ANNOUNCEMENT 14 Jul 2012
On 14 July 2012, the Russian Government announced a new set of support measures for agricultural producers. The measures united into a "state program" cover 8 years until 2021.
NUMBER OF INTERVENTIONS
Government of Russia. 2012. Постановление Правительства РФ от 14 июля 2012 г. N 717 "О Государственной программе развития сельского хозяйства и регулирования рынков сельскохозяйственной продукции, сырья и продовольствия" (Resolution of the Government of the Russian Federation of July 14, 2012 N 717 "On the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets"). Summary: https://programs.gov.ru/Portal/programs/passport/25. Full text of the Resolution: http://pravo.garant.ru/document?id=70110644&byPara=1
On 14 July 2012, the Russian Government approved the state program "Development of Agriculture and Regulation of Markets for Agricultural Goods, Raw Materials and Food". The stated goal of the program is self-sufficiency in food, import substitution of meats, milk, vegetables, seed potatoes, fruits and berries. The Program has 11 subcomponents, covering technological modernization, finance, development of agroindustrial subsectors, investments, exports, sustainable rural development, melioration, as well as two grandfathered "Federal Target Programs", on rural social development and land reclamation respectively. The last two were to expire by 2013.
The Program is coordinated by the Ministry of Agriculture, and has a budget allocation of 1.551 trillion rubles (USD 47.7b) spread over 8 years. Around a third of the budget is allocated to the subsectoral development of agro-industrial complex and another third - into stimulating investment into the agro-industrial complex.
Government support is to be instrumentalized through direct subsidies and subsidized loans to the Russian agricultural producers, as well as government investment into logistics, infrastructure and R&D. The subsidies are to be provided to plant production, dairy farming, agricultural machinery production, transportation of grain, consturction and modernization and agriprocessing facilities.
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.