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: 30 Aug 2016 | Removal date: open ended
Still in force

Production subsidy

Decree No. 861 of 30 August 2016 expands the existing state intervention (Decree No. 1045 of 1 October 2015) to promote the local production of medicines.
 
Concretely, Decree 861 will:

  • Extend the priority directions, as part of which can be granted subsidies for projects of Russian organisations with the purpose of development of drugs for the treatment of haematological, haematological and hereditary diseases, medicines used in transplantation for the early diagnosis and treatment of respiratory diseases, drugs used in the treatment of pain, as well as for the treatment of rare (orphan) diseases;
  • Extend from 3 to 4 years the maximal deadline for putting into commercial circulation projects for the population that require longer clinical testing. This fact also involves longer state financing.
  • Include as project expenditures the possibility to be subsidised the costs related to salaries of Russian organisations that have employees with higher pharmaceutical, medical, biological and chemical education and (or) doctoral degree and work experience in the area of development of medical products of at least 3 years.
  • Increase the maximum amount of allocated subsides from 200 to 400 million RUB for the contracts signed with the Russian organisations in line with the rules.

 
The federal budget for 2016 foresees the allocation of 2.6 billion RUB (ca. 40.15 million USD) for the policy intervention. The subsidies are provided as part of the sub-programme "Development of medicines production" of the state program "Development of pharmaceutical and medical industry" for 2013--2020". Since Decree No. 861 plans the allocation of state subsidies in 2016 but does not allocate them, it is classified as amber.

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

352 Pharmaceutical products
3003 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale.
300320 Containing other antibiotics
300331 Containing insulin
300390 Other
3004 Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses (including those in the form of transdermal administration systems) or in forms or packin
300410 Containing penicillins or derivatives thereof, with a penicillanic acid structure, or streptomycins or their derivatives
300420 Containing other antibiotics
300431 Containing insulin
300432 Containing corticosteroid hormones, their derivatives or structural analogues
300439 Other
300440 Containing alkaloids or derivatives thereof but not containing hormones, other products of heading 29.37 or antibiotics
300450 Other medicaments containing vitamins or other products of heading 29.36
300490 Other

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