ANNOUNCEMENT 16 Sep 2016

On 16 September 2016, the Russian Ministry of Industry and Trade signed an agreement with United Engine Corporation - Klimov on a federal subsidy covering Klimov's bond coupon payments. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 16 Sep 2016 | Removal date: open ended

Interest payment subsidy

On 16 September 2016, the Russian Ministry of Industry and Trade signed an agreement with United Engine Corporation - Klimov on a federal subsidy covering Klimov's bond coupon payments. Based on the agreement, Klimov - UEC received 1.2 billion rubles (USD 18.8m) in four installments in 2016.

Although the regulations did not target any specific company, the Ministry awarded subsidies under this program only to Klimov.

As a reminder, the subsidies are issued to firms designing, manufacturing, testing and repairing aircraft engines, their components and associated instruments. The subsidies aim to cover coupon payments on the government-guaranteed bonds issued by the firms. The subsidies are supposed to cover the amount equal to 8% of annual interest on bonds over 20 million rubles and 6% on all other bonds. The subsidies were distributed within Component 3 (Aircraft Engines) of the State Program for the Development of the Aircraft Manufacturing in 2013-2025.

Klimov is an aircraft engine manufacturer and part of the state-owned United Engine Corporation, which in turn is part of the Rostech industrial holding.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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