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Russian government reallocates subsidies for small and medium businesses

After a review of provinces' applications for co-funding state support, the Economic Development Ministry drew amendments to the initial redistribution plan

MOSCOW, August 29 (Itar-Tass) - Russian Prime Minister Dmitry Medvedev signed an instruction to reallocate subsidies for small and medium businesses in 2013, including farms, the official government website reported.

Cabinet officials decided on reallocation on March 12, based on a number of small and medium-sized businesses registered in the region and the number of such regions. After a review of provinces' applications for co-funding state support, the Economic Development Ministry drew amendments to the initial redistribution plan.

The winners were 647 applications from 82 regions envisioning an allocation of 18 billion rubles.

"Reallocation has cut subsidies for Moscow and St. Petersburg by more than 698 million rubles and 644 million rubles, respectively, whereas subsidies for the Republic of Tatarstan and the Republic of Mordovia increased, respectively, by 568 million rubles and 425 million rubles," a government official said.

The government believes the move will boost the capitalization of regional programs to support small and medium business which, in turn, will increase the number of recipients of such support.

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