No risk of seed deficit on Russian market - Agriculture Ministry

MOSCOW. July 3 (Interfax) - There is no risk of a seed deficit on the Russian market. Many major foreign companies have already expressed readiness to work by the new rules, the Agriculture Ministry said.

As stated in the doctrine of food security, the self-sufficiency of the agro-industrial complex with domestically-produced seeds in the medium term should be at the level of 75%, the Ministry said. "Later, we plan to raise this level to approximately 90%, which will allow us to almost completely cover our needs and at the same time maintain the opportunity to select from the best achievements of foreign producers," the report says.

At the same time, a transparent operating procedure for foreign companies that considers Russia's interests is in the process of being formulated. "Specifically, we plan to stimulate the transition from imports to the transfer of their production and scientific operations to the territory of the Russian Federation. This, among other things, is based on the new rules for localizing seed production, which will come into force on September 1, 2023," the Ministry of Agriculture said. This will allow domestic breeders and seed growers to strengthen their positions and reliably protect the domestic market from the possibility of unfair actions by foreign players.

Euroseeds, the European association of seed market participants, which includes Bayer, BASF, and Corteva, etc., warned Prime Minister Mikhail Mishustin about the risks to the continuing operations of member companies in Russia due to new requirements for the localization of production, Kommersant reported on Monday.

Euroseeds members are concerned about the obligation of foreign producers to create joint ventures with local organizations with a non-resident share of no more than 49%, implement full-cycle selection and then report on localization to the Ministry of Agriculture, the Association said. It also sees risks in linking the localization of production to customs regulations.

According to Euroseeds, its members "have been committed to the Russian market for decades," investing in research, production, refinement, marketing, and the development of supply conditions, which have "contributed to the food security of the Russian Federation." The new localization rules also threaten members' further activities in Russia, including due to the lack of guarantees for the observance of breeders' rights and restrictions on the circulation of seeds, Euroseeds said. The government did not comment.

Meanwhile, Syngenta, which is controlled by the Chinese state corporation ChemChina, is already planning to localize seed production based on the new rules. As reported by the government of the Voronezh region, Syngenta intends to create a joint venture for the selection of hybrids with the Zolotoy Pochatok agricultural holding by September 1, and has developed a joint operational plan through 2030. Syngenta and global seed suppliers Bayer, BASF and Corteva did not promptly respond to queries from Kommersant.