RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/RUS/23 
28 November 2001 
 (01-6064) 
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  
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.  
__________ 
 
Agricultural Support Measures and Policies in the Russian Federation  
 The situation of Russian agriculture is very di fferent from the agrarian sector of any developed 
economy. To achieve food security and increase the ef fectiveness of rural economy, Russia has to apply 
a wide range of measures attributable to both th e “green box” (estimated requirements attached as 
Annex 2) and the “amber box” (estimated requirements attached as Annex 1) measures. 
 The need to remove structural distortions  and overcome ineffectiveness of production in 
agriculture makes provision of various subsidies to agricultural producers a temporary, but an 
indispensable measure for a fores eeable future. Another purpose of am ber box measures is to drastically 
improve the efficiency of agricultural produc tion, which requires a developed input base. 
 Another reason for the use of support measure s is that market mechanisms and private 
investments only are not sufficient solve all th e problems accumulated over decades of centralized 
planning. and years of economic reform. As producti on effectiveness increases, green box measures will 
be wider used, while amber box measures will gradually lose their importance. 
 Russia attaches great importance to green box measures. These measures will be supporting  the 
comprehensive land reform, improvement of market infrastructure and distribution system and greater 
market orientation.  Details are provided in the Major Guidelines of Agro-Food Policy of the 
Government of the Russian Federa tion in 2001 – 2010 (summary table of goals and legislative measures 
is attached as Annex 4). 
 Among other priority measures are: the develo pment and adoption of a federal law on state 
regulation and modalities of transactions in agricultural lands, accelerated production and 
implementation of business practices to ensure bette r adaptation of enterprises to the market economy. 
 However, in the majority of cases green box measu res may only have an effect in the long-term. 
To solve short-term and mid-term problems it is necessary to support the producers by amber box 
measures. The purposes of measures  in the amber b ox category are  provided in the Major Guidelines 
(the English translation of the document w as submitted to the Working Party, see document 
WT/ACC/SPEC/RUS/19). Many other elements of th e Russian agricultural po licy are described in WT/ACC/SPEC/RUS/23 
Page 2  
 
 documents submitted in the first half of 2001 – WT/ACC/SPEC/RUS/16 “Priorities of Agro-Food 
Policy and Agrarian Reform in the Russian Federa tion and Domestic Support Distribution Assessment”; 
WT/ACC/SPEC/RUS/17 and Corr.1 “Domestic Suppor t and Export Subsidies in Agriculture”; 
WT/ACC/SPEC/RUS/18 ‘Legislation in the Field of  Agriculture” and Non-Paper “Regarding Various 
Aspects of Agricultural Policy and Subsidisation of Specific Agricultural Producers" of 15 June 2001.       
 Still, in order to provide the members of the Working Party with a comprehensive summary of 
all information requested by them, we have pr epared the overview of goals, implementation 
mechanisms and expected results of state suppor t for agriculture in the Russian Federation.  
I.  PURPOSES, MECHANISMS AND EFFECTS OF DISBURSEMENTS OF AMBER BOX 
SUPPORT MEASURES (SEE ALSO ANNEX 1) 
1.  Restructuring of debts   Restructuring of debts of agricultural compan ies will be continued as a mid-term programme. 
This programme has been part of the general debt restructuring initiative covering all economic sectors, 
including agriculture. One of the basic legal instrume nts in this area is the Presidential Decree 65 of 
19 January 1996, “On Granting a Deferral of Arrears on Taxes, Fines and Penalties for Violation of Tax 
Legislation Incurred Before 1 January 1996, to Ente rprises and Organizations”. The restructuring is 
currently regulated by Resolution of the Governme nt of the Russian Federation of 3 September 1999, 
No. 1002 “On the Procedure and Time frame for Restructuring of Accounts Payable of Legal Entities in 
Respect of Taxes and Levies, and Arrears on Penalt ies and Fines Outstanding to the Federal Budget”. 
This Resolution was amended and supplemented by Resolution 410 of 23 May 2001. The above 
resolutions concern all sectors of economy (except oil producing and processing enterprises), including 
agriculture. 
 In addition, the Federal Budget for 2001 provides,  in Article 130, for restructuring of overdue 
debts (principal, interest, penalties and fines) on federal taxes and levies, and insurance premiums 
payable to state non-budgetary funds. The restructur ing schedule provides for full write-off of penalties 
and fines. On the basis of the Resolution of the Ru ssian Federation Government of 8 June 2001, No. 458 
“On the Procedure and Terms of Restructuring of Overdue Accounts (Principal and Interest, Penalties 
and Fines) of Agricultural Enterprises and Organizati ons in Respect of Federal Taxes and Levies, and 
Insurance Premiums Outstanding to State Non- Budgetary Funds in 2001”. In addition, on 
1 October 2001, the Government of the Russian Federation issued Resolution 699 “On the Procedure 
for and Terms of Restructuring of Arrears on Insu rance Premiums Outstanding to State Non-Budgetary 
Funds, Penalties and Fines Payable by Organizations  as at 1 January 2001”, which also covers  
agriculture among  other sectors of economy. 
 Agricultural enterprises that have not commenc ed debt restructuring under the scheme proposed 
by the Resolution 458 , may choose to pursue the restructuring schemes provided by Resolutions 1002, 410, and 699. Agricultural enterprises that do not have  any outstanding tax arrears may restructure their 
debts as provided by the Resolution 699. 
 Debt restructuring in respect of insurance premiums outstanding to state non-budgetary funds 
may be regarded as green box measures because such a rrears pertain to disbursements to the Pension 
Fund, Medical Insurance Fund and Social Insurance Fund, and do not concern production. 
 Outstanding taxes and levies to the Federal and regional budgets may be regarded as lost profits 
for the federal budget and a form of ta x benefits for agricultural enterprises. 
 The debts are calculated as at 1 January 2001. If the amount of debt as of  the first day of the 
month in which a corresponding application is filed is  smaller than the same as at 1 January 2001, the  WT/ACC/SPEC/RUS/23 
 Page 3 
 
 
 amount existing as at the first day of such month in wh ich the application is filed will be considered for 
restructuring. 
 A decision to allow restructuring under Reso lution 458 will l be take n by tax authorities 
provided that all payments due between January 2001 a nd the date of such decision have been paid in 
full. 
 Pursuant to Resolution 458, the total term of r estructuring is 10 years. The principal must be 
repaid within 6 years in equal instalments and any ar rears on penalties and fines must be paid within the 
subsequent 4 years. 
 Interest on the debt (any amount understanding as at the date of interest payment) shall accrue at 
the rate of one tenth of the annual refinancing ra te of the Central Bank of the Russian Federation. 
 Upon payment of one third of the debt within the first two years, 50 per cent of penalties and 
fines shall be written off. Upon full performance of de bt repayment obligations within the subsequent 4 
years, any outstanding penalties and fines shall be writte n off in full. In other words, if a debtor moves 
fast in repaying its debts, the restructuri ng term may be shortened from 10 to 6 years. 
 Debt repayment is effected in equal instalments no less than once in every six months. 
 Pursuant to Resolutions 1002 and 410, repaym ent will proceed in equal instalments once in 
every quarter. In the event of no arrears on taxes an d levies, restructuring of penalties and fines may be 
extended to 10 years. Write-offs of outstanding pe nalties and fines shall be granted upon payment of 
half of the overall amount outstanding in the first two years. Full write-off will occur upon full repayment of debt within four years. 
 Resolution 1002 provides for restructuring of penalties and fines only. It provides that in the 
event that the quarterly current tax payments are paid timely and in full, 50 per cent of the debt may be 
written off within 2 years, and within 4 years the full amount of debt may be written off. 
 Pursuant to Resolution 699, which does not relate to any debts already restructured under 
Resolution 458, the restructuring will proceed simult aneously for all state social non-budgetary funds. 
Based on a decision of a tax authority, 85 per cent of  penalties and fines will be written off and payment 
deferrals will be granted on the remaining 15 per cent of penalties and fines and 100 per cent of 
outstanding insurance premiums. 
 Such repayment will proceed in equal inst alments no less than once in every quarter. 
 For all purposes, an enterprise failing to comply with the repayment schedule or being in arrears 
of current tax payments loses its right to restructurin g. Enforcement control over restructuring will  be 
performed by tax authorities. 
 As a result of such debt restructuring: 
- enterprises will become able to switch from barter arrangements to monetary 
transactions, which will boost the effectiv eness (and reduce the costs) of such 
arrangements for agricultural producers; 
- enterprises will become eligib le for credit facilities and mediated lending shall be 
reduced, which will make loan funds cheaper; 
- transparency of economic transactions will be increased; WT/ACC/SPEC/RUS/23 
Page 4  
 
