ANNOUNCED AS TEMPORARYNo
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.
⚑ Please report this page in case you detect an inaccuracy in its content.