The national project to support the export of industrial and agricultural products is almost ready

When updated, the national project will include four federal projects: the first is dedicated to the production of industrial goods, the second to the production of agricultural products, the third to the development of foreign economic activity, and the fourth to the creation of foreign infrastructure for EXPORT. As Prime Minister Mikhail Mishustin clarified, the changes need to be supported by the formation of a network of sustainable partnerships with other, primarily Russia-supporting countries, the creation of the necessary infrastructure for foreign economic activity, technological cooperation and the development of new markets.

The updated national project is aimed at increasing not only non-resource, non-energy exports to 21.1 trillion rubles. - by two thirds relative to 2023. The second goal of the national project is to increase the supply of agricultural products by one and a half times compared to 2021 - up to 4.7 trillion rubles. According to the Ministry of Agriculture, during the implementation of the current national project, the volume of food supplies abroad has more than doubled - to $43.5 billion at the end of 2023; products are now exported to more than 160 countries (friendly countries account for 90% of exports).

In terms of support, as First Deputy Prime Minister Denis Manturov noted, a complex of more than 20 measures has been formed, which are “adjusted and extended over the next six years.” We are talking, in particular, about preferential lending, insurance programs, measures to support the transportation of goods, certification and exhibition activities, as well as a corporate program to increase competitiveness, writes Kommersant. This program provides for subsidized loans for the creation of export -oriented industries, Russian enterprises and investment and construction projects abroad, as well as to support current exports. At the same time, the emphasis will be “on targeting support measures in order to promote exporters to specific markets of friendly countries”—priority product lines will also be taken into account, Manturov added. 

The HEAD of the Ministry of Industry and Trade, Anton Alikhanov, noted that an innovation of the national project will be the federal project “Development of International Export Infrastructure,” which implies the creation and support of industrial development zones and port projects, as well as logistics hubs abroad. Such projects are already being implemented, in particular, in Uzbekistan and Kazakhstan - the restructuring of logistics and geography of supplies, according to him, requires new infrastructure projects. As Manturov previously reported, by 2030, the construction of 13 foreign infrastructure facilities is expected; it is also planned to stimulate the use of priority international transport and logistics corridors, for example, North-South, in the direction of South America, Africa - including in order to relieve the load on the most popular existing routes.

The support measures proposed in the updated national project are likely to have a positive effect on the development of exports of Russian agricultural products, says Andrey Neduzhko, general DIRECTOR of the Steppe agricultural holding. “Among the most important government support measures needed by agricultural exporters are subsidies for the production, transportation and processing of agricultural products. Also, the development of exports implies the participation of the state in the development of infrastructure: increasing the capacity of port terminals and their modernization, increasing the capacity of railways and roads,” he commented. Another important aspect of state support for exports is the creation and improvement of payment systems and mechanisms that will eliminate the difficulties in ensuring international transactions through direct payments, says Neduzhko. He is confident that the promotion of agricultural products to the markets of friendly countries and support for domestic exporters at the state level will also become serious incentives for concluding new supply contracts and expanding the pool of foreign partners.

Executive Director of  Rincon Management Konstantin Korneev believes that one of the most promising support measures is related to foreign infrastructure, since it ensures the stability of the presence of Russian products in target markets. “The stability of presence is always expressed both in the ability to increase supply volumes and in increased prices: for products accompanied by better service, buyers are willing to pay more,” Korneev said. Independent grain market expert Alexander Korbut is confident that all support measures are important, as they are aimed at solving the problems of all exporters, but he especially emphasizes the development of infrastructure abroad. “To promote goods, you need basic conditions to gain a foothold in the relevant territory,” Korbut noted. 

According to the director of public relations of the National Union of MILK Producers (Soyuzmoloko) Maria Zhebit, government support measures should play an important role in the development of exports, primarily 100% subsidies for logistics, preferential loans, reimbursement of part of investment costs during the construction and modernization of export-oriented production of dry dairy products to create additional marketable mass. “Among the proposed measures from the updated national project, instruments for subsidizing insurance, certification and exhibition activities, as well as the creation and support of industrial development zones and port projects, as well as logistics hubs abroad, seem extremely important. Logistics costs today seriously increase the cost of Russian products and reduce their competitiveness in the markets of third countries; compensation for these costs and the creation of specialized hubs will help increase export supplies,” Zhebit commented. An equally important role, according to her, is played by non-monetary support measures: country guides, the work of agricultural attachés, and the organization of business missions.

However, Korbut points out, it is not yet clear how agricultural exports will be financed: whether additional targeted funds will be allocated or whether this problem will be solved at the expense of the Ministry of Agriculture budget. Export , according to him, is not only the production of products, but also infrastructure and logistics. In addition, the listed support measures also include subsidized loans, but the question again is how much money the mechanism will operate with. “Will this be additionally allocated money or will the subsidies come from export duties (on grains)? And given that revenues from duties are declining, I doubt that this will be an effective measure in terms of the availability of budget funds,” says Korbut. He believes that each ministry will promote its own supervised areas, and there are risks that agricultural priorities may be lost against the background of other sectors.