Moscow Government Accepts Applications for Subsidies From Manufacturing Enterprises

Companies can expect partial reimbursement of interest charges on equipment acquisition loans.

The Government of Moscow has started accepting applications for subsidies from manufacturing enterprises. Companies can claim reimbursement for a part of their interest costs and leasing payments pertaining to the acquisition of manufacturing equipment. The deadline for applications is June 28.

Through October 31 companies can also apply for subsidies to cover their utility network connection costs.

To be eligible for a subsidy, companies need to fill out a special form posted on the website of the Moscow Investment and Industrial Policy Department, and submit required documents.

“One of the main priorities for the Government of Moscow is to facilitate the development of high-tech and environmentally friendly manufacturing industries. This is what the subsidy program aims at,” says Alexander Prokhorov, head of the Moscow Investment and Industrial Policy Department.

If the application is approved, the company that took a loan to purchase equipment can count on a subsidy of up to 200 million rubles to cover interest charges. Companies can also receive up to 100 million rubles to cover leasing payments.

Companies are reimbursed 35 percent of the cost of leasing payments for the purchase of Russian-made equipment and 25 percent for foreign equipment. An important condition is that all costs incurred must be documented.

In addition, reimbursement is provided for utility connection costs (up to 50 percent of all costs). This amount can reach 100 million rubles if the connected capital construction projects are located on the same land plot.

“In essence, subsidies to manufacturing enterprises on behalf of the Investment and Industrial Policy Department is support with cash. In 2018, the subsidies amounted to more than 164 million rubles, while the value of signed contracts for 2019-2020 is already approaching 170 million,” added Alexander Prokhorov.


15 may 2019