 - potentially effective producers will en joy normal working conditions, and the 
inefficient ones shall be exposed to bankruptcy procedures.  
2.  Soft lending  
 Soft lending is currently provided through compensation from the Federal Budget of the 
difference in interest rates on loans obtaine d from lending institutions, and through budgetary 
allocations towards formation of th e leasing fund. Appropriations have  been made in the 2001 Budget to 
finance these measures. The system of soft seasonal short-term lendi ng is not tied to production of any 
particular goods. The same concerns leasing opera tions. The latter are a form of mid-term lending. 
 Subsidies to cover the difference in interests rates on loans obtained from lending institutions 
are provided monthly in the amount of two thirds of  the refinancing rate of the Central Bank of the 
Russian Federation.  
 Today, when most agricultural producers have  overdue accounts payable, subsidies are granted 
to food and processing enterprises and organizations  of agro-industrial sector for procurement of 
agricultural inputs for further processing. 
 The Ministry of Agriculture of the Russian Federation is the major administrator of the 
subsidies and approves the ratios in distribution of subsidies to the regions. The Ministry controls  
execution of all such measures and compiles registers of subsidies by region. 
 The Ministry of Agriculture concludes an agre ement with a region, under which the latter raises, 
registers and provides to the borrower under a bank loan agreement an applicable amount subject to the overall subsidy quota according to the above agr eement. The borrower and the bank must provide 
payment documents confirming that the use of  such loan is according to its purpose. 
 Moneys are then transferred from the persona l account of the regional executive authority by 
the territorial division of the Federal Treasury. This latter monitors further disbursement of such funds.  
 The state leasing fund is formed with budgetary  allocations and currently amounts to 11 billion 
rubles. Leasing agreements for machinery and equi pment, and breeding horned cattle are made for a 
period of 2 to 5 years, and for certain types of breeding animals for a period of 2 years. For certain 
machinery, such agreements may be made for 8 year s. The duration depends on the type of machinery. 
This year agreements and budgetary  appropriations have been made for value of 0.5 billion rubles 
pursuant to the below procedure.  
 The Ministry of Agriculture selects its operat ors through a bidding procedure. Such operator for 
machinery has been the joint-st ock company Rosagrosnab, and for breeding livestock – joint-stock 
company Agroplemsoyuz and joint-stock compan y Rosagroplemobjedenenie. The Ministry of 
Agriculture also determines the volume and descri ption of products to be delivered under leasing 
agreements based on the requests su bmitted by executive authorities of the regions and subject to any 
price caps.  
 Agreements must be secured by repayment guarantees. Enterprises and farms compensate 
leasing companies for providing the leased property in the amount of 3 per cent (for machinery) and 0.5 
per cent (for breeding livestock) per annum of the outstanding value of such property. The initial 
payment may represent 10 to 30 per cent of the valu e of product subject to its nature and price. For 
expensive machinery (combine harvesters) such initia l payment represents 10 per cent, for other types – 
20-30 per cent. 
 The Treasury executes  control over distributions of funds under leasing transactions. 
Repayments are currently made into accounts of the Treasury.  WT/ACC/SPEC/RUS/23 
 Page 5 
 
 
  The additional appropriation for leasing tran sactions made in the 2001 Budget was 5 billion 
rubles. The government has set up a public company Rosagroleasing. Its board of directors will determine the procedures of leasing operations.   
 The soft lending mechanisms, including the leasing fund, are expected to ensure an inflow of 
funds to agriculture. That, in its turn, should enha nce production effectiveness. Business relations will 
become more transparent, the incidence of barter tr ansactions shall reduce, greater availability of loan 
funds will be created, and as mediated lending sch emes become unnecessary, loan funds will become 
cheaper.  
 Short-term and mid-term soft lending will e nhance the working and fixed assets of agricultural 
organizations and farms. 
3.  Food and agricultural products market regulation   
 The goal of establishing a system of food market regulation is to prevent drastic and sharp 
fluctuations of prices. Such fluctuations are typi cal of Russia due to sharp fluctuations in weather 
conditions. Besides, a regulation system will allow building reserves and avoiding a food deficit on the 
market. 
 The principle measures of regulation of food markets are commodity and procurement 
interventions. These are provided by Federal Law No. 100-FZ of 14 July 1997,  and Resolution No. 580 
of the Government of the Russian Federation of 3 August 2001 “On Approval of Rules of State 
Procurement and Commodity Interventions for Regul ation of the Market of Agricultural Products, 
Inputs and Food”. In implementation of the latter, the Ministry of Agriculture issued Order 886 of 20 August 2001, concerning a public bidding procedure for selection of state agents to perform state 
procurement and commodity interventions, and selec tion of custodians of the intervention fund, and 
exchanges to provide venues for the bids.  
 Procurement interventions are performed when market prices drop below the minimum level or 
when producers are unable to sell their products due to falling demand. 
 Commodity interventions are made in case of de ficit in the products market or when market 
prices soar beyond the fluctuation cap. Thus inte rventions are triggered by minimum or maximum 
prices. Procurement interventions are maintained between the minimum level (trigger level) and the 
target level at which the intervention ceases. Co mmodity interventions are maintained between the 
maximum level (trigger level) and the target level at  which the intervention ceases. The target levels are 
subject to approval by the Russian Federation Government. 
 The Ministry of Agriculture selects state agents  to perform the interventions, custodians of the 
intervention fund and authorized commodity exchang es to serve as venues for the bids. Interventions 
may be conducted by commodity exchange trading or by bidding. Selection of state agents to perform 
interventions, custodians of the inte rvention funds, and authorized comm odity exchanges will  be made 
by tender. 
 State agents perform interventions, and or ganizations selected by tender perform the 
safekeeping. 
 The costs of formation, distribution, safekeeping and use of the intervention fund, as well as the 
costs of organization of interventions and commissi on payments are financed out of the appropriation 
provided by the Federal Law on the federal budget. Commission fees are payable in the amount of 1 
percent of the purchase or selling price. WT/ACC/SPEC/RUS/23 
Page 6  
 
  Accounting  operations incidental to formation and use of the intervention fund and performing 
procurement and commodity interventions  will be main tained by the Ministry of Agriculture  pursuant 
to the accounting law and regulatory acts of the Ministry of Finance. 
 The Ministry of Agriculture controls formation and use of the intervention fund and the use of 
federal budgetary funds accord ed  for this  purpose. 
 Commodity and procurement interventions are ai med at removing sharp fluctuations in incomes 
of agricultural producers, providing stable economic results and enhance effectiveness and efficiency of 
production. 
 That should also give an impetus to incr easing production and address issues of food security. 
4.  Input subsidies   
 Input subsidies currently take the form of compensations to purchase  mineral fertilisers and 
electric power incentives for aquacultural operating co mpanies supplying water for irrigation and other 
agricultural purposes and needs of agricultural  companies ( based on the Resolution by the Government 
of the Russian Federation of 15 February 2001, No. 115). Grants for fuels and lubricants are provided 
regionally. 
 Fuel subsidies at the federal level were ma intained in 1995, 1996, and 1997. Spare parts 
purchases funding was performed until 2000. Financ ing of the seeds fund continues at the present 
moment. Grants for mixed fodder existed until 2000 inclusively. 
 Input subsidies are used as a mid-term measure which is aimed at securing a determined level of 
production efficiency and food security in a situati on of continued transformation of the market and 
price distortions. As agriculture adjusts to new economic conditions, and agricultural production 
becomes more profitable, the need for  input subs idies would  subside, and other, more long-term 
support measures will be given priority. 
 Partial compensation of costs of agricultu ral producers incurred by purchase of mineral 
fertilisers and chemical substances for plant prot ection is governed by the Resolution 115 of the 
Government of the Russian Fe deration of 23 February 2001. 
 The Ministry of Agriculture organizes tenders to select producers of chemical substances and 
specialized depots.  The latter receive a state order to provide such chemicals to agricultural producers 
at a part price. In addition, the Ministry of Agriculture jointly with the Ministry of Economic 
Development and Trade, and the Ministry of Industry and Science fix cap bid prices for the said inputs. 
 The amount of subsidies is calculated as per ton of a type of chemicals  based on the size of the 
budgetary appropriation, delivery vo lumes and prices determined by the bids. The prices, volumes of 
delivery and amount of subsidies per ton are inserted in the state contract granted by the Ministry of 
Agriculture to the successful bidders. 
 The Ministry of Agriculture notifies to the regional executive authorities the list of successful 
bidders, the volumes of the proposed deliveries of chem icals at such prices as are determined by the 
bids, and the amount of subsidies as per ton. 
 The producers and specialized depots concl ude sale and purchase contracts and make 
settlements for the chemicals delivered with supplie rs and sellers specially authorized by regional 
authorities, whereby part of the value is granted from the budget. The agreement between the Ministry 
of Agriculture and regional executive authorities may al so provide limitations of costs of provision of 
services and markups.  WT/ACC/SPEC/RUS/23 
 Page 7 
 
