Government allows trade interventions on pharmaceuticals market

MOSCOW, May 7 (PRIME) -- The Russian government has extended the mechanism of trade interventions to pharmaceuticals and medical materials, according to a document seen by PRIME on Friday.

"The use of state reserves will be allowed for trade interventions in case of a sharp (20% or more) increase of prices for non-food goods in the regions. The order was signed by Prime Minister Mikhail Mishustin," the statement read.

To apply the mechanism, the regional authorities must turn to the reserve that would send a request to the Industry and Trade or the Healthcare ministries. If the response is positive, a government regulation is issued.

The government also pledged to subsidize some of exporters' costs of registration abroad, according to the statement. "The companies exporting pharmaceuticals and medical equipment will get access to the subsidies for certification of products on the foreign markets… The compensations will account for 80% of the foreign registration costs," the statement read.

The maximum sum amounts to 500 million rubles for certification of pharmaceuticals and 50 million rubles for the rest of the producers. The receivers are obliged to export for a sum at least 10 times higher than state support in five years for pharmaceuticals and three for medical devices.

Total budget support is expected at 540 million rubles in 2021, 2.47 billion rubles in 2022 and 4.32 billion rubles in 2023.

(74.5770 – U.S. $1)

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