ANNOUNCEMENT 20 May 2020
On 20 May 2020, the Russian president confirmed additional financing to the program of subsidies to the local manufacturers of agricultural equipment and machinery. On 27 June 2020, the Prime Minister signed the disbursement decree.
NUMBER OF INTERVENTIONS
Meeting on the State of Agriculture, Transcript published by the Office of the President, 20 May 2020, http://kremlin.ru/events/president/news/63371
Russian Government's Decree N1698-r dated 27 June 2020, http://government.ru/news/39951/, http://static.government.ru/media/files/zDRhTBQUjG6Ac4ZbXRrI8mMJZh9h3A9Z.pdf
On 20 May 2020, the Russian president agreed with the proposals of additional financing to the program of subsidies to the local manufacturers of agricultural equipment and machinery. The additional financing approved was 4.5 billion rubles (USD 63 million). On 27 June, however, the Prime Minister signed the disbursement of 6 billion (USD 86 million ), with the money targeting a sales increase of 1500 units of machinery.
The program, known as "1432" after the government resolution that initially introduced it, offers producers of agricultural machinery a state subsidy of up to 25% of the value of machinery. In selected regions, the subsidization rate can reach 30%.
According to the government, the initiative "will help increase the purchase accessibility of agricultural machinery and increase the volume of supply of such equipment to agricultural producers'.