IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 12 Mar 2013 | Removal date: 11 Aug 2013
Still in force

Financial grant

On March 12, 2013, the Russian Government approved with Resolution No. 341 the disbursement of subsidies from the 2013 federal budget to selected subjects of the Russian Federation (republics and regions). The disbursement amounts to RUB 15.20 billion (USD 489.06 million). The provision of these subsidies (see related GTA measure Nr 4162below) is part of the sub-programme "Development of the crop sub-sector, processing and marketing of Crops" of the state program for development of agriculture in the period 2013-2020 (Agricultural Programme 2013-2020). This state aid belongs to the so-called 'decoupled' support for crop producers. 'Decoupled subsidies' is a key concept, introduced by the Agricultural Programme 2013-2020. Within this concept, subsidies will support farmers' income in general, without being linked to any production performance indicators. The introduction of this new concept is necessary, because the WTO rules forbid direct subsidies of supply of agriculture-related goods (chemicals, fertilisers, seeds, fuel) to farmers, which was a common practice in the Russian agricultural policy in the period 2008-2012. The new approach of subsidies' allocation is based on general indicators such as:
 

  • minimum subsidy per one hectare of arable land;
  • coefficient of the level of intensity of use of the sown area;
  • share of sown area as a percentage of the total;
  • indicators of soil fertility.

 
The decoupled subsidies for support of crop producers are allocated to Russian farmers (except for private households) through the budgets of the subjects of the Russian Federation. Their purpose is to reimburse expenses of the Russian farmers related to plant protection, some soil fertility, environment safety, and agro-technological activities.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

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