AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On 17 June 2011, the Japan Bank for International Cooperation (JBIC) signed an export loan agreement with the Russian Vnesheconombank (VEB) totalling approximately USD 1 billion.
The loan will finance, through the Russian bank, the Russian Joint Stock Company Ammoni's purchase of machinery and equipment from Japanese Mitsubishi Heavy Industries, Ltd. and Sojitz Corporation. These goods will be used in connection with the company's construction of a urea fertilizer plant.
In this context JBIC stated: 'This Project will help make effective use of Russia's abundant natural gas resources. Going forward, it is also expected to make way for the expansion of business opportunities for Japanese firms exporting fertilizer production facilities to Russia.'
JBIC provides direct loans to overseas importers or foreign banks. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to 'positively contribute to Japanese companies'. Further information can be found on the Bank's website under export loans.
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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