Reference
This document was drafted by the Ministry of Industry and Trade in execution of a presidential instruction. Resolution introduces changes to the Regulations for the provision of subsidies to Russian leasing companies to compensate for part of interest payments on loans being obtained at Russian financing institutions and the Vnesheconombank State Corporation for the purchase of Russian-made aircraft in 2008-2012, with these aircraft to be subsequently transferred to Russian airlines in accordance with leasing contracts. The above Regulations, which were approved by Government Resolution No 1073 of October 22, 2012, are also designed to reimburse these companies and aircraft manufacturers for loans obtained at Russian financing institutions and the Vnesheconombank State Corporation for the purchase of flight simulators in 2008-2012. In addition, these changes will apply to new loans that will be taken out in 2013-2015.
Under the current Regulations, the Ministry of Industry and Trade has signed contracts with national leasing companies to subsidise loan interest rates for purchase financing of about 50 Il-96-300, Tu-204/214, Sukhoi Superjet-100, An-148 and An-124 aircraft, as well as the respective flight simulators. However, it was impossible to use this mechanism for compensating part of loan-interest payments under new loan agreements until now because the regulations envisioned subsidies only for loans that were obtained before 2012.
The resolution, which has been signed, creates the required conditions for providing state support to national aircraft production and leasing programmes in accordance with current and new agreements, in accordance with federal budget funding volumes and in line with the current credit portfolio of Russian leasing companies with regard to signed contracts.
The resolution also introduces changes to the regulations with regard to maximum subsidy volumes for foreign currency loans. To date, these volumes total 12% annual interest. As for loans obtained before 2012, these volumes shall be calculated in accordance with a 10% annual interest rate next year, as well as with an 8% annual interest rate since 2015. As for new loans being obtained since early 2013, maximum subsidy volumes shall initially be calculated for an 8% annual interest rate.
The approved changes will make it possible to accomplish the following objectives:
· Preserve the cost effective mechanism of state support for national aircraft sales on aviation markets and implement new aircraft purchase and leasing contracts with its assistance, the purchase and leasing of aircraft, including 30 SSJ-100, Tu-204 and An-148 aircraft, whose production will be subsidised in 2013-2014;
· Bring current subsidy provision regulations in conformity with financial market conditions. This will induce leasing companies to attract “cheaper” loans for aircraft purchases in accordance with market terms.
