ANNOUNCEMENT 21 Apr 2018
In April 2018, the Russian Government allocated USD 84 million in interest payment subsidies to farmers and agricultural producers. The funds were discharged from the Reserve Fund, thus adding to the funds allocated from the annual federal budget.
NUMBER OF INTERVENTIONS
Government of the Russian Federation. 2018. Decree 729-r dated 25-04-2018, http://government.ru/docs/32422/
On 25 April 2018, the Russian federal government transferred 5.2 billion rubles (USD 84 million) from the Reserve Funds, in addition to the 2018 budget, to support agricultural producers (growers, primary and secondary processing and sales companies) in the payment of interest on investment loans taken out to set-up new or modernize/expand existing production capacities and purchase equipment.
The government expects the subsidies to generate USD 2.9 billion in additional loans to farmers and processing companies.
The funds are to be allocated to credit institutions to reimburse the latter for the profits foregone on preferential interest loans to the target group.
The above tranche is not part of the regular financing of agricultural support program. The money is sourced from the budget reserve ("reserve funds of the Government of the Russian Federation") that, according to Article 81(4) of the Russian Budget Code is normally spent on unforeseen and ad-hoc expenses.