ANNOUNCEMENT 26 Dec 2016

On 26 December 2016, the Russian Ministry of Industry and Trade disbursed USD 13.5m in interest payment subsidies to leasing companies and aircraft manufacturers covering the fourth quarter of 2016.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Industry and Trade of Russia. Order 4706 dated 26.12.2016. http://minpromtorg.gov.ru/docs/#!25429

Inception date: 26 Dec 2016 | Removal date: open ended

Interest payment subsidy

On 26 December 2016, the Russian Ministry of Industry and Trade disbursed 824 million rubles (USD 13.5m) in interest payment subsidies to leasing companies and aircraft manufacturers covering the fourth quarter of 2016. 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

 

AFFECTED PRODUCTS