ANNOUNCEMENT 09 Sep 2014In September 2014, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On September 9, 2014, the Government of the Russian Federation approved (according to Directive No. 1767-p) state guarantees at the amount of RUB 12.12 billion (ca. USD 315.46 million) on loans extended to defence enterprises that fulfil state defence orders. Under this scheme, 7 enterprises benefit from 9 state guarantees.
This state measure has the goal to expand defence enterprises' capacity to attract non-budgetary sources of funding (loans) and carry out state tasks related to the execution of the state defence orders when the federal funding is received in the form of deferred payments.
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.