Activities in the Soviet closed cities were governed by the Ministry of Medium Machine-Building, which during the post-war years developed into a powerful body in Soviet politics. The local autonomy in a closed administrative-territorial formation follows the same principles as in other local administrative units of the Russian Federation. After the collapse of the Soviet Union and the founding of the Russian Federation, the status of some of the closed cities was formalised through the Law on Closed Administrative-Territorial Formations (CATFs), which entered into force on 14 July 1992. A vital element of the law is that it establishes the financing of activities in the CATFs as a federal responsibility. A possible "profit" in a CATF budget is to be invested in ecological and social programmes at the federal or regional level, combating negative side effects of the CATF's main operations.