ANNOUNCEMENT 09 Sep 2016
In September 2016, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The Russian Government (2016). РАСПОРЯЖЕНИИЕ ПРАВИТЕЛЬСТВА РФ ОТ 9 СЕНТЯБРЯ 2016 Г. N 1887-Р "О предоставлении государственных гарантий организациям оборонно-промышленного комплекса для выполнения государственного оборонного заказа". (Order of the Government of the Russian Federation of September 9, 2016 No. 1887-r "On granting state guarantees to the military-industrial complex organisations for execution of the state defense order"). Available at http://government.ru/docs/24514/
On 9 September 2016 with Resolution No. 1887-p authorised the issuance of a state guarantee to the joint stock company Sozvezdie.
The state guarantee is at the amount of 1 billion RUB (15.59 million USD). Sozvezdie belongs to the Russian military-industrial complex. The state guarantee is to secure the obligations the company has to repay 100% of a loan it took in order to execute a state defence order. This measure forms part of the state armament programme for the period 2011--2020.
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.