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



  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 30 Aug 2016 | Removal date: open ended
Still in force

Production subsidy

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:

  • Subsidise projects for production of several pharmaceutical substances under a single contract for the provision of subsidies. Currently, it is possible to subsidise projects involving the production of only one substance. In addition, these projects should include the production of at least one pharmaceutical substance of a medicine included in the list of vital and essential medicinal products.
  • Create conditions for support of new organisations for the production of medicines that have not passed a licensing procedure;
  • Expand the project costs eligible for subsidisation to salaries of 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.

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.