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



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Inception date: 30 Aug 2016 | Removal date: open ended

Production subsidy

Decree No. 861 of 30 August 2016 expands the existing state intervention (Decree No. 1045 of 1 October 2015) to promote the local production of medicines.
Concretely, Decree 861 will:

  • Extend the priority directions, as part of which can be granted subsidies for projects of Russian organisations with the purpose of development of drugs for the treatment of haematological, haematological and hereditary diseases, medicines used in transplantation for the early diagnosis and treatment of respiratory diseases, drugs used in the treatment of pain, as well as for the treatment of rare (orphan) diseases;
  • Extend from 3 to 4 years the maximal deadline for putting into commercial circulation projects for the population that require longer clinical testing. This fact also involves longer state financing.
  • Include as project expenditures the possibility to be subsidised the costs related to salaries of Russian organisations that have employees with higher pharmaceutical, medical, biological and chemical education and (or) doctoral degree and work experience in the area of development of medical products of at least 3 years.
  • Increase the maximum amount of allocated subsides from 200 to 400 million RUB for the contracts signed with the Russian organisations in line with the rules.

The federal budget for 2016 foresees the allocation of 2.6 billion RUB (ca. 40.15 million USD) for the policy intervention. The subsidies are provided as part of the sub-programme "Development of medicines production" of the state program "Development of pharmaceutical and medical industry" for 2013--2020". Since Decree No. 861 plans the allocation of state subsidies in 2016 but does not allocate them, it is classified as amber.

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.