ANNOUNCEMENT 30 Aug 2016In August 2016, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Decree No. 860 of 30 August 2016 expands the existing state intervention (Decree No. 1047 of 1 October 2015) for the promotion of the local production of medicines.
Concretely, it will:
The federal budget for 2016 foresees the allocation of 1.5 billion RUB (ca. 23.16 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. 860 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.