ANNOUNCEMENT 16 Jun 2018

On 16 June 2018, the Russian Government expanded the program of Export Credit Subsidies initiated on 24 May 2017.

NUMBER OF INTERVENTIONS

3

  • 3 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of Russia. 2018. О внесении изменений в постановление Правительства Российской Федерации от 24 мая 2017 г. № 620 (On Amendments to the Government Resolution Of the Russian Federation dated May 24, 2017 No. 620). Decree dated 16 June 2018 N692, http://docs.cntd.ru/document/550400019

Inception date: 16 Jun 2018 | Removal date: open ended

Trade finance

On 16 June 2018, the Government amended the Program on Export Credit Subsidies launched in May 2017 (see the related act). The scope of subsidies has been extended beyond export projects, to include the set-up of Russian production facilities abroad and the set-up of export-oriented local Russian productions. Also, there is now a 30% local content requirement for the Russian productions abroad and 30% export requirement for export-oriented local productions.

The maximum loan amount has been increased twice, to RUR 15 billion (USD 260 million) for export projects, and 30 billion (USD 520 million) for the set-up of entire production lines. The maximum interest rate for the ruble-denominated loans has been further decreased from the previous 4% to 3%. To put this rate in perspective, the Central Bank's refinancing rate in 2017 has fluctuated between 7.8% and 10.1%

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 16 Jun 2018 | Removal date: open ended

Financial assistance in foreign market

The Program on Export Credit Subsidies launched in May 2017 (see the related act) was amended by the Government on 16 June 2018. The scope of subsidies has been extended beyond export projects, to include the set-up of Russian production facilities abroad and the set-up of export-oriented local Russian productions, provided they source 30% of their inputs locally. 

The maximum loan amount is 30 billion (USD 520 million). The maximum interest rate for the ruble-denominated loans has been further decreased from the previous 4% to 3%. To put this rate in perspective, the Central Bank's refinancing rate in 2017 has fluctuated between 7.8% and 10.1%

 
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Inception date: 16 Jun 2018 | Removal date: open ended

Local sourcing

On 16 June 2018, the scope of subsidies of the Program on Export Credit Subsidies was extended beyond export projects, to include the set-up of Russian production facilities abroad and the set-up of export-oriented local Russian productions.

For the set-up of the Russian productions abroad, the amendment introduced a 30% local content requirement. 

 
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