Russian Government Transport Subsidy of Agricultural Products


Russian Government Start Subsidizing Transportation of Agricultural Products and Allocated more than 9 Billion Rubles for 2020-2022

Russian government transport subsidy of agricultural products and has changed the rules for subsidizing the transport of agricultural products and food. The decree, dated December 14, is published on the government information portal.
If transportation from 62 regions of the country was subsidized before, now there are no such restrictions. Also, according to the new version of the document, water, rail, and road transport will now be subsidized, whereas previously only rail and road transport were subsidized. The formula for calculating the marginal cost of transportation has also changed: it has been reduced from 50% to 30% of the cost of transported products. That is, the size of the subsidy should be at least three times less than the cost of transported products. Russian government transport subsidy of agricultural products It may lead to growth.

Russian Government Transport Subsidy of Agricultural Products

In addition, the new rules significantly expand the list of agricultural and food products subject to subsidization. Now it includes meat and edible meat offal; live, fresh or chilled fish; crustaceans; buttermilk, cheeses and cottage cheese; honey; hides of cattle; fresh or chilled vegetables; flour, seeds for sowing; sugar and more. The document also expands the list of products that are subject to subsidies for shipment from the Far Eastern Federal District (grain crops – wheat, barley, corn). The new rules will enter into force on December 26.

The government’s subsidy agent is the Russian Export Center (REC). On its website, it is said that in 2020 the amount of funding for the program is planned in the amount of 2.3 billion rubles, for the 2021st – 3.34 billion rubles, for the 2022nd – 4 billion rubles. According to REC CEO Andrei Slepnev, the changes are aimed at expanding access to the program of subsidizing transport costs for both new participants and organizations that are already actively using it. “This support measure is in high demand among manufacturers and suppliers of agricultural products, and next year we expect a double increase in the number of applications from companies,” Slepnev said in a statement from the center. The representative of the REC told Agroinvestor that the total export volume that will receive support through these subsidies will amount to 90.95 billion rubles in 2020, 130.2 billion rubles in 2021, and 156 billion rubles in 2022.

In mid-December, Minister of Agriculture Dmitry Patrushev told Kommersant agency that the decision on subsidies to agricultural exporters had already been made. “Previously, this was not for all regions and not for all types of transport. Now we have included both automobile and water transport there, removed geographical restrictions, ”the minister said. According to him, including this measure should allow increasing agricultural exports to the planned $ 45 billion by 2024 so Russian government transport subsidy of agricultural products.


Leave a Reply

Your email address will not be published. Required fields are marked *