ANNOUNCEMENT 27 May 2015

In May 2015, the government of the Russian Federation announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: No inception date

Financial grant

In May 2015, the Russian government launched a further industrial policy vehicle.
On 27 May 2015 at a meeting of the Agency for Strategic Initiatives' Supervisory Board, chaired by the Russian President Mr Vladimir Putin was approved the state support mechanism 'Investment Lift'. Its purpose is:

  • to enhance the development of medium-sized non-resource companies with export potential,
  • to increase revenue from exports in promising Russian companies, 
  • to reduce the Russian market's dependence on imported goods and services.

The state support mechanism "Investment lift" is to be developed in line with the agreement signed by:

  • the Russian Direct Investment Fund (100%-subsidiary of the state-owned Vnesheconombank),
  • the Agency for Strategic Initiatives, State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)",
  • the National Export Center. 

The overall budget of the new state support mechanism is not disclosed. However, in article 3.9 of the agreement is stipulated that the Russian Direct Investment Fund can allocate up to 15 billion Russian Roubles (approximately 289 million USD as per the exchange rate for 27 May 2015) for pilot projects of selected corporate beneficiaries.
The agreement does not provide information which sectors are to be given a priority under the new state support mechanism. Therefore, the affected sectors have been identified on the basis of information of the Chamber of Commerce and Industry of the Russian Federation. According to its estimates, small and medium enterprises operate in the following main sectors: retail trade (46 %), immovable property transactions (19 %), construction (10 %), processing industry (7 %), and transportation (5 %).
 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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