ANNOUNCEMENT 15 Sep 2017

On 15 September 2017, the Russian Government announced a new subsidy program for agricultural producers and food manufacturers, targeting transportation costs.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of the Russian Federation. 2017. О предоставлении субсидий из федерального бюджета российским организациям на компенсацию части затрат на транспортировку сельскохозяйственной и продовольственной продукции наземным, в том числе железнодорожным, транспортом (с изменениями на 22 февраля 2019 года)(On granting subsidies from the federal budget to Russian organizations for compensation of a part of the costs of transporting agricultural and food products by land, including rail, transport (with changes as of February 22, 2019). Resolution N1104 dated 15.09.2017, with three subsequent updates. http://docs.cntd.ru/document/436766799.
Ministry of Economy document listing export promotion measures under Resolution 1104: http://minpromtorg.gov.ru/common/upload/docVersions/5a941a3d555e5/actual/2539.pdf
Website of the Agriculture Department of Smolensk region listing export destinations under Resolution 1104: http://selhoz.admin-smolensk.ru/news/kompensaciya-chasti-zatrat-na-transportirovku-produkcii-apk-nazemnym-v-tom-chisle-zheleznodorozhnym-transportom/
Website of Biy district, Altay Kray, linking the Resolution to Altay exports: http://mzgazeta.ru/2017/09/22/na-transportirovku-selhozproduktsii-iz-altajskogo-kraya-okazhut-gosudarstvennuyu-podderzhku/
Russian economy journal opining that the Resolution will help exports: https://www.eg-online.ru/news/354765/

Inception date: 15 Sep 2017 | Removal date: open ended
Still in force

Other export incentive

On 15 September 2017, the Russian Government announced a transportation subsidy to agricultural and food producers. The subsidy targets producers and suppliers of agricultural and food products and covers their automobile and railway transportation costs, up to a set limit. The limits for railway transport are set at 100 thousand and 80 thousand rubles per 40-feet and 20-feet container respectively, or at 6 thousand rubles per cubic meter in a shared container. This corresponds to USD 1730 for a long container, 1390 for a short container and 104 for a cubic meter. The limit for automobile transport is 45 rubles (USD 0.78) per km. The overall limit is 50% of the value of the product. 

The subsidy covers, fully or partially, all federal districts except one (Far Eastern).

The subsidy is disbursed by the state-owned Russian Export Center, which call itself a development institute and incorporates the Russian Export Import Bank and the Russian Export Insurance Agency. The mandate for subsidy management is given to the Center by the Russian Ministry of Agriculture. Although export promotion is not formally listed as a policy goal, local governments and agriculture departments, economy ministry and a leading economy journal expect it to increase exports (see links in Sources).

AFFECTED PRODUCTS

 
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