Russia has allocated an additional 9.7 billion roubles for the rail transport of agricultural produce

Taking into account the impact of current conditions in the Azov–Black Sea basin on the logistics of agricultural produce, the Russian Government is allocating an additional 9.7 billion roubles to support rail transport. The funds, to be provided from the federal budget, will be used to compensate rail carriers for losses incurred as a result of the transport of agricultural produce at preferential rates.

In accordance with the Russian Government’s Decision No. 2313-r of 28 August 2026, the funding to be allocated aims to ensure the continued transport of agricultural products by rail at reduced tariffs and to maintain stability in the domestic agricultural raw materials and food markets. The statement also noted that, given the current situation, the aim is to support the full fulfilment of Russia’s export obligations.

According to the statement, federal funds will be directed specifically towards compensating railway transport companies for losses incurred as a result of the preferential tariffs applied to the transport of agricultural products. It is therefore envisaged that the application of reduced transport tariffs will continue and that the transport of agricultural products within the logistics chain will be supported.

Russian Prime Minister Mikhail Mishustin, in his assessment following the decision’s discussion at the government meeting held on 27 August, emphasised the importance of the Ministry of Agriculture continuing to respond swiftly to extraordinary situations. Mishustin stated that preparations must be in place to provide support to both agricultural producers and the regions should the need arise.

State support for the rail transport of agricultural products in Russia began in 2019. Under this scheme, the state subsidises the losses incurred by carriers due to the application of preferential tariffs for the transport of certain agricultural products.

Preferential tariffs are applied to cover various modes of freight transport. In addition to transport carried out by railway wagons, container transport also benefits from this support mechanism. The aim is to offset, through public funds, the financial impact on carriers of the reduced tariffs applied when agricultural products are transported by rail between different regions within the country.

The new 9.7 billion roubles in funding announced by the government will support the continuity of the existing subsidy mechanism. The allocation of federal funds is intended to provide financing to cover losses arising from the transport of agricultural products under the preferential tariff scheme.

The decision is viewed within the framework of the current state policy aimed at supporting the functioning of Russia’s agricultural produce and food supply chain. The government statement noted that the funding provided will be used to maintain the stability of the domestic agricultural and food market and to fulfil export obligations.

The additional funds allocated by Government Order No. 2313-r of 28 August 2026 form part of the existing public support for the preferential tariff system applied to the rail transport of agricultural products in Russia.