The Decree of the Government of the Russian Federation dated 22.06.2021 No. 959 introduced amendments to the Rules of granting subsidies from the federal budget in the form of property contribution of the Russian Federation to the public not-for-profit company for organizing an integrated system of municipal solid waste (MSW) management "Russian Environmental Operator" (REO). Such subsidy shall be provided for the purpose of financing the projects aimed at putting waste treatment and disposal facilities into commercial operation. The decree dd. 22.06.2021 No. 959 provides for expansion of support measures for MSW handling industry. The document grants REOs the right to invest in the development of waste treatment and recycling facilities through the mechanism of bond redemption.
Now companies investing in facilities for treatment and disposal of MSW will be able to issue their own bonds to raise funds to finance projects. And REO received the right to redeem these securities under certain conditions at the expense of the subsidy provided by the federal budget in the form of a property contribution. The maturity of the bonds will not exceed 10 years, the coupon rate (interest rate on bonds) - 3% per annum. The allocated funds are repayable. After the funds from one project are returned to REO, the company will reinvest them in the waste management industry to implement a new project on the same terms.
