ANNOUNCEMENT 24 Dec 2012
On 24 December, the Russian government approved state support measures to the aviation industry in 2013-2025.
NUMBER OF INTERVENTIONS
Government of Russia. 2012. Initial Program: Распоряжение от 24 декабря 2012 года №2509-р "Об утверждении государственной программы Российской Федерации "Развитие авиационной промышленности на 2013 - 2025 годы" ("On approval of the state program of the Russian Federation" Development of the aviation industry for 2013-2025" dated 24-12-2012) http://government.ru/docs/3347/
2014 Edition (currently in force, with 2017 and 2018 changes): Постановление Правительства РФ от 15 апреля 2014 г. N 303
"Об утверждении государственной программы Российской Федерации "Развитие авиационной промышленности на 2013 - 2025 годы" (Resolution of the Government of the Russian Federation of April 15, 2014 N 303
"On approval of the state program of the Russian Federation" Development of the aviation industry for 2013-2025"). http://www.pravo.gov.ru/proxy/ips/?docbody=&nd=102349662&rdk=0
On 24 December 2012, the Russian Government approved the state program "Development of the Aircraft Industry in 2013-2025". The stated goal of the program is to assist the development of a competitive domestic aircraft manufacturing - to meet the needs of domestic aviation. The Program's seven sub-programs cover, respectively, the manufacturing of planes, helicopters, engines, devices, aviation science and technology, horizontal sector development measures and the grandfathered initial Federal Target Program on Development of Russian Civil Aviation for 2002-2015. The Program is coordinated by the Ministry of Industry and Trade, and has a budget allocation of 633 billion rubles (USD 9.5b at December 2018 exchange rate) spread over 13 years. Around 40% of the total budget (USD 3.8b) is allocated to plane manufacturing sub-program. The legacy Federal Target Program 2002-2015 comes second with 21% (USD 2b).
Government support is to be instrumentalized through direct subsidies to manufacturers of planes, helicopters, engines, and devices, as well as specific plane targeting subsidies distributed through United Aviation Production Concern. R&D and testing expenses of the Russian aviation R&D and testing institutions are also to be co-financed.
The 2012 Program was republished, with minor changes, as "edition of April 2014". The changes of April 2014 and March 2018 were mainly about the adjustment of policy performance indicators and bringing budgetary allocations in correspondence with the triannual budget plan. In 2017, another set of adjustments introduced targeted subsidies for the industrial production of IL 114-300, IL-96-400, as well as engines TB7-117 and PD-35. Also, the financing for the "priority project" - MC-21 plane, its navigation equipment and its PD-14 engine saw expansion of financing.
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.