ANNOUNCEMENT 30 Dec 2015In December 2015, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Russian Pharmaceutical Market (Current Review And Future Outlook Until 2020).
Opportunities For Swiss Companies
Regulations discourage foreign pharma in Russia
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:
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