The Ministry of Agriculture proposed to limit support for the export of butter and eggs

MOSCOW, 5 March – RIA Novosti. The Ministry of Agriculture of the Russian Federation proposed to postpone compensation for part of the cost of transporting sunflower oil and eggs until August, a draft of the corresponding government decree was published on the federal portal of draft legal acts.

This mechanism is used, among other things, by companies that supply products abroad. The explanatory note to the project notes that it was “prepared taking into account the current price situation for socially significant products.” “The periods of temporary restrictions on subsidizing the transportation of certain types of agricultural products are determined taking into account the seasonality of agricultural production,” the note adds.

In September 2017, the government of the Russian Federation adopted a resolution on the provision of subsidies to Russian companies to compensate for part of the costs of transporting agricultural products and food. The functions of the government's agent for the provision of subsidies are performed by the Russian Export Center (REC), a state institute for supporting non-resource exports.

According to the information on the REC website, this program “aims to support producers of agricultural and food products, namely, to compensate the producers actually incurred when transporting their products by rail (or road, but in combination with rail) to foreign markets.”

Support is provided for a fairly wide range of goods, including for sunflower, safflower or cottonseed oil and their fractions (code 1512 of the commodity nomenclature of foreign economic activity, TN VED).

According to the current version of the decree, compensation for part of the costs of directly transporting crude sunflower oil in primary packs with a net volume of 10 liters or less is provided for deliveries made from April 1, 2021. The Ministry of Agriculture proposes to compensate for the costs of transporting these products later, from August 1, 2021.

In turn, for a number of other types of goods within the framework of the TN VED code 1512 (including “sunflower oil, crude, other” and “sunflower or safflower oil and their fractions, etc.”), compensation will be provided for supplies that were carried out from October 1, 2020 until April 15, 2021 and after August 1 of the current year.

Time limits are proposed to be introduced for other products. For example, compensation for the cost of transportation of fresh, canned or boiled bird eggs in shell (code 0407 TN VED) or oilcakes and other solid waste obtained during the extraction of soybean oil (code 2304 00 000 TN VED) will also be provided for deliveries from October 2020 until April 15 of the current year and after August 2021.

Author: wedocount

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