 
  Invoices must show the full cost of chemicals subject to the bidding prices and inclusive of 
VAT, the amount subsidized, the VAT subsidized, a nd the amount payable representing total cost less 
the subsidized amount. 
 Agricultural enterprises may acquire chemi cals directly from the producers or through 
supplying and selling organizations. In the first case,  chemicals  will be paid for at cost less the 
subsidized amount, and inclusive of VAT payable on the amount actually paid. In the second case, the 
chemicals are paid at cost added with the supplier’s markup and VAT totaled accordingly. 
 The Ministry of Finance and its agencies, in particular treasury department, perform financial 
control. The Ministry of Finance provides the funding  in keeping with due procedures into the personal 
account of the Ministry of Agriculture maintained w ith the federal treasury department. The Ministry of 
Agriculture  submits to this department payment orde rs for partial payment of the cost for remittance to 
settlement accounts of producers and specialized depots with Central Bank divisions or lending 
institutions. Control over the accuracy of accounting data and price control are carried out by the 
Ministry of Agriculture. Monitoring of compliance of supplying and selling or ganizations is performed 
by regional executive authoriti es of the Russian Federation. 
 Grants to fuels and lubricants are determ ined by the regional executive authorities of the 
Russian Federation. The amounts of grants are calcu lated as per ton. The grants are distributed by 
resolution of executive authorities to regions. Paymen t of grants is made under documents covering 
actual procurements (invoices, payment orders) and reference calculations. 
 Control is provided by the financial executiv e authorities of the Russian Federation regions. 
 Benefits for organizations supplying water for irrigation and other agricultural purposes and 
needs of agricultural production companies are provide d by regional executive authorities in the form of 
preferential power tariffs in the amount of 50 per cent of  the average tariffs of su ch consumer market for 
electrical power but no lower than average production cost, transmission and distribution of electrical 
power, provided that any non qualifying revenue s of power suppliers are compensated from the 
applicable budget. 
 All decisions and controls are in the juri sdiction of the regional executive authorities. 
 State input subsidies are aimed at enhancing the effectiveness of agriculture, wider use of 
modern technologies and solving the issues of food security.  
5.  Investment Subsidies   
 Investment subsidies are implemented thr ough specific programs (development of hop plant 
industry, flax industry, baby food industry or th rough allocations of budgetary funds for capital 
investments in reproduction of fixed assets). 
 The allocations are made by partial compensation of costs of investment projects, or by direct 
capital investments, including under specific-purpose pr ograms subject to budgetary appropriations at 
all levels of government. 
 Control is provided by treasury departments. 
 The state investment subsidies should help rest ore and enhance the effectiveness of technologies 
of agricultural production, accommodate growth of e ffectiveness of the production itself, and thus 
contribute to achieving  national food security. WT/ACC/SPEC/RUS/23 
Page 8  
 
 6.  Grants to animal and plant production   
 Grants to animal and plant production are subject  to budgetary appropriations  made at all levels 
of government. At the federal level, the corres ponding mechanisms are provided by Government 
Resolution 272 of 6 April 2001, “On Approval of th e Procedure for Provision of Subsidies for State 
Support of Certain Sectors of Agricultural Production in 2001”. 
 The Ministry of Agriculture is the administrator of the funds. Funding is granted through 
regional executive authorities on contractual basis. Based on reference calculations submitted by the 
regions, the Ministry of Agriculture determines a quot a for each region. The subsidy rates, a list and the 
forms of documents, the fill-in procedure are determ ined and notified by the Ministry of Agriculture 
upon agreement with the Ministry of Finance. 
 Regional executive authorities approve the lists of recipients of subsidies, calculate the 
subsidies and transfer moneys through personal acco unts opened by the Treasury for such authorities. 
 Support for reindeer rearing, animal breedi ng, domestic sheep-breeding, elite seed-growing, 
breeding specimens of fur-bearing animals, maintena nce of pedigree bulls by enterprises in breeding 
and artificial insemination of animals, is granted as per capita of livestock. 
 Purchase of pedigree animals and birds – at a rate fixed per kilogram of live animals. Purchase 
of pedigree eggs – at a rate fixed per egg. Purchase of sperm of pedigree breeding animals at a rate per 
portion of sperm. 
 Support for elite seed-growing and flax and hemp production proceeds at a fixed rate per ton. 
 The recipients of subsidies present calculated est imates for payment of subsidies and documents 
confirming the actual expenses by type  of subsidy to the executive authorities of the Russian Federation 
regions. 
 The Ministry of Agriculture compiles registers based on summary calculated estimates and 
subject to monthly funding quota, which it presents to the Ministry of Finance.  
 The Ministry of Finance forwards them to fe deral treasury departments,  which notify regional 
executive authorities. The latter submit to treasury depa rtments payment orders for transfer of moneys 
to recipients of subsidies. Treasuries transfer the moneys to recipients of subsidies. 
 Control over the accuracy of the documents confirming the amount of costs, is provided by the 
regional executive authorities. Control over the accu racy of calculations and payments by the regional 
executive authorities and consistency of the use of fu nds with the original purpose is performed by the 
Ministry of agriculture. Financial control is perform ed by the Ministry of Finance and its territorial 
subdivisions. 
 Production subsidies will provide the necessary implementation of achievements of science and 
technologies, because subsidies allow agricultural pr oducers to use elite seeds and pedigree livestock. 
That should lead to enhanced production eff ectiveness, greater competitiveness of products, 
development of modern technologies of agricultural production. 
Conclusions
 
 To appreciate the impact of amber box measures in agricultural trade, it is important to consider 
rather their ratio in the total support than their d escription. The objectives of such measures are another 
important consideration. A comparison of the amount of support as prorated for the size of agricultural 
lands and the economically active population in agricu lture shows that the amount of amber box support  WT/ACC/SPEC/RUS/23 
 Page 9 
 
