ANNOUNCEMENT 12 Mar 2013In March 2013, the government of the Russian Federation announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
12 2013 . 341-
, 2013 NANAeal-time information on state measures taken during the current global downturn that are likely to affect foreign commerce. It goes beyond other monitoring initiatives by identifying the trading partners likely to be harmed by these measures.
On March 12, 2013, the Russian Government approved with Resolution No. 341 the disbursement of subsidies from the 2013 federal budget to selected subjects of the Russian Federation (republics and regions). The disbursement amounts to RUB 15.20 billion (USD 489.06 million). The provision of these subsidies (see related GTA measure Nr 4162below) is part of the sub-programme "Development of the crop sub-sector, processing and marketing of Crops" of the state program for development of agriculture in the period 2013-2020 (Agricultural Programme 2013-2020). This state aid belongs to the so-called 'decoupled' support for crop producers. 'Decoupled subsidies' is a key concept, introduced by the Agricultural Programme 2013-2020. Within this concept, subsidies will support farmers' income in general, without being linked to any production performance indicators. The introduction of this new concept is necessary, because the WTO rules forbid direct subsidies of supply of agriculture-related goods (chemicals, fertilisers, seeds, fuel) to farmers, which was a common practice in the Russian agricultural policy in the period 2008-2012. The new approach of subsidies' allocation is based on general indicators such as:
The decoupled subsidies for support of crop producers are allocated to Russian farmers (except for private households) through the budgets of the subjects of the Russian Federation. Their purpose is to reimburse expenses of the Russian farmers related to plant protection, some soil fertility, environment safety, and agro-technological activities.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.