WT/ACC/RUS/52
Page 51

World Trade
Organization / RESTRICTED
WT/ACC/RUS/52
25 May 2005
(05-2114)
Working Party on the Accession
of the Russian Federation / Original: English

Accession of the Russian Federation

Notification of Industrial Subsidies

Granted from the Federal Budget of the Russian Federation in 2002

The following submission is being circulated at the request of the Delegation of the Russian Federation.

______

WT/ACC/RUS/52
Page 51

A. TIMBER INDUSTRY

Granting of Means from the Federal Budget to Enterprises and Timber Industry Organizations for Making Inter-Seasonal Reserves of Timber, Raw Materials and Fire Wood.

1. Name of the Programme

Partial compensation from the federal budget of the expenses for interest charges under credits to timber industry enterprises for making inter-seasonal reserves of timber, raw materials, and firewood.

2. Reporting Period

Year 2002.

3. Purpose for Subsidy Granting

Making inter-seasonal reserves of timber, raw materials, and firewood.

4. Legal Framework

- Federal law No.194 of 30December2001 "On the Federal Budget for Year 2002" (Article73);

- Governmental Resolution No.616 of 22 August 2001;

- Governmental Resolution No.399 of 10 June 2002; and

- Governmental Resolution No.137 of 28 February 2002.

5. Form of Subsidizing

Partial compensation from the federal budget of the expenses for interest charges under credits received in the years 2001-2002 in Russian crediting organizations by timber industry enterprises for making inter-seasonal reserves of timber, raw materials, and firewood is exercised by granting subsidies monthly in the amount of one second of the refinancing rate (rate of discount) of the Central Bank of the Russian Federation valid on the date of credit receipt, provided that the charge for use of bank credits attracted by the organizations is not less than the amount of the subsidy granted.

6. Subsidized Enterprises and the Scheme for Subsidizing

Subsidies were granted to timber industry organizations, provided that they used the credit for the purposes mentioned.

36 enterprises were subsidized within this programme in 2002.

7. Subsidy to one product unit or in cases where it is not possible, the total sum or the annual sum of budget appropriation to such subsidy.

In total 20.641 million Rubles were appropriated within this programme.

Subsidy Recipient / Subsidy Amount (million Rubles) /
JSC "Siiysky Forestry Complex" / 0.136
JSC "Arkhangelsk TBK" / 1.471
JSC "Northern Timber Industry Partnership – Timber Farm No.3" / 1.051
JSC "Dmitrovsky Timber Industry Farm " / 0.034
LLC Timber Industry Company "Navlya" / 0.062
JSC "Cherepovets Furniture Plant" / 1.831
LLC "Nikolskles" / 0.306
JSC "Novatorsk Timber Industry Farm" / 0.348
LLC "Novatorsk Timber Processing Plant" / 0.300
JSC "Totmalesexport" / 0.244
JSC "Vologda Timber Chemical Plant" / 0.132
JSC "Vologdalesprom Corporation" / 0.523
LLC "Oudorales" / 1.593
JSC "Timber Industry Company Syiktivkar Timber Sewing and Processing Plant" / 0.177
LLC "Louzales" / 0.447
JSC "Tulabumprom" / 1.692
JSC "Kirovlesprom" / 1.609
LLC "Timber Exporting Company" / 0.499
LLC "Almis" / 0.930
JSC "Louzsky Timber Industry Plant" / 0.198
JSC "Mialskles" / 0.262
LLC "Timber Industry Complex" / 1.433
JSC "Ivanovomebel" / 0.298
JSC Timber Farm "Nauchlesprom" / 2.035
JSC "Interior" / 0.224
JSC "Trading House "Orgkhim" / 0.163
JSC "Lesinvest" / 0.503
JSC "Toumen Plywood Plant" / 0.487
JSC Timber Processing Plant "Krasny Oktyabr" / 0.747
LLC "Antsiferov Timber Processing Plant" / 0.523
LLC "Alatyir Paper Factory" / 0.031
JSC "Cheboksary Furniture Factory" / 0.014
LLC "PRESS" / 0.050
LLC "Sosnovsky Plant" / 0.031
JSC "Novoyeniseisk Timber Factory" / 0.119
JSC "Oleninsky lespromhoz" / 0.138

8. Period of Subsidy (Programme) Validity

Year 2002.

