4.8 bln. RUB will be allocated by the federal budget in 2017 to support agricultural sector of the Kursk region

Furthermore, approx. 700 mio.RUB are allocated for expenditure co-financing from the regional budget.
Government support helps to reach one of the key goals, set by Vladimir Putin’s presidential message – provision of country’s food security, including through import substitution.
The Authority of the Kursk region concluded an agreement with the Ministry of agriculture of Russia on following aspects:
– financing of interest rate share of investment credit line, implemented before 31 December 2016, 3.2 bln. RUB worth.
– compensation of direct expenditure for the construction of dairy complex, selective-seed production centre and greenhouse complex, 1.1 bln. RUB worth;
– assistance in reaching targeted index of regional programmes implementation for greenhouse complexes – 440.3 mio. RUB
– subsidies for efficiency increase of cattle breeding – 75.8 mio. RUB
– agricultural land improvements – 27.1 mio. RUB
– support in the sphere of development of potato seed production and open-ground vegetables – 11.1 mio. RUB
Besides, concessional lending is proposed for agricultural enterprises as a brand new type of state support.
Regarding concessional lending at the rate of 5%, the regional agricultural committee states that this will allow halving expenditure on loan servicing in comparison with previous terms, and not to use own working funds.
Subsidies will be allocated directly by authorised bank, involved in implementation of concessional lending, equivalent to 100% of credit key interest rate, issued to agricultural companies at the rate of 5%. For this purposes, 21.3 bln. RUB are budgeted in 2017.

Source: Kurskaya pravda