OREANDA-NEWS. October 07, 2013. The strategic partnership agreement for 5 years in the field of active development and support of agricultural producers of Bashkortostan has been signed by N.A. Kovalenko, head of the Ministry of Agriculture of the Republic of Bashkortostan, and A.O. Gourdous, Deputy CEO of OJSC IC Allianz.

Agriculture is the economy sector most prone to the high risk of bad weather, natural disasters, and market conditions. The companies actively operating in Bashkortostan and the Republican Ministry of Agriculture are interested in forming the efficient mechanisms to ensure stable development of agricultural production.

Pursuant to the signed document, the strategic partnership in the development of the agrarian sector of the economy of Bashkortostan will be conducted in the field of agricultural insurance.

First of all, under the Agreement it is planned to pay attention to the development of the agricultural risks insurance programs. In 2013, came into force the new rules for provision of subsidies under the agricultural insurance contracts, which define the terms and conditions for provision of subsidies to reimburse 50% of the insurance premium accrued under the contract, and contain a number of new provisions. However, presently agricultural risks insurance in Russia has not yet become an efficient instrument of financial protection for this industry. The main reason for this is distrust of agricultural producers towards insurance companies; high level of loan debt and absence of free circulating assets. In this respect, IC Allianz plans to adapt and implement in the Republic the insurance programs which were developed on the basis of international expertise and which had proved their viability in the conditions similar to the conditions in Bashkortostan, and also to conduct joint seminars and practicums for agricultural producers.

The first event under the concluded Agreement is already scheduled. Specifically for agricultural producers, the Allianz-Bashkortostan branch will hold the festival Niva Bashkortostana, dedicated to the harvesting time. In an informal setting, with participation of popular music bands, agrarians will be awarded for their hard labour with memorable presents. This event will be held with active support from the Republican Ministry of Agriculture.

This celebration will also feature presentation of the Crystal Ear award established in the Republic for the achievements in agricultural business. This award will be given on the eve of the harvesting in Bashkortostan to the best agricultural producers in seven nominations:

For robust achievements in agricultural production

For successful implementation of state-of-the-art technologies in planting and production of environmentally friendly products

For successful implementation of state-of-the-art technologies in animal breeding

For successful implementation of the Republican Targeted Program "500 Farms"

For successful implementation of investment projects using the insurance system

For successful implementation of innovative state-of-the-art machinery and new crop farming technologies.

For the active participation in the state-supported insurance system.

For longstanding partnership with OJSC IC Allianz

Also, for the first time as part of the issue of promotion of agricultural insurance, the event’s guests will see presentation of the pilot project "My Personal Experience in Agricultural Insurance".