As a part of a Russian Government's measure, a state-owned company in the financial sector was provided with a state guarantee at the amount of ca. USD 233 Mio. The implementation of this measure discriminates against foreign commercial interests because the access to the state financial funds is selective and key subsidiaries of foreign banks ranking in top 10 of the Russian banks are excluded.
The related legal steps are contained in Decree Nr. 1589-p of 4 September 2013, with which the Russian Government approved the issuance of a state guarantee to the 100% state-owned Open Joint-Stock Company 'Agency for Housing Mortgage Lending' (hereinafter 'AHML'). The guarantees at the amount of RUB 7 billion (ca. USD 233 Mio.) will secure the issuance by AHML of coupon obligations with maturity 1 February 2034. In the accompanying the legal act explanatory note is stated that the purpose of the state guarantee is to increase the effectiveness of AHML in its mortgage lending activities. Concretely, AHML will provide the generated financial resources from the emission of obligations to banks that will subsequently use them for housing loan products. The present measure has international trade effects because AHML works with a selection of 1218 regional partner banks/ their branches (a link with the current list is provided in the section 'Source'), and from this list, for example, are absent RaiffeisenBank, UniCredit bank and Rosbank, daughter companies of foreign banks with well-established positions on the local market which rank in top 10 of the Russian banks according to the total sum of assets. In conclusion, this state financial scheme administered through AHML is based on state-subsidised cost of lending capital, the access to which is selective.