October 10, 2011

Russia subsidises grain export transport costs

A subsidy plan has been launched by the Russian government Thursday (Oct 6) to lessen the cost of grain export transportation from the Siberia and Kurgan region in the Urals to sea ports and land border crossings.

The subsidy applies to grain transported over distances exceeding 1,100 kilometres to sea ports and land border crossings with China, North Korea and Mongolia between September 21, 2011, and June 30, 2012, as well as grain transported to Ukrainian ports between September 21, 2011, and December 31, 2011.

Deputy Prime Minister Viktor Zubkov said on September 30 that grain harvest in Siberia this year was expected at 12.5 million tonnes, compared with the usual 9.5-10 million tonnes, and there was surplus grain that could be exported if the government helped finance the expensive transportation over the long distances. He said RUB1.3 billion (US$40.7 million) could be allocated from the state budget for this purpose.