9. Statistical Data to Enable to Assess the Impact of Subsidy on Trade

No data.


B. TEXTILE INDUSTRY

Partial compensation of the expenses for interest charges under credits received from Russian crediting organizations.

1. Name of Programme

Partial compensation from the federal budget of the expenses for interest charges under credits to light and timber industry enterprises for making seasonal purchase of raw materials and materials for production of consumer goods, technical and industrial goods.

2. Reporting Period

Year 2002.

3. Purpose for Subsidy Granting

Seasonal purchase of raw materials and materials for production of consumer goods, technical and industrial goods.

4. Legal Framework

- Federal law No.194 of 30 December 3001 "On the Federal Budget for Year 2002" (Article73);

- Governmental Resolution No.616 of 22 August 2001;

- Governmental Resolution No.399 of 10 June 2002;

- Governmental Resolution No.137 of 28 February 2002.

5. Form of Subsidizing

Partial compensation from the federal budget of the expenses for interest charges under credits received in the years 2001-2002 in Russian crediting organizations by light and textile industry enterprises for production of consumer goods, technical and industrial goods was exercised by granting subsidies monthly in the amount of one second of the refinancing rate (rate of discount) of the Central Bank of the Russian Federation valid on the date of credit receipt, provided that the charge for use of bank credits attracted by the organizations is not less than the amount of the subsidy granted.

6. Subsidy Recipients and the Way Subsidies Were Granted

Subsidies were granted to timber industry organizations, provided that they used the credit for the purposes mentioned.

56 enterprises were subsidized within this programme in 2002.

7. Subsidy to one product unit or in cases where it is not possible, the total sum or the annual sum of budget appropriation to such subsidy.

In total 24.5 million Rubles were appropriated within this programme:

Subsidy Recipient / Subsidy Amount (million Rubles) /
JSC "Novy Mir" / 0.7
JSC "Techotkani" / 0.7
JSC "Tver Manufacturing" / 0.3
JSC "Slavia Textiles" / 1.22
JSC "Gavrilov-Yamsky Flax Factory" / 0.04
LLC "Rouslana" / 0.6
UME "Yartsevsk Cotton Factory" / 0.04
JSC "DON-TEX" / 0.84
JSC "Zalesye" / 0.43
JSC "Textiles firm "Oka" / 0.98
JSC "Weaving Factory "Avangard" / 0.6
JSC "Shuisky Cottons" / 0.85
JSC "Voskresensk-Tehnotkan" / 0.96
JSC "Vyisokovsky Textiles" / 0.13
JSC "Tryohgorny Manufacture" / 0.63
JSC "Nyitkan-Pokrovsk" / 0.5
LLC "Urals Yarn" / 0.22
JSC "Khasimov Net-knitting Factory" / 0.42
JSC "Cuvorovskaya Thread" / 0.83
JSC "Ivanteev Knitted Wear" / 0.2
LLC "Yurupinsk Knitted Wear" / 0. 05
LLC "Urals Cloths" / 0.2
JSC "Rodniki-Denim" / 0.5
JSC "Reutov Manufacture" / 0.2
JSC "Corporation "Cheboksary Cotton Factory" / 0.1
JSC "Iskozh" / 0.1
JSC "Ionessi" / 0.5
LLC "Pobeda" / 0.45
JSC "AK "Chaika" / 0.1
JSC "Bolshevichka" / 0.9
LLC "Toumen Furs Factory" / 0.2
JSC "Angarsk Knitting Factory" / 0.12
JSC "Parizhskaya Kommuna" / 0.72
LLC " Knitting Enterprise "Shuttle" / 0.31
JSC "Artificial Leather Plant" / 0.14
JSC "Tula Knitted Wear" / 0.11
JSC "Leather" / 0.2
JSC "Leather-Service" / 0.4
JSC "Unichel" / 0.5
JSC "Morocco leather" / 1.3
JSC "Spartak" / 0.52
JSC "Yegorievsk-Shoes" / 0.4
JSC "Chrom" / 1.24
LLC "Union of Manufacturers of Vakhrushevo" / 0.33
JSC Vakhrushi-Yuft" / 0.53
JSC "Leather-M" / 1.0
LLC "Kursk Leather" / 0.9
JSC "BOKOZ" / 0.2
JSC Kalita" / 0.42
JSC "Yuzhuralkozha" / 0.07
LLC "Knitting Factory "SAR" / 0.007
JSC "Knitting Factory "SAR" / 0.009
LLC "Shevro" / 0.144
JSC "Russian Leather" / 0.5
LLC "Sloboda Furs Enterprise "Belka" / 0.2
JSC Birobyidzhan Factory "Victoria" / 0.24

