OREANDA-NEWS. June 02, 2008. The Government of the Russian Federation has proposed to allocate RUR 31,5 billion from the Federal budget to the authorized capital of Russian Agricultural Bank, reported the press-centre of Russian Agricultural Bank.

These funds will be used for extending more short- and long-term loans to support grain and animal-breeding sectors. What is more, the loans will be subsidized from the Federal and/or regional budgets for a portion of their interest costs.

President of the Russian Federation Dmitry Medvedev welcomed the proposal of the Russian Government concerning the amendments to the Federal budget for 2008 intended to support the agribusiness.

He stated that the last two and a half years saw large-scale investments in the Russian agriculture that helped it to grow and evolve at a quicker pace. "It is now time to support national agribusiness in order to maintain such positive trends", said D. Medvedev.