Russia: Ministry of Finance not to consider the agricultural sector affected by COVID-19




The Ministry of Finance of the Russian Federation does not see any reason to include the agro-industrial complex in the list of sectors of the Russian economy, which are most affected by the spread of the COVID-19 disease, replied the press-service of the Ministry to the corresponding proposal of the Ministry of Industry and Trade.

According to the announcement, the Ministry of Finance specialized the absence of data confirming significant worsening of the financial situation of domestic agricultural producers, as well as decreasing of the consumer demand for food products, as the major argument for its position.

In particular, the Ministry provided the statistics from the website of the Ministry of Agriculture, which covered that agricultural organizations increased the daily volume of milk sales by 7% (compared with March 2019), as well as grain shipments exceeded the last year level by 52%.

In addition, shortlisting of the agro-industrial complex to the list of most affected industries will require allocation of additional budget funds. In turn, it will cause the falling budget revenues, and limit the capacities to finance expenditure obligations of the government, including the social sector and supporting of the business.