The Government’s answers to the questions of the Consultative Assembly on the development of agro-industrial complex

Following the results of the meeting, members of the Consultative Assembly of the first Pridnestrovian deputies in April sent proposals and questions on the development of the agro-industrial complex of the republic to the Government of the Pridnestrovian Moldavian Republic. The Government Chairman Alexander Rosenberg studied the ideas of veterans of Pridnestrovian parliamentarism and sent a response letter, which describes in detail the current situation in the industry.

Abbreviated version of the answers of the Government of the Pridnestrovian Moldavian Republic is presented hereinafter.

1. On the issue of creating, preserving and recreating forest belts

Currently, relations arising in connection with the creation, use, protection and protection, as well as taking into account protective forest plantations, are regulated by the norms of the Decree of the Government of the Pridnestrovian Moldavian Republic dated September 13, 2019 No. 338 "On approval of the Regulations on the procedure for conducting forestry in protective plantations on agricultural land" (Collection of legislative acts 19-35). The above normative act provides for the procedure for afforestation, and also establishes obligations for the conservation and reproduction of protective forest plantations by land users, tenants of land plots.

Work is underway on behalf of the Government of the Pridnestrovian Moldavian Republic to develop departmental regulations that establish requirements for measures for the conservation and reproduction of protective forest plantations, as well as requirements for measures for protective afforestation on agricultural land.

The need to take measures for the conservation and reproduction of protective forest plantations is reflected as an essential condition of long-term use contracts or leases of land plots when granting land plots.

The monitoring of the condition and reproduction of protective forest plantations is carried out, as well as the correctness of allotment and technology for the development of cutting areas during all types of cuttings in protective forest plantations.

2. On the issue of combating quarantine weeds and pests, namely “Sosnovsky's hogweed”, “boxwood moth”, “chestnut mining moth”, “ragweed ragweed”, etc.

An Action Plan for the prevention of the emergence and control of ragweed was developed, approved by the Order of the Pridnestrovian Moldavian Republic dated February 21, 2020 No. 100r in order to prevent the emergence, control and spread of ragweed on the territory of the Pridnestrovian Moldavian Republic, which defines quarantine measures and authorized bodies responsible for their implementation. Unscheduled control (supervision) measures are taken every year, allowing continuous quarantine surveys during the growing season to identify the facts of the growth of ragweed and other quarantine weeds and pests on agricultural lands and lands of the state reserve fund.

Measures will also be taken in the course of the quarantine measures planned for 2023 aimed at combating ragweed to identify hogweed. If this dangerous weed is detected, the examiners will send plant samples to the quarantine laboratory of the State Institution “Republican Center for Veterinary, Sanitary and Phytosanitary Welfare” to determine the species of hogweed. It will be possible after the results of laboratory tests, which will make it possible to determine the type of hogweed to use one or another method for systemic control and prevention of the spread of this type of plant.

As a result of the mass destruction of boxwood plantations by the boxwood moth pest, an urgent set of preventive and control measures has been taken to preserve the growing boxwood plantations. Measures were taken to prevent the spread and control the pest on a total area of 55366 m2, as well as insecticidal treatments and mechanical pruning were carried out on individual boxwood bushes in the amount of 12546 units. It is recommended in order to further prevent and prevent the spread of boxwood moth that the heads of state administrations of cities and regions of the Pridnestrovian Moldavian Republic annually during the growing season of plants carry out measures to examine boxwood plantations and take urgent measures to localize the centers of settlement, destroy and prevent further spread of the pest if a pest is detected. Recommendations have been issued for other quarantine pests.

3. On the issue of the need to develop and adopt a number of regulations in the field of the agro-industrial complex that determine the policy for the development of agricultural production.

