RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/RUS/23/Add.2 
7 June 2002 
 (02-3161) 
Working Party on the Accession 
of the Russian Federation Original:   English 
 
 
 
WORKING PARTY ON THE ACCESSION  
OF THE RUSSIAN FEDERATION 
Agricultural Support Measures and Po licies in the Russian Federation  
Addendum  
The Permanent Mission of the Russian Fede ration has submitted the following material 
regarding "Additional Information on Current Green Box Measures in the Russian Federation in Terms 
of Compliance with the Criteria of Annex II to th e WTO Agreement on Agriculture" with the request 
that it be circulated to members of the Working Party.  
 
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 WT/ACC/SPEC/RUS/23/Add.2 
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 Additional Information on 
 
Current Green Box Measures in the Russian Federation  
in Terms of compliance with the Criteria of Annex II  
to the WTO Agreement on Agriculture   
 
General Services  
1.1.  Maintenance of budget-financed institutions  (public management services in agricultural 
sector): this form of support is provided out of  the state budget, and does not have the effect of 
supporting producer prices. This meets the criteria of 1(a) and 1(b) of Annex II of Agreement 
on Agriculture. 
1.2.  Expenditure on research and professional training in agriculture:  this program fully 
corresponds to the criteria of item 2(a). The cost s include the expenses of academic research in 
general and research conducted fo r or under environmental protection programs or studies of a 
specific product. Direct budgetary R&D funding under the Mechanical Engineering for Russian 
Agro-Industrial Sector  Federal Program is also entirely cons istent with the criteria of 2(a). The 
program presupposes creation of ecologically pu re technologies, machinery and equipment 
according to the modern environmental pr otection requirements and standards.  
1.3.  Education costs:  this program is fully compliant with the criteria of 2(c). It includes 
professional training, including basic and advanced specialist training.  
1.4.  Non-production investments: this program meets the criteria listed in 2(g). It includes rural 
electrification, road construction and otherwise communications development (notably, 
construction of gas pipes under the Supply of Gas to Rural Areas  Program), development of 
water supply systems, drainage systems, resi dential construction development of rural areas 
(including budgetary long-term lending to the population of rural areas for individual housing 
construction). In all of the above purposes, th e funds are granted to finance the purchase of 
equipment and public capital construction only. Operating expenses are covered by ‘amber box’ 
subsidies. 
1.5.  Operating expenses:  the measures of this support program meet the criteria of items 2(b), (e) 
and (f). Operating expenses include the expenses of  control of animal diseases and agricultural 
plants pests, inspection services, land melioration,  forest control, etc ., excluding any costs of 
repair and maintenance of melioration systems.  
1.6. Support for creation of a market information system:  the measures of this support program meet 
the criteria of item 2(d). This program consists  of several lines of measures: consulting and 
information sharing; creation of a market information system; creation of experimental wholesale food markets. 
2.  Food security
 
2.1.  The costs of formation of federal and regional food reserves:  this program meets the criteria of 
item 3. Food reserves are formed to provide for the needs of the military and equivalent 
categories of consumers, and to support supplies to the Far North Areas and territories of equivalent status, partially to Moscow and Sain t Petersburg. Procuremen t of food products for 
federal food reserves to provide for state needs are made at market prices on contractual basis 
2.2. Costs of federal reserve stocks of seeds of key agricultural plants: this program meets the main 
criteria of ‘green box’ measures listed in item 1. Additionally to the general criteria of item 1, 
this program contemplating form ation and use of reserve stocks of seeds corresponds with the 
criteria of item 3. The federal reserve stocks of seeds of key agricultural plants are formed to  WT/ACC/SPEC/RUS/23/Add.2 
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 ensure availability of an adequate supply of seed s to producers affected by natural disasters and 
emergencies, and supplies of seeds to regions  that do not produce seeds or have a limited 
capacity for their production. This support program  has minimum adverse implications for trade 
because any sales of seeds from the federal stocks are based on market prices.  
3.  Support of the level of income of producers, other than production support  
3.1.  The costs of maintenance of social infrastructure:  this program meets the main criteria of ‘green 
box’ measures provided in item 1. Additionally to the general criteria of item 1, budgetary 
appropriations for maintenance of rural social infr astructure meet also the criteria of 6(b) – (e). 
Budgetary funds are used to finance the operati ng costs of kindergartens, schools, clinics and 
hospitals, local medical practitioner’s offices, clubs , arts and leisure centres, utilities (supporting 
the non-production sphere) that are located in rural areas and maintained on the balance sheets 
of collective farms, state farms and other agricu ltural enterprises, or transferred by the above 
listed to the local authorities, to the extent that such costs are not recoverable from farm 
revenues. Budgetary appropriations are made eith er to local authorities after due execution of 
transfer of such properties from the balance sh eets of collective farms and other agricultural 
enterprises and organisations to such local author ities, or directly to such collective farms and 
other agricultural enterprises if they choose to  retain the financial responsibility for such 
properties. Thus the amount of social infrastructure maintenance payments does not depend on the type or volume of production, th e prices, or production factors used.  
3.2. Assistance to women farmers: Additionally to he general criteria of item 1, assistance to women 
farmers provided under this program meets the crite ria of item 6 (a) – (e). The program involves 
the following measures: maternity and childbirth leave duration extension, and payment of full 
salary based on a doctor’s certificate without refere nce to the length of work record; payment of 
a lump sum childbirth gratuity and monthly baby care benefits until a child is three years old. Thus the amount payable under this assistance program does not depend on the type or volume 
of production, the prices, or production factors used. 
 
