ANNOUNCEMENT 29 Jun 2016

On 29 September 2016, the Russian Ministry of Industry and Trade disbursed USD 27.8 in interest payment subsidies to leasing companies and aircraft manufacturers covering the first half of 2016.

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Industry and Trade of Russia. Order 2176 dated 29.06.2016. http://minpromtorg.gov.ru/docs/#!29147

Inception date: 29 Jun 2016 | Removal date: open ended
Still in force

Interest payment subsidy

On 29 September 2016, the Russian Ministry of Industry and Trade disbursed 844 million rubles (USD 13.2m) in interest payment subsidies to leasing companies and aircraft manufacturers covering the first quarter of 2016, and 930 million rubles (USD 14.6m) covering the second quarter. The sums were distributed between four leasing companies, all of them state-controlled (VEB-Leasing, Ilyushin Finance, Sberbank Leasing and Sberbank Leasing Nord).

The subsidies, regulated by Government resolution N 1073, target:

  • Russian leasing companies - to purchase aircraft and lease it to the Russian airlines
  • Russian leasing companies and aircraft manufacturers - to purchase aircraft training equipment (for Russian-manufactured aircraft).

The subsidy covers 90% of the interest payment, subject to a certain annually adjusted interest-rate cap (8% for 2015-2016).

The subsidies were disbursed under the Airplane Manufacturing component of the State Program on Development of Aircraft Manufacturing 2013-2025.

AFFECTED SECTORS