G/SCM/Q2/RUS/13
17 April 2015
(15-2065)  Page: 1/7
Committee on Subsidies  
and Countervailing Measures 
 Original: English
 
SUBSIDIES 
REPLIES TO QUESTIONS1 AND FOLLOW-UP QUESTIONS2 POSED BY THE UNITED STATES 
REGARDING THE NEW AND FULL NOTIFICA TION OF THE RUSSIAN FEDERATION3 
The following communication, dated 15 April 2015, is being circulated at the request of the 
Delegation of the Russian Federation. 
 
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1  FOLLOW-UP QUESTIONS (G/SCM/Q2/RUS/7)  
Question 2  
The Russian Federation indicates that  Government Resolution No. 357/2005 was 
repealed by Resolution No. 961 of October 25,  2013. Please indicate whether companies 
in the Russian Federation that had been previously approved to receive reimbursement of interest benefits under Resolution No. 357/2005 continued to receive reimbursement 
under Resolution No. 357/2005 in 2012? What is the date when all the benefits offered 
under Resolution No. 357/2005 will definitively end for all recipients?  
Reply 
Partial compensation of interest to certain companies in the Russian Federation under the 
Resolution of the Government of the Russian Federation No. 357 of 6 June 2005 was limited to 20 August 2012.  
2  NOTIFIED PROGRAMS (G/SCM/N/253/RUS/REV.1)  
1.1 Support of Investment Projects in the Automobile Industry  
Question 1  What is the level of support provided to indi vidual entities under this program? Is there 
a maximum amount that is specified for each  entity? How is the "partial compensation 
of loan interest …" determined for each enti ty? Is the interest rate on the loans reduced 
or capped or are entities compensated fo r interest payments on such loans?  
Reply 
Both the method of calculation of the subsidy amount for individual entity and the procedure for 
partial compensation of loan interest were set forth by the provisions of Annexes 3 and 4 to the Resolution of the Government of the Russian Fe deration No. 640 of 1 August 2011. The overall 
                                               
1 G/SCM/Q2/RUS/10. 
2 G/SCM/Q2/RUS/7. 
3 G/SCM/N/253/RUS and G/SCM/N/253/RUS/Rev.1. G/SCM/Q2/RUS/13 
 
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  amount of the program funding was notified by the Russian Federation in the document 
No. G/SCM/N/253/RUS/Rev.1. 
1.4 Encouragement of Private Persons to Purchase New Cars Question 1 
Please explain the relationship of (a) Re solution of the Government of the Russian 
Federation No. 1194 of 31 December 2009 to (b) the Resolution of the Government of 
the Russian Federation No. 400 of 26 April 2012 (400/2012), "On Amendments to the 
Rules for the Provision from the Federal Budge t of Subsidies to Compensate for the Loss 
of Income to Trade Organizations in the Sale  of New Vehicles Produced in Russia at a 
Discount to Individuals Who Give Up for Recy cling Vehicles No Longer in Use", if any. 
Question 2 
Please explain why Resolution No. 400/2012 was not notified or provide the information 
required under Article 25 of the SCM Agreement. 
Reply 
The Resolution of the Government of the Russian  Federation No.400 of 26 April 2012 amended the 
Resolution of the Government of the Russian Federation No.1194 of 31 December 2009 by introducing technical changes to the support program, in particular: provision of funds on a 
monthly basis instead of quarterly, changes in the ap plication form to be filled in by the recipient, 
changes of terms for sending the refusal note to an applicant by the Ministry; and other technical changes.  
The subsidy program introduced and operated und er the provisions of the Resolution of the 
Government of the Russian Federation No. 1194 of 31 December 2009 (as amended) was notified 
by the Russian Federation in the document No. G/SCM/N/253/RUS/Rev.1 . 
1.5 Subsidies for Railway Transportation of New Motor Vehicles 
Question 1 The Russian Federation's revised Notification (G/SCM/N/253/RUS/Rev.1, dated 
1 May 2014) (hereinafter, the "Revised Notifi cation") describes the duration of this 
program as "[s]ince 2011". Please describe  duration of this program beyond 2012 
and/or any time limits attached to the program. 
Reply 
Time limits of this support program depend on whether the Federal Law on Federal Budget for the 
corresponding year provides for the funding of the subsidies. 
2.1 Federal Target Program "Development of  Russian Civil Aeronautic Engineering in 
2002-2010 and in the Period until 2015" 
Question 1 Please explain how "capital investments" ar e used under this program. Are these cash 
infusions or do they take some other form of support? 
Question 2 What type of R&D activities ar e funded under this program? G/SCM/Q2/RUS/13 
 