4.  Assistance payable to mitigat e the effects of natural disasters  
4.1.  Compensation of losses to farms affected by natural disasters:  this program meets the main 
criteria of ‘green box’ measures listed in item 1. Additionally to the general criteria of item 1, 
compensation of losses to farms affected by natural disasters meets also the criteria of 8 (b) – (d). Compensation is only payable in the event of  loss of income, loss of livestock (including 
any veterinary fees and charges), loss of land or other production factors due to the effects of a 
natural disaster. Compensation is limited by the total amount of actual losses regardless of the 
type or volume of subsequent production; compensation will not exceed the level of financing 
required to prevent or mitigate any fu rther damage from such natural disaster. 
4.2. Compensation of 50% of the costs of feed tr ansportation from unaffected territories to 
agricultural producers affected by drought and other natural disasters.  This program meets the 
criteria indicated in 4.1 above w ith reference to compensation of  losses to farms affected by 
natural disasters. It is on this basis that 50% costs compensation for feed transportation may be 
attributed to ‘green box’ measures.  WT/ACC/SPEC/RUS/23/Add.2 
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 5.  Restructuring programs
 
5.1.  Support for private farms:  this program meets the main criteria of ‘green box’ measures listed 
in item 1. Additionally to the general criteria of item 1, support of private farms meets also the 
criteria of 11 (a) – (f) and 6 (a) – (e). This form of support enables the Government of Russia to 
contribute to the establishment of new living standards in rural areas by increasing the 
investment capacities of private farms as well as their non-production incomes.  The following 
measures are financed out of the federal and regional budgets of the Russian Federation under 
this program: 
- resettlement for the purpose of setting up a private farm aid: this form of support 
corresponds with the criteria of item 6 (the au thority to receive such payment is provided 
by producer status: the amount of payment does not depend on the type or volume of 
production, the prices, or production factors used; 
- publication of manuals and guidelines: this fo rm of support is intended to enhance the 
farmers’ education, their awareness of the way farms function in a market environment, the most effective forms of production, lega l implications of economic functions, etc. 
This meets several criteria of item 2; 
- soft budgetary lending to farmers to support the purchase of capital assets, or 
procurement of means of production  for the fa rmers financed by the budget: this form of 
support meets the criteria of item 11 (the underl ying authority of such payments is the 
government’s intention to support creation of a new rural production structure; the 
amount of payment does not depend on the type or volume of production, the prices, or 
production factors used; these measures only cove r a period required for the farmer-based 
structure to establish itself; there is no requi rement for farmers to produce any particular 
agricultural product; the support is limited by such amount as is required for the new farmer-based structure to become established).  
6.  Ecological programs
 
6.1.  Grants to waste collector plants:  this program meets the main criteria of ‘green box’ measures 
listed in item 1. Additionally to the general criteri a of item 1, grants to waste collector plants 
meet also the criteria of 12 (a) and (b). Th e Russian Government provides subsidies to 
veterinary and sanitary waste collector plants to fund collection and processing of biological wastes at a fixed rate per ton of disposed bi ological waste. Such subsidies have no adverse 
implications for trade or production.  
6.2.  “Fertility” Program:  this program meets the main criteria of ‘green box’ measures listed in 
item 1. Additionally to the general criteria of item 1, “Fertility” Program meets also the criteria 
of 12 (a) and (b) and 2 (a) and (g). This Program involves a range of measures, including 
prevention of land erosion, agrochemical wo rks, melioration works, including chemical 
melioration, core improvement of agricultural lands and new lands deve lopment, improvement 
and restoration of damaged or contaminated lands  (including conservation of deteriorated and 
contaminated lands). These subsidies have minimum adverse implications for trade and 
production. 
7.  Program of support for regions wi th an unfavourable climactic situation
 
7.1.  Investments in Far North Areas and equivalent territories:  this program meets the main criteria 
of ‘green box’ measures listed in item 1. A dditionally to the general criteria of item 1, 
investments in Far North Areas and equivalent territories meet also the criteria of 13 (a) to (f). 
This support measure is available to producers wo rking in unfavourable areas only. Each such  WT/ACC/SPEC/RUS/23/Add.2 
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 area has clearly delineated geographical boundaries,  is characterized by certain economic and 
administrative factors and is recognized as an unfavourable area based on objective criteria. 
Funds from centralized financing sources are gr anted to support development of prevalent 
traditional regional sectors and trades, construction of new, and expansion and reconstruction of 
existing, enterprises and facilities in areas populat ed by indigenous Northern peoples. The 
amount of investments does not depend on type or volume of production or prices therefore. 
This form of support is available to all producers in unfavourable areas. 
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