ANNOUNCEMENT 24 Apr 2020
On 24 April 2020, the Russian government announced an interest payment subsidy to companies with the status of systematic importance to the national economy.
NUMBER OF INTERVENTIONS
Government of Russia. Resolution N582 dated 24 April 2020 Об утверждении Правил предоставления субсидий из федерального бюджета российским кредитным организациям на возмещение недополученных ими доходов по кредитам, выданным в 2020 году системообразующим организациям на пополнение оборотных средств (On approval of the Rules for the provision of subsidies from the federal budget to Russian credit organizations for reimbursement of shortfalls in their income on loans issued in 2020 to systemically important organizations for working capital replenishment); Decree N1134-r dated 24 April 2020, http://government.ru/docs/39573/
20 May update: Resolution N712 dated 20 May 2020, http://government.ru/news/39728/, http://static.government.ru/media/files/uICkFlXYML2w9Gu5DxSvqQRApiyy3id6.pdf
Ministry of Industry and Trade, List of Systemic Companies: http://minpromtorg.gov.ru/activities/sistema/
On 24 April 2020, the Russian government allocated 24 billion rubles (USD 322 m) from the emergency-times Reserve Fund to the Russian commercial banks to service the program of interest payment subsidies benefitting companies with the status of "systemic importance to the national economy".
The program covers loans issued in 2020, towards replenishing operating funds. Eligible loans cannot extend maturity of 12 months, surpass the amount of 3 billion rubles (USD 40.2m) and carry an interest rate of more than 5%. Since the government covers interest rate expenses in the amount up to the Central Bank's basic rate (5.5%), the interest payments on eligible contracts are covered in full.
Companies of "systemic importance to the national economy" are documented in the list compiled by the Ministry of Industry and Trade. To make it to the list, the company needs to be one of the following:
The list of companies published by the industry ministry spans 25 sectoral groups, ranging from the automotives to the furniture.
While the government decree and resolution under question do not mention the COVID-19 as the grounds for the disbursement, the two documents are filed under the category "Government measures to support the economy during the COVID-19". Moreover, the disbursement of the funds from the emergency Reserve Fund rather than from the Federal Budget suggests the intervention was not planned for the year 2020.
On 20 May 2020, the Government extended the interest payment subsidies to the subsidiaries of the companies of systemic importance, while at the same time introducing two conditions to the beneficiaries:
The amendments entered into force on 21 May 2020.