GAZ Group will receive a subsidy of 8.6 billion rubles until 2021

GAZ Group will receive a subsidy of 8.6 billion rubles until 2021


 

Autostat.- The Ministry of Industry and Commerce will propose to increase the support for GAZ Group, which is subject to US sanctions, on behalf of the president. 8.6 billion rubles may be allocated for the company as a subsidy for interest rates on loans from the budget until 2021, 3.3 billion rubles of which will be available in 2019. GAZ had applied to the government for a subsidy of 9.5 billion rubles in spring, in order to use the fund for the payment of interest rates on loans amounting to 66.6 billion rubles, being unable to operate under the sanctions. The current budgeted amount is below the request of GAZ, however, the funding for 2020-2021 can still be adjusted.

Previously, GAZ gave up plans to switch to a four-day working week, ahead of a possible capacity fulfilment of the enterprise due to state orders. As stated by the Ministry of Industry and Commerce, Gorky Automobile Plant and Pavlovsk and Kurgan bus factories have been identified as the exclusive suppliers of ambulances and school buses in the Russian Federation in 2019, by the government order dated 3 September. GAZ Group will provide the regions with 789 ambulances in the monetary value of approximately 2.4 billion rubles until the end of the year, along with more than 1000 school buses, worth 1.7 billion rubles. PAZ, on the other hand, has taken on the production of 938 school buses (almost 2 billion rubles) and KAVZ another 113 school buses (586 million rubles). The purchases sum up to 6.6 billion rubles in total.