Processing Plants Start Working in Ulyanovsk Region

Governor Sergei Morozov announced this information during the meeting on regional development.


A government decree was signed under which such facilities will complete procurement requests, finish previously paid work and ensure continuous commodity chains at other enterprises. The enterprises will be able to ask only 25% of their employees to come to their workplaces. The entrepreneur must take all necessary safety and disinfection measures.

Sergey Morozov said, “Our task is to prevent the spread of the virus, but we also understand that we must do everything in our power to keep the positive economic climate, to prevent business from closing down and dismissing their employees, to ensure that people can receive their salaries. That is why we have made a critical decision to allow processing plants to work during this period, but only if they use all disinfection activities. We are working to develop a similar solution for several other industries and businesses. We will monitor implementation of all health requirements. If enterprises neglect them, we will make close them down again.”

According to the Governor's Decree pursuant to the President’s Decree On Declaring Non-Work Days, shopping centers and all trading facilities that do not sell essential goods or food, as well as beauty salons, baths, saunas and some production facilities have been closed in the region. Several businesses work under some limitations.

According to Ruslan Gainetdinov, Chairman of the Board of Ulyanovsk Region Entrepreneurship Development Corporation, special measures have been developed to support the business community in the face of the coronavirus pandemic. For example, they include a grace period for the principal amount of loan under the current agreements, refinancing of the existing loans for business activities worth up to 5 million rubles at the annual interest rate from 3 to 6% (only for self-employed entrepreneurs and SMEs), a grace period for the principal amount of existing loans issued within the regional Industrial Development Fund's programme, refinancing of existing loans used to purchase fixed assets at the annual interest rate of 6.5% (regional IDF programme), working capital loans at the annual interest rate of 6% issued under the regional IDF programme, loan modification programme in banks, provision of guarantees for credit liabilities and loan agreements.

Banks have decided to provide debt restructuring,  credit on wages and salaries at the interest rate of 0% (Sberbank, VTB) and loan repayment holidays for physical entities (Sberbank, Gazprombank, Rosselkhozbank, Alfa-Bank, Promsvyazbank, Venetzbank, VTB).

There is also a lease payment grace period for state-owned property. Other benefits include tax support, namely suspension of inspections, extension of reporting periods, suspension of disciplinary measures, regulation and postponement of bankruptcy, extension of tax and insurance payments and deadlines for property status tax declaration, reduction of insurance premiums from 30% to 15%, tax deferral of leases for real estate and reduced rates for insurance premiums.

Along with other support measures, the regional government made a decision to postpone lease payments for people working with State and municipal enterprises.

Additional measures to reduce rents for commercial premises were discussed at the meeting with the major leaseholders - heads of large trading facilities and industrial parks. “These are primarily infrastructure businesses that help to develop smaller ones. We are ready to meet the needs of landlords and review the rates for 2020, the new tax period and the property tax, which is within the region's competence. At the same time, we suggest a differentiated approach while taking into account the losses of each person. Thus, if the leaseholder's shortfall in income makes more than 80%, the benefit will amount to 100%; if it is between 50% and 80%, the benefit will equal 75%; if it is from 30% to 50%, the benefit will total 50%. At the same time, we ask landlords not to charge lessees during the ban on their activities and to provide 15% discount on rent until 31 December,”- explained Alexander Smekalin, Head of the regional Government.

The regional government is working to reduce benefits for the property and land tax (from 15 to 5%), tax rates of the Simplified Tax System (from 6% to 1%) and UTII rates (from 15 to 7.5%).

The full list of working and non-working business spheres, as well as support measures can be found on the special page of the regional website for entrepreneurs: