Russia's IDF to cut leasing rate for industrial equipment to 1% - Industry and Trade Ministry

MOSCOW. Aug 26 (Interfax) - The supervisory board of Russia's Industrial Development Fund (IDF) has expanded support under the Leasing Projects program by supplementing the list of industrial equipment that can be leased under the program and slashing the interest rate on it to 1% from the current 5%, the Industry and Trade Ministry reported after the board meeting.

"The IDF is actively financing manufacturers of machine tool products. The Development Projects program enables machine tool manufacturers to modernize production facilities and increase production, while the Leasing Projects program makes machine tools and industrial robots more affordable for consumers and stimulates demand for industrial equipment made in Russia," Industry and Trade Minister Anton Alikhanov was quoted as saying in the press release.

"In order to further stimulate Russian manufacturers, we decided to lower the rate under the IDF's Leasing Projects program to 1% if the goal is to acquire domestic industrial equipment," Alikhanov said.

The list of equipment eligible for the program was supplemented with a new group of products from the heavy machine-building sector. The ministry expects this will "make it possible for a broader range of companies to qualify for leasing support from the IDF."

The ministry also said it has confirmed a new IDF supervisory board for the next five years. Alikhanov, who became industry minister in May, was elected chairman to replace First Deputy Prime Minister Denis Manturov, who served as deputy prime minister and industry minister until May.

The IDF financed 1,655 industrial projects totalling about 550 billion rubles in the first eight months of 2024. Funds repaid to the IDF total 209 billion rubles and 769 loans were repaid in full.