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  Question 3 
Please explain what types of entities  receive funding under this program. 
Question 4 Please provide further explanation of the manner in which a governmental authority 
provides goods or services under this prog ram. What are the government authorities 
that "place an order"? Are the recipients of  aid under this program the entities that 
tender the government's bids? 
Reply 
Capital investments were used as a financial contribution by the Government which involved a 
direct transfer of funds for projects of capital co nstruction of state property and renewal of fixed 
assets of scientific and research organisations. Under the RnD section of the program the funding 
was provided to scientific and experimental researches. Financing of the researches was performed 
on a competition basis in accordance with the national legislation regulating government procurement. Companies could tender the contract with the Government irrespective of their form 
of ownership. Bids were placed by the Ministry of Industry and Trade of the Russian Federation. 
Successful tenderers executed the awarded contra cts by supplying goods and services for the 
governmental needs (in accordance with the program measures).  
2.2 & 2.3 Support of Sales of Aircrafts on Lease 
Question 1 Does the Resolution No. 1073 of 22 October 2012 operate in the same manner as the 
preceding program, Resolution No. 90 of 16 February 2008? 
Question 2 
The Revised Notification describes the du ration of this program as "[s]ince 
6 November 2012". 
Please describe the duration of this program beyond 2012 and/or any time limits 
attached to the program. 
Question 3 
What is the level of support provided to indi vidual entities under this program? Is there 
a maximum amount that is specified for each entity? How is the partial compensation of 
loan interest determined for each entity? Is  the interest rate on the loans reduced or 
capped or are entities compensated for interest payments on such loans? 
Reply 
Under the Resolution No. 90 of 16 February 2008 state support was limited to purchases of 
domestic aircrafts. This rule was repealed by the Resolution No 1073 of 22 October 2012 and the 
support was provided regardless of the aircraft's origin.  
Product scope of state support under the Resolution No. 1073 of 22 October 2012 was limited to 
aircrafts with more than 52 seats, of weight more than 20 tones, produced not earlier than 
1 January 1999 and listed in the State Register of  civil aircrafts of the Russian Federation in 
accordance with article 33 of the Air Code of the Russian Federation. 
Provisions of the Resolution No. 1073 of 22 October 2012 established the procedure for receiving 
by Russian leasing companies of partial compensa tion of interest for the loans issued by the 
Russian credit organisations within the period of 2008-2015 for the purposes of purchasing 
aircrafts.  G/SCM/Q2/RUS/13 
 
