implications of current paper lies in the justification of provisions and conclusions in order to understand the importance of "Formula One" stage in Russia, the need for its promotion and revitalization of economic entities interest to the territories development.

Purpose: the main goal of the article is to define the development perspectives of the new franchising models in Russia (specifically quasifranchising, freedom franchising and branchising). To achieve this the following tusks should be completed: to define the specific characteristics of the following models as well as the factors which influenced their occurrence; to question Russian franchisors in order to understand their desire to develop their business under the new franchising models; to identify the key development possibilities of the new franchising models in Russia based on the gathered data. Methods: the article was prepared with the help of theoretical as well as economic analysis. Moreover, the series of the formalized telephone interviews with the Russian businessmen were conducted by the author. Based on the results gathered the conclusions on the development perspectives of the new franchising models in Russia were drawn. Results: currently new franchising models are conquering the Russian market. In comparison to the classical franchising model new franchising models are riskier for the franchisor due to the certain freedom available to franchisees. Quasifranchising, which is based on the business model transfer without the brand transfer, is suitable for the young concepts and for the franchisors seeking for the increasing number of franchisees. Freedom franchising enabling assortment and outlook variety of the point of contact is a good alternative for the franchisees who struggle for individuality even in the boundaries of the franchise as well as for the franchisors looking for the franchisees of that kind. Finally, branchising, which means franchisor’s and franchisee’s co-investment, is applicable for the franchises with high level of investments needed. Conclusions and Relevance: the materials of the article show the certain place of the new franchising models on the Russian market. They make it possible to adjust the business model to the changing social and economic realities. New franchising models are recommended in those business spheres where the variability of the non-key business aspects is possible as well as for the young concepts seeking their place on the market. The conducted research develops the scientific understanding of the modern franchising models as a business development instrument. Practical result usage will enable the development of the franchising networks under the new market tendencies and social changes.

Purpose: the purpose of this article is to determine the conditions of entering the Russian innovative companies in the program of development of economy at the Federal level. These conditions suggest the possibility of self-selection of participation of each company in the program and compliance with the company's potential. Methods: the research methodology involves building a system model of organizational innovation of the company. Its foundations are based on a systematic approach to innovation management within the company, and the opportunity to participate in the program at the Federal level is determined by the company based on known methods of decision-making given the uncertainty generated in ordinal scales. Results: the result is a set of methodological ways for you to select the company's participation in the program of development of the AZ of the Russian Federation taking into account positive and negative for the company benefits. In turn, the company's offer to participate in the program depends on the assessment of a company's potential leadership program. Conclusions and Relevance: the development of the Arctic zone of Russia must be organized using the methods of program planning, providing centralized allocation of financial and logistical resources with broad participation of private capital on the basis of the principles of publicprivate partnerships.