ANNOUNCEMENT 17 Feb 2018

On 17 February 2018, the Russian Government announced a new program of subsidized loans targeting agricultural machinery, road-construction and public utilities vehicles and machines, as well as the food processing equipment. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of the Russian Federation. Decree N163 dated 17-02-2018 Об утверждении Правил предоставления субсидий российским кредитным организациям на возмещение выпадающих доходов по кредитам, выданным на приобретение сельскохозяйственной, строительно-дорожной и коммунальной техники, а также оборудования для пищевой и перерабатывающей промышленности (On approval of the Rules for the provision of subsidies to Russian credit organizations for reimbursement of shortfall in income on loans issued for the purchase of agricultural, road-building and municipal equipment, as well as equipment for the food and processing industry), http://government.ru/docs/31463/

Inception date: 01 Jan 2018 | Removal date: 01 Dec 2018

Interest payment subsidy

On 17 February 2018, the Russian Government announced a new program of subsidized loans targeting agricultural machinery, road-construction and public utilities vehicles and machines, as well as the food processing equipment. The subsidies are allocated to the Russian credit institutions to reimburse for shortfall in income resulting from these institutions offering discounts on first payments or on interest rates. 

Two categories of machines are eligible for sales with subsidized financing. The first category is from the list included in the text of the Decree. The second category is from the list of innovative products drafted by the Russian Ministry of Industry and Trade. The first-category machines are eligible for interest rate discounts, the second-category machines are eligible for a discount on the down payment. 

Eligible financing agreements are:

  • concluded between January and December 2018, with
  • a duration of up to five years, where
  • interest rates do not exceed
    • a)government-set interest rate caps applicable to subsidized loans and
    • b) "basic indicator" +5 percentage points.

The government reimburses the credit organizations all shortfall in income up to 90% of the interest rate reduction and up to 10% of the VAT-free value of the equipment in case of down payment discounts. 

The states goal of the program is to promote the sale of at least 4000 units of qualifying machinery, including 600 units of "innovative" machinery and equipment.