Russian gov't launching package of new agriculture support measures from 2023

MOSCOW. Sept 19 (Interfax) - The Russian government will introduce additional measures to support the agriculture sector starting in 2023, Prime Minister Mikhail Mishustin said at a meeting with deputy prime ministers on Monday.

"Given the risks of sanctions pressure, we have envisaged additional support measures. A decree has been signed which expands the possibility of domestic agribusiness receiving subsidies in several areas at once," he said. "The amount of compensation for the establishment and modernization of selection and seed growing centers is being increased from 20% to 50%. This step will help to almost halve the payback period of such projects, attract more investors and increase the share of Russian-made seeds in the domestic market," Mishustin said.

In addition, the list of subsidized areas to accelerate the construction and renovation of facilities for the production of feed for aquaculture has been expanded. "Entrepreneurs ready to invest in such facilities will be able to count on compensation of 20% of their costs, which will allow us to fairly promptly meet the demand of the fisheries complex for the necessary feed," Mishustin said.

According to a government press release, this includes to construction or modernization of the fodder production facilities for valuable species of salmon and sturgeon.

This set of measures will take effect next year. "We expect that this will help to increase production volumes in the Russian agricultural sector," the prime minister said.

Furthermore, the government has adopted a decree that will help agricultural businesses make timely payments on foreign trade contracts. "To this end, the rules for granting subsidies to Russian lender have been adjusted," Mishustin said. "This will allow the domestic agribusiness to continue to successfully use state support, including under previously issued soft investment loans at a rate of up to 5%," he said.

The extension period of earlier soft investment loans for the construction of new greenhouse complexes has been extended from 12 to 15 years. "Such assistance is sought after in many regions. Including due to the disruption of the supply chain of necessary machinery and equipment from abroad," the prime minister said. "We expect that this step will reduce the risks for investors involved in such projects, and will allow the whole country to increase the supply of fresh fruits and vegetables to the domestic market all year round," he said.

Soft loan users include owners of private farms, "who pay the tax on professional income in a timely manner," Mishustin also said. "For the first time, a soft loan at a rate of up to 5% will also be available to citizens running private subsidiary farms, and not only for short periods, but also for investment purposes. As such, self-employed people living in the countryside will be able not only to provide food for themselves and their families, but also to expand their business of production or processing of agricultural products," he said.