G/SCM/Q2/RUS/21  
26 January  2021 
(21-0720) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
QUESTIONS POSED BY THE UNITED STATES  REGARDING  
THE NEW AND FULL NOTIFICATION  OF  
THE RUSSIAN FEDERATION1 
The following communication, dated  25 January  2021, is being circulated at the request of the 
Delegation of the United States . 
 
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1. RESOLUTION NO. 496 DATED APRIL 26, 2017  
Government of Russia Resolution No. 496 of April 26, 2017, "On state support of Russian civilian 
industrial organizations in order to reduce the cost of transporting products, " approved the rules for 
the provision of subsidies from the federal budget to Russian industrial producers to compensate for 
part of the cost of transporting products.  
Resolution No. 496 a ppoints the Russian Export Center ( "REC") as an agent of the Government of 
the Russian Federation, authorized to disburse these subsidies from the federal budget to Russian 
organizations.  
Although Resolution No. 496 does not appear to explicitly require subsidy recipients  to export , the 
REC's website refers to the transportation subsidies granted under Resolution No. 496 and states 
the following:  
• "This special program is aimed at supporting Russian civilian industrial organizations, namely, 
to cover up to 80% of the actual costs incurred by manufacturers (as well as their affiliated 
and authorized persons) when transporting their products to foreign markets. " 
• "Who can use the service - Organizations supplying their products to foreign markets, if the 
transp ortation and shipment of products was carried out (from points of departure located in 
the territory of the Russian Federation to the final destination) by road, rail, water transport, 
self-propelled, air transport (when transporting pharmaceutical product s industry), specialized 
carriers (when transporting precious metals, precious stones and products from them) or 
several types of transport. " 
Question 1  
Are subsidies for transportation expenses disbursed by the REC under Resolution No. 496 contingent 
on the recipient export ing? Please provide a description of the eligibility criteria to receive this 
subsidy.  
 
1 G/SCM/N/343/RUS.  G/SCM/Q2/RUS/21  
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  Question 2  
If these subsidies are available for domestic transportation expenses, please identify where on the 
REC's website, or other authoritative s ource, the criteria for qualifying for those subsidies can be 
found?  
Question 3 
Could the Russian Federation please explain how this scheme can be considered compatible under 
Article 3 of the Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) ? 
Question 4  
It appears that this program has not been notified.  Could the Russian Federation please explain why 
this program should not be notified, or provide the information required under Article 25 of the 
Subsidies Agreement?  
2. OTHE R PROGRAMS  
Question 5 
It appears that in two recent countervailing duty investigation s conducted by the US Department of 
Commerce  that the Russian Federation administer s other support programs that may meet the 
requirements for notification set forth under  Article 25 of the Subsidies Agreement . Could the 
Russian Federation please explain why each of the programs below should not be notified, or provide 
the information required under Article 25 of the SCM Agreement?  
1. Grants for Domestic Production in the Sver dlovsk Region ; 
2. Regional Investment Incentives from the Rostov Government  (tax deductions ); 
3. Income Tax Deduction for Research and Development Expenses ; 
4. Murmansk Region 's Support of Industrial Development ; 
5. Leningrad Region 's Support of Industrial Development ; 
6. Tula Region 's Support of Industrial Development ; 
7. Stavropol Krai 's Support of Industrial Development ; 
8. Krasnodar Krai 's Support of Industrial Development ; 
9. Special Investment Contract with Perm Krai ; 
10. Preferential Debt Financing of Projects Aimed at Introducing the Best Available Technologies ; 
11. Partial Compensation of Professional Training Expenses . 
 
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