8. Period of Subsidy (Programme) Validity

Year 2002.

9. Statistical Data to Enable to Assess the Impact of Subsidy on Trade

No data.


C. ARTS AND CRAFTS

Preservation, Revival, and Development of Arts and Crafts in Russia

1. Name of Programme

Preservation, Revival, and Development of Arts and Crafts in Russia.

2. Reporting Period

Year 2002.

3. Purpose for Subsidy Granting

Preservation, Revival, and Development of Arts and Crafts in Russia.

4. Legal Framework

- Federal law No.194 of 30 December 2001 "On the Federal Budget for Year 2002" (Sort of expenses 290, Section 0700, Subsection 0705, Article 309);

- Federal law No.7-FZ of 6 January 1999 "On Arts and Crafts" (Article 4, paragraph1); and

- Decree of the President of the Russian Federation No.1987 of 7October1994 "OnMeasures of State Support of Arts and Crafts", paragraph 3;

Regulations on Subsidizing Organizations Involved in Arts and Crafts (approved by Ministry of Industry and Science of the Russian Federation Order No.115 of 14 March 2001).

5. Form of Subsidy Granting

Subsidies were granted on covering of expenses for electrical power and 50percent tariffs for shipment of manufactured goods by railway in the territory of the Russian Federation.

6. Subsidy Recipients and the Way Subsidies Were Granted

Subsidies were allocated by the Ministry of Industry, Science and Technologies of the Russian Federation to organizations (legal entities) involved in arts and crafts manufacture and producing goods of recognized artistic quality.

In 2002, 15 enterprises enjoyed support from the federal budget.

7. Subsidy to one product unit or in cases where it is not possible, the total sum or the annual sum of budget appropriation to such subsidy

In total 16.9 million Rubles were appropriated within this programme:

Subsidy Recipient / Subsidy Amount (million Rubles) /
JSC "Artistic Ceramics" / 0.6
JSC "Kislovodsk China-Phenix" / 1. 9
JSC "Accord". Voronezh region / 0.2
JSC "Works of Verbyilyk" / 1. 6
JSC "Semyonovskaya Painting" / 0.07
JSC "Khohloma Painting" / 2.8
JSC "Pavlov Plant of Kirov Artistic Metal Works" / 3.63
JSC "Olevs" / 0.09
JSC "Oryolkeramika" / 0.4
Manufacturing Factory "Завод "Pskov Potter" / 0.8
JSC "Tile" / 0.41
JSC "Aksinya" / 1.4
JSC "Skopinsk Artistic Ceramics " / 1.7
JSC "Artistic Works" / 1.22
LLC"Stone Belt" / 0.08

8. Period of Subsidy (Programme) Validity

Year 2002.

9. Statistical Data to Enable to Assess the Impact of Subsidy on Trade

No data.


D. FEDERAL SPECIAL PURPOSE PROGRAMMES

Programme I

Federal Special Purpose Programme "Modernization of the Transport System of Russia"

1. Name of Programme

Modernization of the Transport System of Russia ".

