ANNOUNCEMENT 29 Jun 2017

On 29 June 2017, the Russian Ministry of Industry and Trade disbursed USD 13m in interest payment subsidies to leasing companies and aircraft manufacturers covering the second quarter of 2017.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Industry and Trade of Russia. Order 2077 dated 29.06.2017. http://minpromtorg.gov.ru/docs/#!22039

Inception date: 29 Jun 2017 | Removal date: open ended

Interest payment subsidy

On 29 June 2017, the Russian Ministry of Industry and Trade disbursed 774 million rubles (USD 13.m) in interest payment subsidies to leasing companies and aircraft manufacturers covering the second quarter of 2017. 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 (4% for 2017).

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

AFFECTED SECTORS

 

AFFECTED PRODUCTS