ANNOUNCEMENT 04 Dec 2012In December 2012, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On December 4, 2012, the Russian Government published Decree 1258 on the provision and distribution of a subsidy from the federal budget to the budgets of subjects of the Russian Federation (regional provinces) for partial reimbursement of expenses related to growing of sheep, goats, reindeer, Siberian stags, and breeds of horses for meat production.
This piece of legislation will come into force on January 1, 2013. The decree is issued in relation with a sub-programme "Development of the livestock sub-sector, processing and marketing of livestock products", which is part of the state program for agricultural development and regulation of the markets for agricultural products, raw materials and food for the period 2013-2020, approved by the Government of the Russian Federation on basis of Decree 717 of July 14, 2012. The purpose of the state programme is 'to ensure food independence of Russia and to increase the competitiveness of the domestic agricultural products on the internal and international markets in connection with the accession to the WTO'.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.