Problematic issues of granting subsidies to business entities: Russian experience

Abstract

The subject of the paper is Russian the legal framework and law enforcement practice con-cerning granting subsidies to business entities.The purpose of the paper is to identify the legal problems of state support for small and medium – sized businesses by granting subsidies.The methodology of paper includes the formal logical interpretation of Russian legislation, systematization of the court practice concerning application of art. 15.15.5 (pt. 2) Code of Administrative Offences of the Russian Federation and other regulations.The main results and scope of their application. The legal basis of providing subsidies is characterized. The business support programs in Russia are analyzed. The author's ap-proach to the distinction between the concepts of "terms of granting subsidies”, “terms established when granting subsidies" and the "terms of using subsidies" is substantiated. The valid and invalid conditions for the granting of subsidies as well as the reasons for their return are proven. The results of research may be used as the basis of correction of Russian and foreign legislation concerning granting subsidies to business entities as well as step in future legal research in this sphere.Conclusions. Public authorities and local governments do not take into account differences between the terms "conditions for granting subsidies" and "conditions for the use of subsi-dies", unreasonably apply civil law norms to the rules for granting subsidies. Regional au-thorities do not effectively use the legal opportunities provided to them by the Federal leg-islator, as well as often allow the abuse of power.