Action of ‘unified regional subsidy’ mechanism resumed in Russia

1 December 2020, Tuesday

As part of the resumption of the mechanism of a unified regional subsidy, the budgets of Russian regions will be able to reimburse part of the costs of industrial enterprises for connection to electric and other grids, payment of the 1st instalment upon signing a lease agreement, or purchase of new equipment. This was reported by the press service of the Russian Ministry of Industry and Trade.

The message specifies that within the framework of the renewed mechanism, it is planned to use increasing coefficients. For example, in case the constituent entity of the Russian Federation is included in the list of priority geostrategic territories or in the list of regions with a low level of socio-economic development. To resume the mechanism of a unified regional subsidy, the Ministry of Industry and Trade agreed on the redistribution of its funds, within the limits allocated by the Ministry of Finance, in the amount of RUB 1 billion annually from 2021 to 2023.

The mechanism for providing a unified state subsidy was tested in a pilot mode and implemented in 2016. State support funds were provided to the Republic of Crimea, Stavropol Territory and the Republic of Udmurtia, where it was possible to attract more than RUB 7 billion of off-budget investments. The resumption of this mechanism is provided for by the Russian Federation Spatial Development Strategy.

Earlier, Prime Minister of Russia Mikhail Mishustin approved the corresponding resolution “On Amending the Resolution of the Russian Federation Government No. 194 dated March 15, 2016”.

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