According to the announcement, the meaning of the new mechanism includes that agricultural producers will be able to sell grains to the government under the condition of buyback transaction in the terms of the price growth on the market.

Thus, the government temporarily undertakes the price risks of agricultural producers and gives the possibility to farmers to use the chance of the improved market situation, explained Sergey Sukhov, the deputy director of the department of food and industrial market of the Ministry of Agriculture of Russia, on May 31.

According to many experts, the reporting pledge operations is more prospective mechanism of price regulation compared to intervention purchases, many foreign countries have already started using the mechanism.

The government plans to support the domestic grain consumption at the expense of development of animal production industry. According to Elena Skrynnik, the Minister of Agriculture of the Russian Federation, the government plans to support the export potential of the country.