RUSSIA: The amount of insured property interests of farmers is only 7.4% of damage from natural disasters

1 October 2020 — Marina MAGNAVAL
According to the estimation of Russian constituent entities, the damage to agricultural producers from natural disasters at the moment is about RUB 7.5 billion (EUR 80.62 million*), of which the amount of insured property interests is only RUB 555 million, the Minister of Agriculture Dmitry PATRUSHEV said on September 30.

According to PATRUSHEV, a state of emergency due to natural disasters was declared in 12 regions. The Minister noted that in this regard, agroinsurance is of great importance:

"For the third year in a row, I have been designating this area as one of our priorities. In recent years, approaches to agroinsurance have changed a lot. In particular, since 2019, only farmers, who insure their risks, receive compensation of losses in the event of an emergency, based on an insurance contract."

Over the past two years, the mechanism of agroinsurance with state support has been improved - ensured maximum efficiency of using funds, reduced the financial burden on agricultural producers, expanded the range of insurance products and increased interest in this insurance type. The funds provided in 2020 for agroinsurance amount to RUB 2.2 billion, which is 1.5 times more than the limit in 2019.

The minister emphasized that 3.4 million hectares have been insured as of now, which is 4.5% of the total crop area. This year it is planned to increase the figure to 6 million hectares (8% of the crop area). However, as noted by PATRUSHEV, these volumes are not enough, and it is very crucial to increase them and develop this insurance mechanism.

* for the following exchange rate:
EUR 1 = RUB 93.0237 (as of 30.09.2020)

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