ANNOUNCED AS TEMPORARYNo
As part of the anti-crisis measures of the Russian Government, Decree No. 451 of 8 May 2015 approved the allocation of federal subsidies to Russian leasing organisations. Their purpose is to compensate their losses originating from the rebates they concede on advance payments related to leasing of wheeled transportation vehicles.
This 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 of its competitiveness". Under this sub-programme (and hence under Decree No. 451), only Russian manufacturers of wheeled vehicles can benefit from this state support. This fact is confirmed by the official legal note that accompanies Decree No. 451. It states that the new state act "targets the stimulation of the demand for motor vehicles, (and) support of the domestic automotive manufacturing" (added italics).
The federal subsidy is at the amount of 2.5 billion Russian Roubles (ca. 49.61 million USD as of the date of the issuance of the legal act). Wheeled transportation vehicles are eligible under this state intervention if the leasing contract is signed in 2015. In addition, beneficiaries can be only Russian leasing organisation which have signed not less than 100 leasing contracts in 2014 and do not have tax and other due to the state liabilities.
On 23 April 2016, with Decree No. 344, the Russian Government prolonged the validity of the subsidy scheme, introduced by Decree No. 451. Concretely, by approving the allocation of 5.0 billion RUB (ca. 75.51 million USD as of the date of the issuance of the legal act) in subsidies for compensation of Russian leasing companies that have provided discounts to the lessee concerning advance payments under leasing contracts of wheeled vehicles. These leasing contracts must be concluded in 2015-2016.
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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