Russian Agricultural Bank assists the Russian Government in implementing federal policy in agribusiness.
RusAg plays a fundamental role in financing domestic agribusiness development. The Bank’s mission and strategy underline financing and fostering the development of agribusiness (including fishery and forestry enterprises), and the populations of small towns and rural areas as its core goals.
The Bank plays a major role in implementing federal and regional agribusiness development programs. RusAg has cooperation agreements in place to implement state programs and support agribusiness with the administrations of Russia’s republics and regions.
Russian Agricultural Bank takes part in sustainability programs focused on the social aspects and initiated by the Government. The aims of these programs are to provide affordable financing to companies in agribusiness, to improve their financial performance so that more rural population may benefit from them.
Since 2005, in accordance with a Government resolution, Russian Agricultural Bank has served as the State agent and has provided financial resources for grain market purchasing interventions.
Since 2002, Russian Agricultural Bank has acted as a State agent for recovering loans from legal entities, constituent entities, and municipalities in favor of the Russian Federation.
In 2015, the Bank maintained analytical records on 85 liabilities in the amount of RUB 0.9 billion and also took required measures to settle the debts of 473 borrowers, with an outstanding principal of RUB 1.5 billion who do not have official liability towards the Russian Ministry of Finance.
The Bank submitted five claims to institute enforcement proceedings and to seize the borrower’s property. The Bank interacted with bailiff services to control 42 enforcement proceedings against borrowers.
In total, the Bank enforced the recovery of RUB 7.3 billion to the federal budget during the 2002-2015 period.
Since 2002, Russian Agricultural Bank has implemented governmental policy on the financial rehabilitation of agricultural producers.
The program, on the one hand, ensures the repayment of outstanding debts to the federal budget and other creditors, and, on the other hand, it substantially alleviates the financial constraints facing agribusiness enterprises, helps maintain social and economic infrastructure, and increases the employment level in rural areas.
Russian Agricultural Bank acts as the Government agent in the implementation of the Program by supporting the housing construction projects in rural areas. This program also involves lending to individuals residing in small towns and rural areas who are involved in agricultural production.
Pursuant to the Agreement with the Deposit Insurance Agency concluded in late 2015 as part of the capital replenishment program, the Bank has committed to increase monthly lending to priority industries by 1% (namely, agribusiness, processing industries (including foodstuffs), machine building (aircraft, shipbuilding, and the automotive sector, etc.), chemical production, real estate development, transportation, communications, electricity, gas, and water generation and distribution).
Russian Agricultural Bank is contemplating several major lending directions within the framework of the Agribusiness support programs.
Russian Agricultural Bank is a key participant in federal and regional programs under which agricultural producers receive compensation in the form of a subsidy from federal and/or regional budgets for a portion of their interest costs.
For a borrower to receive the compensation from the relevant budget, a loan must be granted for the purchase of agricultural machinery or equipment, seeds, fodder, livestock or other similar purposes. The borrower could receive a subsidy in the next period, only if he makes timely loan payments in the previous periods.
Borrowers are eligible for the following interest subsidies:
On short-term loans (up to 1 year), starting 01.01.2016:
On investment loans, starting 01.01.2016 :
Subsidy calculation is based on the Bank of Russia’s refinancing rate.
Depending on the purpose of the loan and the category of the borrower, loans subject to subsidies may have maturities of up to ten years. Subsidized loans require punctual payments from borrowers, thus ensuring their high performance.