ANNOUNCEMENT 01 Jul 2016

In July 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: 01 Jul 2016 | Removal date: open ended
Still in force

Interest payment subsidy

On 1 July 2016 the Russian Government (according to Resolution No. 1406-p) approved the allocation of additional federal budget subsidies to the approved on 15 February 2016 with Resolution No. 225-p. Their purpose is to support the animal husbandry sector. Similarly to the original legal act, the beneficiaries are 78 subjects of the Russian Federation (top-level administrative units as per the Russian Constitution).
 
The additional subsidies are at the amount of 2.9 billion RUB (ca. 44.87 million USD). They have the same purpose as Resolution No. 225-p: to co-finance the expenditure of 78 subnational administrative units of the Russian Federation related to reimbursement of interest on investment credits which target the development of animal husbandry, the related to it processing activities, infrastructure and logistics.
 
Both resolutions form part of the State Programme for Development of Agriculture and Regulation of the Markets of Agricultural Products, Raw Materials and Food for 2013-2020 ('the programme'). None of the resolutions specifies under the framework of which sub-program of the programme the subsidies are to be granted. However, it may be expected they to be allocated as part of the sub-programme 'Development of the sub-sector of livestock production, processing and merchandising of livestock products' of the programme. Therefore, this particular programme has been used for the calculation of the affected tariff lines. Concretely, as a decision variable has been used the fact that among the expected direct result of this sub-programme is an increase of the breeding stock of sheep and goats, as well as the supply of sheep and goat milk. These particular goods have been used to identify the potentially affected tariff lines under Resolution No. 1406-p (and No. 225-p).
 
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