ANNOUNCEMENT 10 Feb 2014In February 2014, the government of the Russian Federation announced a change to private-sector financial support.
NUMBER OF INTERVENTIONS
11 2014 97
Decree Nr. 97 of 10 February 2014 introduces new subsidies for russian timber companies in the state budge for 2014-2016. The decree foresess the annual allocation of 250 million Roubles (USD 7.0 million) for the partial compensaiton of interest rate payments accrued after 1 January 2014. Only loans obtained from Russian banks or the state-owned Vnesheconombank, related to comprehensive investment projects for the modernisation of the existing product lines and for the creation of new product lines involving industrial biotechnology are eligible for the program.
The decree establishes the procedure for granting of the federal subsidies, as well as the submission of subsidy requests, the signature of appropriate agreements and the disbursement of subsidies. According to estimates of the Ministry of Industry and Trade, the subsidised interest payments will allow for an increase in the industrial output by 500 million Roubles (USD 14 million) by 2016, and for the subsequent reduction of imports.