ANNOUNCEMENT 23 Mar 2016

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

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE



1. 23 2015 484-. ?- ?. ,


Inception date: 23 Mar 2016 | Removal date: open ended

Capital injection and equity stakes (including bailouts)

Resolution No. 484-p of 23 March 2015 has approved for state support an investment project located in the Far East.
 
The purpose of the investment project is to enhance the coal mining activities of the open joint stock company "Urgalugol'. The investment project consists of the following main activities: 

  • a gradual increase of the steam coal production of "Urgalugol' from a fixed in 2010 benchmark of 2700 thousand tons to 9100 thousand tons by 2016;
  • construction of a factory for enrichment of raw coal and washed coal production;
  • a gradual increase in the production of export quality coal from the Pravoberezhnyy region (Khabarovsk Krai) to 3 million tons in 2021.

The resolution authorises the state financing but does not allocate it. It forms part of the state program "Socio-economic development of the Far East and the Baikal region'. 
 
The total state financing under the state programme "Socio-economic development of the Far East and the Baikal region' is ca. 511.84 billion RUB (ca. 7.87 billion USD). Exact state financing sums that the project will receive are not disclosed. However, given its considerable scale and capital-intensive nature, it can be expected for sure to pass the GTA de minimis rule of 10 million USD.

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.
 

AFFECTED SECTORS

 

AFFECTED PRODUCTS