New Mechanisms are Being Developed to Support Digitization

16 august 2019

"Today we're discussing how to select projects to be included in the preferential debt financing program for infrastructure digital technologies that the Ministry of Communications is launching. The requirements for borrowers were set out in the draft government resolution but it's also important that we set out requirements for projects because the demand for this measure in this market is going to depend on it," said Tatiana Radchenko, deputy head of the Analytical Center, as she opened a round table on preferential debt financing for infrastructure digital technologies and requirements for project selection.

This support measure is being developed as part of the Digital Technologies federal project of the Digital Economy of the Russian Federation national program.It aims to insure that authorized banks offer loans at discounted rates to projects that seek to develop and introduce domestic products, services and platform solutions that utilize one or several infrastructure digital technologies in accordance with the road maps for said technologies.

According to the Deputy Head of the Department for Coordination and Implementation of Digital Economy Projects of the Ministry for Communications Aleksey Galuzhin, the preferential debt financing mechanism is in great demand in both the industry and among the banks and at the moment it is vital that this support measure starts functioning as soon as possible.

During the round table, Andrey Chukarin, Head of the Project Monitoring and Implementation Block of the Department for Digital Technologies of the Analytical Center, presented a project selection model, i.e. a document processing procedure aimed at using debt financing and key selection criteria. One such criterion is that the project must target a priority sector of the economy as per May 7, 2018 Presidential Decree No. 204 or the list of priority sectors of the economy corresponding to the road maps for the development of infrastructure digital technologies in which the share of the applicant's equity must be at least 20%, the technology being introduced must have at least UGT7 level of readiness for use as per the GOST R 58048-2017 scale etc.

Primary expert review of projects shall be carried out by the Analytical Center. A website is to be launched where applicants will be able to check whether or not their projects meet all the requirements.

Round table participants, representatives of federal executive bodies, major Russian companies, leading financial institutions, industry associations, the research and business communities, discussed the proposed project selection criteria and made proposals for how to improve them.