Mishustin’s Government: Key Areas of Industry Support

NEW – July 27, 2022

The first few months of the “parallel import” implementation convincingly showed the irremediable shortcomings of this spontaneous mechanism: it is chaotic and low-powered, many entrepreneurs simply did not learn about the opportunities open to them, and many do not have the strength and resources to implement them. The main thing that the Russian industry is facing is the mass import of non-vital products bypassing Western sanctions, but, on the contrary, products produced in Russia – with a very real threat of the actual destruction of existing domestic production and undermining planned investment projects.

That is precisely why, as far as one can judge, Prime Minister Mishustin stressed that the most accurate means of building industrial relations are the programs of the Industrial Development Fund, which his government intends to capitalise very significantly.

At the same time, the Mishustin government continues to implement a large-scale business support program with the help of concessional loans, including the so-called “umbrella guarantee”: if an entrepreneur does not have enough collateral, the state is entrusted to the bank for him, covering up to 50% of the required amount. 12,000 loans worth 110 billion rubles have already been issued under this program. In total, only under 4 programs implemented under the anti-crisis plan of the Mishustin government, businesses received preferential loans for almost half a trillion rubles.

Vigorous measures are being taken to support certain areas of business. So, by the end of the year, medium and small businesses will be compensated for the bank commission when paying for products using the quick payment system – 400 million rubles have already been allocated for these subsidies.

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Special efforts are aimed at supporting the production of products for children: the Mishustin government has developed a “road map” indicating the types of these products that will be guaranteed to be purchased. At the same time, Russian manufacturers are invited to make their proposals to expand the range of products included in the roadmap.

Prime Minister Mishustin signed a decree on subsidising up to 50% of the costs of TV advertising of new (not advertised last year) Russian consumer non-food products (including medicines and medical devices), and for small and medium-sized businesses, the subsidised share of costs can be increased to 70%.

Mishustin’s government has also submitted a draft law to the State Duma (it will be considered already in the autumn session), simplifying the use of maternity capital to pay for studies. It is assumed that parents will be able to send funds online without unnecessary certificates, and the Pension Fund will independently request the necessary information from the educational organisation. This will allow parents to pay for their child’s education not only in universities, but also in clubs and private kindergartens online without personal visits to the Pension Fund, and also stimulates the activities of private educational institutions by supporting the relevant part of the social business.

I must say that maternity capital is the fastest growing social payment in Russia. Now it is 524,000 rubles for the first child and more than 693,000 for the second, and it all started with 250,000 rubles.

An important step of the Mishustin government was to expand the capabilities of the regions to modernise the 122 information and reference service, created in 2020 on behalf of President Vladimir Putin to help citizens with calling a doctor at home and consulting about the symptoms of various diseases. This year 700 million rubles were allocated for its development.

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The limit on the purchase of software has been increased from 37.5 to 66.3%, server and switching equipment – from 39.3 to 65.2%, contractor’s remuneration – from 8.1 to 26.8%. The expansion of the limits has qualitatively increased the independence of the regions in this matter, creating hope for the elimination of other excessive administrative restrictions that prevent the regions from living normally even with the availability of funds.

Mikhail Delyagin

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