Russia to Subsidize Agriproducts Transportation by Rail

The Government of the Russian Federation has updated the mechanism of subsidizing agricultural products transportation by rail by expanding the geographic scope of routes subject to subsidies. A decree to his effect was signed by Premier Mikhail Mishustin on December 28, 2021.

Railway operators offering their customers lower tariffs for agriproducts are entitled to compensations from the federal budget.

The new decree provides for such compensations for tariff reductions for transporting potatoes and vegetables from Dagestan, Astrakhan region and Krasnodar Kray to the Central, Northwest, Volga and Urals federal districts.

Also, grain transportation from Kemerovo region to the Central and Northwest federal districts, Dagestan, Krasnodar Kray, Astrakhan and Rostov regions will be subsidized.

The Government introduced subsidies for agriproducts transportation by rail in 2019. The policy applies to both containerized and non-containerized shipments.

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Tags: Russia, grain, rail transportation