RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/RUS/23/Add.1 
21 January 2002 
 (02-0270) 
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 "Agricultural Support Measures and Policies in  the Russian Federation" with the request that 
it be circulated to members of the Working Party.  
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 WT/ACC/SPEC/RUS/23/Add.1 
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On Agricultural Support  Measures and Policies in the Russian Federation
 
 This submission is pursuant to a request by th e WTO members and serves as  an addition to the 
document WT/ACC/SPEC/RUS/23 and contains some more  detailed descriptions of  certain  domestic 
support policy measures and programs falling under the “a mber box” criteria, as well as of  “green box” 
measures with regard to their compliance  with the cr iteria of Annex II of the Agreement on Agriculture.   
Overview of current green box measures  in the  Russian Federation 
in terms of compliance with criteria of A nnex II to the WTO Agreement on Agriculture 
1.  General   Services  
1.1.  Maintenance of budget-financed institutions  (public management services in agricultural 
sector): this type 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 for 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 consistent with the criteria of 2(a). The program 
presupposes creation of ecologically pure technol ogies, machinery and equipment according to 
the modern environmental protection 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 capital construction only.  
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.  
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, support supplies to the Far North Areas and territories of equivalent 
status, partially to Moscow and Saint Petersburg. Procurement of food products for federal 
purpose food reserves are made at market prices on contractual basis. 
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. Add itionally to the general criteria of item 1, 
budgetary appropriations for maintenance of rural so cial infrastructure meet also the criteria of  WT/ACC/SPEC/RUS/23/Add.1 
 Page 3 
 
 
6(b) – (e). Budgetary funds are used to fina nce the operating 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 lo cated in rural areas and maintained on the 
balance sheets of collective farms, state farms a nd other agricultural enterprises, or transferred 
by the above listed to the local au thorities, to the extent that such  costs are not recoverable from 
farm revenues. Budgetary appropr iations are made either to lo cal authorities after due execution 
of transfer of such properties from the balance sheets 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.  
4.  Insurance  
4.1.  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. The federal reserve stocks of seeds of key agricultural plants are formed for the purpo se of ensuring the required supply of seeds to 
producers affected by natural disasters and emergenc ies, and supplies of seeds to regions that do 
not produce seeds or have a limited capacity for their production. Sale of seeds from the federal 
stocks is based on market prices. This type of support does not therefore have any adverse 
implications for trade or production.  
4.2.  Crop insurance:  this program meets the main criteria of ‘green box’ measures listed in item 1 
of Annex II. Additionally to the general criteri a of item 1, the crop insurance program meets 
also the criteria of  Item 7 (a) – (d). The insu rable value of agricultural crops is determined 
based on the size of areas under crops, average yi eld in the 5 years immediately preceding the 
insurance contract, and the market price forecast . The insured sum is determined as 70% of the 
insurable value of agricultural crops. The gove rnment supplies 50% of insurance premiums 
payable by agricultural enterprises. The purpose of these subsidies is to make crop insurance 
programs more accessible for agricultural producers.  On the whole, subsidy rates range from 
6% to 11% of the insurable value of agricultural crops depending on the type of agricultural plants and the Russian Federation region involv ed. Subsidies to insurance premium payments 
have no adverse implications for trade or production. 
5.  Assistance in the event of natural calamities
 
5.1.  Compensation of losses to fa rms 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, 
the compensation of losses to farms affected by na tural disasters meet 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 losses regardless of the type or 
amount of future production; compensation does not exceed the level of financing required to 
prevent or mitigate any further damage from such natural disaster. 
5.2. Compensation of 50% of the costs of feed  transportation from unaffected territories to 
agricultural producers affected by drought and other natural disasters.  This program meets 
the criteria indicated in 5.1 above with referenc e to compensation of losses to farms affected by 
natural disasters. On this basis 50% costs compensation for feed transportation may be 
attributed to ‘green box’ measures.  
6.  Restructuring programs  WT/ACC/SPEC/RUS/23/Add.1 
Page 4  
 
6.1.  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). By means of such kind of support  the government of Russia contributes  to establishment of new liv ing standards in rural areas by increasing the 
investment capacities of private farms and their unearned incomes. 
7.  Ecological programs
 
