Finnvera provides subsidy for business development in Russia
Despite slow economic growth in Russia, Finnish companies have actively sought project subsidy offered by the Ministry of Employment and the Economy. Applied for through Finnvera, project subsidy was granted to some thirty companies in 2013.
The increased interest of Finnish companies is evident in the constantly rising number of project subsidy applications. Last year, 30 companies were granted subsidy, with a total of over 200 companies receiving subsidy since the beginning of 2003. The aid granted by the Ministry of Employment and the Economy is intended to provide support for SME internationalisation projects in Russia. Finnvera serves projects in an advisory capacity and support is applied for through Finnvera. In the final supplementary budget of 2013, Finnish Parliament made an allocation, which can be used to fund 30-40 new projects in 2014.
"Project subsidy has turned out to be a very functional form of support," explains Timo Pietiläinen, Head of Finnvera's Representative Office in St. Petersburg. "Approximately half of the companies that received the subsidy over the past two years have gone on to start up production or establish a representative office in Russia," he continues.
Finnish SMEs can apply for subsidy to finance preliminary studies for establishment projects aimed at Russia, such as market or competition analyses, or actual feasibility studies, as well as, for example, the drafting of a business plan. Subsidy can also be granted to cover specialist services or the training of Russian employees during the start-up phase. The subsidy amount can be no more than half of a project's total costs.
"The goal of these projects should be to launch production or service operations in Russia – in other words, the subsidy can't be used only for the promotion of exports," explains Pietiläinen.
Further information:
Head of Representative Office in St. Petersburg Timo Pietiläinen, Finnvera plc, tel. +7 921 0969 304
Financing Manager Jari Mehto, Finnvera plc, tel. +358 29 460 2536
