In an effort to avoid the effects of Western sanctions, the Russian government has tentatively agreed to apply zero import charges for another six months on a broad list of essential machinery and raw commodities.
Victoria Abramchenko, the deputy prime minister of Russia, recently declared that the federal budget will pay dairy farmers for 70% of the costs related to the purchase of labelling equipment. Early in 2023 is when the rule is expected to take effect.
In order to “stabilize the financial position” in the Russian dairy sector and to “reduce the anguish of the previous few years,” this move, according to Artem Belov, chairman of the Russian Union of Dairy Producers, Soyuzmoloko, would be taken.
According to the Russian dairy industry, implementing mandatory labelling would cost approximately 12.2 billion roubles (US$200 million), of which 8.9 billion roubles (US$148 million) would go toward labelling equipment. Belov also noted that Russian dairy companies would need to spend between 9 and 15 billion roubles (US$150 and US$250 million) annually on label purchases from the Russian state operator, in addition to incurring some other costs.
Belov expressed the wish that the Russian government will continue its program of subsidized soft loans, which Russian businesses have benefited from over the previous few years.
Free of charge imports
The concept of expanding duty-free imports on a lengthy list of raw materials, machinery, components, and packaging used by Russian dairy industries has also received approval from the government of Russia.
According to Roman Chubak, a public relations expert for Soyuzmoloko, the decision, which was first authorized by the Eurasia Union Economic Commission in March 2022, had an impact on more than 100 different goods, all of which were crucial for the dairy industry.
Chubak said that the action was required in light of the present “political environment” as well as the growing expenses of logistics and raw materials.
In particular, Chubak said, “these measures [to eliminate import restrictions] enabled the dairy industry to alleviate the adverse consequences of economic sanctions, both for business and, ultimately, for consumers, notably in reference to socially significant items, specialized and baby food.
The government will “assist goods makers maintain steady operations in the face of persistent foreign policy and economic issues” by extending the measure waiver for a further six months, according to Chubak.
