Russia: Dairy farming included among priority areas for preferential lending

Published 2024년 12월 13일

Tridge summary

The Russian Ministry of Agriculture has approved changes to allow dairy enterprises to access preferential loans with reduced interest rates. The maximum interest rate for borrowers will be 30% above the Central Bank's key rate, with authorized banks subsidized by the state at a rate of 70% of the Central Bank's rate. Dairy farmers can now receive loans at an interest rate of 8.3%, which is 4.2% lower than previously. These loans can be used for the construction, reconstruction, modernization, and technical equipment of dairy enterprises, as well as for the purchase of young dairy cows and breeding products. The Ministry of Agriculture and Food of the Moscow Region plans to commission 15 new dairy farms by 2028, increasing the number of cows and milk production.

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Original content

The changes were approved by order of the Ministry of Agriculture of Russia dated 06.11.2024 No. 666 and registered by the Ministry of Justice of Russia on December 10, 2024. Thus, dairy enterprises will be able to take advantage of preferential loans at reduced rates. The maximum interest rate for borrowers will be 30% of the key rate of the Central Bank + 2%, and authorized banks will be subsidized by the state in the amount of 70% of the Central Bank of the Russian Federation rate when issuing a loan. Dairy farmers will be able to receive a preferential loan at 8.3%, which is 4.2% less than the previously offered terms. The funds can be spent on the construction, reconstruction, modernization and technical equipment of dairy enterprises - machinery, equipment and automation equipment, the purchase of young dairy cows and breeding products, feed, veterinary drugs, spare parts for agricultural and cargo equipment, as well as ...

Source: Agrovesti