ANNOUNCEMENT 29 Jul 2021

On 29 July 2021, the Industrial Development Fund announced it approved a USD 10 million state loan to a Russian pipemaker. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 29 Jul 2021 | Removal date: open ended

State loan

On 29 July 2021, the Industrial Development Fund announced it approved a USD 10 million state loan to a Russian pipemaker in the framework of its "Conversion" program that helps military-industrial complex switch to civilian productions. 

OkhtaPromDetal from St. Petersburg got a loan for 750 million rubles (USD 10 million) to set up a production of bent bends by induction heating. The bend is designed to smoothly change the direction of the pipeline. Target consumers of the bends are Gazprom and Transneft. OkhtaPromDetal is the recipient of the largest loan in this lending round. 

The loans under the Conversion program carry an interest rate of 1% for the first 3 years and 3% afterwards. To compare, the basic rate of the Bank of Russia is 6.5%. Up to 750 million can be borrowed. 

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