 
 requested by Russia is much lower than similar indi cators of any other countries. Thus, the trade effects 
of amber box measures in the amount needed by Russi a will be smaller than those of other countries 
supplying agricultural products to world markets. 
 The dissonance between relatively high indicat ors of amber box measures requested by Russia 
and the gross agricultural production is due to the decline of production in the 1990s which was an 
abnormal period. Support through amber box measures will give an  impetus to development of 
agricultural production thus providing new employmen t, budget rate revenues, improved supplies to 
food and processing industries. Subsequently, once su stainable growth is obtained, the volumes of 
support may decrease giving way to green box measures. 
II.  MEASURES ATTRIBUTABLE TO “GREEN BOX” (SEE ALSO ANNEX 2) 
1.  General services   
 General services (funding of budget-financed institu tions; funding of research and educational 
programs; capital investments in melioration and aquaculture, main tenance costs, operating costs, 
financial support for creation of a market database).  
 Maintenance of budget-financed institutions  proceeds on a continuing basis pursuant to 
federal and regional laws. 
 Costs of research and professional training in agriculture,  including the costs of special-
purpose research programs, training and refresher training for employment in agriculture are disbursed on a continuing basis pursuant to federal and re gional laws. This type of support includes R&D 
expenses under federal and regional special-purpose programs. 
 Operating expenses  – the expenses of animal diseases control and agricultural plants pests 
control, inspection services, land melioration, forest  control, etc., excluding any costs of repair and 
maintenance of melioration systems, are disbursed  on a continuing basis pursuant to federal and 
regional laws. The main part of operating expe nses is financed from the regional budgets.  
 The distribution mechanisms for these funds are as follows:   The Ministry of Agriculture produces monthly re gisters of funds remittance and submits them 
to the Ministry of Finance . Pursuant to the said registers moneys are remitted through the treasury 
system directly to its subordinate ag encies to finance the funding of general services.                 
 Allocations are made by the Ministry of Finance from the federal budget under section 08 
“Agriculture and fishery”, subsection 01 “Agricultu ral production”, special article 432 “Other costs in 
agriculture”. In addition, financi ng is provided under sections “State administration”, “Education”, etc. 
Apart from payroll payments, acquisition of suppli es and consumable materials, business trips and 
travel, transportation services, communications, utiliti es, other costs of purchases of goods and services, 
these funds are used to finance state measures under st ate  agreements. Transfers of funds are effected 
by payment orders from the account of the Minist ry with the Moscow federal treasury department 
through Savings Bank branches and commercial banks. They include: 
- Anti-epizootic measures; 
- Funding of the costs of producing manuals and guidelines, drafting laws, regulatory 
acts, the costs of publication of technical and production specifications and Informational Bulletin of the Ministry of Agriculture of the Russian Federation. Payment for such works is subject to a  contract with a specific contractor; WT/ACC/SPEC/RUS/23 
Page 10  
 
 - Financing of works associated with organization of seminars, academic conferences and 
workshops devoted to implementation of the achievements of science and technology in 
the Agricultural sector. The funds are transferred directly to the organizations hosting such seminar or meeting in accordance with an approved statement of costs 
- Measures aimed at preserving the gene pool of endangered cattle species. The funds are 
remitted to breeding enterprises 
- Measures to reproduce fish reserves. The funds  are remitted to specialized enterprises 
of Rosrybkhoz and Rosrybkolsoyuz; 
- Measures for strain changing or renovation in  respect of flax seeds. The funds are 
transferred to flax breeding organizations producing seeds of industrial crops; 
- Measures to protect agricultural crops from hail-damage. 
Financing of a market information system
  
 Financing of a market information system aims  to provide conditions for effective functioning 
of the Russian agrarian sector in the context of ma rket economy. Before 2001 inclusively, financing of 
this program proceeded on the basis of a sub-loan  agreement between the Government of the Russian 
Federation and the World Bank. The scheme was structured as follows: 
 
Ministry of Finance 
Acts as a lender and 
is responsible for repayment of funds 
by sub-borrowers 
(private enterprises and regions)  Offset and 
performance scheme  Sub-borrower 
(private enterprise or region), 
responsible for drawing and use of loan funds according to the 
purpose 
  
      
Approval  Payment 
instruction under contract   Goods and services 
    Instalments % 
and repayment of debt into account 
Ministry of Agriculture – state program ARIS 
Technical support for 
disbursement of the funds    Contractor – supplier of goods, 
works and services for the sub-borrower, winner of international 
tender 
  
   
Ministry of Agriculture – structural divisions , 
responsible for developmen t and implementation of 
component of ARIS project    
Payments from 
account    WT/ACC/SPEC/RUS/23 
 Page 11 
 
 
  
 In a development parallel to the ARIS program , the Government of the Russian Federation 
approved the Comprehensive program  for development of commodity market infrastructure for 1998 – 
2005 by Resolution 593 of 15 June 1998 which provides for a number of pilot projects related to creation of a wholesale markets network,  transport in frastructure, and development of tare and package 
production industries. 
Socially significant rural programs (as an element of general services)
  
 Socially significant rural programs (as an el ement of general services) are financed under the 
federal target investment program “Gas Supplies to  In-Built Rural Areas”. The funds from the Ministry 
of Agriculture are remitted to Russian Federati on regions as inter-budgetary  subventions and are 
channelled to municipal structures as financia l aids to the budgets of other levels. 
 Currently state financial support to agricultural enterprises and organizations  to finance capital 
costs is provided under three headings of the Federal Budget: 
 Section 07 “Industry, energy generation a nd construction development”, subsection 07 
“construction development, architecture” 
 Section 21 “financial aid to budgets of different  levels”, subsection 01 “Financial aid to budgets 
of different levels” 
 Section 08 “Agriculture and Fishery”, sub section 01 “agricultural production” for “Capital 
costs” and subsection 02 “land resources”. 
 The distribution of  budgetary appropriati ons to the actual addressees of budgetary funds 
proceeds under Order 15 of 10 January 2001 of the Ministry of Agriculture “On Approval of the 
Procedure for Implementation of the Federal Budget in What Concerns Disbursement of Budgetary 
Funds”. 
Investments other than production investments  
 The funding of certain non-production investme nts is planned for the near future under 
subprograms of the federal specific-purpose program “Rural Social Development through 2010”. These 
subprograms include: “Rural Housing”, “Health”, “Education”, “Culture”, “Physical Training and 
Sports”, “Consumer Cooperation”, “Consumer Servi ces”, “Sanatoriums and Resorts”, “Information and 
Consulting Services to the Rural Population”, “Power Supply”, “Gas Supply”, “Communications”, “Water Supply”, “Roads”. 
2.  Formation of state reserves to provide food security (the costs of creation of a federal and 
regional food reserves) – see Annex 2  
 Formation of federal and regional food reserves is implemented under federal and regional laws 
for the following purposes: 
- supplies to the Far North Areas and territories of equivalent status; 
- adequate provisions according to requirement of the military and equivalent categories 
of consumers; 
- formation of readily available reserves of the Government of the Russian Federation. WT/ACC/SPEC/RUS/23 
Page 12  
 
  The Government determines the content and vol umes of agricultural products to be procured. 
Food reserves are procured at market prices. 
3.  Support of the level of income of producers, other than production support (maintenance 
of social infrastructure) 
 This measure includes: 
- the costs of maintenance of social  and engineering infrastructure; 
- budgetary grants to solve the housing problem in rural areas. 
 Budgetary funds are allocated to finance the ope rating costs in respect of kindergartens, schools, 
clinics and hospitals, local medical practitioner’s offi ces, clubs, arts and leisure centres, utilities (for the 
non-production sphere) that are located in rural areas and maintained on the balance sheets of collective 
farms, state farms and other agricultural enterprises,  or transferred by the above listed to the local 
authorities, to the extent that such costs are not r ecoverable from farm revenues.  Since 1994 this type of 
support is provided mainly throug h regional and local budgets. Budgeta ry grants for the housing and 
utilities system are provided by the Ministry of Fi nance of Russia to the Russian Federation regions 
through transfers from the Financial Support Fund for the Russian regions. For the purpose of 
developing social infrastructure and pursuant to Reso lution No. 76-r of the Government of the Russian 
Federation of 22 January 2001, ther e was developed a draft federal special purpose program “Rural 
Social Development Through 2010”. Implementation of this Program proceeds under contracts for 
regional executive authorities and local authorities by successful bidders in tenders for contracts. The 
funding of measures under the program is provided from the federal budget funds in keeping with an 
established procedure through the Ministry of Agricu lture of the Russian Federation, which is state 
customer of the program. 
4.  Insurance programs (compensation of insurance payments, costs of buffer stocks of seeds) 
 The terms of the government’s financial partic ipation in agricultural crop insurance programs 
are as provided under Law No. 100-FZ “On State Regulation of Agro-Industrial Production” and Resolution of the Russian Federation Governme nt of 27 November 1998, No. 1399 “On State 
Regulation of Insurance in Agro-Industrial Produc tion”. In 2001, Government Resolution 758 of 
1 November 2001 “On State Support for Insurance in Agro-Industrial Production” was adopted. A federal agency for state support of insurance in  agro-industrial production is being set up by the 
Ministry of Agriculture. 
 Subsidies are provided by the Ministry of Agriculture through regional executive authorities on 
the terms of contracts and subject to any limitations  on budgetary obligations and amounts of financing. 
 The insured sum is determined as 70 percent of  the insurable value of agricultural crops. The 
insurable value is determined based on the size of  areas under crops, average yield in the preceding 5 
years and the market price forecast. 
 Subsidies are provided in respect of insurance premiums payable by agricultural enterprises 
under contracts to insurance organizations. 50 per cent are paid by agricultural producers with own 
funds and the remaining 50 per cent out of the federal budget. 
 Treasury departments transfer the subsidies to  settlement accounts of insurance organizations 
based on insurance contracts of agricultural producers. 
 Executive authorities verify the accuracy of da ta contained in such contract and payment 
documents.  WT/ACC/SPEC/RUS/23 
 Page 13 
 
