Starting in 2014, Russian chemical companies that launch investment projects to create new product lines involving industrial biotechnology will be eligible for federal subsidies for interest payments on loans.
The goal is to raise private capital for projects to make biopolymers and biopolymer-based products.
With increasingly strict environmental regulations and higher waste utilisation costs, advancing the domestic production of biodegradable polymers is an industrial development priority in Russia.
Investments by chemical companies should increase the share of biodegradable materials in total polymer consumption to 0.9% in 2016, thus reducing by 4% the proportion of biotechnology-based imports. As such, one of the selection criteria for investment projects is their ability to increase the share of local production on Russia’s domestic market by at least 3%.
Subsidies for loans denominated in the national currency should cover 90% of the recipient company’s servicing costs over a certain period. However, a subsidy may not exceed the amount set based on 90% of the Bank of Russia interest rate effective on the day the company makes an interest payment.
