Russia's Ministry of Economic Development Completes First Round of Application for SME Securities Subsidy

Strategic Insights -

The Ministry of Economic Development of Russia has completed the acceptance of applications from small and medium-sized businesses as part of the first round of the program to subsidize the costs of placing securities on the stock exchange and investment platforms. This initiative, implemented in collaboration with the Bank of Russia, aims to support enterprises from the real sector that demonstrate a multiplier effect on the economy as a whole.

Key Takeaways:

  • A total of 14 applications from 13 Russian small and medium-sized businesses were submitted for consideration during the first selection under the program.
  • The share of small businesses that submitted applications is 70% of the total number of selection participants.
  • The applications were submitted by enterprises from various regions of Russia, including Moscow, Penza, Oryol, Chelyabinsk, and Nizhny Novgorod, as well as the Republic of Tatarstan and Krasnodar Krai.
  • Most of the applications were related to reimbursement of costs for the placement of bonds, with a total nominal volume exceeding 1.7 billion rubles.
  • The government support measures cover the entire range of business financing instruments, including crowdfunding platforms and the stock market.
  • The program allows companies to attract capital without regular payments, such as those associated with loans.
  • SMEs have placed bonds worth 32.2 billion rubles on the stock market alone since the beginning of the year.
  • Key conditions for receiving a subsidy include being included in the SME register, operating in priority sectors, and not being part of a group of companies with annual revenues exceeding 2 billion rubles.

Statistics:

  • 14 applications were submitted from 13 Russian small and medium-sized businesses.
  • 70% of the applications were submitted by small businesses.
  • The nominal volume of the bonds mentioned in the applications exceeded 1.7 billion rubles.
  • SMEs have placed 32.2 billion rubles worth of bonds on the stock market since the beginning of the year.
  • The government support measures cover the entire range of business financing instruments.

Sources:

  • Ministry for Economic Development of the Russian Federation (2023)
  • Bank of Russia (2023)
  • Tatyana Ilyushnikova, Deputy Minister of Economic Development of Russia (2023)
  • Mikhail Mamuta, member of the Board of Directors of the Bank of Russia (2023)