In December 2014, the government of the Russian Federation announced a change in the required local operations to serve domestic customers.



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30 2014 2788-

Inception date: 30 Dec 2014 | Removal date: open ended

Local operations

With Order Nr 2788 published on December 30, 2014, a state programme for non-commercial leasing of urban passenger transport in the Crimean Federal District was approved. The programme involves the transfer of trolleys, trams and buses running on gas fuel under leasing schemes to transport organisations at favourable conditions. The advance payment is at rate 0%, the interest rate on the lease agreement is set to 7.9%, and the lease contract term up to 5 years.
The programme requires that only Russian-made equipment may be used. The goal of the programme is to 'support the Russian machine-building organisations and to stimulate the demand for domestic appliances'. The programme will be funded under the Federal Target Program "Social and economic development of the Republic of Crimea and Sevastopol until 2020" (approved with Decree Nr 790 of the Government of August 11, 2014).
To fund this scheme, federal funds at the amount of 5.7 billion RUB (approximately 88 million USD) are provided from the 2015 federal budget in order to increase the capital of JSC "State Transport Leasing Company".
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.