Global Trade Alert

On 16 February 2016, the Russian Government approved rules for subsidies intended to partially cover international regulation and certification costs of Russian enterprises that belong to the aircraft sector (Decree No. 103).
 
Decree No. 103 contains rules for subsidies whose purpose is topartially compensate Russian enterprises' costs, associated withcompliance with international aviation regulation and certification,performed by:

• the European Aviation Safety Agency (EASA),
• the US Federal Office of Civil Aviation (FAA).

Decree No. 103 forms part of the State Programme "Development of aircraft industry for 2013--2025", subprogram on Aviation Device Manufacturing. The global (no break-downs available) state subsidies' amount for 2016-2017 in the state programme is 3.37 billion RUB (approximately 44.16 million USD). Decree No. 103 approves the rules for granting of subsidies to aviation construction enterprises. The subsidies are calculated at 50% of the amount of the expenses for certification (validation) of the developers and manufacturers of avionics equipment, components, instrumentation, and equipment in accordance with the international requirements. Since Decree No. 103 does not allocate concrete subsidies, the GTA has classified this measure 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. 
 
As affected trading partners are indicated the countries to which Russia's exports of the respective goods surpass 1 million USD.