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  Procedure for the calculation of the subsidy amount for an applicant was also established by the 
Resolution No. 1073 of 22 October 2012. The overal l amount of the program funding was notified 
by the Russian Federation in the document No. G/SCM/N/253/RUS/Rev.1. 
2.4 Subsidies to the Aircraft Industry for Technical Re-equipment 
Question 1 
What is the level of support provided to indi vidual entities under this program? Is there 
a maximum amount that is specified for each entity? How is the partial compensation of 
loan interest determin ed for each entity? 
Reply 
Procedure for the calculation of the subsidy amount for an applicant was established by the 
Resolution No.91 of 16 February 2008. The overall amount of the program funding was notified by 
the Russian Federation in the document No. G/SCM/N/253/RUS/Rev.1. 
3.1 Subprogram "Development of Domestic Machines, Tools and Instruments Industry" 
in 2011-2016 of the Federal Target Program "National Technological Base" in 2007-2011 
Question 1 
Please provide further explanation of the manner in which a governmental authority 
provides goods or services under this prog ram. What are the government authorities 
that "place an order"? Are the recipients of  aid under this program the entities that 
tender the government's bids? 
Reply 
Financing of the program measures was performed by  placing government's bids by the Ministry of 
Industry and Trade of the Russian Federation in accordance with the national legislation regulating 
government procurement. Successful tenderers executed the awarded contracts by supplying goods and services for the governmental needs (in accordance with the program measures) and 
received due payment from the federal funds. 
4.1 Federal Target Program "Development of Civil Marine Engineering in 2009-2016" 
Question 1 
Please provide further explanation of the manner in which a governmental authority 
provides goods or services under this prog ram. What are the government authorities 
that "place an order"? Are the recipients of  aid under this program the entities that 
tender the government's bids? 
Reply 
Financing of the program measures was performed by  placing government's bids by the Ministry of 
Industry and Trade of the Russian Federation in accordance with the national legislation regulating 
government procurement. Successful tenderers executed the awarded contracts by supplying 
goods and services for the governmental needs (in accordance with the program measures) and received due payment from the federal funds. 
4.2 Support of Transport Companies for Purchasing of Civil Vessels 
Question 1 Is support under this program contingent up on the purchase of ships produced in the 
Russian Federation? Please discuss in the context of Article 3.1(b). G/SCM/Q2/RUS/13 
 
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  Reply 
In accordance with the amendments introduced to the program in 2012 by the Resolution 
No. 1153 the support under this program is not contin gent upon purchase of ships produced in the 
Russian Federation. 
Question 2 
The Revised Notification describes the dura tion of this program as "[s]ince 2008". 
Please describe duration of this program beyond 2012 and/or any time limits attached 
to the program. 
Reply 
Provisions of the Resolution No. 383 of 22 May 2008 established the procedure for receiving by 
Russian transport companies of partial compensation of interest for the loans issued by the 
Russian credit organisations within the period of 2008-2014 and partial compensation of lease 
payments under the contracts concluded with the Russian financial organisations within the period of 2008-2014 for the purposes of purchasing ships.  
7.1 Support of the Light Textile Industry 
Question 1 The Revised Notification describes the dura tion of this program as "[s]ince 2008". 
Please describe duration of this program beyond 2012 and/or any time limits attached 
to the program. 
Reply 
Provisions of the support program established the procedure of receiving by the Russian 
companies in the textile and light industries of partial compensation of interest for the loans taken 
in 2011-2014 with a pay-back period of less than 3 years for the purposes of seasonal purchasing 
of raw materials and for the loans taken in 2006-201 2 for the purposes of technical re-equipment. 
Question 2 
What is the level of support provided to indi vidual entities under this program? Is there 
a maximum amount that is specified for each entity? How is the partial compensation of 
lease payments determined for each entity? 
Reply 
Procedure for the calculation of the subsidy amount for an applicant was established by the 
Resolution 993 of 29 December 2007. The overall amount of the program funding was notified by 
the Russian Federation in the document No. G/SCM/N/253/RUS/Rev.1. 
10.1 Interseasonal Support of the Timber Industry Question 1 
The Revised Notification describes the dura tion of this program as "[s]ince 2010". 
Please describe duration of this program beyond 2012 and/or any time limits attached 
to the program? 
Reply 
Provisions of the support program establishe d the procedure of receiving by the Russian 
companies in the timber industry of partial compensation of interest for the loans taken in 2011-2014 for the purposes of interseasonal purchasing of raw materials. G/SCM/Q2/RUS/13 
 