 
  Ministry of Agriculture compiles a register based on summary calculated estimates submitted 
by the regions, and passes it on to the Ministry of Fina nce. The Ministry of Finance remits the funds to 
treasury departments. Treasuries notify regional execu tive authorities by sending statements of personal 
accounts of such authorities. The latter transfer the fu nds to insurance organizat ions by submitting to the 
treasuries payment orders and other required documents. 
 Executive authorities and insurance organizations  inform agricultural producers of the amount 
of such funds. 
 Control over the accuracy of calculations is performed by the regional executive authority, 
control over purpose-consistent use of subsidies and due reporting – by the Ministry of Agriculture, and 
control over the use of budgetary funds – by the Ministry of Finance and its territorial divisions. 
 Settlements for seeds deliveries to the federal insu rance reserve funds are effected with federal 
budgetary funds in two instalments: 
1. an advance payment of 50 per cent of the contract price according to market rates;  2. the final settlement based on the prices existing as at the moment of signing of the 
contract. 
 The  Ministry of Agriculture  authorises dist ribution of seeds from the insurance reserve funds 
based on requests by republican, territorial, regional and local agricultural authorities: 
- cereals and oilseeds – for sale and barter; 
- vegetables, melons, sugar-beet, food roots, flax, potatoes and grasses – for sale. 
 Distribution of seeds from the in surance reserve funds through sale is  made by the state 
procurement agencies at current market prices (with quality differentiation) subject to the procurement 
expenses and return rates agreed by the Ministry of  Agriculture and Food of the Russian Federation.  
5.  Assistance in the event of natural calamities 
 Pursuant to Article 24 of the Federal Law No. 68-FZ of 21 December 1994 “On Protection of 
Population and Territory From Emer gencies of Natural and/or Human Inflicted Origin”, and Resolution 
No. 810 of the Russian Federation Government of 26 October 2000, Russian regions may request 
federal budget assistance from the Government of the Russian Federation in the event of deficiency of 
own funds for the purpose of liquidation of an emergency situation. 
 The Ministry of Agriculture conducts an anal ysis of the circumstances of an emergency to 
determine the amount of damage and assistance requi red. These works are fina nced from the federal 
budget under heading “Other measures in agriculture”. 
 Based on the inspections conducted, the Ministry of Agriculture jointly with the Ministry of 
Finance and the Ministry of Emergency Situations submit a proposal to the Government regarding 
assistance to agricultural producers affected by such natural disasters. By a Government resolution, 
assistance may be granted to Russian regions mainly  by write-offs of debts to the federal budget and 
from the Government reserve fund for prevention a nd liquidation of emergencies and aftermath of 
natural disasters. Transfers of funds allocated to Russian regions, their record and account-keeping are 
performed by the Ministry of Finan ce . Direct assistance to agricultur al producers is within the powers 
of the regional executive authorities. WT/ACC/SPEC/RUS/23 
Page 14  
 
  Since 1993, the Government compensates 50 per ce nt of the costs of feed transportation from 
unaffected territories to agricultural producers affected  by drought and other natural disasters. The farms 
affected by a natural disaster are identified and approved by the executive authorities of the Russian 
Federation regions. To prove their eligibility for co mpensation, agricultural producers must submit to 
agricultural authorities their estimate of the amount  of compensation required from the federal budget, 
and the list of waybills confirming their transportatio n expenses effectively incurr ed. On the basis of the 
summary lists received from regional agricultural aut horities, the regional authority in charge of the 
agro-industrial sector  compiles a summa ry needs estimate and forwards it to the Ministry of Agriculture  
and to the territorial division of the Ministry of Finance to supply the funding and perform subsequent 
control over the accuracy of the estimate and the use of such funds consistently with the original 
purpose. 
6.  Restructuring programs (support for farms) 
 Objective of support – the government’s contri bution to establishment of new living standards 
in rural areas by increasing the incomes of farms. 
 This type of support is regulated by Fede ral Law “On the Federal Budget for 2001”,  the 
Resolution No. 272 of the Government of the Russi an Federation of 6 April 2001 “On Approval of the 
Procedure for Provision in 2001 of Subsidies from the Federal Budget for State Support of Certain Sectors of Agricultural Production”. 
 This form of support is accorded  under Fe deral special purpose program for development of 
individual (peasant) farms and cooperatives in 1996 – 2000. Main objectives of the program: 
- creation of procedural, economic, financ ial, legal and social framework for 
development of farms and cooperatives; 
- improvement of the state support mechanism for farm sector; 
- formation of market and social infrast ructure on the basis of cooperation and 
integration. 
 This support corresponds to the criteria of pa r. 6(a)-(e) of the Annex 2 to Agreement on 
Agriculture since the payments are not determined by  type or volume of products produced by a given 
producer or production factors, and are not subj ect to domestic and world prices for products. 
7.  Environmental protection 
 Ministry of Agriculture maintains measures aimed at rehabilitation of radioactively 
contaminated agricultural lands, provision of ecol ogically clean products, reproduction and prevention 
of deterioration of natural envir onment, provision of ecologically-friendly functioning of agro-industrial 
sector in Russia under federal and regional programs  “Protection of the Population of the Russian 
Federation from Consequential Impact of Chernobyl  Catastrophe”, “Chernobyl Children”. The funds 
allocated for such purposes are channelled by the Mi nistry of Finance pursuant to distribution of 
budgetary allotments provided by the Ministry of Agriculture to the Agro-Industrial Sector authorities 
who then retain contractors to carry out measures contemplated by the programs. 
 The Ministry of Agriculture also allocates funds  for rehabilitation of radioactively contaminated 
agricultural lands under federal program “Improvement  of Fertility of Russian Soils” from the federal 
budget under section “Agriculture and fishery”, subsec tion “Land resources”. The said funds are used to 
fund agrochemical melioration of radioactively contaminated lands.  WT/ACC/SPEC/RUS/23 
 Page 15 
 
 
  The Government of the Russian Federation maintains a number of special environmental 
programs which contain  measures for environmentally friendly functioning of agro-industrial sector of 
the Russian Federation. These programs are: “Wast es”, “Ecological Rehabilitation of Volga and its 
tributaries”, “Reproduction and Prevention of Deterior ation of Natural Environment of Volga Basin for 
the Period Until 2010” (“Revival of Volga”), “Eco logical Rehabilitation of Orenburg Oblast and 
Improved Health Care to Its Population”, “Comprehen sive Federal Program to Protect the Lake Baikal 
and Provide for Rational Use of Its Basin”, etc. Funds to finance these programs are provided to the Ministry of Agriculture from the federal budget. 
 Since 1993, the Government of the Russian Fede ration provides subsidies to veterinary and 
sanitary waste collector plants under environmental programs to fund collection and processing of 
biological wastes at a fixed rate per ton of disposed biological waste. Such financing is provided based 
on calculated estimates timely submitted by the execu tive authorities of the Russian regions to the 
Ministry of Agriculture of Russia. Subsidies mu st not exceed the losses incurred in the pursuit of 
principal business activity.  
8.  Program of support for regions with an  unfavourable climate conditions (see Annex 2) 
 This measure provides for capital investments in  Far North Areas and equivalent territories for 
development of prevalent regional sectors and trades, construction of new and re construction of existing 
enterprises and facilities. 
Conclusion
 
