ANNOUNCEMENT 15 Jun 2018

Starting 15 April 2018, the Russian Ministry of Industry and Trade disbursed three installments of subsidies to the United Engine Corporation - Klimov, covering Klimov's bond coupon payments for the year 2018.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 15 Apr 2018 | Removal date: open ended

Interest payment subsidy

Starting 15 April 2018, the Russian Ministry of Industry and Trade disbursed to the United Engine Corporation - Klimov on a federal subsidy covering Klimov's bond coupon payments in 2018. Klimov - UEC received 2.21 billion rubles (USD 34.2m) in three installments in 2018.

Although the subsidy regulations did not target any specific company, the Ministry awarded funds under this program only to Klimov - UEC.

As a reminder, these 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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