IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 21 Jul 2016 | Removal date: 31 Dec 2020
Still in force

Loan guarantee

On 21 July 2016, with Decree No. 1561-p, the Government of the Russian Federation approved the issuance of credit guarantee for companies from the defense industry.
In total, the government issued 19 state guarantees to 14 organisations with an aggregate amount of RUB 93.6 billion (1.48 billion USD as per the official RUB/USD exchange rate for 21 July 2016).

The 14 beneficiaries are:

  1. JSC "Concern "Radio Technical and Information Systems";
  2. JSC "Concern Aerospace Defense "Almaz-Antey";
  3. JSC "Scientific-production complex "Scientific research Institute of distant radio communication";
  4. JSC "Corporation "Moscow Institute of thermal technology"";
  5. JSC "Aviation holding company "Suhoj";
  6. JSC "State machine-building design Bureau "Raduga" named after A. Y. Bereznyak";
  7. OJSC "Shipbuilding plant "Severnaya Verf"";
  8. JSC "Leningrad shipyard "Pella";
  9. JSC "Zelenodolsk plant named after A. M. Gorky";
  10. JSC "Shvabe - Defence and Protection";
  11. JSC "Kazan Optical-Mechanical Plant";
  12. JSC "Corporation of space systems of a special purpose "Comet"";
  13. JSC "Amur shipbuilding plant";
  14. JSC "Scientific-production Association "Alloy"".

This state intervention forms part of Russia's the implementing measures under the framework of the State Armament Programme for 2011--2020. According to Decree No. 1561-p, this state measure will expand the capacity of the beneficiaries to attract non-budgetary sources of funding and to carry out state tasks related to the execution of the state defense orders where the federal funding is received in the form of deferred payments.

Background:
The accompanying note to Decree No. 1561-p reports that the Russian Government has planned to allocate a total of 209 billion RUB in state guarantees in 2016 for the Russian defense industry. After the allocation under Decree No. 1561-p, the outstanding balance of to be issued in the future state guarantees is 115.4 billion RUB.

Disclaimer:
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.

Abbreviations:
JSC: joint stock company
OJSC: open joint stock company

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

389 Other manufactured articles n.e.c.
9603 Brooms, brushes (including brushes constituting parts of machines, appliances or vehicles), handoperated mechanical floor sweepers, not motorised, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; squee
960310 Brooms and brushes, consisting of twigs or other vegetable materials bound together, with or without handles
960321 Tooth brushes, including dentalplate brushes
960329 Other
960330 Artists' brushes, writing brushes and similar brushes for the application of cosmetics
960340 Paint, distemper, varnish or similar brushes (other than brushes of subheading 9603.30); paint pads and rollers
960350 Other brushes constituting parts of machines, appliances or vehicles
960390 Other
482 Instruments & control equipment, except optical instruments
8526 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus.
852610 Radar apparatus
852691 Radio navigational aid apparatus
852692 Radio remote control apparatus
483 Optical instruments & photographic equipment; parts thereof
9002 Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of or fittings for instruments or apparatus, other than such elements of glass not optically worked.
900211 For cameras, projectors or photographic enlargers or reducers
900290 Other
9004 Spectacles, goggles and the like, corrective, protective or other.
900410 Sunglasses
900490 Other
9005 Binoculars, monoculars, other optical telescopes, and mountings therefor; other astronomical instruments and mountings therefor, but not including instruments for radioastronomy.
900510 Binoculars
900580 Other instruments
9011 Compound optical microscopes, including those for photomicrography, cinephotomicrography or microprojection.
901110 Stereoscopic microscopes
901120 Other microscopes, for photomicrography, cinephotomicrography or microprojection
901180 Other microscopes
493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890130 Refrigerated vessels, other than those of subheading 8901.20
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods
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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