Almost all woodworking products included in the list of goods eligible for transportation subsidies

The Ministry of Industry and Trade of the Russian Federation has announced the procedure for selecting Russian industrial enterprises eligible for receiving federally funded subsidies to compensate for the costs of transportation of industrial goods.

The rules were approved by Decree of the Government of the Russian Federation No. 1347 dated July 28, 2022, that suspends, until December 31, 2024, selection processes for the provision of subsidies pursuant to Decree of the Government of the Russian Federation No. 496 dated April 26, 2017.

According to the document, companies will be subsidized – until the end of 2024 – up to 80% of their costs of transportation of industrial products in accordance with the new compensation model that does not provide for ranking organizations and does not require to submit documents specifying target supply indicators in advance for participation in the selection, while allows for the possibility of using the services of international cargo transportation companies.

Starting from July 1, 2022, transportation subsidies are provided to enterprises of the timber industry as well and are applicable to all woodworking products except for the transportation of roundwood (HS Code 4403) and a small share of the sawn timber product range (less than 0.01% of all exports of sawn timber by volume in H1 2022, according to WhatWood’s data).

From the date indicated, the maximum subsidized value of transportation compensation will be increased from 11% to 25% of the cost of exported products for all industries. From the same July 1, 2022, the maximum amount of subsidy per organization will be 300 million rubles. As the Ministry of Industry and Trade informs, 8 billion rubles have been allocated for the implementation of the subsidy program in 2022.