Two types of subsidies have been introduced - the compensatory, aimed at general support of agriculture, and stimulating, with the role to support the development of certain lines of production, considering the priority for each region.
"In 2020, the Ministry of Agriculture of Russia allocated RUB 2.2 billion (~EUR 32.33 million) to finance agroinsurance, but this amount may be increased to RUB 4.2 billion if the regions declare an expanded need for these funds. This position of the Russian Ministry of Agriculture was announced at a meeting on December 17, 2019 and creates a stable basis for the development of agroinsurance", said Korney BIJDOV, President (NAAI).
According to NAAI, as of December 1, 2019 (11 months ended), in Russia almost 6% of crops and over 18% of livestock were insured with state support. One of the goals of developing the agroinsurance system is to achieve a coverage of at least 40% of crops against risks of nat cat events.
* EUR 1 = RUB 68.0450 (as of 11.01.2019)