ANNOUNCEMENT 27 Feb 2016

In February 2016, the government of the Russian Federation announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 02 Mar 2016 | Removal date: 31 Dec 2016

Instrument unclear

On 27 February 2016 the Russian Government approved an allocation of federal budget subsidies to 74 subjects of the Russian Federation (top-level administrative units as per the Russian Constitution (Resolution No 320-p).

The purpose of the subsidies (3.47 billion RUB, or ca. 46 million USD) is to co-finance expenditures, related to the development of family cattle breeding farms (without disclosure of a concrete list of end beneficiaries). Decree No. 165 contains the rules for allocation of these subsidies (see the related GTA report No. 11059 for more details). A concise summary of the subsidised end beneficiaries' activities includes:

  • preparation of project-related documentation for construction, reconstruction or modernisation of family farms;
  • construction, reconstruction or modernisation of family farms;
  • construction, reconstruction or modernisation of production facilities for processing of livestock products;
  • supplies of equipment and appliances, and their installation;
  • purchase of farm animals.

 
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 SECTORS