Russia to begin issuing transport subsidies to exporters as of mid-April, reduce list of recipients - Industry and Trade Ministry

MOSCOW. March 28 (Interfax) - Allocating subsidies to exporters to compensate for part of the logistics costs under an updated program involving a targeted approach is expected to begin in mid-April, the press service of Russia's Industry and Trade Ministry told Interfax.

Under the new approach, the number of recipients will be reduced. "We are developing a draft decision of the Industry and Trade Ministry of Russia. The ministry is working to transition to a more flexible and targeted approach in terms of providing support. It is planned to exclude part of the Foreign Economic Activity Commodity Nomenclature (FEACN) codes from the perimeter of state support, as it will affect only high-margin groups of goods," the ministry said.

The Industry and Trade Ministry also said that the exceptions would not affect "a number of the most important export-oriented industries, for example, mechanical engineering, the pharmaceutical industry and the timber industry, i.e. the most high-value industries."

The ministry again said that the volume of financing for transport subsidies for exports would total 17.76 billion rubles in 2024 against 25.5 billion rubles in 2023.

Subsidies to cover part of the logistics costs are allocated to exporters through the Russian Export Center as part of the international cooperation and export national project. Under the current rules, the total volume of subsidies is allocated among industries with 40% for machinery manufacturing, 30% for the forestry industry, metallurgy, and mineral fertilizers, as well as 30% for the pharmaceutical, chemical, and other industries.