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: 09 Jul 2016 | Removal date: open ended
Still in force

Instrument unclear

 
With Decree No. 648 of 9 July 2016, the Russian Government approved rules for granting of subsidies to Russian companies to ensure uninterrupted operation of the domestic aircraft Sukhoi Superjet 100 and MC-21 by supplying them with spare parts.
 
The subsidies are intended to support the creation of a distribution network for aircraft spare parts that operates in a regime 24/7/365. The subsidies reimburse 90% of the costs incurred in the payment of interest on loans, related to the project that help create the desired network, and 50% of the costs of transportation of spare parts to the place of operation of the aircraft. Technically, the subsidies are to be allocated under the sub-programme "Aircraft building" of the state program "Development of the aircraft industry for 2013-2025".
 
No concrete amounts of subsidies are mentioned. However, the GTA assumes that this state intervention surpasses its de minimis rule of 10 million USD because aircraft spare parts and other land transportation means imply considerable costs. Furthermore, the state subsidies under sub-programme 'Aircraft building' for 2016 are considerable: 15.91 billion RUB (ca. 251 million USD) which strengthens the argument for surpassing of GTA's de minimis rule.
 
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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