Russian govt allocates additional 2 bln rubles to subsidize preferential loans for agriculture

MOSCOW. Aug 20 (Interfax) - The Russian government will allocate an additional 2 billion rubles from the reserve fund to subsidize preferential lending for farmers, the government's press service said.

The corresponding order has been signed by Prime Minister Mikhail Mishustin.

"The decision will make it possible to provide new preferential short-term loans to agricultural sector enterprises for the production and processing of agricultural products. The total amount of new loans will be at least 75 billion rubles," the press service said.

The issue of allocating funds was considered at a government meeting on Tuesday, August 19.

Preferential lending is one of the most in-demand forms of state support for the agricultural sector.

As reported, in January 2025, by a government directive, over 42 billion rubles were allocated from the federal budget to subsidize preferential loans. This is twice as much as in 2024.

In 2024, preferential lending for agriculture was switched to a so-called floating rate, which depends on changes in the Central Bank of Russia's key rate. A number of priority sectors receive loans whose rate is subsidized at 70% of the Central Bank's key rate; sectors with sufficiently high profitability attract loans whose rate is subsidized at 50%.