ANNOUNCED AS TEMPORARYNo
On March 4, 2015 was approved Decree 189. With it was authorised the allocation in 2015 of 95.5 Billion RUB (ca. 1.6 billion USD) and 400 million USD in the form of state guarantees with regard to loans of juridical persons in the defence and other industries. The purpose of this state measure is to increase the stability of the local economy. It forms part of the current anti-crisis measures of the government.
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 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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