IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 11 Oct 2014 | Removal date: open ended
Still in force

State loan

On 11 October 2014, the Russian government approved new measures to increase the volume of lending to the "real" sector at preferential terms within the framework of a new project financing mechanism (Order 1044-).
 
As a part of this state programme, loans of up to 500 billion RUB (ca. 12 billion USD) are to be allocated to selected project applicants in the period the 2015-2018 years. In addition, state guarantees of up to 125 billion RUB (ca. 3 billion USD) will be provided.
 
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.
 

AFFECTED COUNTRIES

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