Russian Economy to Gain Strong Support

Russian Economy to Gain Strong Support


Another set of measures to support the economy, citizens and businesses in conditions of external sanctions was approved before the meeting of the government committee.

The Cabinet of Ministers has already put these measures into the action plan, which will be adjusted as necessary.

Russian Prime Minister Mikhail Mishustin said that based on the current events, the Russian authorities are primarily preparing measures to support the economy and citizens on a systemic basis. Those bills that affect the regulation of exports, imports, capital amnesty, as well as the work of joint stock companies and the hotel segment in one way or another are also included in the second anti-crisis package.

As for the most important strategic sector of urban planning, not only the documentation will be simplified, but also lands will be allocated to developers on an accelerated scheme.

The initiative to preserve the fleet of foreign aircraft and nationalization of foreign companies that decided to leave Russia in protest against the special operation in Ukraine are also worth noting. Thus, Mishustin promised to keep the fleet of foreign leased aircraft, stressing that this can be done in the only way by nationalization. According to Russian Prime Minister, if it takes place with compensation for the residual value of the aircraft (for example, at the expense of frozen funds of the Central Bank abroad), it will be possible to restore flights of Russian citizens abroad.

As for the possible seizure of the aircraft claimed by the lessors, unfortunately, there is a possibility that these airliners will be distrained at foreign airports as retaliatory steps.

The aforementioned anti-crisis package of measures also includes a bill that allows nationalization of the property of companies that decided to leave Russia. The external management in organizations where foreigners own more than 25% will now be introduced in court. This will allow not only to save the jobs, but also to prevent bankruptcy. So far, the majority of foreign companies have announced the suspension of work for an indefinite period.

For those citizens who keep their money in banks, charging tax will be abolished not only for 2021, but also for 2022. Earlier, deposits of over 1 million rubles ($9,552.7) was planned to be taxed at a rate of 13%. Now, after the increase of the key rate by the Central Bank, the interest on deposits has been increased, which will encourage Russians to return the money withdrawn from deposits back to the bank. The interest on foreign currency deposits have been also raised at times, but now citizens can withdraw a limited amount of money from them and only in dollars.

During the session of the presidium of the governmental commission Mikhail Mishustin underlined that the total volume of financing is estimated approximately in 1 trillion rubles, and a number of planned measures are to be realized till the end of March.

Putin Announces Additional Measures to Support Russians Under Sanctions Costly Sky of Russia