Russian Government Approves Support Measures for Systemic Companies

Russia’s government has approved the list of support measures for systemic enterprises and the order of their provision, according to a statement released on the website of the cabinet of ministers on Sunday, TASS informs.

“Systemic organizations affected by the coronavirus aftermath will be able to receive state support. The list of measures and order of their provision have been approved by the government’s decree,” the statement said.

Currently the list of systemic companies contains 1,151 enterprises. Each of them can apply for a loan at a subsidized rate. Additional aid will be provided to particularly affected companies, including reimbursement subsidizes, tax and advance payments postponement, as well as state guarantees required for restructuring of existing or provision of new loans and bonded debts, according to the statement.

“Organizations should pass stress testing to receive aid. Applications of those of them who were found in the risk zone following the test, should be verified and considered at the meetings of the Cross-agency commission and Governmental commission on raising sustainability of development of the Russian economy,” the statement noted.

Moreover, Russia’s Economic Development Ministry has been tasked with approving the order of conducting financial sustainability assessment (stress testing) of systemic companies applying for state support measures in 2020 by May 15, 2020. The ministry should also greenlight the order of considering applications of systemic organizations on providing state support measures and the order of analyzing their financial and economic activities required for defining the amounts and terms of provision of state support measures in accordance with approved rules.

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