 In accordance with the Agreement on Agricu lture, all measures listed above have minimum 
distorting effect on trade in agricultural goods. 
III.  EXPORT SUBSIDIES (SEE ANNEX 3) 
 In respect of export subsidies, Russia insist s on being granted the legitimate opportunity to 
continue maintaining the 1990 – 199 2 level of such subsidies. Taking into account the vastness of the 
territory and other geographical specificities, it is esse ntial for Russia to be able to provide preferential 
railway and other tariffs for transportation of ag ricultural cargoes supplied for exports. Preferential  
transport tariffs may be established by the Ministry of railway transportation or the Ministry of  
Transport subject to approval by the Ministry of Agriculture and the Ministry of Finance. 
 Russia also reserves the right to use direct export subsidies  within  1990-1992 limits.  Annual amount of export subsidies for agricu ltural goods in 1990 – 1992 is assessed at 726 
million dollars (calculation attached – see Annex 3). 
_______________ 
 WT/ACC/SPEC/RUS/23 
Page 16  
 
 ANNEX 1 
 
Requirements for annual budgetary funding for agriculture at the federal and regional levels (amber box) 
Program Annual average cost of 
implementation of the 
program, billion 
dollars Annual average cost of 
implementation of the 
program, billion rubles
(a) The restructuring of debts of agricultural enterprises   
 
Budget deficiency resulting from disparity of prices and other  unfavourable macroeconomic conditi ons (calculated for a three-year 
period) 
 The requirement of a 10 year de bt repayment grace for agricultural 
enterprises 
  - amount of debt deferred 
 - interest accruing on deferred debts based on the current 
  Central Bank's refinancing rate  
 
 
0.4 
 
  
 
 
0.03 
0.04  
 
 
10.2 
 
  
 
 
0.9 
1.1 
(b) Preferential loans 
 
The requirement to provide budgetary loans for settlements with 
suppliers  
Preferential interest rate for use of budgetary loans to make settlements 
with suppliers  
The requirement of the government undertaking to pay interest on short-
term loans in the amount of 70% of the Central Bank's rate   
The requirement of a financial lease fund  
 
0.1 
 
0.02 
 
 
0.18 
 
 
1.31  
 
2.5 
 
0.5 
 
 
4.9 
 
 
35.5 
(c) Regulation of market and marketing of agricultural products  Funds requirement for market re gulation for certain products 
 
The requirement of a 50% compensation of buying costs of fuel and lubricants (gasolin e, diesel fuel) 
 
The requirement of provision of benefit tariffs for electric power and gas to agricultural enterprises 
 
The requirement of compensation of costs of buying mineral fertilisers  - nitrogenous 
 - phosphate 
 - potassium 
The requirement of compensation of costs of buying combined fodder 
for livestock production farms  
 
0.46 
 
1.90 
 
 
1.1 
 
 
0.52 0.18 
0.26 
0.08 
 
0.08  
 
12.5 
 
52.6 
 
 
28.6 
 
 
14.1 
4.9 
7.0 
2.2 
 
2.1 
(d) Investment subsidies 
 
State investment subsidies to agriculture 
 Federal specific purpose programs 
 
 "Sugar" Program  "Russian Flax" Program 
 "Russian Hop Plant" program 
 "Fertility" Program 
 "Vegetable Oil" Program  
 
7.0 
 
1.33 
 
0.1 
0.01 
0.01 
0.99 
0.22  
 
189.0 
 
35.9 
 
2.7 0.3 
0.3 
26.7 
5.9  WT/ACC/SPEC/RUS/23 
 Page 17 
 
 
 Requirements for annual budgetary funding for agriculture at the federal and regional levels (amber box) 
Program Annual average cost of 
implementation of the 
program, billion 
dollars Annual average cost of 
implementation of the 
program, billion rubles
(e) Subsidies to livestock and plant production, including 
 
- Subsidies and compensation to breeding in livestock and poultry 
production 
- Subsidies to elite seed-growing 
- Subsidies to beef cattle husbandry and sheep breeding 
- Subsidies to flax and hemp - Subsidies to plant industry products 
- Subsidies to animal products (milk, poultry, wool, eggs) 1.79 
 
0.08 
 
0.11 
0.73 
0.01 0.04 
0.82 48.3 
 
2.2 
 
2.8 
19.7 
0.3 1.1 
22.2 
(f) TOTAL 1.62 438.5 
 WT/ACC/SPEC/RUS/23 
Page 18  
 
 ANNEX 2 
 
Requirements for annual budgetary funding for agriculture at the federal and regional levels (green box) 
Program Annual average cost 
of implementation of 
the program, billion 
dollars Annual average cost 
of implementation of 
the program, billion 
rubles 
General services: 
 
Maintenance of budgetary institutions 
Costs of research in agriculture Costs of education 
Non-production capital investments (housing) 
Operating expenses (costs of fighting animal diseases and pests, costs of forest management measures, etc. (less repair and maintenance of 
melioration systems, market information)  
 - "Mechanical Engineering for Ru ssian Agro-Industrial Sector" 
Program (1993-1998) direct budgetary financing of research & 
development [NIKOR] 
- "Gasification of Russia" Program (1996-2000) 
- "Russian Forests" Program (1997-2000)  
 
0.537 
0.193 
0.69 
19.63 
2.375 
 
 
 
1.3 
 
 
0.71 
0.00  
 
14.5 
5.2 
18.6 
530.0 
64.1 
 
 
 
36.0 
 
 
19.2 
0.1 
(g) Food Security 
 The costs of creating federal and regional food reserves (budget loans to 
form food reserves to provide for Far North regions, stockpiling and 
other state needs)   
 
1.655  
 
44.7 
(h) Maintenance of revenue level not connected with production 
 
Budget deficiency for the main tenance of agricultural social 
infrastructure  
 
0.37  
 
10.0 
Insurance 
 Funding of costs of maintenance of federal back-up seed reserves of 
key agricultural plants 
 
Harvest insurance  
 
0.063 
 
 
0.2  
 
1.7 
 
 
5.0 
(i) Payments in connection with natural calamities  
Compensation of losses to farms affected by natural calamities  
Compensation of costs of fodder transportation (provided in the event 
of natural calamities causing fodder deficiency in livestock production) 
 
0.073 
 
0.038  
 
2.0 
 
1.0 
(j) Structural reconstruction 
 
Maintenance of farms  
 
0.02  
 
0.4 
(k) Ecological programs 
 
Subsidies to recycling enterprises 
 
− "Fertility" Program (1993-2000) 
− federal budget 
− regional budgets  
 
0.004 
 
 
0.70 
3.39  
 
0.1 
 
 
18.9 
91.4 
 Maintenance of regions with disadvantageous conditions 
 
Capital investments in Far North regions and areas of equivalent status  
 
0.607  
 
16.4 
(l) TOTAL 32.59 879.8   WT/ACC/SPEC/RUS/23 
 Page 19 
 
 
 ANNEX 3 
 
Calculation of export subsidies volumes for  agricultural products  
 
HS Code  Goods name 
Type of subsidies Volume of 
subsidized 
exports 
million tones Average 
controlled 
cost 
USD/ton Subsidies 
quantity 
USD/ton Total 
volume of 
subsidies 
mln USD 
 
  
 
 0105 
 
0401,0402,0403 
0405 
0407 0713 
0811 
1001 1003 
1004 
1008 1101 
1103 
1201 1206 
1512 
1517 1602 
1701 
1806  
1905 
2009 
2102 
2105 2202 
2203 
2204 220860 
2306 
 2403 
 
  
 
  
 I.   Direct subsidies in case of exports of 
agricultural products  Total 
Including: 
 Live domestic poultry, million heads 
 
Dairy produce 
Butter 
Birds' eggs Dried leguminous vegetables 
Fruits and nuts 
Wheat Barley 
Rice 
Buckwheat Wheat flour 
Cereal groats 
Soya beans Sunflower seeds 
Vegetable oil 
Margarine Preserved meat 
Sugar 
Chocolate and products containing chocolate 
Bread, pastry, similar products 
Fruits juices 
Yeast 
Ice-cream Free-alcohol drinks, mln dl 
Malt beer, mln.dl 
Grape wines, mln dl Vodka 
Oil-cake and other residues of 
milling industry Manufactured tobacco 
 
 II. Compensations on railway/transport 
tariffs            
Total Including grain transportation 
Transportation of other products 
 
      TOTAL  
  
 
 
2.5 
 
0.2 
0.05 
0.05 0.02 
0.02 
5 6 
0.05 
0.15 
0.4 
0.05 
0.2 
3 
0.5 
0.03 0.03 
0.5 
0.1 
 
