ANNOUNCEMENT 27 Dec 2012

On 27 December 2012, the Russian Government launched a program of subsidies to local manufacturers of agricultural machinery.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Government of the Russian Federation. 2012. Decree N1432 dated 27-12-2012 Об утверждении Правил предоставления субсидий производителям сельскохозяйственной техники (On Approval of Rules of Assigning Subsidies to Manufacturers of Agricultural Machinery), http://government.ru/docs/7101/

Inception date: 01 Jan 2013 | Removal date: open ended

Production subsidy

On 27 December 2012, the Russian Government launched a program of subsidies to the manufacturers of agricultural machinery. The subsidy will constitute up to 15% of the ex-works (i.e. factory) price of each unit of agricultural machinery sold. The sums are capped per unit of machinery, per recipient and per region of Russia. Eligible firms have to be active manufacturers of machinery for at least 3 years and have to offer post-sales maintenance services of at least 1 year in at least 40 of the 75 units of the Russian Federation. Moreover, units eligible for subsidization have to be sold with a discount of at least 15%. Eligible manufacturers have to undertake certain production operations on the Russian territory. 

No unit of the Federation can benefit from more than 5% of the total budget. Limits on the share of a single recipient in the total budget are dependent on the size of the workforce:

  • up to 200 employees - 5% of the total budget
  • between 200-500 employees - 10%
  • between 500-1000 employees - 15%
  • more than 1000 employees - 25%.

Limits of subsidization per unit are:

  • tractors - 100 thousand - 1 million rubles depending on type (USD 3300-33000)
  • grain combine harvesters - 750 thousand - 1.2 million  (USD 25000 - 40000)
  • tractor seeders 100 thousand (USD 3300)
  • cultivators - 100 thousand (USD 3300)
  • combined and universal machines, plows  and disc harrows - 200 thousand (USD 6600)
  • potato diggers and potato harvesters - 1.150 million (USD 38000)
  • tractor mowers, tractor tweezers, tedders and balers - 900 thousand (USD 30000)
  • forage harvesters - 1 million (USD 33000)
  • potato harvesters and spray machines, machines for harvesting grain, oilseeds, legumes and cereals - 750 thousand (USD 25000).

The program starts on 1 January 2013, with a 2013 budget of 2.3 billion rubles (USD 76 million). 

The subsidy is part of the State Program on Development of Agriculture and Regulation of Markets for Agricultural Products, Raw Materials and Food, sub-program on Technical and Technological Modernization and Innovative Development.

AFFECTED SECTORS