IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 17 May 2016 | Removal date: open ended
Still in force

Interest payment subsidy

With Decree No 425-8 of 16 May 2016 the Russian Government approved the state programme for the development of the military-industrial complex (2016-2020).

The quint-annual budget of the program is 34.8 billoin rubles (USD 537 million), roughly equally distributed for five years. 

 
The purpose of this state programme is to increase the competitiveness of the military-defence industry and promote its exports.

The foreseen state interventions that are likely to affect foreign commercial interests are:

  • state subsidies for partial reimbursement of interest rates, related to credits, taken from Russian credit organisations and the state corporation "Vnesheconombank".
  • direct subsidies for strategical organisations that belong to the Russian military-industrial complex, including operational subsidies and bailouts.

 
Only the non-classified part of the program is published, with the full program possibly more extensive than reported. The federal agency in charge of the program is the Ministry of Industry and Trade. 

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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880212 Of an unladen weight exceeding 2,000 kg
880220 Aeroplanes and other aircraft, of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg

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