President Vladimir Putin announced a new package of measures to support Russia’s businesses hit by the economic fallout of the coronavirus pandemic Wednesday.
In the Russian president’s fourth televised address to the nation in as many weeks over the coronavirus pandemic, he promised direct financial support to businesses hit hardest by the nationwide lockdown, including small and medium-sized businesses and airlines.
The new measures include:
- State payments of 12,130 rubles ($160) per month to small and medium-sized businesses for every employee in April and May, provided firms maintain 90% of their workforce.
- A package of 200 billion rubles ($2.6 billion) of support for regional budgets from the federal government.
- Government support worth at least 23 billion rubles ($307 million) for airlines.
- Reforms to the government-backed cheap loans system which has also been criticized, with businesses and consumers reporting high refusal rates and difficulty accessing credit.
The president has previously come under fire from economists and business leaders for not offering a comprehensive support package for businesses sooner, as Russia is now in the third week of a national shutdown which has shuttered most non-essential shops, restaurants and other businesses.
Putin also called for the government to complete a list of companies deemed “systemically important” to the Russian economy, which would then be eligible for further direct support from the state. The list currently has 646 of the country’s largest companies, accounting for the majority of the Russian workforce.
Earlier this week, Putin warned that Russia’s coronavirus situation is worsening, saying “the number of people who are getting sick is increasing, with more cases of severe illness.” In previous addresses, Putin enacted a nationwide “non-working” period to slow the spread of the virus and announced some measures to support businesses but delegated most decision-making authority to regional officials.