The main goal of the agrarian policy is enshrined in the Development Strategy of the Pridnestrovian Moldavian Republic for 2019-2026, approved by the Decree of the Pridnestrovian Moldavian Republic dated December 12, 2018 No. 460, is to achieve food self-sufficiency of the republic in basic socially significant food products. The mechanisms for its implementation are provided in creating conditions for investment and innovative development of agriculture, increasing the competitiveness of agricultural production, efficient use of natural resources, reducing the cost of production and creating conditions for sustainable socio-economic development of rural areas. The regulation of economic processes by the state is balanced by the preservation of the economic freedom of economic entities, the formation of a system of state guarantees and economic opportunities.

The Law of the Pridnestrovian Moldavian Republic dated April 12, 2019 No. 65-Z-VI approved the State Program for the Development of the Agro-Industrial Complex of the Pridnestrovian Moldavian Republic for 2019-2026, which includes a wide range of organizational and economic measures aimed at strengthening the food security of the republic currently. The use of such levers of economic policy as the financial and credit mechanism, tax regulation, subsidies and subsidies from the budget, foreign investment is envisaged.

The Development Strategy of the Pridnestrovian Moldavian Republic until 2026 determined an increase in the share of domestic products. Measures taken by the state to support livestock, especially the dairy industry, are yielding results. There is an increase in the number of dairy herds, an increase in the milk productivity of animals in organizations and as a result an increase in milk production. Poultry meat occupies more than 60% of the total volume of meat products in the structure of consumption, since it is the most affordable for a wide range of consumers. The existing capacities of the enterprises of the republic fully meet the needs of the population in chilled chicken meat.

The situation in the domestic market with provision of vegetables and potatoes is stable. The largest volume of imports in 2021 fell on potatoes (5280 tons) and onions (1390 tons) for vegetables of the "borscht set". Agricultural producers of vegetable products were advised not to reduce the area under vegetable crops compared to 2021, increasing it for potatoes and onions for turnips. Potato production in 2022 (excluding production in households and horticultural association) amounted to 8673 tons against 8014 tons in 2021, onions – 5395 tons against 3400 tons. The volume of imports decreased accordingly: potatoes – by 1427.1 tons, onions – by 245 tons. At the same time, the import of potatoes is advisable to stabilize the price level, since the cost of this product is lower in countries with better climatic conditions for production.

The provision of the population with fruits (stone and pome fruits), if we take into account the volume of products produced by the private sector, including table grapes, exceeds 100%. Due to the small capacity of the domestic market, this type of agricultural product is primarily a raw material for the processing industry and an export product.

As for the production of berry crops, this type of product is traditionally grown in honeycombs and private households of citizens. However, an analysis of the structure of perennial plantings for 2017-2022 in agricultural organizations, including peasant farms, showed that the share of orchards decreased, while those of walnut and berry plants increased. Thus, the area of berry crops increased by 93.4 hectares, and nut crops - by 676 hectares. The state intends to support manufacturers of these products, especially small businesses, peasant (farmer) households that have small land plots in use.

An analysis of the situation with meeting the needs of the domestic market for the main types of agricultural products, taking into account the volume of production within the republic and imports, shows that the need for grain and sunflower processing products (flour, cereals, pasta, butter, etc.) is provided by domestic production, but in conditions of a market economy (taking into account the preferences of the buyer), imported goods of this group must be present on the shelves of retail chains. Processing capacities make it possible to meet the demand for the main types of these products in full if necessary.

Increasing the production of agricultural products involves the solution of two main issues, one of which is the sale of grown products. The issue of preserving the grown products and lengthening the terms of its implementation is important in this context. The first steps have been taken in this direction, a number of refrigerating chambers with a controlled temperature environment have been put into operation, technological lines for preliminary sorting and calibration have been purchased. This made it possible to provide public sector organizations financed from the budget (republican and local) with food in accordance with the Law of the Pridnestrovian Moldavian Republic dated November 26, 2018 No. 318-З-VI "On Procurement in the Pridnestrovian Moldavian Republic" (Collection of legislative acts 18-48). Manufacturers enter into contracts for the supply of products, the mechanism works, and there are no problems with supply.

