IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 20 Sep 2010 | Removal date: 31 Dec 2010
Still in force

Production subsidy

With a Decree #727 dated 4 September 2010, the Federal Government of the Russian Federation allocated up to 2 billion rubles (USD 65 million) from the 2010 federal budget to compensate the state-owned Russian Railways for loss of income resulting from lower transportation tariffs for the Russian producers of grain and flour products. 

More specifically, the Russian Railways has been ordered to implement a 30% discount when transporting grain and grain mill products over more than 1100 kms from Siberia to the railway stations of Volga, North-Western and Central Federal Districts. The same products transported over 300 kms from stations in North Caucasus and Southern Federal District qualify for a 50% discount.  Grains, predominantly wheat, are grown in all the originating federal districts of Russia, while destination districts are the ones with access to the high seas and land borders with Europe and Kazakhstan. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
1001 Wheat and meslin.
100119 Other
100199 Other
213 Prepared & preserved vegetables, pulses & potatoes
1105 Flour, meal, powder, flakes, granules and pellets of potatoes.
110510 Flour, meal and powder
110520 Flakes, granules and pellets
231 Grain mill products
1103 Cereal groats, meal and pellets.
110313 Of maize (corn)
1104 Cereal grains otherwise worked (for example, hulled, rolled, flaked, pearled, sliced or kibbled), except rice of heading 10.06; germ of cereals, whole, rolled, flaked or ground.
110412 Of oats
110419 Of other cereals

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