ANNOUNCEMENT 22 Oct 2012In October 2012, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Decree 1073 of October 22, 2012, http://www.government.ru/gov/results/21242/
State Programme of the Russian Federation 'Development of the Aviation industry' in 2013-2025, 389 pages, http://www.minpromtorg.gov.ru/reposit/minprom/ministry/strategic/projects_programs/0/GP_tekst_na_sajt.pdf
Aeroflot will buy four Boeing for $ 1.3 billion with VEB-Leasing, http://ru.reuters.com/article/businessNews/idRUMSE87G03I20120817
Russian Leasing Firm Places Order for 35 Boeing 737 MAX Jets, The jets have a market value of more than $3 billion, Oct. 30, 2012, Agence France-Presse, http://www.industryweek.com/trade/russian-leasing-firm-places-order-35-boeing-737-max-jets
GE Capital Aviation Services, http://en.wikipedia.org/wiki/GE_Commercial_Aviation_Services#Clients
GE Capital Aviation Services, http://www.gecas.com/en/index.html
On October 22, 2012, the Russian Government (Decree 1073) approved rules for the allocation of a federal subsidy to Russian leasing companies. Specifically, the subsidy is allocated for the partial reimbursement of interest rate payments of loans taken by Russian leasing companies from Russian credit institutions or the State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank)" for the purchase of aircraft and flight simulators between 2008-2012. The airplanes and simulators can have Russian or foreign origin.
The subsidy discriminates against commercial interests of foreign airlines competing with Russian airlines on international markets. Given that Russian leasing companies only sell to Russian airlines, the reduced leasing-related costs for these airlines distort the market.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.