ANNOUNCED AS TEMPORARYNo
Interest payment subsidy
On 19 December 2015 the Russian Government approved Decree No. 1383. It allocates 1 billion Russian Roubles (approximately 14 million USD) from the Federal budget to Russian automobile and automobile components manufacturers, including their affiliated organisations. The decree No. 1383 has replaced the Decree No. 640 dated 1st of August 2011.
Their purpose is to reimburse up to 90% of the interest rate payments on investment-into-innovation loans and on loans taken under the Russian Government guarantee, as well as coupon payments on the issued bonds. The 1383/2015 Decree also expands the coverage of the earlier Decree, 640/2011, to loans taken to refinance loans of the subsidiaries. Also, the present Decree introduces a condition that beneficiary firms have to match their capital investments to the amount of the subsidy received.
The state measure is approved as part of the framework of the sub-program "Automotive industry" of the state program of the Russian Federation "Development of the industry and increasing competitiveness".
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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