The government promises subsidies to Metals Companies

The government is ready to disburse 200 billion to employment of the workers of the inefficient metallurgical plants in 2014. This is twice as much as was spent on these purposes in the post-crisis 2009-2011. UC Rusal is the main proponent of the program. However, no concrete measures were taken to support the unprofitable production.

Yesterday senior vice-PM, Igor Shuvalov and vice-PM, Arcady Dvorkovich reported about the measures to support the metallurgy companies. The measures will be taken in compliance with the results of the meeting with Dmitry Medvedev conducted on November 25th. The government believes, an employment program for the dismissed workers must be adopted. “They say, it is necessary to release labour, as new equipment has been purchased and there is no demand for the large volumes of the products anymore”, Shuvalov specified the opinion of the metallurgists. As he reported, the owners of the company wanted “not to displace people” but let reeducate them, move and find them a new job or start running “their own business”. Totally, the governmental program of employment will amount to 200 billion RUR in 2014.