Mishustin’s Government: Support for Infrastructure Modernisation, Industrial Exports & Tourism

NEW – August 16, 2022

The Mishustin government demonstrates a deep understanding of the critical importance of infrastructure modernisation for the successful development and very existence of Russia. In particular, it is consistently expanding measures to support corporations involved in its modernisation by providing state guarantees for infrastructure loans.

These guarantees will provide up to 50% of the obligations to repay the principal debt on a loan taken for a period of 3 to 30 years, provided that the share of the company’s own funds in the cost of the infrastructure project carried out at the expense of the loan was at least 20%. Guarantees are intended for large businesses – their minimum amount will be 2 billion rubles.

Prime Minister Mishustin noted: “State support will help reduce the risks of both borrowers and lenders, increase the attractiveness of investments in core projects in areas important for the development of our country.”

At the same time, measures were taken to reduce the cost of loans for investment purposes for small and medium-sized companies: the former will be able to receive these loans at 4.5% per annum during the grace period, the latter at 3% per annum.

To support industrial exports (and thereby help increase Russia’s added value), the Mishustin government is simplifying the procedure for the current compensation to 80% for transportation and more than doubling – from 11 to 25% of the value of exported industrial goods – increasing the maximum amount of payment.

At the same time, as part of the tourism support policy, Prime Minister Mishustin announced the start of the autumn stage of sales of domestic tours with a refund of up to 20% of their cost. Trips must be made between October 1st and December 25th, except for cruises, which will receive refunds from September 1st until navigation is completed.

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For vouchers to the Far East, the maximum amount of refundable funds has been doubled – from 20,000 to 40,000 rubles.

The program will be implemented in all regions of Russia without exception. It is assumed that about 600,000 people will be able to receive a refund for tourist trips in the autumn season. (In 2022, 2.5 million people have already used tours with a partial refund, and more than 4 million in total during the period of this program).

In addition, in order to further intensify domestic tourism, Prime Minister Mishustin proposed extending the Pushkin Card program to all its types.

And this is in addition to grant support for another 800 initiatives of small and medium-sized businesses in the field of tourism, which the Mishustin government will provide by the end of the year!

As part of this program, which started in 2021, subsidies for 1.2 billion rubles have already received almost 500 projects for the creation of campsites, the arrangement of beaches and routes, the development of excursions.

In addition, for the development of tourism infrastructure, the Mishustin government sent about 4 billion rubles to 19 regions for the construction of prefabricated modular hotels; this year, thanks to this funding, 2,500 new rooms should already be created.

It seems that these efforts are designed to ensure not only economic development (it is clear that investments in the manufacturing industry create a greater added value than in tourism, construction and small, mainly service businesses), but first of all, the normalisation of the lives of significant masses of people, their reorientation to safe and comfortable rest inside Russia and the stabilisation of the socio-political sphere due to this.

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Mikhail Delyagin

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