ANNOUNCEMENT 12 Dec 2012

In December 2012, the government of the Russian Federation announced the rules for disbursement of finance to regional authorities to subsidize milk producers. 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Jan 2013 | Removal date: 01 Jan 2016
Still in force

Production subsidy

On December 12, 2012, the Government of the Russian Federation approved with Resolution No. 1370 the rules for the disbursement of finance from the federal budget to the provincial authorities to subsidize  Russian milk producers. The rules are part of the sub-programme 'Development of the livestock subsector, processing and marketing of livestock products' of the State Programme for Development of Agriculture in 2013-2020. The Resolution No 1370 entered into force on January 1, 2013.

The budget for the federal milk subsidies has been approved on December 5, 2012, by the Federal Law FZ "On the federal budget for 2013 and the planning period 2014-2015". This means that the milk subsidies will remain in force for at least 36 months. The federal subsidies, planned to be allocated in 2013, amount to RUB 9.56 billion (USD 314.74 million). For 2014 and 2015, they amount to RUB 8.87 billion (USD 291.98 million) and RUB 9.29 billion (USD 305. 92 million), respectively.
 
The subsidy is calculated per liter of milk produced. The regional authorities are allowed to design subsidisation program themselves, with the federal authorities only requesting that milk production, calving and milk productivity indicators do not decrease on a year-on-year basis (and calving increases from at least 76 per 100 cows in 2014 to 80 in 2016. 


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.

AFFECTED SECTORS