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Approved Rules For Subsidizing "Green Bonds"

Subsidies to industrial enterprises and the fuel and energy complex will be provided within the framework of the federal project “Implementation of the best available technologies” of the national project “Ecology”. 

The Government of the Russian Federation approved a resolution on the rules for granting subsidies to Russian organizations for reimbursement of expenses for paying coupon income on bonds issued as part of investment projects to introduce the best available technologies (Resolution No. 541 of April 30, 2019). 

The purpose of the new mechanism is to support projects on the modernization of environmental protection and basic technological equipment as part of the transition of enterprises to the best available technologies (BAT).

Subsidies are provided in the amount of 70% of the actual costs incurred for the coupon payment. In the case of the acquisition of Russian industrial equipment, 90% of the company's expenses are subsidized. 
The total value of the bond issue should not exceed 30 billion rubles. 

Enterprises that have placed bonds after an investment project implemented as part of an environmental efficiency improvement program previously approved by the Ministry of Industry and Trade of the Russian Federation after January 1, 2019 can take part in the support program. After receiving financing for the placed bonds, the consumer enterprise BAT buys the equipment and begins to pay a coupon yield under the bond loan. In turn, the Ministry of Industry and Trade of Russia subsidizes the interest rate on actual payments of coupon income. 

Subsidizing "green bonds" is an additional incentive measure for implementing a large-scale technical re-equipment program and attracting investments in fixed capital. The new support program potentially covers more than 7,000 industrial and fuel and energy companies. The amount of funds allocated for its implementation is 9.3 billion rubles in 2019-2021

- commented the deputy head of the Ministry of Industry and Trade of Russia Vasily Osmakov.

 

 

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