State Duma approves prolongation of RF Government Decree No 383 through 2019

Federal Law “On federal budget 2018 and planned period of 2019 and 2020” which State Duma has passed in the third reading today provides for prolongation of RF Government Decree No 383 on granting subsidies to Russian shipping companies to compensate their expenses under loan and leasing agreements (with Russian organizations) for construction of civil ships. According to the official website of the State Duma, the Decree is to be extended through 2019. 

The package of state measures to encourage ship owners renovate their fleet also includes the utilization grant mechanism which has come into effect this year.  

As of today, ship owners can select only one measure implying direct subsidies: either recovery of expenses for construction of ships under loan or leasing agreements (Decree No 383) or ship utilization grant. Integration of both subsidies under one project is not possible so far. Therefore, the industry considers it important to have a Decree allowing using several state support measures at different phases of ship construction and financing.