ANNOUNCEMENT 15 Feb 2014In February 2014, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
15 2014 108
Decree Nr. 108 of 15 February 2014, adopted in relation to the state programme "Development of the local industry and boosting of its competitiveness" includes subsidies for the children's goods industry. To assist in financing "complex investment projects", the decree forsees subsidies of 995 million Roubles (USD 28 million) in 2014, 1.1 billion Roubles(USD 31 million) in 2015 and 1.150 billion Roubles (USD 32 million) in 2016.
The concrete mechanism of state support is through subsidisationof the interest rates on loans received from Russian banks or thestate-owned Vnesheconombank. The subsidy's amount is fixed at 90 percent of therefinancing rate of the Central Bank of Russia on the date on which thecredit is received.
Currently, imported children's goods dominate the Russian market. For example, 60 per cent of the children's cosmetics and baby products are supplied by importers; the share is 90 per cent for children's shoes, clothes and toys. China is a key supplier of these goods.
This state measure has the goal to achieve the following strategic results: the share of the Russian children's goods market in 2020 to become 45%; the cost of children's products in 2020 to decrease by 15%, as well as the achievement of competitive, innovative development and growth of the export potential of the Russian manufacturers of children's products.