Russia is cutting support for the agricultural sector amid a budget deficit
Against the backdrop of a growing budget deficit, Russia plans to cut state support for the agricultural sector.
This was reported by the Foreign Intelligence Service of Ukraine.
According to intelligence reports, the Russian Ministry of Agriculture has drafted a resolution that calls for a review of the subsidy system with a focus on strict cost-cutting measures.
Specifically, the document proposes to reduce or completely eliminate subsidies for agricultural technology work, cut funding for soil conservation and environmental safety measures, and discontinue support for deep processing projects involving grain and milk.
It is also reported that in livestock farming, horticulture, and dairy production, receiving state support is planned to be linked to mandatory agricultural insurance, which could complicate access to subsidies for small farmers.
It is separately noted that funding for the “Development of Sectors and Technical Modernization of the Agro-Industrial Complex” program in 2027 may be cut by 28%—from $438 million to $316 million. Part of the freed-up funds is planned to be directed toward plant breeding and seed production.
The SZRU emphasizes that even this reallocation primarily benefits large agricultural holdings and research centers, while small and medium-sized producers will lose access to support.
The report also notes that the reduction in spending on the agricultural sector is a consequence of the general fiscal crisis in Russia, caused by limited access to external financing and high military expenditures.
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