7.1.  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.  
7.2.  “Russian Forests” Program: this program meets the main criteria of ‘green box’ measures 
listed in item 1. It encompasses a range of forestation, forest management and development and economic measures aimed at preservation and reproduction of forests, emphasizing their 
protective and formative role in respect of  environment, implementation of Russia’s 
international commitments in environmental prot ection. Thus, Russian Forests Program has no 
adverse implications for trade or production.  
7.3.  “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  is intended to implement a range of measures, 
including prevention of land erosion, agrochemical works, melioration works, including 
chemical melioration, core improvement of ag ricultural lands and new lands development, 
improvement and rehabilitation of damaged or c ontaminated lands (including conservation of 
deteriorated and contaminated lands). These subs idies have minimum adverse implications for 
trade and production. 
8.  Program of support for regions wi th an unfavourable climactic situation
 
8.1.  Investments in Far North A reas and equivalent territories:  this program meets the main 
criteria of ‘green box’ measures listed in item 1. Additionally 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 
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 
regional sectors and trades, construction of new and expansion and rec onstruction of existing 
enterprises and facilities in areas populated by indigenous Northern peoples. The amount of 
investments does not depend on type or volume of production or prices therefore. This type of 
support is available to producers in all unfavourable areas. 
   WT/ACC/SPEC/RUS/23/Add.1 
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Additional Information on Restructuring of  
Debts of Agricultural Enterprises and the Mechanism of Price Regulation  
 In implementation of the RF Government R esolution of 3 August 2001 No. 580 “On Approval 
of Rules of State Procurement and Commodity Interventions for Regulation of the Market of Agricultural Products, Input and Food” and on the basis of the Order of the Ministry of Agriculture 
No. 886, which  concerns a public bidding procedur e for selection of state agents to perform state 
procurement and commodity interventions;  selection of custodians of the intervention fund and exchanges to provide venues for the biddings, etc, in  2001 intervention procurements to the federal food 
intervention fund have been made. About 250 thousand tons of the third-grade wheat were purchased at 
the price of 2,700 Roubles per ton (about US$90 per ton). The referred intervention price corresponded 
to the current market price. 
 The scheme of restructuring of agricultural enterprises’ indebtedness for payments to the 
Federal budget and state non-bu dgetary funds is attached.  WT/ACC/SPEC/RUS/23/Add.1 
Page 6 Action scheme for restructuring of indebtedness of agricultural enterprises in respect of federal  
 taxes and levies, as well as insurance p remiums payable to state non-budgetary funds  
 
 I. Resolution of the Russian Federation Gove rnment of 8 June 2001, No. 458 "On the Pr ocedure and Terms of Restructuring of Over due Accounts 
(Principal and Interest, Penalties and Fines) of Agricultural En terprises and Organizations in respect of Federal Taxes and Lev ies, and Insurance 
Premiums Outstanding to State Non-Budgetary Funds in 2001". 
 
The enterprise submits an 
application for restructuring 
to the tax authority at the 
place of its location  The tax authority takes a 
decision provided that all 
payments due between 
January 2001 and the date of 
such decision have been paid 
in full.   The term of restructuring –  
6 years – principal debt 
4 years – penalties and fines 
after repayment of principal 
debt  Upon payment of one third of the 
debt and prompt payment of all 
current payments 50% of penalties 
and fines shall be written off within 
the first two years 
                             
Debt restructuring is 
permitted to be conducted 
only once   The amount of debt is 
calculated as of 1 January  
2001 or as of the first date of 
the month in which the 
application was filed, in case 
the amount of debt at this 
time is smaller.  Interest on the deferred debt 
shall accrue at the rate of (one 
tenth of the annual refinancing 
rate of the RF Central Bank)  Upon full fulfilment of debt 
repayment obligations and prompt 
payment of current payments 50% of 
penalties and fines shall be written off 
within the next six years 
       
       
 
    Payments are made in equal 
instalments no less than once in 
every six months.  The enterprise loses its right for debt 
restructuring in case of non-
repayment of debts according to the 
set schedule and/or in case of 
indebtedness for current tax payments 
as of the first date of the calendar 
month succeeding the expired quarter. 
 
   WT/ACC/SPEC/RUS/23/Add.1
 Page 7Agricultural enterprises that have not comm enced debt restructuring under Resolution 458,  
may elect to pursue the restructuring schemes provided by Resolutions 1002, 410, and 699.  
 
