ANNOUNCEMENT 23 Mar 2016In March 2016, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
1. 23 2015 484-. ?- ?. ,
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:
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.