ANNOUNCEMENT 20 Sep 2018

On 20 September 2018, the Russian Government launched a new program of subsidies targeting post-sales services of automobile, agricultural machinery and railway machinery manufacturers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of the Russian Federation. 2018. Decree N1116 dated 20-09-2018, О предоставлении субсидий из федерального бюджета российским организациям автомобилестроения, сельскохозяйственного и железнодорожного машиностроения на компенсацию части затрат, связанных с созданием системы послепродажного обслуживания (On granting subsidies from the federal budget to Russian organizations of the automotive industry, agricultural and railway engineering to compensate for part of the costs associated with the creation of an after-sales service system), http://government.ru/docs/34061/

Budget assigned by Decree N1115 dated 04-06-2018: http://government.ru/docs/32784/

Inception date: 20 Sep 2018 | Removal date: open ended

Financial grant

On 20 September 2018, the Russian Government launched a new program of subsidies targeting post-sales services of automobile, agricultural machinery and railway machinery manufacturers, whose products are included in the Russian Government's list of prioritized high-technology products. The subsidies, which started with a budget of 1.5 billion rubles (USD 22.6 million), target set-up expenses of post-sales services centers. 

Qualifying expenses include equipment and documentation purchase, interest and leasing payments on loans financing such purchases, as well as first-year facilities rents, spare parts purchases and staff training expenses. Half of expenses, up to 50 million rubles for each service center (USD 460 thousand), are paid by the subsidy. 

Only service centers set up after 1 October 2017 qualify for subsidisation. 

The subsidy is allocated by the Russian Industry and Trade Ministry, but applications are screened by the Russian Export Center. Subsidy recipients are obliged to sell products worth two times the amount of the allocated subsidy. 

The purpose of the program is the creation of a minimum of 30 post-sales services centers.