ANNOUNCED AS TEMPORARYNo
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:
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.
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