Global Trade Alert

On 6 February 2016 the Russian Government approved Resolution No. 171-p. It forms part of the State Programme for Development of Agriculture and Regulation of the Markets of Agricultural Products, Raw Materials and Food for 2013-2020 ('the programme').
 
Resolution No. 171-p allocates 12.6 billion Russian Roubles (ca. 165.26 million USD) to 79 subjects (top administrative units) of the Russian Federation (without specifying their end beneficiaries). The subsidies under Resolution No. 171-p are to co-finance the expenditure of the regions of the Russian Federation, related to reimbursement of interest due payments on investment credits which target the development of crop production, as well as the related to it processing activities, infrastructure and logistics.
 
Resolution No. 171-p does not specify under the framework of whichsub-program of the programme the subsidies are to be granted. However,it may be expected they to be allocated as part of the sub-programme"Development of the sub-sector of crop production, processing andmarketing of crop production" of the programme. Therefore, thisparticular sub-programme has been used for the calculation of theaffected tariff lines. Concretely, the expected direct result of this sub-programme is anincrease of the share of Russian food products in the total foodproducts by 2020 as follows: grain -- up to 99.7%; beet sugar -- up to93.2%; vegetable oil -- up to 87.7%; potatoes -- up to 98.7%; meat andmeat products -- up to 91.5%; milk and dairy products -- up to 90.2.These particular goods have been used to identify the potentiallyaffected tariff lines under Resolution No. 171-p.
 
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.