ANNOUNCEMENT 06 Aug 2013In August 2013, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On 6 August 2013 with Resolution No. 1385-p, the Russian Government adopted a partial reimbursement of interest rates on short term loans to selected subjects of the Russian Federation (republics and regions and locations). The disbursement totals RUB 23.29 billion (USD 0.71 billion) and is split into RUB 19.20 billion for crop development and RUB 4.09 billion for live-stock development. In line with Decree No.1460 of December 28, 2012, the eligible entities are Russian banks or agricultural cooperations.
This state measure was approved on Meeting of the Government 26 on 1 August 2013. However, it can be interpreted in relation to Meeting of the Government 25 of July 25, 2013. At this meeting the Prime Minister, Mr Dmitry Medvedev, commented: 'The real sector is the basis of long-term development. A range of state support measure are foreseen for key sectors of the economy. We are talking about '...' targeted subsidisation of '...' enterprises as a part of the adaptation process related to the WTO accession'.
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.