Vladimir Putin proposed to maintain a 100% subsidy for labor market support in the Kaliningrad Region for another two years

22 / 04 / 20


Negotiations took place on Tuesday, April 21, combining the state residence of the head of state in Novo-Ogaryovo and Kaliningrad online.

Kaliningrad enterprises began to receive subsidies to support the labor market in 2016, when the so-called “transition period” ended in the region, in accordance with WTO rules, which provided a number of customs benefits for businesses. These payments are directed to the creation and maintenance of jobs, import substitution, the localization of assembly production, and generally to improve the socio-economic conditions in the region. Subsidies are the largest federal measure to support the exclave region: their amount is comparable to half of the regional budget revenues; up to one and a half hundred Kaliningrad enterprises receive such support annually.

Anton Alikhanov recalled that from this year begins a phased reduction in the amount of subsidies. According to authorities, such a decision threatens the stability of the business. In this regard, the governor suggested fixing a certain amount of already cut subsidies. This option will ensure the long-term stability of this support measure.

Vladimir Putin noted the great importance of subsidies for the Kaliningrad region. According to him, in recent years they have allowed to save 150 enterprises and 16 thousand jobs.

During the meeting, the President called the Minister of Finance Anton Siluanov, instructing him to discuss the proposal of Anton Alikhanov, and in addition, to maintain the previous payment mechanism for the region for another two years.

“Until the end of last year, we compensated Kaliningrad enterprises from the federal budget for one hundred percent of these expenses. Starting this year, it is planned to reduce these compensations by five percent a year: five percent in 2020, ten percent in 2021, and so on, right up to bringing it into line with the situation throughout the country. The governor asks to fix a certain stable part for the whole time and in this regard make an appropriate decision. You and the governor discuss this. But I think that at least it is necessary to extend the grace period for the next two years and in 2020, 2021 to compensate the Kaliningrad region for the costs associated with customs procedures in full, one hundred percent, as it was in previous years, ”the President said.

Also during the meeting, the parameters of financing the state program of the Russian Federation “Social and Economic Development of the Kaliningrad Region” until 2025 were discussed in the context of budgetary restrictions in connection with the coronavirus.

For reference:
Subsidies for labor market support were approved for the Kaliningrad Region by Russian Government Resolution No. 1275 in November 2014. In 2016, the first year of payments, the amount of subsidies transferred to enterprises amounted to 26 billion rubles, in 2017 - 49 billion, in 2019, enterprises thus received 56.7 billion rubles.

Based on materials https://gov39.ru/news/101/207445/

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