The programme comprises the following sub-programmes:

- "Railway Transport";

- "Motor Roads";

- "Civil Aircraft";

- "Single System of Organization of Air Traffic";

- "Maritime Transport";

- "Internal Waterway Transport";

- "Internal Waterways";

- "Reformation of Passenger Public Transport";

- "Road Traffic Safety";

- "Informatization"; and

- "International Transport Corridors".

2. Reporting Period

Year 2002.

3. Purpose of Subsidizing

Raising Balance, effectiveness, and safety of the transport system which ensured vital national interests of the Russian Federation.

4. Legal Framework

Federal law No.194 of 30 December 2001 "On the Federal Budget for 2002";

Resolution of the Government of the Russian Federation No.848 of 5December2001 "OnFederal Special Purpose Programme "Modernization of the Transport System of Russia (2002-2010)".

5. Form of Subsidizing

The Programme was implemented on the basis of state contracts (agreements), concluded in the established procedure with all executers of the activities envisaged by the programme who were determined on the competitive basis.

6. Subsidy Recipients and the Way Subsidies Were Granted

The sub-programmes were carried out by enterprises, organizations and transport institutions and related branches of economy which were determined on the competitive basis under the federal law "On Tenders for Placement of Orders for Delivery of Goods, Performing of Works, Rendering of Services for State needs".

Works for the sum of 149.9 billion of Rubles were performed under the sub-programme "Motor Roads". In 2002 works were continued on the building of Chita-Khabarovsk motor road, the circular motor road belting Saint Petersburg, "Don" motorway, "Kavkaz" motorway, Adler-Krasnaya Polyana motor road and others.

A number of activities for the sum of about 13.0 billion Rubles were performed under subprogramme "Civil Aviation" in 2002. Eleven aircrafts were delivered to air carriers of Russia for the period of one year. For the reporting period works on the reconstruction of landing strips in 14 federal airports were carried out, 4 air terminal complexes were built and reconstructed. Launched were landing strips in the airports of Yakutsk, Magadan, air terminal sector in the airport of Naltchik.

About 1.2 billion Rubles were spent under subprogramme "Single System of Organization of Air Traffic". The works were financed at one’s own expense. In 2002 launched were 3second radar sets in the airport of Komsomolsk-na-Amure, 3 peripheral ground satellite stations in the cities of Krasnoyarsk, Irkutsk, Khabarovsk, and 1 central station in Moscow as well as a number of other objects.

The factual spending at the expense of all sources of financing under subprogramme "Maritime Transport" for one year was estimated at 22.0 billion Rubles, 8.0 billion Rubles was spent on waterside objects, and 14.0 billion Rubles on deliveries of sea vessels. One of the primary objectives was to ensure financing of the completion of construction of the nuclear-power ice-breaker named "50 Years to Victory". Launched was the first line of the railway ferry complex in the international trading port of the city of Makhachkala.

Works on 48 objects of the main waterways were performed under subprogramme "Internal Waterways" for one year. About 1,0 billion Rubles of capital investments were spent. Completed were works on the Volga-Baltic waterway, launched were gates No.3 in the western way of the Perm floodgate.

Works on the construction and modernization of "sea-river" vessels, on the construction of barges, on technical modernization of Uyst-Donetsky and Azovsky ports were performed under subprogramme "Internal Waterway Transport". Furthermore, 50.0 million Rubles was spent on purchase of the fleet vessels. About 1.0 billion Rubles of non-budgetary investments was spent on implementing such activities.

Methods and means of automatic monitoring of the conditions and parameters of traffic were developed and implemented under subprogramme "Road Traffic Safety". Elaborated was the project-estimate documentation for the development of the "Start" automatic system of the road traffic management to be implemented in Moscow. Started were works on the construction and assembly of the launching complex. 41.5 million Rubles was appropriated for the mentioned activities from the federal budget. In 2002 the general volume of financing under the subprogramme equalled 2.0 billion Rubles.

19.0 billion Rubles was spent under subprogramme "Reformation of Passenger Public Transport" in 2002. The sum was mainly appropriated from budgets of the subjects of the Russian Federation. 12 thousand means of transport were launched into use as a result.