Global Trade Alert

With Decree 115 of 17 February 2014 the Russian Government introduced state subsidies (RUB 1.9 billion for 2014, USD 55 million) that have the purpose to ensure more affordable prices of Russian-made farming equipment for agricultural producers and to expand the local farming equipment production.

Concretely, the state authorities will reimburse to manufacturers of agricultural equipment 15% of their production and sales-related costs. The following types of equipment and machinery will be subsidised: livestock-milking equipment; milk transport and storage equipment;tractors for amelioration, the viticulture, gardening, beet, cotton, and seed-growing sectors; post-harvest hay-processing agricultural equipment (calibration systems,grain-cleaning, pre-cleaners, bur extractors).

As declared by Russian officials on various occasions (see the provided sources), foreign companies must not benefit from Russian subsidies. 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.