Reference
The draft resolution prepared by the Ministry of Industry and Trade endorses the rules for granting federal budget subsidies to chemical companies to reimburse a portion of their interest payments on loans received from lending institutions and the Bank for Development and Foreign Economic Affairs (Vnesheconombank) in 2014-2016 to implement investment projects under the chemical industry subprogramme of the state programme Developing Industry and Increasing Competitiveness endorsed by Government Directive №1535-r on 29 August 2013.
To reach the main goals of the chemical industry subprogramme the Government plans to begin granting federal budget subsidies starting in 2014 to chemical companies to compensate part of their interest payments on loans obtained for investment projects. The main aim of this support is to attract private capital to the chemical industry.
Production of plastics is a priority, socially important segment of the chemical industry. Investment projects in the chemical industry tend to be large and create many highly productive jobs depending on the technology, production capacities and the initial condition of the industrial facilities’ infrastructure.
The federal law On the 2014 Federal Budget and the 2015-2016 Planning Period allocates 418.7 million roubles to subsidise interest payments under investment projects: 70.2 mln in 2014; 168.5 mln in 2015 and 180 mln in 2016.
Subsidies for loans in Russian roubles will cover two thirds of a company’s interest payments for the accounting period. They should not exceed two thirds of the Central Bank’s refinancing rate on the day of interest payments.
Subsidies for foreign currency loans will be granted in roubles to cover two thirds of a company’s interest payments for the accounting period, based on the exchange rate of the rouble established by the Central Bank on the day of interest payments. These subsidies should not exceed the 4% interest rate on foreign currency loans.
These measures will help reduce imports in the high-tech chemical industry, which have high added value on the domestic market, facilitate the creation of new highly-productive jobs, and bring new tax revenue to the budget at all levels of government.