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  3  PROGRAMS PREVIOUSLY NOTIFIED (G/SCM/N/253/RUS AND 
G/SCM/N/253/RUS/REV.1) 
Question 1 Please explain why Resolution No. 262/2009 was not notified in the Revised Notification 
or provide the information required und er Article 25 of the SCM Agreement. 
Reply 
Both the original and revised notifications cove r the period of 2012. In accordance with the 
Resolution No. 262 of 30 March 2009 (as amended by the Resolutions of the Government of the 
Russian Federation of 19 August 2009 No. 675, of  10 May 2010 No. 314 and of 16 December 2010 
No. 1023) subsidies were provided in the form of partial compensation of interest rates for loans issued by the Russian credit organisations within the period of 2008-2011.  
4  OTHER PROGRAMS 
4.1. Resolutions No. 314, dated 5 October 2012 and No. 1023, dated 16 December 2010 
Two measures apparently related to Re solution No. 262/2009, namely, (1) the 
Resolution of the Government of the Russian  Federation, No. 314, dated 5 October 2010 
(314/2010) "On the Granting of Subsid ies from the Federal Budget to Russian 
Organizations of Automobile and Transport Engineering", and (2) the Resolution of the 
Government of the Russian Federation, No. 1023, dated 16 December 2010 
(1023/2010), "On Amending the Resolutio n of the Government of the Russian 
Federation dated 30 March 2009, N. 262", do no t appear in either the Initial Notification 
(G/SCM/N/253/RUS, dated 16 May 2013) nor the Revised Notification 
(G/SCM/N/253/RUS/Rev.1 dated 1 May 2014 ). Please explain why Resolutions 
Nos. 314/2010 and 2013/2010 were not notified in the Revised Notification or, for each 
of the measures, provide the information required under Article 25 of the SCM 
Agreement. 
Reply 
The original and revised notifications cover period of 2012. In accordance with the Resolution 
No. 262 of 30 March 2009 (as amended by the Re solutions of the Government of the Russian 
Federation of 19 August 2009 № 675, of 10 May 2010 № 314 and of 16 December 2010 № 1023) 
subsidies were provided in the form of partial compensation of interest rates for loans issued by the Russian credit organisations within the period of 2008-2011.  
4.2. Government Resolution No. 295 dated 2 April 2009 
It appears that the Resolution of the Gove rnment of the Russian Federation No. 295 
dated 2 April 2009 (295/2009), "On the Granting  of Subsidies to Organizations of the 
Fishery Industry for Reimbursement of the C ost of Interest on Loans Received from 
Russian Credit Institutions in 2009-2011 for the Purchase of Civilian Vessels Produced 
at Russian Shipyards" provided organization s in the Russian fishery industry partial 
compensation of interest on loans taken out in 2009-2011. 
Question 1 Please clarify whether Resolut ion No. 295/2009 is still in fo rce. If Resol ution 295/2009 
is no longer in effect please provide th e name and citation of the successor legal 
measure, if applicable. 
Question 2 Please explain why support under Resolut ion No. 295/2009 should not be notified 
pursuant to Article 25 of the SCM Agreement or provide the information required under 
Article 25 of the SCM Agreement. G/SCM/Q2/RUS/13 
 
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  Question 3 
Please describe the relationship between Resolution 295/2009 and the Resolution of the 
Government of the Russian Federation, No . 383 of 22 May 2008 (383/2008), notified in 
the Revised Notification, if any. 
Question 4 
Is support under this program contingent upon  the relevant ships being made in Russia? 
If so, please discuss in th e context of Article 3.1(b). 
Reply 
The Resolution of the Government of the Russian Federation No. 295 of 2 April 2009 was 
introduced in 2009. In accordance with the support program organisations engaged in the fishery industry could receive partial compensation of th e interest rate for the loans issued by Russian 
credit organisations within the period of 2008-2014 for the purposes of purchasing civilian vessels.  
The support program as amended in 2012 by the Resolution No. 1154 was not contingent upon the 
origin of vessels procured by the fishery organisations under the subsidized loans.  
The procedure for calculation of the subsidy amount  provided to an applicant under the Resolution 
295/2009 was set forth by the provisions of  the Resolution No. 383 of 22 May 2008 
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