The second main issue in the development of the vegetable growing industry is the expansion of irrigated lands. The measures are being implemented in this direction in accordance with the adopted State program for the restoration and development of the reclamation complex of the Pridnestrovian Moldavian Republic for 2022-2026, approved by the Law of the Pridnestrovian Moldavian Republic dated January 10, 2022 No. 13-З-VII.

As for the issue of placing a state order for the purchase of agricultural products in order to saturate the domestic market, it should be noted that in the context of a budget deficit, financing a state order without guaranteeing the possibility of selling the grown products is inappropriate.

The procedure for using the lands of the Pridnestrovian Moldavian Republic is fixed by the Land Code of the Pridnestrovian Moldavian Republic. Control over the conservation of soil fertility and agrotechnological requirements that ensure the rational and efficient use of land in the legal field of the Pridnestrovian Moldavian Republic are regulated by:

1) Law of the Pridnestrovian Moldavian Republic dated May 20, 2011 No. 57-Z-V "On state regulation of ensuring the fertility of agricultural land" (Collection of legislative acts 11-20);

2) Decree of the Government of the Pridnestrovian Moldavian Republic dated March 6, 2014 No. 65 “On approval of the form and procedure for maintaining the Book of the History of Crop Rotation Fields”;

3) Decree of the Government of the Pridnestrovian Moldavian Republic dated December 27, 2018 No. 473 “On approval of the Regulations on the procedure for exercising state powers in the field of land legislation on proper land use, rational, efficient use of agricultural land plots, as well as on the procedure for the forced termination of rights to land plots agricultural purposes";

4) Order of the Ministry of Agriculture and Natural Resources of the Pridnestrovian Moldavian Republic dated March 21, 2022 No. 81 “On approval of the Regulations on the procedure for the work of commissions for surveying land plots and establishing the causes of death or damage to crops and (or) planting of perennial plantations” (registered Ministry of Justice of the Pridnestrovian Moldavian Republic on April 5, 2022 No. 10936);

5) Order of the Ministry of Agriculture and Natural Resources of the Pridnestrovian Moldavian Republic of November 30, 2022 No. 576 “On Approval of the Procedure for Accounting for Indicators of the Fertility of Agricultural Lands and Agrotechnical Requirements for Cultivation of Agricultural Crops, Preservation and Improvement of Soil Fertility” (registered by the Ministry of Justice of the Pridnestrovian Moldavian Republic of December 7, 2022 No. 11425).

It should be noted on the issue of expanding the powers of local authorities on the disposal of land funds, in particular agricultural land, homestead and garden partnerships, that the competence of the rural (settlement) Council of People's Deputies in the field of regulation of land relations includes the decision to provide land plots for the purposes of residential and public development from the composition of the lands of settlements (paragraph "a" of Article 17 of the Land Code of the Pridnestrovian Moldavian Republic). At the same time, land plots of residential and public buildings from the composition of the lands of the settlement are intended for personal subsidiary plots among other things. Accordingly, the issues of granting for use household land plots at the house, as well as agricultural land occupied by arable land, fallow land, perennial plantations, hayfields, pastures from the composition of land of settlements are the responsibility of local authorities.

The acceptance of documents for the provision of land for personal subsidiary farming or gardening from lands of the category "agricultural land" is carried out in rural (settlement) Councils of People's Deputies - administrations of villages (settlements) in the subordinate territory in order to reduce the inconvenience of citizens and create favorable conditions for residents of rural settlements.

4. On the issue of approving the pricing methodology for cereals, flour and bakery products from grain of own production and approving prices for vegetable products.

According to the norms of Article 13 of the Law of the Pridnestrovian Moldavian Republic dated December 31, 2004 No. 513-Z-III "On Prices (Tariffs) and Pricing" (Collection of legislative acts 05-1), a list of socially significant goods is defined, for which state regulation of prices is carried out in the domestic market of the PMR. State regulation of prices for the above food products is carried out by setting marginal selling prices.

