IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

Yes

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jun 2019 | Removal date: 01 Jan 2023

Export subsidy

On 26 April 2019, the Russian government launched a new program of preferential loans to farmers, as well as to organizations engaged in primary and secondary processing of agricultural goods. To be eligible for the loans, agricultural producers and processing companies should sign a "competitiveness enhancement contract" with the Russian agriculture ministry. Once the competitiveness enhancement program is approved by the ministry and the company is in the designated register, it is eligible for short-term loans or investment credits. 

The new program extended the coverage of the old program in terms of eligible products and agricultural and food processing activities. Under the new program, the short-term loans (up to 1 year) are available to the companies seeking to purchase, for subsequent processing, the following goods: 

  • sugar beetroot
  • sugars
  • grains
  • flours
  • milk powder
  • oil plants
  • live animals and animal and poultry meat
  • berries and other wild forest resources

 The investment loans target the construction of new or modernizing the existing capacities and the purchase of hybrid breeding stock,with maturity terms of 2-15 years. 

Under the capacity construction and modernization projects, the following sectors have been added under the new program: 

  • feed mills, food concentrate industries
  • wild forest food processing
  • processing of oilseeds, production of enzyme
  • manure processing
  • bioenergy plants
  • processing and storage of fish and seafood
  • storage, processing, transshipment of grain and oilseeds
  • port infrastructure for storage, transshipment and sale of cereals and oilseeds, products made of thereof and fish. 

The program is nested under the new federal government budgetary support program titled "Exports of production of the agro-industrial complex", whose aim is to increase Russia's agricultural exports.

Interestingly, the presentation of the program by the Russian ministry of agriculture mentions the potential risk of WTO complaints, should the volume of agricultural exports be chosen as an indicator of the program's effectiveness, recommending instead to monitor the volume of production transported through logistics hubs agreed on by the loan-taker and the government. 

Despite the "logistics hubs" workaround, the government website describing COVID-19-related support measures and legislation formalizing such support continues to refer to "exports in exchange for subsidized loans." (see sources listed).

To be eligible for short-term loans, a company should have transported goods worth at least 25% of the value of the required loan through the listed hubs in the preceding year, with the annual growth threshold of the value set at 3%. 

To be eligible for investment loans, a company should commit to a) maintaining its existing volumes of goods transported through listed hubs and b) increasing the annual amounts by 5%-35% of the value of the loan, depending on the loan maturity and the product concerned. 

The 2020 federal budget lists the following allocations under the program: 90 billion rubles for 2020, as well as projected allocation of 84 billion for 2021 and 88 billion for 2022 (USD 1.4 billion, 1.3 billion and 1.3 billion respectively). 

On 14 May 2020, in the framework of state support measures to the local economy, the government suspended the application of eligibility criteria (volume of goods transported through listed hubs). The agricultural companies will continue to pay subsidized interest payments in 2020, even if they fail to meet their export/listed-hub-transportation indicators for that year. The decision entered into force on 15 May. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

