Russia buisness development

12.08.2021

How SEZ administration together with Russian state and regional Government support people and business during the Covid-19 crisis?

How SEZ administration together with Russian state and regional Government support people and business during the Covid-19 crisis?
How SEZ administration together with Russian state and regional Government support people and business during the Covid-19 crisis? In 2020 in order to minimize the consequences of the new coronavirus infection the Government of the Kaliningrad region implemented a plan of priority measures to ensure sustainable development of the economy of the Kaliningrad region as part of which is comprised from residents of the Special Economic Zone (SEZ). We are continuing to develop and implement different measures in 2021. Among the key measures of the Plan is the soft loan program, under which small and medium businesses (SME`s) and industrial enterprises in the affected sectors of the economy are able to receive loans at the annual interest rate of 0.1% to cover salary, rent and other urgent costs. As a result, 1 773 jobs were saved. Another loan program implies loans to restart business with 2% interest rate which will be fully covered by the Government if a company keeps 90% of pre-Covid staffing level. Also, specialized web page (https://covid.mbkaliningrad.ru/) with information on all support measures, and latest news and research on Covid-19 was created. At the same time a "hot line" for people and entrepreneurs on anti-crisis support measures was introduced. Statistics: 1) more than 8 500 calls received and processed; 2) more than 20 000 views oа support measures section of the web page; 3) more than 1 000 received and processed appeals (written and personal appeals); 4) more than 600 appeals processed through anti-crisis governmental chat. One more support measure was the provision of loans to support the labor market. This program provided an opportunity to obtain a loan up to 50 million rubles at the rate of 1% per annum for 7 years with the possibility to defer the payment of principal debt up to 3 years; the key criteria for approving a loan under this program was creation of new jobs. More than $5 million was allocated under this program. The Kaliningrad region was one of the first in the country to introduce direct subsidies to compensate priority expenses for small business - salaries and rental costs. One-time subsidy was granted to 2 825 microenterprises and individual entrepreneurs engaged in tourism, hospitality, catering, sports, additional education and consumer services. Since July 2020, another subsidy program was implemented, under which SME`s in the catering and hotel services sector received around $ 1 million, supporting 239 applicants. Also, following measures were implemented: 1. Several companies producing masks and gloves were subsidized. 2. A new loan program allowing not only SMEs, but also self-employed citizens who are not individual entrepreneurs (under a special tax regime - Professional Income Tax) to receive financial support. 3. Agro-industrial complex was granted around $3.5 million in subsidies. 4. In November 2020, additional measures were undertaken to support cinemas and event industry. Four applications SMEs in the area of film production and 92 applications from participants in the event industry received support. Overall, $ 17.5 million was allocated for the implementation of the Plan in the Kaliningrad region in 2020. Implementation of support measures will be continued throughout 2021.