Medvedev extends subsidy deal for 92 vessels to 18 Shipping Lines

January 29, 2016

The Russian Federation Prime Minister has signed decree offering subsidiary assistance to 18 Russian shipping lines for the purchase and leasing of 92 commercial shipping vessels during 2016.

Russian Prime Minister Dmitry Medvedev signed the decree №25 on January 21, 2016, extending subsidies through 2016 for 18 Russian transport companies and shipping companies for the purchase and leasing of 92 shipping vessels. The document was submitted to the Ministry of Industry of Russia.

According to the document, in order to facilitate support and development of the shipbuilding industry and stimulation of Russian customers to bring their own (non-budget) funds for the construction of ships for transport companies and shipping companies, they should receive subsidies for reimbursement of the cost of interest on loans obtained in the Russian credit organisations and the state corporation Bank for development and Foreign Economic Affairs, for the purchase of civilian ships, as well as lease payments under lease agreements.

State support has already helped to raise about USD 1.05 billion non-budgetary funds for the construction of ships, creating about one thousand jobs in Russian transport and shipping companies, saving more than ten thousand jobs in design offices and shipyards in Russia.

The subsidies were previously approved by government decree of May 22, 2008 №383. The newly signed a decree extends the validity through 2016.

Source:  Russian Chamber of Shipping News