0.1 
0.03 
0.03 
0.03 
10 
5 
0.4 
1 
0.5 
 
0.12  
  
 
 
0.4 per 
head 
0.95 
1.37 
0.62 0.16 
1.25 
100 
83 
175 
105 185 
280 
190 150 
370 
735 
1450 
240 
1960 
 
780 
540 
265 
860 
0.2 
0.57 
0.78 
5.5 
68 
 
4100 
 
  
  
 
 
0.1 per 
head 
0.25 
0.37 
0.16 0.05 
0.25 
10 13 
25 
15 15 
20 
20 20 
50 
35 
150 
20 
100 
 
80 
40 
35 
50 
0.05 
0.07 
0.08 
0.5 
8 
 
100 
 272.29
0.25
0.05
0.02
0.010.01
0.01
5078
0.01
2.25
6
1
4
60
25
1.05
4.5
1
10
8
1.2
1.05
1.50.5
0.35
0.03
0.5
4
12
453.835
357.235
96.6
726.125 
 WT/ACC/SPEC/RUS/23 
Page 20 Export subsidies:  Russian Federation  
 
Accounting period: 1990 calendar year  
 
Amount of 
export 
subsidised Procurement (wholesale) 
price applicable Weighted average export 
price Difference between the 
procurement and weighted 
average prices Total export subsidies 
Description of product exported  
tons thousand 
rubles/ton thousand 
rubles/ton Thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles thousand 
rubles 
1 2 3 4 5=3-4 6=5*2 
Wheat 360000 0,299 0,515 0,0941 0,1622 0,204 0,353 73602,0 126900,0 
Wheat flour 32000 0,315 0,544 0,1614 0,2783 0,154 0,265 4924,0 8489,6 
Barley 28350 0,271 0,467 0,0817 0,1409 0,189 0,326 5353,8 9230,8 
Maize 106000 0,785 1,354 0,0721 0,1243 0,713 1,230 75608,1 130358,8 
Other cereals 913500 0,278 0,480 0,0840 0,1449 0,194 0,335 177387,1 305839,8 
Rice 8184 0,704 1,214 0,2531 0,4363 0,451 0,778 3691,0 6363,9 
Oil-bearing plants seeds 72500 0,458 0,790 0,1096 0,1889 0,348 0,601 25259,4 43550,8 
Fibre flax 1470 1,925 3,318 0,9104 1,5696 1,014 1,749 1490,9 2570,6 
Vegetable oils 30000 2,030 3,500 0,4120 0,7103 1,618 2,790 48540,8 83691,0 
Oil-seed meal 25000 0,150 0,259 0,1124 0,1938 0,038 0,065 939,6 1620,0 
Sugar and sugar products 74000 1,070 1,845 0,2608 0,4496 0,809 1,395 59882,0 103244,8 
Cream butter 31000 13,687 23,598 1,2998 2,2411 12,387 21,357 383997,1 662063,9 
Dry milk 550 1,512 2,607 0,9158 1,579 0,596 1,028 327,9 565,3 
Cheese 2484 4,835 8,336 1,6503 2,8453 3,185 5,491 7910,8 13639,4 
Other dairy products  (condensed milk), thousand cans 32220 0,578 0,996 0,2772 0,4779 0,300 0,518 9676,4 16683,5 
Meat and meat products 872 7,816 13,476 2,4516 4,2269 5,364 9,249 4677,8 8065,1 
Canned meat, thousand cans 27670 0,774 1,334 0,4101 0,7071 0,364 0,627 10062,5 17349,1 
Eggs and egg products, million items 41000 0,105 0,181 0,0522 0,09 0,053 0,091 2164,0 3731,0 
Wines and alcohols, decalitres  1463000 0,185 0,319 0,0132 0,0228 0,172 0,296 250913,3 432609,1 
Fresh vegetables 3000 0,440 0,759 0,1495 0,2578 0,291 0,501 871,7 1503,0 
Fresh fruit 3680 0,662 1,142 0,3689 0,636 0,294 0,506 1080,4 1862,8 
Potatoes 2187 0,295 0,509 0,1396 0,2407 0,155 0,268 339,8 585,9 
Compotes, thousand cans 1651 0,220 0,379 0,1605 0,2767 0,059 0,102 97,8 168,6 
Honey 6147 6,880 11,862 0,6994 1,2058 6,181 10,656 37992,5 65504,3 
Starch 2260 0,535 0,922 0,1912 0,3296 0,344 0,593 777,0 1339,7 
Wool 2085 4,871 8,398 1,4498 2,4997 3,421 5,898 7132,8 12298,0 
Animal skins (thousand items) 24000 1,295 2,233 0,8177 1,4099 0,477 0,823 11457,6 19754,4 
TOTAL              1206158,2 2079583,1 
Note:  Average annual exchange rate – 0,58 rbls/dllrs – as reported by State Committee for Statistics of Russia  
  WT/ACC/SPEC/RUS/23
 Page 21Export Subsidies – Russian Federation  
 
Accounting period: 1991 calendar year  
 
Amount of 
export subsidisedProcurement (wholesale) 
price applicable Weighted average export 
price Difference between the 
procurement and weighted 
average prices Total export subsidies 
Description of product exported  
tons thousand 
rubles/ton thousand 
rubles/ton Thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles thousand 
rubles 
1 2 3 4 5=3-4 6=5*2 
 Frozen beef 299 4,90 2,80 2,89 1,65 2,01 1,15 602,1 344,1 
 Pork 47 4,40 2,51 2,28 1,30 2,12 1,21 99,8 57,0 
 Fowl flesh 959 4,20 2,40 1,11 0,63 3,09 1,77 2966,8 1695,3 
 Condensed sugared milk  19042 2,39 1,36 1,68 0,96 0,70 0,40 13359,17 7633,8 
 Rice 35124 0,90 0,51 0,24 0,14 0,66 0,38 23210,6 13263,2 
 Flour 16146 0,50 0,29 0,34 0,19 0,16 0,09 2655 1517,1 
 Sunflowerseed oil 136666 1,70 0,97 0,80 0,45 0,90 0,52 123536,2 70592,1 
 Sausages 10 5,00 2,86 2,00 1,14 3,00 1,71 30 17,1 
 White sugar 4455 0,85 0,49 0,55 0,31 0,30 0,17 1352,205 772,7 
 TOTAL               167811,9 95892,5 
 
Note:    Amount of export and weighted average price (fob) appear as reported by the Russian Ministry of Economic Development and Trade and the State Committee for Statistics of 
Russia.   
Procurement and wholesale selling price for ag ricultural products and food – as reported by the State Statistics  Committee of Russia. 
Average annual exchange rate – 1,75 rbls/dllrs – as reported by the State Statistics  Committee of Russia 
  
 WT/ACC/SPEC/RUS/23 
Page 22 Export Subsidies – Russian Federation  
 
Accounting period: 1992 calendar year  
 
Amount of 
export subsidisedProcurement (wholesale) 
price applicable Weighted average export 
price Difference between the 
procurement and weighted 
average prices Total export subsidies 
Description of product exported  
tons thousand 
rubles/ton thousand 
rubles/ton Thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles/ton thousand 
rubles thousand 
rubles 
1 2 3 4 5=3-4 6=5*2 
Fowl meat 21,213 36,10 0,2 9,9 0,05 26,19 0,14 555665,7 2886,6 
Cocoa powder 25 163,46 0,85 46,2 0,24 117,26 0,61 2931,6 15,2 
TOTAL               558597,3 2901,8 
 
Note: 
 Amount of export and weighted average price (fob) – as reported by Russian Ministry of Economic Development and Trade and State  Statistics Committee of Russia. 
Procurement and wholesale selling price for ag ricultural products and foods – as reported by State Statistics Committee of Russ ia. 
Average annual currency exchange rate – 192,5 rbls./dllr s. – as reported by State St atistics Committee of Russia. 
  
