AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
On March 18, 2013, the Russian Government approved the state programme "Development of the Foreign Economic Activity" 2013-2018, later extended until 2021. It seeks to strengthen the position of the Russian Federation in the global economy as well as to contribute to the modernisation of the domestic economy.
The program, overseen by the Economic Development Ministry, has six components, of which only Component 3 (National System of Foreign Trade Support) is of relevance to the GTA and has a trade-distorting potential. It envisions trade finance and trade promotion support measures for the Russian exporters.
Trade finance support is to be allocated as subsidies to exporters disbursed through the Russian Foreign Economic Activity Bank (Vneshekonombank) and Export-Import Bank (Roseximbank). Both are state-owned banks.
Trade promotion is to be implemented through the export promotion agency, the Russian Export Center.
The government is to subsidize export loan interest payments and participation in overseas trade fairs. It will also provide export credit guarantees. Modalities of these allocations are announced in separate regulations called Procedures of Allocation.
Although the Programme itself does not target particular sectors, such sectors could be identified in sectoral development strategies financed under the Programme.
The initially earmarked funding for the whole Programme was RUB422 billion (USD13.78 billion). With the addition of 2019 and 2020, the earmarked budget grew to RUB 605B (equivalent to USD 9.2B at 2018 exchange rate). The volume of budget assignations in Component 3 for 2019 and 2020 is RUB 18B (USD 290M). The budget of Component 3 at the time of the announcement was RUB 17,89B (USD 580M) to be allocated over 6 years.
The program was amended in 2014, 2017 and in 2018, reflecting budgetary and administrative adjustments. For example on 31 March 2017, the Government extended the Programme to cover 2019 and 2020 and brought 3 "priority projects" under the umbrella of the Programme: Systemic Measure of Developing International Cooperation and Export, International Cooperation and Export in Industry and Export of the Production of the Agricultural Complex.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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