ANNOUNCED AS TEMPORARYNo
Interest payment subsidy
On 24 October 2015 the Russian Government approved Order No. 2164.
This Order was issued within the framework of the State program for agricultural development and regulation of agricultural products, raw materials and foods for the period 2013--2020. Concretely, Order No. 2164- has allocated 3,820 million Russian Roubles (approximately 60.16 million USD) in addition to the already allocated 11581.5 million Russian Roubles (approximately 209.55 million USD) with Order No. 1110- of 16 June 2015.
The purpose of the state subsidies is to co-finance the expenditures of the top administrative units of the Russian Federation, related to the partial reimbursement of due interest accrued on investment loans of final beneficiaries from the agricultural sector. The purpose of these credits is development of the local agricultural sector, as well as its infrastructure and logistics.
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 top administrative units 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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