Global Trade Alert

On 9 July 2016 the Russian Government approved Resolution 1464-p. Its purpose is to co-finance in 2016 liabilities of 78 subnational jurisdictions with respect to to the interest rate on short, medium and long-term loans taken by small businesses from Russian banks and credit cooperations.

The state aid is at the amount of 2.3 billion RUB (approximately 35.69 million USD as per the current official exchange rate). Resolution 1464-p was issued within the framework of the State program for agricultural development and regulation of agricultural products, raw materials and foods for the period 2013--2020. Although not written in the text of the legal act, this state intervention should form part of its sub-programme No. 4. 'Support of small farms', and the credit financing measures classified under No. 4.1 'State support for crediting of small farms". Their purpose is to increase the number of family farms, to stimulate the creation of jobs, to ensure the growth of the cattle herd, and to increase the production of livestock goods, including milk and bovine animals. The GTA used the latter information in order to identify the affected HS codes.

Resolution 1464-p abolishes also Resolution 260 of 20 February 2016 (see the related GTA report No. 12224 for more information).

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