Russiahas no direct financial support of grain production aside from graininterventions, in which grain is purchased into a fund if market prices forfarm products drop lower than the pre-determined level. Grain is sold out of the fund if thereis a shortage on the market or if market prices exceed the pre-determinedlevel. Budgetary constraints limitthe ability for direct subsidies or other forms of support.
Energy use in Russia continues to be subsidized. This includes such items as fuel formachinery and natural gas. The Russian government remains committed toincreasing production by increasing credit and subsidizing crop inputs, as wellas offering a special machinery leasing fund. However, implementation of theseprograms depends upon the federal budget allocation to agriculture. While no prescribed rules govern seedsubsidies, many local jurisdictions offer credit for seed purchases, sell seedsbelow their commercial price, or cover a portion of seed treatment expenses.
Importduties for corn and soybeans were lifted on May 7, 2005 for an unspecifiedperiod of time. These commoditiesserve as main ingredients for the poultry and pork industries.
However,Russian imports of grain have been hampered by changes in grain qualitycertification. Trade has beendisrupted by the strengthening of phytosanitary control over grain and grainproducts.
á Officially, the import duty on corn is 5%, but thistariff has been temporarily lifted.
á The trade of corn has been suspended due to SPSregulations.
á Rice is the only grainproduct imported in significant quantities.
á On December 4, 2006,Russia placed a ban on all rice imports from all countries. The resumption of imports will belinked to the equipping of inspection points with modern equipment that canbetter test quality and safety of rice. The move demonstrates the power of theRussian Federal Veterinary and Phytosanitary Surveillance Service (VPSS) tocontrol the trade of grain products.
á The rice import tariffis 0.07 euros/kg ($4.11/cwt).
á Import duties weresuspended for soybeans in the same resolution that lifted duties for corn. The official import duty is 5%.
á Actual imports ofsoybeans are currently restricted by SPS requirements and unsettled GMOregistration procedures.
á It is expected thatsoybean imports would increase significantly when these SPS issues areresolved.
á Russia is the worldÕslargest sugar importer.
á Because the Russiangovernment cannot offer significant support to the industry, it assists theindustry primarily through border measures.
á The sugar import TRQ isat 3.65 MMT. The in-quota tariffrate is 5% but not less than 0.015 euros/kg ($0.01/lb). The base out-of-quota tariff is set at40% for both raw and white sugar but no less than 0.12 euros/kg ($0.07/lb) forraw sugar and 0.14 euros/kg ($0.08/lb) for white sugar. The out-of-quota seasonal tariff is 50%but not less than 0.15 euros/kg ($0.09/lb) for raw sugar and 0.18 euros/kg($0.11/lb) for white sugar.
á Stateprocurement intervention prices range from 2,300 rubles/MT ($3.38/bu) for No.3wheat to 1,800 rubles/MT ($2.51/bu) for No.4 wheat.
á Russia has beenexpanding grain shipping and port capacity in an effort to boost exports.
á Import tariffs for allgrain except rice are 5% of customs value.