ANNOUNCEMENT 10 Sep 2016In September 2016, the government of the Russian Federation announced a change in financial export support.
NUMBER OF INTERVENTIONS
On 10 September 2016 the Government of the Russian Federation approved with Decree No. 905 the allocation of subsidies to the Russian automobile manufacturing sector.
The subsidies from the federal budget are at the amount of 3.3 billion RUB (ca. 51.43 million USD). They are to be allocated in 2016 to Russian organisations that belong to the automobile manufacturing sector in order to partially compensate their costs related to the improvement of the technical characteristics and confirmation for compliance with the international standards.
Specifically, the explanatory note that accompanies Decree No. 905 clarifies that the expansion of the export potential of the locally manufactured vehicles is hindered by discrepancies with various international technological and consumer-related requirements they must meet. The most significant one being the requirement for higher ecological standards, for improvement of the technological productivity and the necessity to produce special climate versions of certain technological equipment. The allocation of these subsidies has the purpose to improve the prospects on foreign markets of vehicles manufactured in Russia. This goal is to be achieved by better synchronisation with the requirements of the international standards. Transportation and expedition costs are also eligible under this subsidisation scheme.