  WT/ACC/SPEC/RUS/23
 Page 23ANNEX 4 
 
Summary Table of Goals, Measures and Legal Framewor k of Development of Agrarian Sector in Russia  
 
 
Goals and objectives 
 of  policy Measures to achieve the stated goals and impl ement objectives of  policy Legal framework 
Formation of developed agri-
food markets, provision of 
their integrity and coordination Provide free movement of goods, services and financial flows regime in all the 
territory of the country  
 Provide equal treatment for all participan ts of the market, and transparency of 
goods flows 
 Implement a single antimonopoly policy in the sector 
 
Support formation and regulation of agri-food products markets   
Create and maintain a uniform state syst em of information support for agri-
food markets - law on self-regulating organizations in agrarian sector 
(trade unions and associations of agricultural producers) 
(in preparation) 
- Federal Law No. 100-FZ dated 14 July 1997 “On State 
Regulation of Agro-Industrial Production” 
- draft specific-purpose program of development of a 
reference database of Agro -Industrial Sector in the 
Russian Federation for 2002-2005 (in preparation).  
- draft law “On Wholesale Food Markets” (in preparation) 
Sustainable food security  Measures to expedite rehabilitation of grain production as the basis for a 
stable agri-food market 
 
- create insurance reserve funds of basic food products 
 
- provide food aid to certain territories in food emergency zones 
 - support food deliveries to Far North regions and territories of equivalent 
status 
 - a system of measures to perform food  procurements for state reserves  
 - amendments and supplements to Federal Law “On 
Procurements and Supplies of Agricultural Products, 
Input and Food for State Needs”  
- draft federal specific-purpose program “Grain” (in 
preparation) 
- Federal Law No. 100-FZ dated 14 July 1997 “On State 
Regulation of Agro-Industrial Production” 
- Resolution of the Government of the Russian Federation 
“On the Approval of the Pr ocedure for Creation and Use 
of Intervention Reserves of Agricultural Products, Input and Food of the Ministry of Agriculture of the Russian 
Federation” dated 3 August 2001 No. 580  
 WT/ACC/SPEC/RUS/23 
Page 24 Goals and objectives 
 of  policy Measures to achieve the stated goals and impl ement objectives of  policy Legal framework 
Development of an effective, 
sustainable agro-industrial 
production - encourage greater competitiveness of domestic producers  
- develop the system of insurance in agriculture  
- encourage development of credit cooperation 
- rectify the accumulated structural distortions by restructuring   
inefficient and loss-making agro-industrial enterprises 
- support elite seed growing, pedigree breeding and land melioration 
- assist formation of horizontally and vertically integrated structures 
- provide uniform standards in agriculture 
- implement specific-purpose progra ms to ensure technological  
development of agriculture 
- form and finance fundamental and applied research in the agrarian 
sphere 
- support the more effective an d resource-saving technologies 
- provide monitoring of agrarian policy results  
- export promotion of domestic products and technologies abroad 
- form a multi-channel system of capital investment financing 
- create a favourable environment to encourage private investment in 
agricultural production, manufacture of machinery and equipment for 
agriculture, wider use of financial leasing  
- implement a flexible customs tariff policy in mineral fertilizers and 
chemicals market 
- concentrate state resources in prio rity trends of agro-industrial 
development 
- provide guidelines and organizational support for structural and 
institutional reform in agriculture 
- - perform controlling functions in the sector at the national level 
(veterinary control, technical cont rol, control in seed-growing and 
pedigree breeding, etc.) - draft law “On Individual (Peasant) Farms” (new version) 
(in preparation) 
- draft law “On Rural Insurance Cooperatives” (in 
preparation) 
- draft law “On Special Procedures of Limited Liability 
Companies in Agricultural Production” (in preparation) 
- federal law “On Credit Cooper ation” (in preparation) 
- development of a regulatory base for and  the system of 
agricultural crops insurance, adoption of a governmental 
resolution “On  Adoption of Granting in 2001 of 
Subsidies from Federal Budget for Partial Compensation of the Costs of Crops In surance Under Insurance 
Agreements Made by Agricultural Producers”  
- federal law “On Russian Agricultural Bank” (in 
preparation) 
- amendments and supplements to Federal Law “On 
Insolvency (Bankruptcy)” 
- amendments to tax legislation to accommodate the 
seasonable nature of agricultural production  
- Revised Rules of use of funds of the federal budget 
appropriated for financial l easing operations in agro-
industrial sector (approved by Resolution of the Russian 
Federation on 11 August 1998, N ХВ-П25-154) 
- Resolution of the Government of the Russian Federation 
dated 22 May 2001, No. 404 “On Improvement of 
Financial Leasing Business in Agro-Industrial Sector”  
- Federal law #132-FZ of 8 August 2001 “On 
Amendments and Supplements to the Federal Law “On 
the Federal Budget for 2001” 
- Federal specific-purpose program “Increase of Sugar 
Production in the Russian Federation in 1997-2000 and for the Period Through 2005” 
- Federal specific-purpose progr am “Development of Flax 
Production in Russia for 1996-2001” 
- Federal specific-purpose pr ogram “Stabilization and 
Development of Engineering and Machinery in Russian 
Agro-Industrial Sector in 2002-2007” (in preparation)  
  WT/ACC/SPEC/RUS/23
 Page 25Goals and objectives 
 of  policy Measures to achieve the stated goals and impl ement objectives of  policy Legal framework 
Increase of income level and 
improvement of labour 
conditions of rural population - Create conditions for generation of incomes in agriculture at the 
proportionate levels to other sectors of economy  
- Develop non-agricultural employment in rural areas, provide refresher 
training to employees to prepare them, consult local population on 
setting up non-agricultural ventures, create preferential conditions and 
facilitate the procedure for opening up small businesses in rural areas 
- exempt agricultural enterprises from the burden of costs of social and 
engineering infrastructure 
- provide for social development of rural settlements: governmental 
support for housing in the rural areas, development of rural health 
institutions network, general education institutions, gas supply, electric power supply, road development in rural areas  
- support the functioning of private farms - legislative support for issues of development of social 
infrastructure of rural areas  
- development of regulatory and legal framework for 
promotion of private farms  
- Federal specific-purpose program “On social 
development of rural areas for 2002 – 2010” 
- adoption and implementation of a List of measures of the 
“Federal specific-purpose pr ogram for improvement of 
labour conditions and protection for 1998-2001” in 2001 
- draft "Program of development of professional training, 
re-education and refresher training of employees of agro-industrial sector through 2005” (in preparation) 
Preservation of natural 
resources for production - control over technologies of agricultural production to reduce 
technologically inflicted pressures on the environment, develop the 
system of mapping out land zones and a system of maximum permissible normatives 
- form a system ensuring best possible ecological purity of products in all 
stages of the food chain 
- control genetically modified food products and their ingredients entering 
the territory of the Russian Federation  
- harmonize Russian sanitary and phytosanitary norms with the 
international standards and enhance ecological control - draft federal specific-purpose program “Improvement of 
soil fertility in 2002 – 2010” (in preparation) 
- Federal specific-purpose program “Improvement of soil 
productivity in Russia for 1992-2001”   
- draft resolution of the Government of the Russian 
Federation “On approval of standard criteria of state 
accounting of indicators of the productivity level of 
agricultural lands” (in preparation) 
- draft resolution of the Government of the Russian 
Federation “On approval of regulations on strengthening 
phytosanitary measures of plant protection against contamination with hazardous  and especially hazardous 
pests, diseases and weeds in the Russian Federation” (in 
preparation) 
Integration with world agricultural production and 
food markets - encourage foreign investment in agrifood sector 
- create a system for certification of agrifood products approximating as 
closely as possible the international standards 
- maximum possible harmonization of agricultural policy with that of 
other CIS countries in the context of creation of a common agriculture 
market  
- orientation of state diplomatic and trade missions abroad towards 
engagement of state-of-the-art techno logies and search for new  markets 
for Russian products  - “Land code of the Russian Federation” 
- draft federal law on certification 
- Accession to the WTO 
- Regional cooperation and relevant agreements 
- Cooperation with relevant international standard setting 
organizations  
 WT/ACC/SPEC/RUS/23 
Page 26 Goals and objectives 
 of  policy Measures to achieve the stated goals and impl ement objectives of  policy Legal framework 
Improvement of land 
legislation - development of general principles of land policy in agriculture 
- national land register keeping 
- introduction of a uniform system of real estate registration - “Land code of the Russian Federation” 
- federal law “On state regulation and peculiarities of 
restricted commercial use of agricultural land” (in preparation) 
 
__________