ANNOUNCEMENT 24 Aug 2017

The Ministry of Industry and Trade of the Russian Federation announced state subsidies to the Russian manufacturers of wheeled vehicles to reimburse interest payments on loans and coupon payments on obligations.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Industry and Trade (2017). ПРИКАЗ МИНИСТЕРСТВА ПРОМЫШЛЕННОСТИ И ТОРГОВЛИ РОССИЙСКОЙ ФЕДЕРАЦИИ ОТ 24 АВГУСТА 2017 Г. N 2901 "О предоставлении из федерального бюджета субсидий российским организациям автомобилестроения, в том числе их дочерним организациям, на возмещение части затрат на уплату процентов по кредитам, полученным на реализацию инвестиционных и инновационных проектов и (или) выплату купонного дохода по облигациям, выпущенным для осуществления расходов инвестиционного характера, на возмещение части затрат на уплату процентов по кредитам, привлеченным в 2009 - 2010 годах и обеспеченным государственными гарантиями Российской Федерации, а также на возмещение части затрат на уплату процентов по кредитам, привлеченным российскими организациями автомобилестроения в 2015 году на цели рефинансирования и (или) приобретения прав требований по кредитам и займам, ранее привлеченным их дочерними и зависимыми обществами". (Decree of the Ministry of Industry and Trade of the Russian Federation of August 24, 2017 No. 2901 "On the provision from the federal budget of subsidies to Russian manufacturers of wheeled vehicles and their subsidiaries for partial reimbursement for paying interest on loans received for the investment and innovation project implementation and/or for paying coupon income on bonds, issued for investment spending; for partial reimbursement for paying interest on loans received in 2015 for the objectives of refinancing and (or) the acquisition of rights of claims on loans; for the partial cost reimbursement for paying interest on loans received in 2009-2010 that are covered by the state guarantees of the Russian Federation"). Available at http://minpromtorg.gov.ru/docs/#!20770

Inception date: 24 Aug 2019 | Removal date: open ended
Still in force

Interest payment subsidy

On 24 August 2017, the Russian Ministry of Industry and Trade disbursed 1.12 billion rubles (USD 18.9m) in interest payment subsidies to automobile manufacturers. The sums were distributed between 8 manufacturers, including a subsidiary of a foreign manufacturer.

The subsidies were granted to reimburse Russian auto manufacturers up to 90% of expenses related to the:

  • coupon payments on investment-related bonds issued for investment spending
  • interest payments on loans covered by the state guarantees of the Russian Federation
  • interest payments on investment-into-innovation loans
  • interest payments and coupon payments on loans and bonds taken to refinance loans of the subsidiaries. 

The subsidies were granted under the framework issued by the Resolution of the Government of the Russian Federation No. 1383 dated December December 19, 2015.

AFFECTED SECTORS