ANNOUNCED AS TEMPORARYNo
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.
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