ANNOUNCEMENT 25 Dec 2009

In December 2009, the government of Russia announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 08 Jan 2010 | Removal date: open ended
Still in force

Bailout (capital injection or equity participation)

Russian Prime Minister Vladimir Putin signed a ruling (the Government Decree # 2080-p from 25 December 2009) effective from 8 January 2010 to inject 28 billion rubles (933 million Euros) into the charter capital of State Corporation "Russian Technologies" (http://www.rostechn.ru/en/) with the purpose to provide financial support in the form of non-interest loan to the Russian car industry producer "AutoVaz" (http://www.lada-auto.ru/). The share of "Russian Technologies" in the charter capital of AutoVaz will be increased. The subsidy is given to cover the AutoVaz's credit debts.

The industry is one of the strategic for the development until the year 2020 according to the "Long term concept of socio-economic development of the Russian Federation until 2020" (Government Decree from 17 November 2008 #1662-p). The company requires the funds to implement its financial bailout program and improve its operations.
At the beginning of May 2010, AutoVaz got this money on its bank account. 
 

AFFECTED SECTORS