The Ministry of Natural Resources asked the government for 30 billion rubles to prevent a garbage collapse

The Ministry of Natural Resources and the Russian Ecological Operator (REO) have asked the government to allocate 30 billion rubles to subsidize regional waste management operators who are on the verge of bankruptcy due to the coronavirus. The lack of support for companies, according to the ministry, will lead to a garbage collapse.

As Kommersant reports , the draft government resolution prepared by the Ministry of Natural Resources talks about providing non-repayable subsidies to regional budgets and banks so that from April 1 they can cover losses and non-payments on loans from regional municipal waste management operators. The Ministry of Natural Resources believes that this will allow companies to continue operating during the difficult economic situation and the coronavirus pandemic.

The department notes that due to the quarantine, the amount of waste has increased and non-payments for garbage removal are expected to increase. The work of regional operators is also negatively affected by low tariffs, which do not allow them to recoup their investments. 17 companies in 10 regions faced the threat of bankruptcy.

The draft resolution does not indicate the amount of subsidies, but at a meeting with industry Deputy Prime Minister Victoria Abramchenko, the Ministry of Natural Resources and the REO requested 30 billion rubles. The Ministry of Economy stated that such a request is unfounded, since the work of regional operators generally justifies itself.

Kommersant notes that the first reports of economic problems of regional operators appeared at the beginning of the year and are explained by the inability of officials to create effective regulation and a competitive waste management industry.