IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 22 Aug 2014 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

With Decree Nr. 839, dated August 22, 2014, was approved a measure where the stated purpose is to enhance the stability of the domestic banking system. The recipients of state provided financial support are the 'Russian Agricultural Bank', a 100% state-owned bank, and'VTB Bank' which the state owns 60.93% of.
The details of the financial support are:

  • The 'Russian Agricultural Bank' and 'VTB Bank' have received a subordinated credit line of unspecified size by the state-owned Vnesheconombank, granted in accordance with the Federal Law "On Additional Measures to Support the Financial System of the Russian Federation" (Federal Law Nr. 173-FZ of 13 October 2008).
  • Thestate has decided to acquire preference shares in the 'Russian Agricultural Bank'and 'VTB Bank' to the total amount of RUB 239.04 billion (USD 6.58 billion) with financial resources provided by the National Welfare Fund.

This state intervention increases the tier 1 capital of both banks. It avoids a decapitalisation which would have happened if the Russian Government has not undertaken the intervention with the preference shares, under which scenario the subordinated debt would have been gradually amortised from the banks' regulatory capital. 
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

Please report this page in case you detect an inaccuracy in its content.