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Ministry of Industry and Trade Prepares New Subsidy Mechanism for Drug Development

Russia’s Ministry of Industry and Trade has prepared a draft resolution introducing a new procedure for granting subsidies to Russian organizations conducting research and development projects in advanced technologies. The mechanism is aimed at supporting innovative industrial projects, including the development of substitute medicinal products. Subsidies are expected to be awarded on a competitive basis under the state program “Scientific and Technological Development of the Russian Federation.”

A separate section of the draft is devoted to pharmaceutical projects focused on the development of substitute medicines. For such projects, subsidies may cover up to 100% of R&D costs, including preclinical and clinical studies, development of active pharmaceutical ingredient production technologies, and obtaining marketing authorization. The maximum support amount is set at 100 million rubles for biological medicines and 50 million rubles for other medicines.

The draft provides for the creation of an interagency commission under the Ministry of Industry and Trade. The commission will determine the list of advanced technologies and substitute medicines, as well as the parameters of competitive selection and support conditions. It will include representatives of federal authorities, including the Ministry of Health and Rospatent.

The expected outcome of the subsidy should be the launch of serial production of innovative products or confirmation of a full-cycle drug manufacturing process in Russia and the EAEU.

For industrial R&D projects, subsidies may cover up to 70% of project costs, while companies will be required to attract extra-budgetary financing amounting to at least 50% of the state support received. The maximum subsidy period will be three years.

The funds may be used for material costs, employee salaries, rental of equipment and premises, registration of intellectual property results, production of pilot batches, testing, and the engagement of third-party organizations.

In September 2025, the Ministry of Industry and Trade proposed a separate support mechanism for pharmaceutical companies focused on completing clinical trials and registering original medicines. At that time, the program was expected to receive 1 billion rubles in 2027, with subsidies of up to 250 million rubles per project. Unlike the new draft, that initiative focused specifically on original medicines and required companies to generate revenue within three years of market launch at least twice the amount of state support received.

Source: Vademecum, May 13, 2026.

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