Medvedev calls for more subsidies to Russia farmers

The Russia Prime Minister has backed the idea to cut borrowing costs during the meeting with farmers from Krasnodar region
Medvedev calls for more subsidies to Russia farmers
11 August 08:30 2016 Print This Article

Russia is trying very hard to shift its economy from energy exports to agriculture. After oil prices collapse two years ago, Russia has been trying to diversify its economy and, indeed, recent developments prove the governmental decision to invest in agriculture. In fact, Russian Prime Minister Dmitry Medvedev during his journey to southern Krasnodar on Wednesday met with Russian farmers and assured them that the Government will make all possible to sustain them. In particular, he stressed that borrowing costs for the farmers are to be eased and that the government should continue to subsidies the sector.

Currently, framers take out loans with 14% annual interest, while with the government subsidies the rate is down to 6%.”6% is OK, however it would be better if the rate was cut to 5%,” Medvedev said. He also stressed a need to give out unused land to farmers without red tape: “speaking about the possibility of giving unused land to farmers without a bid process; I believe that it would be a good idea,” the Prime Minister said.

According to Medvedev, recent legislation changes have simplified some things, but not to an extent the government wants to. “The most important thing now is not to slow down. This is why the programme will continue in full,” he added stressing that the government should continue to subsidies farmers.

Russia has become the world’s biggest wheat exporter. According to Agricultural Minister of Russia Aleksandr Tkachev, Russia is planning to sell over 25 mln tons of wheat this year.

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Cecilia Valentini
Cecilia Valentini

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