The Russian government approved the allocation of budgetary allocations to the Ministry of Industry and Trade from its reserve fund to provide subsidies to light industry enterprises.
“The adoption of the draft order will provide incentives for the activities of entities in the light industry, implement an import substitution program, increase export potential, labor productivity, the level of automation and digitalization of industrial enterprises in the light industry,” the government’s website said on August 29.
In addition, subsidies will help maintain employment and achieve the targets of the state program for industrial development.
Russian Prime Minister Mikhail Mishustin announced on August 27 that the government will allocate 1 billion rubles to support the light industry.
In early June, Russian President Vladimir Putin supported the idea of limiting the purchases of imported light industry products by companies with the participation of state shares.
Putin acknowledged that during the pandemic, the demand for light industry products fell, and therefore, it is important to protect the interests of workers in the industry and preserve their income.