ANNOUNCEMENT 10 Jul 2014
In July 2014, the Russian Government has announced 4 state guarantees in the overall amount of 14.89 billion rubles (438.05 million USD) are granted to 4 military-industrial complex organisations.
NUMBER OF INTERVENTIONS
The Russian Government (2014). РАСПОРЯЖЕНИИЕ ПРАВИТЕЛЬСТВА РФ ОТ 10 ИЮЛЯ 2014 Г. N 1267-Р "О ПРЕДОСТАВЛЕНИИ В 2014 ГОДУ ГОСГАРАНТИЙ ПО КРЕДИТАМ ОРГАНИЗАЦИЯМ ОБОРОННО-ПРОМЫШЛЕННОГО КОМПЛЕКСА ДЛЯ ВЫПОЛНЕНИЯ ГОСУДАРСТВЕННОГО ОБОРОННОГО ЗАКАЗА". (Order of the Government of the Russian Federation of July 10, 2014 No. 1267-r "On granting state guarantees in the year 2014 on loans to the military-industrial complex organisations for execution of the state defense order"). Available at http://government.ru/docs/13731/
On 10 July 2014, with Decree No. 1267-r, the Government of the Russian Federation approved the issuance of credit guarantee for companies from the defence industry.
In total, the government issued 4 state guarantees to 4 organisations with an aggregate amount of 14.89 billion rubles (438.05 million USD as of 10 July 2014).
The 4 organisations are:
- OJSC "Voentelekom";
- OJSC Concern "Systemrpom";
- OJSC Concern VKO "Almaz-Antey";
- OJSC "Nizhny Novgorod Research Institute of Radio Engineering".
The deadline for the repayment of the loans, and therefore, for state guarantees for all entities under this Government Order is 31 of December 2018.
This state intervention forms part of Russia's the implementing measures under the framework of the State Armament Programme for 2011-2020. According to Decree No. 1267-r, this state measure will expand the capacity of the beneficiaries to attract non-budgetary sources of funding and to carry out state tasks related to the execution of the state defence orders where the federal funding is received in the form of deferred payments.
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.