IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 23 Feb 2013 | Removal date: open ended
Still in force

Interest payment subsidy

In 2015, the Russian federal government transferred additional funds to its regions in order to support selected agricultural producers.
On February 23, 2015, the Russian government allocated additional subsidies at the total amount of 4.6 billion RUB (ca. 74 million USD) to selected subjects of the Russian Federation (Order 285-p).
 
The concrete purpose of the allocation from the state budgetis to:

  • co-finance the interest rate expenditures of 79 subjects of the Russian Federation, related to their investment loans. The purpose of these credits is to facilitate the development of crop production, as well as the processing activities, infrastructural development and logistics of the crop production markets. 
  • co-finance the interest rate expenditures of 77 subjects of the Russian Federation, related to their investment loans. The purpose of these credits is to facilitate the development of the animal breeding, the processing and development of infrastructure and logistics markets, as well as the livestock production. 
  • co-finance the interest rate expenditures of 38 subjects of the Russian Federation, related to their investment loans. The purpose of these credits is construction and reconstruction of beef cattle buildings.

This state measure is in line with the 2012 statement of the President of the Russian Federation, Mr Vladimir Putin, that the interests of the economic sectors, agriculture included, that meet the most intensive competition from abroad after the WTO accession, will be considered.
 
Furthermore, in the Annual Presidential Address to the Federal Assembly held on 12 December 2013, Mr. Putin declared: "Companies, registered in foreign jurisdictions, must not benefit from state support, including from Vnesheconombank and state guarantees. Their access to contracts for state orders and for contracts with structures with state participation must be eliminated". In conclusion, although the end beneficiaries of the allocated subsidies to the subjects of the Russian Federation cannot be directly identified, it can be expected that they will be Russian.
 
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.

AFFECTED COUNTRIES

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