The Russian Ministry of Agriculture appealed to the Ministry of Economic Development with a call for the introduction of a temporary moratorium on the bankruptcy of agricultural producers who found themselves in a difficult financial situation due to unfavorable weather conditions, two government sources confirmed to Izvestia. Such a measure is aimed at protecting small farms from the sale of land to large agricultural holdings and in fulfillment of the food security doctrine. President Vladimir Putin supported the initiative.
Rosagropromsoyuz gave its comment to the Izvestia newspaper's information portal:
"The introduction of a moratorium on the bankruptcy of agricultural producers is an emergency measure, and it should be approached with the utmost caution," notes Roman Potekhin, Deputy Executive Director of the "Agro-Industrial Union of Russia." "Undoubtedly, such a tool can stop a chain reaction of bankruptcies, preserve agricultural enterprises and jobs, and prevent the mass sale of land and assets. This is not only an economic but also a social issue.
However, according to Izvestia's interlocutor, the moratorium alone cannot solve the problem of debt burden. It only freezes obligations, and in a year or two, farms may face an even more difficult situation: working capital is insufficient, production costs are rising, and product prices remain under pressure. There is a serious risk of a delayed crisis if the state limits itself to only this solution.
Particular attention should be paid to combining the moratorium with compensatory measures: debt restructuring, subsidized rates, and tax deferrals.
— If the moratorium is considered as part of a comprehensive anti-crisis strategy, then this measure can indeed strengthen the stability of agriculture, preserve food security, and support small and medium-sized agricultural businesses, — believes Roman Potekhin."
Full text of the article on the Izvestia website
Rosagropromsoyuz gave its comment to the Izvestia newspaper's information portal:
"The introduction of a moratorium on the bankruptcy of agricultural producers is an emergency measure, and it should be approached with the utmost caution," notes Roman Potekhin, Deputy Executive Director of the "Agro-Industrial Union of Russia." "Undoubtedly, such a tool can stop a chain reaction of bankruptcies, preserve agricultural enterprises and jobs, and prevent the mass sale of land and assets. This is not only an economic but also a social issue.
However, according to Izvestia's interlocutor, the moratorium alone cannot solve the problem of debt burden. It only freezes obligations, and in a year or two, farms may face an even more difficult situation: working capital is insufficient, production costs are rising, and product prices remain under pressure. There is a serious risk of a delayed crisis if the state limits itself to only this solution.
Particular attention should be paid to combining the moratorium with compensatory measures: debt restructuring, subsidized rates, and tax deferrals.
— If the moratorium is considered as part of a comprehensive anti-crisis strategy, then this measure can indeed strengthen the stability of agriculture, preserve food security, and support small and medium-sized agricultural businesses, — believes Roman Potekhin."
Full text of the article on the Izvestia website