21 Nov 2022 11:01

Russia slashes funding for subsidized loans for systemic IT cos by 95%

MOSCOW. Nov 21 (Interfax) - The Russian government has again revised an order issued in April to allocate funding from the reserve fund to support Russian information technology companies in 2022, cutting funding for a second time.

Under the November 17 cabinet order, which was posted on the official website for legal information on Friday, funding for subsidizing loans for systemic accredited IT companies to bolster working capital will be slashed by more than 95% to 30 million rubles from 500 million rubles.

In addition, the amount of loans issued to IT companies in 2022 has been cut to 9 billion rubles from 20 billion rubles.

This is the second reduction of subsidies for low-interest loans for systemic IT companies since April. In September, the Cabinet cut such funding by almost 85% to 500 million rubles from 3 billion rubles. And the amount of loans to IT companies in 2022 was slashed to 20 billion rubles from the initial 54.5 billion rubles.

In addition, in September the government reduced funding for subsidized mortgage loans for employees of IT companies by two thirds to 500 million rubles from 1.5 billion rubles. This subsidy is provided through JSC DOM.RF to compensate banks for lost income on low-interest mortgages to workers in the IT sector.

Furthermore, the government voided a provision allocating 3 billion rubles to subsidize low-interest loans for digital transformation projects based on Russian IT solutions.