Russian Government Makes Preferential Loans for Investors in Far East and Arctic More Accessible
The requirements for the total investment volume and the minimum number of jobs to be created were excluded from the conditions, the government decree says.15 July 2022
Concessional financing wll become easier to obtain for entrepreneurs looking to implement investment projects in the Far East and in the Russian Arctic Zone. A decree to this end was signed by Prime Minister Mikhail Mishustin, TASS reports.
'This concerns eliminating the requirements for the total volume of investments and the minimum number of jobs to be created while implementing projects. Previously, a company had to invest at least RUB 1 billion and create at least 250 jobs in order to get a concessional loan. The decision will reduce the risks of investment projects getting disrupted amid sanctions,' the report says.
The rate on such loans depends on the key rate set by the Bank of Russia, the Cabinet noted. The subsidy mechanism currently in place will reduce the rates for entrepreneurs by 6.75%. Thus, the concessional rate for them can be as low as 2% per annum.
Concessional loans are issued for the creation of infrastructure and production facilities in an array of industries. The priority is industry, transport, energy and support for other projects launched in the priority economic development areas.