VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
“As I have already said today, the general performance of the Russian agricultural sector has been high and even shows a better ability to withstand the global economic crisis than some of the other sectors. Support of agriculture is undoubtedly one of our priorities. The funding of that sector has increased significantly in recent years. We have substantially increased the capital of Rosselkhozbank and Rosagroleasing. The decision to raise to 80% the level of subsidies for part of the cost of interest on loans, including loans taken out to buy fuel and fertiliser, went a long way to help agriculture.”
“Of July 1 fuel and lubricants will be sold to farmers at a 10% discount on the wholesale price. I ask the Ministry of Energy to report on how that agreement is being fulfilled and how the declared quotas of fuel and lubricants are being used.”
“The Government is doing a lot of work to regulate the grain market in order to stimulate production. The mechanism of grain intervention is being used actively. In all, 8 million tons of the 2008 harvest have been procured at the cost of 38.6 billion roubles. That has kept prices at an economically valid level and prevented a fall in farmers' incomes.”
“The gross yield of grain is expected to be around 85 million tons, which will more than cover our domestic needs and will enable us to continue grain exports. The export potential of around 20 million tons will remain through the current and the next years. The Agriculture Ministry says its will be even bigger, 22 to 23 million tons.”
"We must develop our own agriculture. This is why we are now investing most money, even in these crisis conditions, in farming, of all sectors of the economy. To begin with, we subsidise up to 80% of the interest rate for farms to implement their investment plans, which are very large-scale. We now see large firms and big livestock breeding centres springing up. There is nothing in Europe to compare with them: they are larger, more modern, well-equipped and computerised throughout. And we seek to help the farms realise all these plans."
“It is necessary to regulate the grain market. For that, the Agriculture Ministry should greatly increase the effect of purchasing interventions. With that end in view, we have agreed to increase the authorised capital of Rosselkhozbank once again-by 45 billion roubles this time, after this year's recent 35 billion roubles. The money will expand grain purchasing interventions and so help farmers with sales and improve their financial standing.”
“We need to retain the volume and terms of agricultural crediting. As I have said, this will promote cattle breeding, dairy production and other essential projects, and guarantee spring sowing. Agriculture needs roughly 400 billion roubles worth of loans-half of them short-term, and the other half long-term, up to 850 billion grand total. It will take 72.3 billion roubles to finish livestock unit construction. That, too, demands Government support.”
“We have determined to subsidise agricultural loans, or farm production will drop. The matter came under detailed discussion yesterday, too. As you know, subsidies presently cover two thirds of interest. The Central Bank has increased its refinancing rate, so commercial bankers are also sending rates up. The entire national economy is under that burden, and it should be distributed between all branches more or less evenly. Still, we should make agriculture an exception, as in previous years, to ease pressure on it. We have agreed to subsidise 80% of agricultural credit refinancing.”
“The decision on new poultry, meat and pork quotas mentioned today has been signed. Our talks with foreign suppliers took six months and were very difficult. We have come to an agreement at last. Extra-quota meat import tariffs will rise substantially, while poultry meat quotas will be reduced by 300,000 tonnes, etc. The figure corresponds with annual Russian production increase. That is what we will focus on. We must guarantee that increase-it is crucial.”
“New farm leasing terms are entering into force. They have been extended from 10 to 15 years, and advance payments of up to 7% of leased equipment cost have been abolished. Now, the first instalment should be made 12 months after equipment is received.”
