Patrushev’s first year
Dmitry Patrushev was born on October 13, 1977 in Leningrad. In 1999 he graduated from the State University of management with a degree in Management. In 2002-2004, he studied at the Diplomatic Academy of the Russian Ministry of foreign affairs, specialty "World economy", at present he is a doctor of Economic Sciences.
From 1999 to 2002 he worked in the Ministry of transport of the Russian Federation.
In 2004, he joined the Bank for foreign trade (Vneshtorgbank, since March 1, 2007 – JSC “VTB Bank”). Since 2007, he held the position of senior Vice-President of the Bank.
Since May 24, 2010 Dmitry Patrushev was a member of the Supervisory Board of JSC "Rosselkhozbank". On May 26, 2010 he was appointed Chairman of the Board of JSC "Rosselkhozbank".
Since May 18, 2018 Dmitry Patrushev is Minister of agriculture of the Russian Federation.
WHAT WAS SAID
The appointment of Patrushev as Head of the Ministry of agriculture was unexpected for many market participants; there were different opinions on his figure in the Government. Someone was confused by the fact that the new Minister is the son of the Secretary of the Security Council Nikolay Patrushev, others doubted the competence, as the financier is still not an agrarian. However, there was hope in many opinions that the experience in the Rossekhozbank and Patrushev's fame among investors will help him to continue and develop those activities that were established by Alexey Gordeev, as Head of the Ministry of agriculture. By the way, Gordeev, as we remember, was simultaneously appointed Deputy Prime Minister for agriculture. It is believed that the actions of this tandem led to all serious decisions in the agro-industrial sector over the past year. In addition, the leadership of the Ministry of agriculture included people from the team of Alexey Gordeev.
In the first preparatory months, the Minister not only updated the team (many Chiefs of departments and Deputy Ministers came from the Rosselkhozbank), but also delved into the key problems of the agricultural sector. By the autumn, decisions were made, which can be called the result of the work of Mr. Patrushev and the fresh leadership of the Ministry of agriculture.
If in June last year, the Minister stressed that the finished dairy products will be removed from the list of EVC (electronic veterinary certification), then in autumn he said that the Ministry is considering the gradual inclusion of the category in the list of goods controlled by “Mercury”.
At the same time in June Dmitry Patrushev said that Russia needs Belarusian milk. A little earlier, the Rosselkhoznadzor lifted the previously imposed ban on the supply of Belarusian milk from those enterprises that are included in the "road map".
Working in the Rosselkhozbank, Patrushev built good relations with international investors, gained experience of cooperation with exporters and export markets. At the end of June last year, the new team of the Ministry of agriculture recommended the formation of a regional project office, which will coordinate the current and future implementation of national and Federal projects to increase export potential in the field of agriculture.
Many decisions of the team of the Ministry of agriculture said that the main goal is the establishment of exports in all categories. The dairy industry in total is expected to achieve exports of $1 billion by 2025. Export development requires strict control – as a result, the Ministry returned to EVC, which intends to include all categories of finished products since July 1, 2019.
In August 2018, Dmitry Patrushev stressed that Russia will achieve food security indicators for milk within six to eight years. "Support for this industry is of strategic importance – the state allocates more than 25 billion rubles annually for these purposes", the Minister said.
At the same time it became known that the Ministry of agriculture expects to increase support for agriculture to 300 billion rubles. In 2017-2018 the volume of state support of the sector was about 242 billion rubles for each year.
In the autumn of 2018, it became clear that the Ministry of agriculture of Russia and its new team focused more than ever on exports and began to work very carefully with regulatory documents. There was introduced the practice of regional meetings– according to market participants, all of them are specific and calm, all regions have clear goals. Relations with industry unions have changed: it all began with the fact that the Ministry of agriculture had the idea to leave one Association for each industry. The idea gradually developed into the signing of a number of agreements with lobbying organizations. In the dairy industry, the Ministry of agriculture is actively working with Soyuzmoloko.
WHAT WAS DONE
The Ministry of agriculture stressed that support will be prioritized in those industries that lag behind the targets
Since 2020, the "single subsidy", introduced under Alexander Tkachev, will be divided into compensating and stimulating parts. The need to transform the single subsidy arose due to the fact that the previously existing mechanism did not fully take into account the specifics of the regions. The Ministry of agriculture has already held meetings with the regions to identify their priorities and areas of development that require stimulating support. In addition, a number of areas of state support will be changed. For example, "capex" in the sector of "greenhouses" will be abolished.
To implement the measures of the state program for the development of agriculture in 2019, the Ministry of agriculture brought the maximum funding in the amount of 242.6 billion rubles against 238.7 billion rubles this year. The Ministry agreed proposals on the necessary budget allocations for 2019 in the amount of 302.3 billion rubles with the Ministry of Finance.
In particular, 258.3 billion rubles are required to fulfill the indicators of the state program. It is about the increase of funding for concessional lending, "single subsidy", the activities of the subprograms for the development of land reclamation and rural areas.
In addition, 44 billion rubles are provided for the implementation of the project "Export of agricultural products".
At the beginning of the year, Dmitry Patrushev said that the first deliveries of dairy products to China are expected within six months, in the spring they were carried out by the enterprise of the Udmurt agricultural holding KOMOS. To date, the Chinese market is open to 43 Russian enterprises for the supply of dairy products and cheeses, even more sites are accredited for the supply of ice cream.
Speaking of exports – the first magistracy of the Ministry of agriculture in MGIMO (Moscow state Institute of international relations) was opened.
A few days ago, it was reported that the Rosselkhoznadzor will be given the power for state veterinary supervision at the Federal level to eliminate duplication of Supervisory authorities at different levels of government, to create a clearer vertical and to consolidate the uniformity of actions under the state veterinary supervision. The Ministry of agriculture prepared the document on the introduction of amendments to the legislation on behalf of the Head of state.
The issues of environmental requirements and changes in wastewater standards, which are very important for the dairy industry, have not yet been resolved, the EVC system is not yet established, the situation with the integration with the labelling by the Center for advanced technology development is unclear. The team of Dmitry Patrushev expectedly showed for this year that it seriously differs from former structures – the fact of joint work with vice-Prime Minister Alexey Gordeev adds a note of optimism. However, the new composition makes the new rules of the old game, which not only irritate the majority of market participants, but also introduce an imbalance in the market situation. One can see both positive and negative sides in the initiatives of Dmitry Patrushev’s team. But the main problem is how long it will last to make a stable platform for the sector, and not to shatter it once again.
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