011 Cereals
1001 Wheat and meslin.
100119 Other
100199 Other
1002 Rye.
100290 Other
1003 Barley.
100390 Other
1004 Oats.
100490 Other
1005 Maize (corn).
100590 Other
014 Oilseeds & oleaginous fruits
1204 Linseed, whether or not broken.
120400 Linseed, whether or not broken.
1205 Rape or colza seeds, whether or not broken.
120510 Low erucic acid rape or colza seeds
120590 Other
1206 Sunflower seeds, whether or not broken.
120600 Sunflower seeds, whether or not broken.
1207 Other oil seeds and oleaginous fruits, whether or not broken.
120750 Mustard seeds
120760 Safflower (Carthamus tinctorius) seeds
120799 Other
021 Live animals
0102 Live bovine animals.
010229 Other
0103 Live swine.
010310 Purebred breeding animals
0104 Live sheep and goats.
010410 Sheep
0105 Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls.
010511 Fowls of the species Gallus domesticus
0106 Other live animals.
010612 Whales, dolphins and porpoises (mammals of the order Cetacea); manatees and dugongs (mammals of the order Sirenia); seals, sea lions and walruses (mammals of the suborder Pinnipedia)
010619 Other
042 Fish live, fresh or chilled for human consumption
0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04.
030241 Herrings (Clupea harengus, Clupea pallasii)
030244 Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)
030255 Alaska Pollack (Theragra chalcogramma)
030256 Blue whitings (Micromesistius poutassou, Micromesistius australis)
030273 Carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus)
043 Crustaceans, live, fresh or chilled
0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked crustaceans, whether in shell or not, whether or not cooked before or during the smoking process; crustaceans, in shell, cooked by steaming or by boiling
030624 Crabs
044 Molluscs live, fresh or chilled
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs, whether in shell or not, whether or not cooked before or during the smoking process; flours, meals and pellets of molluscs, fit for human consumpt
030771 Live, fresh or chilled
030791 Live, fresh or chilled
045 Other aquatic invertebrates, live, fresh or chilled
0308 Aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled, frozen, dried, salted or in brine; smoked aquatic invertebrates other than crustaceans and molluscs, whether or not cooked before or during the smoking process; flours, meals
030821 Live, fresh or chilled
030890 Other
211 Meat & meat products
0201 Meat of bovine animals, fresh or chilled.
020130 Boneless
0202 Meat of bovine animals, frozen.
020230 Boneless
0203 Meat of swine, fresh, chilled or frozen.
020311 Carcasses and halfcarcasses
020312 Hams, shoulders and cuts thereof, with bone in
020319 Other
020321 Carcasses and halfcarcasses
020329 Other
0204 Meat of sheep or goats, fresh, chilled or frozen.
020410 Carcasses and halfcarcasses of lamb, fresh or chilled
020421 Carcasses and halfcarcasses
212 Prepared & preserved fish, crustaceans, molluscs
0303 Fish, frozen, excluding fish fillets and other fish meat of heading 03.04.
030311 Sockeye salmon (red salmon) (Oncorhynchus nerka)
030312 Other Pacific salmon (Oncorhynchus gorbuscha, Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou and Oncorhynchus rhodurus)
030313 Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho)
030319 Other
030331 Halibut (Reinhardtius hippoglossoides, Hippoglossus hippoglossus, Hippoglossus stenolepis)
030332 Plaice (Pleuronectes platessa)
030339 Other
030351 Herrings (Clupea harengus, Clupea pallasii)
030353 Sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus sprattus)
030354 Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)
030355 Jack and horse mackerel (Trachurus spp.)
030363 Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
030364 Haddock (Melanogrammus aeglefinus)
030367 Alaska Pollack (Theragra chalcogramma)
030368 Blue whitings (Micromesistius poutassou, Micromesistius australis)
030369 Other
030382 Rays and skates (Rajidae)
030383 Toothfish (Dissostichus spp.)
030389 Other
030390 Livers and roes
0304 Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen.
030449 Other
030471 Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
030472 Haddock (Melanogrammus aeglefinus)
030475 Alaska Pollack (Theragra chalcogramma)
030481 Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha, Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou and Oncorhynchus rhodurus), Atlantic salmon (Salmo salar) and Danube salmon (Huchohucho)
030483 Flat fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae and Citharidae)
030486 Herrings (Clupea harengus, Clupea pallasii)
030489 Other
030494 Alaska Pollack (Theragra chalcogramma)
030495 Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae, Macrouridae, Melanonidae, Merlucciidae, Moridae and Muraenolepididae, other than Alaska Pollack (Theragra chalcogramma)
030499 Other
0305 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption.
030520 Livers and roes of fish, dried, smoked, salted or in brine
030532 Fish of the families Bregmacerotidae, Euclichthyidae, Gadidae, Macrouridae, Melanonidae, Merlucciidae, Moridae and Muraenolepididae
030539 Other
030549 Other
030551 Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
030559 Other
030562 Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked crustaceans, whether in shell or not, whether or not cooked before or during the smoking process; crustaceans, in shell, cooked by steaming or by boiling
030611 Rock lobster and other sea crawfish (Palinurus spp., Panulirus spp., Jasus spp.)
030614 Crabs
030616 Coldwater shrimps and prawns (Pandalus spp., Crangon crangon)
030617 Other shrimps and prawns
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs, whether in shell or not, whether or not cooked before or during the smoking process; flours, meals and pellets of molluscs, fit for human consumpt
030729 Other
030749 Other
030779 Other
030799 Other
0308 Aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled, frozen, dried, salted or in brine; smoked aquatic invertebrates other than crustaceans and molluscs, whether or not cooked before or during the smoking process; flours, meals
030819 Other
222 Other dairy products
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter.
040210 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 %
040291 Not containing added sugar or other sweetening matter
040299 Other
231 Grain mill products
1101 Wheat or meslin flour.
110100 Wheat or meslin flour.
233 Preparations used in animal feeding; lucerne meal & pellets
2309 Preparations of a kind used in animal feeding.
230910 Dog or cat food, put up for retail sale
230990 Other
235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170112 Beet sugar
170199 Other
239 Food products n.e.c.
2101 Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof.
210111 Extracts, essences and concentrates
210112 Preparations with a basis of extracts, essences or concentrates or with a basis of coffee
210120 Extracts, essences and concentrates, of tea or maté, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or maté
341 Basic organic chemicals
3507 Enzymes; prepared enzymes not elsewhere specified or included.
350790 Other
391 Wastes from food & tobacco industry
2308 Vegetable materials and vegetable waste, vegetable residues and byproducts, whether or not in the form of pellets, of a kind used in animal feeding, not elsewhere specified or included.
230800 Vegetable materials and vegetable waste, vegetable residues and byproducts, whether or not in the form of pellets, of a kind used in animal feeding, not elsewhere specified or included.

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