26 august 2009

Prime Minister Vladimir Putin met with the Minister of Agriculture Yelena Skrynnik

During the meeting they discussed this year's harvesting, and work underway to help the regions hit by drought.

Transcript of the beginning of the meeting:

Vladimir Putin: Ms Skrynnik, let's start with the harvesting. How is work progressing?

Yelena Skrynnik: As of today, Mr Putin, we have gathered 63 million tonnes. Harvesting has already been completed in the Southern Federal District. We are confident that we will meet the target for the total harvest of 85 million tonnes, as was our forecast, and that it will suffice for domestic needs as well as enable us to retain our levels of exports.

Vladimir Putin: 85 million tonnes?

Yelena Skrynnik: Approximately, yes. Unfortunately, some areas have been hit by drought.

Vladimir Putin: That's clear. And harvesting is currently underway in which other regions - Siberia?

Yelena Skrynnik: Yes. Primarily in the Central Federal District, the Volga district, and it is getting underway in Siberia and the Urals. That's why we think it will have been completed by November.

Vladimir Putin: By November?

Yelena Skrynnik: I mean in the Siberian Federal District.

Vladimir Putin: How is work progressing in terms of the implementation of our agreements about aid for areas suffering from drought?

Yelena Skrynnik: Mr Putin, we have thoroughly planned our work. Headquarters have been set up. The first staff meeting will take place on Friday. We are carrying out the measures as outlined. First, we are restructuring debt by agricultural producers on interest rates on loans, and those loans will be subsidised for a year. We have found the resources in the Ministry of Agriculture budget for these subsidies. We are extending loans for leasing.

Vladimir Putin: No, wait a minute. We agreed that the timescale for those working only in crop cultivation, in grain, would be for up to three years.

Yelena Skrynnik: Yes, for up to three years, taking into account the use of grain from the intervention fund.

Vladimir Putin: Are there agreements with the banks for this?

Yelena Skrynnik: Yes. This work is in hand. The decision made by the Rosselkhozbank Supervisory Committee, which we are expecting in the near future, will cover extensions.

Vladimir Putin: Good.

Yelena Skrynnik: As for Rosagroleasing Company, let me report back that we will also restructure debts for the leasing of agricultural equipment for the agricultural producers affected by drought, for a period of up to one year. We are working out the possibility of using intervention fund grain for those businesses which are involved in livestock production, for terms of up to three years. We are working on that.

Vladimir Putin: And you also wanted to tell me something about the dairy industry?

Yelena Skrynnik: Yes. Effective and timely measures necessary to stabilise the situation on the milk market were introduced. We transferred 27.2 billion roubles from the federal budget. These resources are aimed at subsidising interest rates on loans and to support pure-strain stock-breeding. We also increased the import customs duties on hard cheeses, dried milk, and butter. We balanced our cooperation with Belarus regarding trade in dried milk. We will also carry out this work with regard to other countries. These measures will help us stabilise the milk market in the near future.

Vladimir Putin: Good.