ANNOUNCEMENT 23 May 2013In May 2013, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Directive No. 833 of May 23, 2013,
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On May 23, 2013, the Government of the Russian Federation approved (according to Directive No. 833) state guarantees fully covering the loans of defence enterprises, which are chosen to implement state defence orders during the period 2011-2013. A group of 26 defence enterprises are provided 40 state guarantees for a total amount of RUB 265.6 billion.
This state measure has the goal to expand defence enterprises' capacity to attract non-budgetary sources of funding (loans) and carry out state tasks related to the execution of the state defence orders when the federal funding is received in the form of deferred payments. A further advantage provided by the state is that the defence enterprises will not be required to put up additional collateral.
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.