ANNOUNCEMENT 27 Dec 2019

In December 2019, the Russian parliament adopted a wine law, with a range of state support measures to winemakers. 

NUMBER OF INTERVENTIONS

4

  • 4 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Federal Law N468-FZ dated 27 December 2019, О виноградарстве и виноделии в Российской федерации (On viticulture and winemaking in the Russian Federation), http://kremlin.ru/acts/bank/45067

Inception date: 26 Jun 2020 | Removal date: open ended

Financial grant

On 27 December 2019, Russia adopted a new law on viticulture and winemaking. Section 5 of the Law, provides, among others, for the following types of targeted support to winemakers and viticulturists:

  • direct financial aid and subsidized loans
  • in-kind support (subsidized or free use of state property - land, facilities etc.)
  • staff training
  • winery development.


While subsidized loans were already formalized by the 2016 List of Agricultural Products Eligible for Support (Decree N2524), the new law contains additional instruments.  

The law enters into force on 26 June 2020.

 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 26 Jun 2020 | Removal date: open ended

Local sourcing

On 27 December 2019, Russia adopted a new law on viticulture and winemaking. Section 5 of the Law, details support to winemakers and viticulturists.

The new law contains additional instruments, as well as an important local content requirement benefitting domestic grape-growers. According to the Article 33(3) only winemakers using locally grown grapes can be eligible for state support. 

 

Inception date: 26 Jun 2020 | Removal date: open ended

Interest payment subsidy

On 27 December 2019, Russia adopted a new law on viticulture and winemaking. Section 5 of the Law, provides, among others, for the following types of targeted support to winemakers and viticulturists:

  • direct financial aid and subsidized loans
  • in-kind support (subsidized or free use of state property - land, facilities etc.)
  • staff training
  • winery development.


While subsidized loans were already formalized by the 2016 List of Agricultural Products Eligible for Support (Decree N2524), the new law contains additional instruments.  

Although the total budget for this specific measure hasn't been disclosed, the GTA assumes that this support meets the reporting criteria as this scheme will be delivered under the non-product-specific agricultural processing support program which has a total budget of 41.6 billion rubles (USD 631.5 million), see related state acts.   

The law enters into force on 26 June 2020.

 

Inception date: 26 Jun 2020 | Removal date: open ended

In-kind grant

On 27 December 2019, Russia adopted a new law on viticulture and winemaking. Section 5 of the Law, provides, among others, for the following types of targeted support to winemakers and viticulturists:

  • direct financial aid and subsidized loans
  • in-kind support (subsidized or free use of state property - land, facilities etc.)
  • staff training
  • winery development.


While subsidized loans were already formalized by the 2016 List of Agricultural Products Eligible for Support (Decree N2524), the new law contains additional instruments.  

The law enters into force on 26 June 2020.