ANNOUNCEMENT 27 Dec 2012
On 27 December 2012, the Russian Government launched a program of subsidies to local manufacturers of agricultural machinery.
NUMBER OF INTERVENTIONS
Government of the Russian Federation. 2012. Decree N1432 dated 27-12-2012 Об утверждении Правил предоставления субсидий производителям сельскохозяйственной техники (On Approval of Rules of Assigning Subsidies to Manufacturers of Agricultural Machinery), http://government.ru/docs/7101/
On 27 December 2012, the Russian Government launched a program of subsidies to the manufacturers of agricultural machinery. The subsidy will constitute up to 15% of the ex-works (i.e. factory) price of each unit of agricultural machinery sold. The sums are capped per unit of machinery, per recipient and per region of Russia. Eligible firms have to be active manufacturers of machinery for at least 3 years and have to offer post-sales maintenance services of at least 1 year in at least 40 of the 75 units of the Russian Federation. Moreover, units eligible for subsidization have to be sold with a discount of at least 15%. Eligible manufacturers have to undertake certain production operations on the Russian territory.
No unit of the Federation can benefit from more than 5% of the total budget. Limits on the share of a single recipient in the total budget are dependent on the size of the workforce:
Limits of subsidization per unit are:
The program starts on 1 January 2013, with a 2013 budget of 2.3 billion rubles (USD 76 million).
The subsidy is part of the State Program on Development of Agriculture and Regulation of Markets for Agricultural Products, Raw Materials and Food, sub-program on Technical and Technological Modernization and Innovative Development.