In line with its program meant to bring investment to the country’s chemical industry, the government of Russia is ready to pay subsidies to plastic product makers. What’s more, the cost of the effort is set to more than double by 2016.
According to a decree issued by the Government, subsidies will be paid to chemical companies that have taken loans to fund investment projects. Under the state support scheme, companies with investment projects’ costs falling in the range of RUB 1.5 bn to 5 bn will be entitled to partial compensation of their interest payments. The requisite funds will be sourced from Russian lending institutions or from Vnesheconombank.
The approved subsidy volume for 2014 is RUB 70.2 mn. In 2015, spending to the same end will reach RUB 168.5 mn, and as much as RUB 179.9 mn in 2016. At the same time, the subsidy paid in each case will be limited by the amount calculated based on two-thirds of the refinancing rate of the Central Bank of the Russian Federation, as effective on the date of interest payment.
