CALENDAR OF AUCTIONS

SEARCH

2012.07.16 | Russian govt to allocate extra funding to support agriculture

“Despite all the difficulties we currently face and without waiting for a general solution on the other sectors, we decided yesterday to allocate additional budget funds,” Shuvalov said without disclosing the sum.

The decision was made at a meeting with Prime Minister Dmitry Medvedev on Monday, he added.

“We’re sticking to a decision not to reduce the financing of farms,” Shuvalov said.

The government had previously decided to provide an additional 6 billion rubles to support the agriculture ahead of Russia’s accession to the WTO.

Shuvalov said the government will soon to submit to the State Duma a package of drafts aimed at reducing any negative consequences for the agricultural sector following WTO accession. He said all disputes were lifted during Monday’s meeting.

The package of documents offers to cancel value added tax for imported breeding materials by 2018; to extend zero tax on profits by the end of 2016; to relieve households of taxes on profits received from state subsidies and grants; to provide 35% in compensation on expenses for agricultural and energy-saving equipment; to auction bankrupt farms in one lot and allow local authorities the opportunity to participate; to raise the bankruptcy level of farmers’ debt to 10 million rubles from 1 million rubles, and to extend the local authorities’ right to lease land.

(32.9907 rubles – U.S. $1).

PRIME-TASS