ANNOUNCEMENT 10 May 2019

In May 2019, the government of the Russian Federation allocated 3 billion rubles for the program of preferential leasing of Russian-made agricultural machinery, inputs and technologies

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of the Russian Federation. 2019. Decree N904-r, dated 10.05.2019 , http://government.ru/docs/36622/

Inception date: 10 May 2019 | Removal date: open ended

Localisation incentive

On 10 May 2019, the Russian Government transferred the state-owned Rosagroleasing 3 billion rubles (USD 46 million) to help finance the program of preferential leasing of the Russian-made agricultural equipment, technologies and inputs to the Russian farmers. Among the preferences granted to the lessees are the deferment of the first payment and the interest rate cap of 3%. Also, no collateral is asked.

Government expects the assigned finance to help lease out 153 tractors and 221 combine harvesters for the harvest season.

The program's stated aim is boost demand on the local market for this particular type of machinery. The leasing program is part of the subprogram on the Development of the financial and credit system of the agro-industrial complex of the State Program for the Development of Agriculture and Regulation of Agricultural Products, Raw Materials and Food Markets in 2013–2020.