In July 2013, the government of the Russian Federation ordered a second transfer from the federal budget to the regional budgets, in subsidies to milk producers.



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Government of Russian Federation. Decree 1344-р dated 30.07.2013

(2013 , 25)

Inception date: 30 Jul 2013 | Removal date: 29 Dec 2013

Production subsidy

On July 30, 2013, the Government of the Russian Federation approved with Resolution Nr 337 the disbursement of federal subsidies to milk producers for the reimbursement of expenses related to production and marketing of milk.
The subsidy amounts to RUB 12.70 Billion (USD 388.26 million), RUB 3.20 billion more than planned.
Milk producers who comply with the following criteria are eligible to receive the federal subsidy: 
1.the volume of milk they produce must not be less than the respective period of the previous year;
2.they must guarantee the calf crop per 100 cows;
3.the cows' milking productivity must increase, compared to the respective period of the previous year.

The signed document has been reviewed on a meeting of the Government of the Russian Federation of July 25, 2013. On this meeting the Prime Minister, Mr Dmitry Medvedev, commented: 'Thereal sector is the basis of long-term development. A range of statesupport measure are foreseen for key sectors of the economy. We aretalking about '...' targeted subsidisation of '...' enterprises as a part ofthe adaptation process related to the WTO accession'.
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.