ANNOUNCEMENT 08 May 2015
In May 2015, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The Russian Government (2015). ПОСТАНОВЛЕНИЕ ПРАВИТЕЛЬСТВА РФ ОТ 8 МАЯ 2015 Г. N 451 "О ПРЕДОСТАВЛЕНИИ СУБСИДИЙ РОССИЙСКИМ ЛИЗИНГОВЫМ ОРГАНИЗАЦИЯМ НА ВОЗМЕЩЕНИЕ ПОТЕРЬ В ДОХОДАХ ПРИ ПЕРЕДАЧЕ ПО ДОГОВОРУ ЛИЗИНГА КОЛЁСНЫХ ТРАНСПОРТНЫХ СРЕДСТВ". (Resolution of the Government of the Russian Federation of May 8, 2015 No. 451 "On the provision of subsidies to Russian leasing organizations for the reimbursement of losses in income for the transfer of wheeled vehicles under leasing agreement"). Available at http://government.ru/docs/18099/
The 2018 Extension of the Program: Decree N861 dated 23-07-2018, О внесении изменений в постановление Правительства Российской Федерации от 8 мая 2015 г. № 451 и признании утратившим силу пункта 5 изменений, которые вносятся в Правила предоставления субсидий из федерального бюджета на возмещение потерь в доходах российских лизинговых организаций при предоставлении лизингополучателю скидки по уплате авансового платежа по договорам лизинга колесных транспортных средств, заключенным в 2017 году, утвержденных постановлением Правительства Российской Федерации от 7 июля 2017 г. № 809 (On amendments to the Decree of the Government of the Russian Federation of May 8, 2015 No. 451 and the recognition of paragraph 5 of the amendments to the Rules for the provision of subsidies from the federal budget to compensate for losses in income of Russian leasing organizations when providing a lessee with a discount on advance payment on wheeled vehicles leasing agreements concluded in 2017, approved by Decree of the Government of the Russian Federation of July 7, 2017 No. 809), http://government.ru/docs/33365/
As part of the anti-crisis measures of the Russian Government, Decree No. 451 of 8 May 2015 approved the allocation of federal subsidies to Russian leasing organisations. Their purpose is to compensate the forgone revenue originating from the rebates they concede on advance payments related to leasing of wheeled transportation vehicles.
This state measure is approved as part of the framework of the sub-program "Automotive industry" of the state program of the Russian Federation "Development of the industry and increase of its competitiveness". Under this sub-programme (and hence under Decree No. 451), only Russian manufacturers of wheeled vehicles can benefit from this state support. This fact is confirmed by the official legal note that accompanies Decree No. 451. It states that the new state act "targets the stimulation of the demand for motor vehicles, (and) support of the domestic automotive manufacturing" (added italics).
The federal subsidy is at the amount of 2.5 billion Russian Roubles (ca. 49.61 million USD as of the date of the issuance of the legal act). Wheeled transportation vehicles are eligible under this state intervention if the leasing contract is signed in 2015. In addition, beneficiaries can be only Russian leasing organisation which have signed not less than 100 leasing contracts in 2014 and do not have tax and other due to the state liabilities.
On 23 April 2016, with Decree No. 344, the Russian Government prolonged the validity of the subsidy scheme, introduced by Decree No. 451. Concretely, by approving the allocation of 5.0 billion RUB (ca. 75.51 million USD as of the date of the issuance of the legal act) in subsidies for compensation of Russian leasing companies that have provided discounts to the lessee concerning advance payments under leasing contracts of wheeled vehicles. These leasing contracts must be concluded in 2015-2016.
On 23 July 2018, the Government extended the program once again, until 2021, with Decree N861. The new budget commitment for the years 2018-2020 is 2 billion rubles (USD 32 million) each year, with a condition that the subsidy should result in the sale of at least 4000 vehicles in 2018, 4500 vehicles in 2019 and 4900 vehicles in 2020.
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.