The Russian government is set to introduce a special procedure for financing the country’s defence industry during the current financial crisis, Russian deputy prime minister Dmitry Rogozin told a meeting of defence industry leaders on 18 March.
Rogozin said that a new system to help support defence industrial companies repay long-term loans was in progress, partly due to the changes in lending rates by banks. Exact details of the potential scheme were not revealed. However, prior to sanctions being imposed in 2014, interest rates for commercial loans had been in the region of 10-10.75%. This has since increased to 20-35%, as both defence companies have been placed under sanction and present an increased lending risk, and also as banks have been targeted to prevent lending.