ANNOUNCEMENT 16 Jul 2016In July 2016, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
With Decree No. 677 of 16 July 2016, the Russian Government approved federal budget subsidies at the amount of 3 billion RUB (47.49 million USD as per the official RUB/USD exchange rate for 16 July 2016) with transport machine building enterprises as end beneficiaries.
According to Decree No. 677, the end beneficiaries are to receive later in 2016 the state subsidies from Minpromtorg (the Ministry of Industry and Trade of the Russian Federation). Decree No. 677 also foresees concrete quantitative positive results of the federal subsidies: merchandising of 20 thousand freight railway wagons, provision of additional capacity utilisation to the subsidised enterprises, and preservation of jobs not only in the transport machine building industry, but also in the related industries.
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.