This initiative concerns establishing a development institution with a primary focus on providing loans to industrial enterprises (involved in research and development projects, preparing technical and financial feasibility studies, and design and survey works) before they turn to banks for financing.
The initiative was devised by the Ministry of Industry and Trade in execution of the instructions of Russian President No Pr-1159 dated 14 May 2014 on additional measures to stimulate economic growth (Subclause “z”, Clause 1).
The Government was instructed to issue a resolution on the establishment of an industry development fund in view of reducing borrowing costs related to project financing.
It was determined that creating this fund within the structure of a federal institution would be the best and most efficient option consistent with the goals and objectives of industrial development.
The Russian Foundation for Technological Development (RFTD) aims to facilitate the implementation of Government policy with respect to academic, research, engineering and innovative activities by providing financial assistance and advice to Russian entities involved in scientific and technology projects and experimental development. Accordingly, it was decided to establish the industry development fund within the RFTD’s structure.
In accordance with the signed directive, the RFTD was transferred from the Ministry of Education and Science to the Ministry of Industry and Trade.
A development institution will be established within the RFTD’s industry development fund with a primary focus on providing loans to industrial enterprises (involved in research and development projects, preparing technical and financial feasibility studies, design and survey works) before they turn to banks for financing.
The fund will be financed from the federal budget
with allocations equal to 1 billion roubles in 2014 and 18.5 billion roubles in
2015-2017.
