ANNOUNCEMENT 04 Apr 2016In April 2016, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 4 April 2016 the Russian Government (according to Decree No. 267) allocated subsidies to the local aircraft engine manufacturing industry.
The purpose of the subsidies is to improve the existing conditions for domestic manufacturing by United Engine Corporation ('UEC') of perspective aircraft engines -14, -14, -14 -10, to be used in the civil aircraft segment of the industry. The subsidies are at the amount of 1,286 billion RUB (ca. 19 million USD). They are to partially cover the due coupon payments at the amount of 1.982 billion RUB (ca. 29 million USD), accrued on earlier issued by UEC obligation loans.
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.