News in the agricultural machinery sector (Nov 2011):

First Deputy Prime Minister sets high targets for agricultural machinery producers

With a ‘modernisation strategy for agricultural machinery production through to the year  2020’, Russia’s First Deputy Prime Minister Viktor Zubkov aims to give the country’s agricultural sector a new lease of life. An expert working group is to devise a strategy that provides for an increase in annual turnover in the Russian agricultural machinery sector to RUB 350 billion (approx. EUR 8 billion) by 2020. The internet portal ‘’ reports that the targeted figure is five times the amount currently generated (approx. RUB 67 billion). The plan is for Russian agricultural machinery manufacturers and foreign producers operating in Russia to market more than 65,000 tractors and 9,000 grain and forrage harvesters in the year 2020. A key aspect of this strategy concerns agricultural machinery exports, which is to undergo a ninefold increase from its present RUB 5 billion that will take it to RUB 46 billion. Furthermore, comparative trials with foreign machinery will continue in a bid to make Russian agricultural machinery producers more competitive. Nearly 10,000 highly skilled professionals are to be recruited to the agricultural machinery sector, raising its HR capacity to 81,800. Nothing has been said about how these measures are to be financed.

rus/3 Nov. 2011
Source: Reporting of  Committee on Eastern European Economic Relations from 3.11.2011

Keeping prices for fuel and lubricants low for farmers

The President of the Russian Federation, Dmitry Medvedev, announced that Russia will continue to support its farmers even after accession to the WTO. Speaking at a video conference with regional branches of the ‘United Russia’ party on 21 October, Medvedev said that lower prices for fuels and lubricants for the agricultural sector will stay in place, irrespective of the Russian Federation’s accession to the World Trade Organisation (WTO). Medvedev promised that the decision to support the agricultural sector and to subsidise fuel and lubricants would not be revoked. ‘This was not the easiest of decisions for the government to make, but we will uphold it, because we want to give our farmers a sense of security and ensure they are not dependent on fluctuations in energy prices,’ said Medvedev before going on to explain that he believed this to be ‘an absolutely honest move, because every government around the world tries to support its own country. And we have to do so too, irrespective of WTO membership and other international obligations. Indeed, it is our duty.’

Source: Interfax Selskoe khozyaystvo i prodovolstvie, No. 43 of 26 Oct. 2011