Global Trade Alert

Decree No. 1408-p of 4 July 2016 allocated state subsidies to 18 top administrative units of the Russian Federation for development of economically important regional programmes in the area of agriculture.

The subsidies are of the amount of 2.57 billion RUB (approximately 39.84 million USD). The state funds are allocated as part of the state programme for agricultural development and regulation of the markets of agricultural products, raw materials and food in 2013-2020.
 
Decree No. 1408-p does not contain information concerning the affected HS codes for these subsidies. Therefore, the GTA has identified the subsidised activities on the basis of point 1 below of the general rules and conditions for the allocation of these subsidies, as introduced by Decree No. 1042 of 17 December 2010, and amended by Decree No. 499 of 2 June 2016. Specifically, point one targets the allocation of state support for the following activities: 

• development of flax and rice growing
• restoration of soil fertility of agricultural lands in the constituent entities of the Russian Federation within the far Eastern Federal district affected by flooding, flooding and waterlogged soils (state support available until January 1, 2017);
• the production of amino acids for animal feed (state support available until January 1, 2017);
• development of the sub-sectors of crop production in the Republic of Crimea (state support available until January 1, 2017);
• development of the sub-sectors of crop production in Sevastopol (state support available until January 1, 2017).

The interested reader is referred to the provided related GTA report No. 12 635 for further details concerning the rules for support of economically important regional programmes for development of the local agricultural sector.
 
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.