The Russian government has expanded the list of projects of top priority aimed to ensure technological sovereignty and the structural adaptation of the Russian economy. It includes investment projects that align with the Northern Sea Route development plan through 2035.
Up-to-date technological sovereignty project areas include the production of composite materials, as well as initiatives related to the creation of year-round resorts on the Baltic, Azov, Black, Caspian, and Japanese seas, as well as Lake Baikal (no Arctic seas-related resorts yet).
The corresponding government decree also broadens the range of financial instruments available for these technological sovereignty and structural adaptation projects. These include bonds issued specifically for project financing and loans for leasing companies purchasing products from manufacturers in priority project areas.
To date, the total cost of Russian technological sovereignty projects has reached 977.6 billion rubles (9.984 billion dollars). A total of 27 projects have been selected for financing by commercial banks and VEB.RF (the State Development Corporation), with seven projects valued at 225.8 billion rubles funded with VEB.RF credit resources.
For reference: VEB.RF (formerly the Bank for Foreign Economic Affairs until 2018, and before that, the Foreign Trade Bank of the USSR) is a Russian state development corporation providing financing for socio-economic projects and is the leading development institution in Russia.
In April 2023, the government approved 13 thematic sections of priority technological sovereignty and structural adaptation projects, including oil and gas machinery, tool-making, shipbuilding, energy, and more. Priority sectors feature industries where the localization rate currently stands below 50 per cent, as well as critical industry directions necessary for ensuring technological sovereignty. These projects can expect a special approach from banks when approving loans, with reduced interest rates and guarantees provided by VEB.RF.
Commenting on the decision at a meeting with deputy prime ministers on November 11, Russian Prime Minister Mikhail Mishustin highlighted that the existing mechanism has proven effective, with funding of nearly 980 billion rubles (nearly 10 billion dollars) under its framework.
Source: Port News.
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