II. a) Resolution of the Russian Federation Government of 3 Se ptember 1999, No. 1002 "On the Procedure and Timeframe for Restru cturing of 
Accounts Payable of Legal Entities in Respect of Taxes and Levi es, and Arrears on Penalties and Fines Outstanding to the Federa l Budget". 
     Resolution of the Russian Federation Government of 23 May 2001, No. 410 "On Amending the Resolution of the Russian Federation  
Government of 3 September 1999 No. 1002" 
 
The enterprise 
submits an 
application for 
restructuring to the tax 
authority at the 
place of its location  The tax authority takes a decision 
provided full payment of all 
current payments due within 2 
months before the application, in case the application was 
submitted before April, 1, 2000; 
or provided full payment of all current payments due from 
January,1, 2001, in case the 
application was submitted within the period from May,1 till 
December, 1, 2001,      T h e  t e r m  o f  
restructuring –  
6 years – 
principal debt 
4 years – penalties and 
fines after repayment 
of principal debt  Upon payment of one half of the 
debt and prompt full payment of all 
current payments 50% of penalties 
and fines shall be written off within the first two years 
             
             
Debt 
restructuring is 
permitted to be conducted only 
once   The amount of debt for taxes and 
levies is calculated as of the first 
date of the month in which the application was filed, in case the 
application was filed before 
January, 1, 2000; or as of January, 1, 2000, in case the 
application was filed after 
January, 1, 2000. The amounts subjected to restructuring should 
not exceed the amount of debt as 
of the first date of the month in which the application was filed  The amount of 
debt for penalties 
and fines is calculated as of 
the date when the 
decision on restructuring was 
taken  The calculated amount  should 
not include the debt that has 
already been deferred  For those 
organizations that have 
no arrears of taxies and levies the term of 
restructuring of 
accrued penalties and fines amounts to 10 
years  Upon repayment of the remaining 
part of the debt and prompt 
payment of  current payments 50% of penalties and fines shall be 
written off within the next four 
years 
           
 
        Payments are made in 
equal instalments no 
less than once in every 
quarter  The enterprise loses its right for 
debt restructuring in case of non-
compliance with the debt repayment 
schedule and/or in case of non-payment of current tax payments in 
full  WT/ACC/SPEC/RUS/23/Add.1 
Page 8  
II  b). Resolution of the Russian Federation Government of 1 Oc tober 2001, No. 699 "On the Procedure for the Terms of Restructu ring of Arrears on 
Insurance Premiums Outstanding to State Non-Budgetary Funds, Pe nalties and Fines Payable by Organizations as at 1 January 2001"  
 
The enterprise submits 
an application for 
restructuring to the tax 
authority at the place of its location  The tax authority takes a decision 
provided that all advance 
payments due within 2 months 
before the application have been paid in full.   The decision on  restructuring Based 
on a decision of a tax authority, 85% 
of penalties and fines will be written 
off. Term of restructuring – 5 years for 
outstanding insurance premiums and 
15% of accrued penalties and fines   The enterprise loses its right for debt 
restructuring in case of non-compliance 
with the debt repayment schedule 
and/or in case of outstanding indebtedness for advance payments 
  
       
The indebtedness is 
subject to restructuring 
as of January, 1, 2001  The restructuring shall proceed 
simultaneously for all state social 
non-budgetary funds    Non-compliance with the debt 
repayment schedule set for one fund 
leads to termination of restructuring for 
other funds 
 
   WT/ACC/SPEC/RUS/23/Add.1
 Page 9Payments to the budget (not to include state and non-budg etary funds) that need to be restructured and measures  
for restructuring and repayment of debts  
 
Payments that need to be restructured  Measures for restructuring and repayment 
1.  Overdue indebtedness for budget payments -  19.2 bn rubles 1.   Budget losses as a result of im possibility of debt repayment  – 30.6 bn. 
rubles 
2.  Overdue indebtedness for credit facilities and loans – 13.3 bn . rubles 2.  Deferral of indebtedness for ten years – 9.0 bn.  rubles 
3.  Indebtedness for deferred cent ralized credit facilities over 1992-1994 – 
14.2 bn. rubles 3.  Repayment of debts at the expense of the own funds of enterprises – 
6.1 bn. rubles 
4.  Indebtedness for commodity loans – 4.7 bn. rubles  4.  Repa yment of debts through bankruptcy  and liquidation procedure, and  
at the expense of the enterprises’ property recovery – 5.7 bn. rubles 
 
Total – 51.4 bn. Rubles Total – 51.4 bn. rubles  
In addition, the amount of budget loans needed for  
settlements with suppliers  - 15.0 bn. rubles Budget loan for settlements with suppliers 
 – 15.0 bn. rubles 
 
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