ANNOUNCEMENT 07 Nov 2019
On 7 November 2019, the Russian government launched a new program of subsidies to Russian filmmaking companies exporting their services abroad.
NUMBER OF INTERVENTIONS
Russian Government. Decree N1420 dated 7/11/2019, О государственной поддержке организаций кинематографии,
оказывающих услуги (выполняющих работы), связанные с осуществлением производства иностранными производителями аудиовизуальной продукции на территории Российской Федерации (On state support for cinematography organizations, providing services (performing work) related to the production of foreign producers of audiovisual products on the territory of the Russian Federation), http://static.government.ru/media/files/pNP2gGN3PkYKroyaoAWmRq7Vmnql4XgH.pdf
On 7 November 2019, the Russian government launched a new program of state subsidies for local exporters of filmmaking services. The eligible firms should have contracts with foreign producers for filmmaking activities in Russia.
To be eligible, the films produced should have spent a certain amount of their budget in the Russia.
The program is nested under the "Export of Services" federal project of the National Project "International Cooperation and Exports". Its implementation is overseen by the state agency Russian Exports Center.
On 7 November 2019, the Russian government launched a new program of state subsidies for local exporters of filmmaking services. Besides being an export subsidy, this government intervention is a local content requirement.
To be eligible, the films produced should have spent a certain amount of their budget in the Russia. The amount ranges between 3.75 million rubles for documentaries and 15 million for feature films (USD 60 and 236 thousand, respectively). The state commits to paying 30% of the planned qualifying expenditure of local filmmaking organizations which win the competition of proposals.
The proposals are evaluated based on "local content" - days of filming in Russia, share of Russian nationals in the team, share of budget spent in Russia and whether the film depicts Russian history or ethnicities residing in Russia or adapts a Russian literature piece. For films with more than 80% of crew comprised of Russian nationals, more than 19 filming days planned in Russia and local budget surpassing 75 million rubles (USD 1.18 million), the state covers 40% of qualifying costs. For documentaries the thresholds are 90% of filming crew and a budget of 18.8 million rubles (USD 295 thousand).