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WTO Documents Online WORLD TRADE RESTRICTED WT/ACC/RUS/52 25 May 2005 ORGANIZATION (05-2114) Working Party on the Accession Original: English of the Russian Federation 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 2 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 30 December 2001 "On the Federal Budget for Year 2002" (Article 73); - 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 Amount Subsidy Recipient (million Rubles) JSC "Siiysky Forestry Complex" 0.136 JSC "Arkhangelsk TBK" 1.471 JSC "Northern Timber Industry Partnership – Timber Farm No. 3" 1.051 WT/ACC/RUS/52 Page 3 Subsidy Amount Subsidy Recipient (million Rubles) 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. WT/ACC/RUS/52 Page 4 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" (Article 73); - 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 Amount Subsidy Recipient (million Rubles) JSC "Novy Mir" 0.7 JSC "Techotkani" 0.7 JSC "Tver Manufacturing" 0.3 WT/ACC/RUS/52 Page 5 Subsidy Amount Subsidy Recipient (million Rubles) 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 WT/ACC/RUS/52 Page 6 8. Period of Subsidy (Programme) Validity Year 2002. 9. Statistical Data to Enable to Assess the Impact of Subsidy on Trade No data. WT/ACC/RUS/52 Page 7 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, paragraph 1); and - Decree of the President of the Russian Federation No. 1987 of 7 October 1994 "On Measures 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 50 per cent 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 Amount Subsidy Recipient (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 WT/ACC/RUS/52 Page 8 Subsidy Amount Subsidy Recipient (million Rubles) 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.
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