ANNOUNCEMENT 13 Apr 2015In April 2015, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On April 13, 2015 Russia approved Order 649-p. This Order allocates funds in the amount of 2.375 billion Russian Roubles (ca. 46 million USD) to 34 subjects of the Russian Federation (the highest administrative units according to the Russian Constitution).
In the Annual Presidential Address to the Federal Assembly held on 12 December 2013, the President of the Russian Federation, Mr. Putin declared: "Companies, registered in foreign jurisdictions, must not benefit from state support, including from Vnesheconombank and state guarantees. Their access to contracts for state orders and for contracts with structures with state participation must be eliminated". In conclusion, although the end beneficiaries of the allocated subsidies to the subjects of the Russian Federation cannot be directly identified, it can be expected that they will be Russian.
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.