Transcript of the beginning of the meeting:

Vladimir Putin: Mr Patrushev, we have big expectations for this year’s harvest volumes. The harvest has come to an end in certain regions, such as here in the country’s south, while in other regions it is in full swing but is nearing its end. To a considerable degree, the agricultural sector’s results depend on financing. The Russian Agricultural Bank is one of major players in this field. How are things going? How much financing have you provided and how much are you planning to allocate for the agricultural sector through the end of the year?

Dmitry Patrushev: Mr Putin, we have accomplished the government’s tasks with respect to financing spring field work. Regarding seasonal field work, the volume has grown by 22% compared to the first six months of last year. As of today, we have allocated 92 billion roubles.  

We are aware that certain regions have started harvesting and, consequently, certain regions are preparing to plant winter crops. We have provided some 60 billion roubles for the purpose. Today, the Russian Agricultural Bank’s major aim is to ensure access to banking services for agricultural producers and rural residents. We also provide assistance in developing the agricultural complex as a whole. The bank boasts the second largest regional network and is often the only bank in a region that can offer credit and financial support to agricultural producers.

I would like to cite a few figures. In a year, our loan portfolio for legal entities has increased by 20%, from 620 billion roubles to 740 billion roubles, while our loans to individuals have increased 1.5 times, from 73 billion to 110 billion roubles. Money taken in from legal entities has also grown, and currently totals 365 billion roubles.

Vladimir Putin: What interest rates do you offer on your loans?

Dmitry Patrushev: You know, we have made efforts to make our loans as accessible as possible for agricultural producers. In June of last year, the bank’s weighted average interest rate stood at 13.7%, while this June, according to our calculations, it was 10.5%. So it has fallen 3 percentage points. In addition, we have reduced the cost of loans for seasonal field work; we offer a 7.75% interest rate for three months, which is even lower than the Central Bank’s rate.

Therefore, we aim to focus our activities on supporting small agricultural businesses. We provide loans to some 1.2 million borrowers in the sector, such as private farm holdings, small businesses and peasant farms. But we see great growth potential here, as the number of such clients in Russia stands at 18 million. We plan to expand in this direction as well. I would also like to add that our agricultural manufacturers have purchased some 10,000 pieces of farm machinery with the financing our bank has provided this year.

Vladimir Putin: Good, thank you.