IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 30 Dec 2015 | Removal date: open ended
Still in force

Production subsidy

On 30 December 2015 the Government of the Russian Federation approved Decree No. 1503 which approves new state subsidies for production costs of the pharmaceutical and medical industries.

The subsidies have the purpose to support domestic development of improved, innovative drugs.

The eligible costs for subsidisation are contained in article 7 of Decree No. 1503, namely:

  • for wages of personnel, working in Russian organisations with higher medical,pharmaceutical, biological and chemical education;
  • for remuneration of costs related to civil contracts, insurance and retirement-related costs, medical and social insurance, maternity, temporary inability to work, etc.;
  • for the purchase of raw materials and consumables, related to sampling of the developed medicines;
  • for purchase of medical drugs used for comparative research;
  • for purchase of laboratory animals, and other pre-clinical costs;
  • for obligatory life and health insurance of the patients, that take part in the testing of the developed medicines.

Article 12 of Decree No. 1503 specifies further that up to 50% of the mentioned costs of Russian organisations are eligible for subsidisations under the new rules. Only costs incurred after 1 January 2015 are eligible for this programme.

From the 2016 federal budget are to be allocated 1117.8 billion RUB (15.417 billion USD as per the official RUB/USD exchange rate for 30 December 2015). The potentially affected foreign jurisdictions are identified on the basis of the 3rd and 4th provided sources.
 
Decree No. 1503 forms part if the state programme "Development of the pharmaceutical and medical industries" for the period 2013--2020 ("the state programme"), sub-programme "Development of the medicines production".
 
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
 

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