Russia’s Ag Ministry stakes on exports

28.02.2017

Russia’s Ag Ministry has drafted amendments to the sector’s main document — the State Agriculture Development Program for 2013–2020. Instead of developing import substitution, the ministry suggests switching to the development of exports and cutting expenses under the program 1.7 times against their initially projected amount, reports UkrAgroConsult.

Thus, this year the expenses will be reduced from more than RUB 300 Bl to RUB 215.8 Bl. The program’s total budget till 2020 will amount to RUB 586.074 Bl instead of RUB 996.2 Bl envisaged in the previous version of the document.

Besides, the Ag Ministry adjusted the indicators of Russia’s self-sufficiency in farming products. However, these adjustments were insignificant, just by tenths of a percent (for example, the country will have to produce 99.3% of the needed grain volume instead of 99.7%).

There appeared a new priority program – “Agricultural produce exports” - instead of “import substitution”. RUB 728.4 Ml will supposedly be allocated till 2020 for implementing this new sub-program.

Ag Minister Aleksandr Tkachev previously stated that 2016 exports of Russian agricultural produce totaled roughly $17 Bl (up 4% from 2015). The gain was on account of larger export shipments of grain, vegoils and fish. The minister expects the annual export volume will expand to $25 Bl by 2020.

 

UkrAgroConsult

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