ANNOUNCEMENT 10 May 2016

In May 2016, the government of the Russian Federation announced a change in its trade finance instruments.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 10 May 2016 | Removal date: open ended
Still in force

Trade finance

Resolution No. 865-p of 10 May 2016 allocated a state subsidy at the amount of 13 billion RUB (196.4 million USD). Its purpose is to support the local manufacturing of high-tech production.
 
This state subsidy is allocated as part of point 36 of the Russian Government's Action Plan aimed at ensuring sustainable socio-economic development of the Russian Federation in 2016 (Document 1349-13 of 1 March 2016). Point 36 states that the subsidies will be allocated as part of the financing of 10 export contracts that are worth 110 billion RUB, including:

  • 15000 railway wagons to Iran, Azerbaijan, Kazakhstan, Egypt, and Cuba;
  • 12 airplanes "Sukhoi Superjet-100" to Ireland, Mexico, Denmark;
  • energy industry-related equipment to Vietnam, related to the Thermal Power Plant Long Fu 1.

A planned workflow for this state intervention:

  • As an initial step, this subsidy is to be transferred to the State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" and Eximbank of Russia.
  • As a second step, these two state institutions are to use the state subsidies for partial reimbursement of the expences of high-tech producers.

 

AFFECTED SECTORS