Russian govt to allocate 20 bln rubles to development fund for preferential projects for machinery manufacturing, chemical industry, pharmaceuticals

MOSCOW. June 16 (Interfax) - Russia's Federal Industrial Development Fund (FIDF) will receive an additional 20 billion rubles from the reserve fund in 2025, Prime Minister Mikhail Mishustin said on Monday during a government meeting.

"An order has been signed to allocate 20 billion rubles to the Industrial Development Fund, which already has around 2,000 projects and 500 billion rubles in investments. The additional funds will be used to provide preferential loans to another 50 manufacturers," Mishustin said.

Enterprises in the machine manufacturing, chemical, metalworking, medical and biopharmaceutical industries will be the recipients of the preferential loans.

The government press service's report indicates that support for the projects should assist in attracting around 5 billion rubles in private investment.

President Vladimir Putin previously ordered the FIDF to be recapitalized annually by 50 billion rubles until 2030. The fund should be recapitalized by 300 billion rubles overall by 2030.

The FIDF was created in 2014 based on the Russian Fund for Technological Development for financing projects to manufacture high-tech products, substitute imports, lease equipment, digitalize production, and complete other projects. The fund provides targeted loans at 3% and 5% per annum for up to seven years totaling 5 million to 5 billion rubles. The FIDF jointly with regional industrial development funds also finances projects that require loans up to 200 million rubles.