ANNOUNCEMENT 18 May 2016

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

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: No inception date

Instrument unclear

Order No.954-p of 18 May 2016 introduces a plan of interventions without concrete monetary allocations that target the technical equipment and modernisation of the local chemical and petrochemical industry up to 2030.

The set of state initiatives planned to be introduced as part of this plan can be summarised in the following categories:
 

  • Technical re-equipment and modernization of the existing and creation of new cost-effective, resource-saving and environmentally safe chemical and petrochemical production;
  • Development of export potential;
  • Organisational and structural development of the chemical complex;
  • Enhanced innovative activity of the enterprises in the targeted sectors;
  • Resource-and energy provision;
  • Development of transport-logistics infrastructure;
  • Development of normative-legal regulation and public administration in the field of industrial safety of the chemical and petrochemical industries;
  • Development of financing and lending instruments.

The foreseen state interventions that are likely to affect foreign commercial interests are:

  • state subsidies for partial reimbursement of interest rates, related to credits, taken from Russian credit organisations and the state corporation Vnesheconombank. Exact details concerning these interventions are expected to be disclosed later in 2016.
  • ad-hoc exemption from the payment of import customs duties or simplification of customs procedures. 
  • application of the existing mechanism of special investment contracts (see the attached related GTA reports No. 9354 and 8896 for more details regarding these contracts).

 
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

 
N/A

AFFECTED PRODUCTS

 
N/A