Industrial Development Fund
At present, a “single point of contact” system of the industrial enterprises state support, which includes the following measures, is running on the basis of the Industrial Development Fund:
Provision of loans for the implementation of projects aimed at the introduction of advanced technologies, creation of new products or the organization of import-substituting industries, on a competitive basis.
Fund loans are provided on a repayable basis and on a co-financing basis. The applicant must provide security for the loan amount and interest for the entire period (guarantee, surety, pledge).
Loans are issued after a careful review for compliance with the project criteria. There are sectoral restrictions for co-financed IDF projects
Currently, the Fund grants loans under 4 programs: “Development Projects”, “Consortium Projects”, “Machine Tool Building Program” and “Leasing projects”.
Provision of grants from the federal budget to compensate for part of the cost of interest on loans obtained in the Russian credit organizations in 2014-2016, for the implementation of new investment projects (RF Government Resolution No. 3 of 03.01.2014).
Loan funds must be used for the implementation of new complex investment projects in priority areas of civilian industry. Grants are provided subject to the investment project from the list of complex investment projects in priority areas of civil industry of the Industry and Trade Ministry of Russi.
Investment project requirements:
- credit for investment purposes for a period of not less than 3 years, the cost of 2.5 million euro up to 83.334 million euro;
- commissioning of the production facilities on the project was to be implemented no earlier than January 1, 2014;
- credit facilities of not more than 80% of the project cost;
- investment project in the civil industry.
Amount of the grant:
- if the interest rate is more that the key rate of the Central Bank of the Russian Federation, 70% of the key rate shall be reimbursed;
- if the interest rate is less than the key rate of the Central Bank of the Russian Federation, 70% of the % rate shall be reimbursed;
- The payment of grants is made 2 times a year (II and IV quarters).
The provision of grants for reimbursement of interest on loans for working capital (Resolution of the Russian Government No. 214 of 12.03.2015).
Application for the payment of grants may be submitted to the Industry and Trade Ministry of Russia until November 1, 2016.
Subsidizing of the interest rate is made on loans to finance working capital and/or ongoing activities for which there was an increase of the interest rate after December 16, 2014, or on loans taken after that date.
Recipients – light industry enterprises, included in one of the lists: the federal list of strategic organizations (approved by Minutes of meeting of the Government Commission for Economic Development and Integration on February 5, 2015 No. 1.); the list of organizations having a significant impact on the civilian industries (approved by the Industry and Trade Ministry of Russia on 13.04.2015 No. 798).
Amount of the grant:
- 70% of the actual costs for payment of interest on the loan;
- no more than 70% of the key rate of the Central Bank of the Russian Federation on the interest payment date.
The deadline for submitting applications for the payment of grants: no more than once per month and no later than November 1, 2016
The amount of payments for grants for one company may not exceed 1.25 million euro for three months.
resolution of the Government of the Russian Federation “On approval of rules for providing grants from the federal budget to the Russian organizations to compensate for part of the cost of paying interest on loans obtained in the Russian credit institutions in 2014-2016 for the implementation of new integrated investment projects in priority areas of civilian industry” No.3 of 03.01.2014, (Download)
resolution of the Government of the Russian Federation “On approval of rules of providing grants in 2015-2016 from the federal budget to industry organizations for reimbursement of costs incurred in 2015 and (or) 2016 for payment of interest on loans obtained from the Russian credit institutions and the State Corporation “Bank for Development and Foreign Economic Affairs (Vneshekonombank)”, as well as in international financial institutions, established in accordance with international treaties to which the Russian Federation is a party, for working capital financing and (or) to finance current operations” No. 214 of 12.03.2015. (Download)