ANNOUNCEMENT 27 Nov 2014In November 2014, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
27 2014 1257. ? ?.
With Decree №1257 of 27 November 2014, subsidies that shall promote import substitution were approved as part of the state program "Development of industry and enhancement of its competitiveness”.
The subsidy is to be given for the creation of modern serial production of lathe machines in order to meet the demand on the local market. The measure aims to reduce the dependence of Russian strategic organisations, belonging to the engineering and military-industrial complexes, from the supply of foreign technological and engineering production.
In order to finance this goal, a total of 5.5 billion RUB (approx. 103 million USD) are reserved from the 2014-2016 federal budget.
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.