It should be noted that flour-grinding and baking production in the Pridnestrovian Moldavian Republic is represented by several entities. The technological process, the cost of production of subjects is different, while an individual approach is applied to the consideration of production costs and the recognition of economically justified costs in pricing.

The Ministry of Economic Development of the PMR considers at present the issue of approving a general pricing methodology for wheat (baking) flour of the first and second grades, bread and bakery products from wheat (baking) flour of the first and (or) second grades by conducting an appropriate analysis of information for further systematization in the pricing methodology.

In order to control prices for a number of food products, including vegetable products, on the domestic market of the republic, the Ministry of Economic Development of the PMR collects and analyzes weekly up-to-date information on average prices for food products on the domestic market of the Pridnestrovian Moldavian Republic, as well as in neighboring states (Republic of Moldova and Ukraine).

An additional list of socially significant goods for which the body of state regulation of prices and tariffs has the right to introduce state regulation of prices when an unreasonable price increase is detected, includes: potatoes, fresh cabbage, beets, carrots, apples, beef (chilled products: pulp), pork (chilled products : pulp), poultry meat (chicken) (chilled products: gutted carcass, breast, leg, thigh, drumstick, frozen products: gutted carcass, breast, leg, thigh, drumstick), fresh carp, fresh crucian carp, fresh silver carp, sugar, salt.

On a weekly basis, the Ministry of Economic Development of the PMR, taking into account the information of the State Customs Committee of the PMR, monitors the dynamics of prices for designated goods and analyzes the presence or absence of price increases and the reasons for such an increase (if there is an increase). The specified set of measures, implemented in the domestic market of the republic, makes it possible to promptly introduce state regulation (restriction) of prices for a number of food products in the event of fixing an unreasonable increase in prices for such products.

5. On the issue of creating private-state procurement structures, taking into account personal subsidiary plots

The purchase of surplus agricultural (fruit and berry) products from the population is expedient only when resolving the issue of its further sale in fresh or processed form.

Problems in the sale of vegetable and fruit and berry products are experienced by both large agricultural producers and peasant (farm) enterprises and individual entrepreneurs (horticultural partnerships) due to the small capacity of the domestic market, the low purchasing power of the population, and competition among manufacturers of similar products. The costs of organizing procurement centers, delivery to the place of processing, untimely settlements between processors and suppliers due to the lack of free working capital ultimately lead to losses for procurement organizations.

Fruits and vegetables are perishable products, agricultural producers – vegetable growers invest in the construction of modern storage facilities, the purchase of lines for sorting, packaging, processing grown products. It must be taken into account that the population, selling surpluses, forms small batches of different quality (by degree of maturity, by variety and appearance, etc.) when creating points for receiving agricultural products. Additional costs during the procurement of products, including natural losses, lead to an increase in the cost of the final product. Procurement of fruit and berry products from the population is advisable when there is demand from processing enterprises. At the same time, the process of harvesting agricultural raw materials from the population for the procurer is economically unprofitable due to the need to invest additional material and financial resources.

A positive solution to the issue of purchasing fruit and berry products from the population is directly related, first of all, to the solution of the issue of improving the financial condition of canneries and free export of canned food. With a change in the economic and political situation, the withdrawal of canning industry enterprises from the crisis, there is reason to believe that the opportunities for purchasing fruits and vegetables from both agricultural organizations and the population will expand.

6. On the issue of certification and the introduction of standards for organic farming

Decree of the Government of the Pridnestrovian Moldavian Republic dated October 19, 2021 No. 1001r “On approval of the Action Plan (“road map”) for creating conditions for the development of organic agriculture in the Pridnestrovian Moldavian Republic” provides for a set of measures aimed at the introduction and development of organic agriculture in the PMR. Currently, in order to implement the designated Plan, work is underway to develop a draft legislative act that establishes the foundations and principles of organic agriculture.

Elaboration of the issue of certification in relation to organic agriculture (certification of imported raw materials and materials for organic agriculture, organic products produced on the territory of the Pridnestrovian Moldavian Republic, as well as requirements for certification bodies) has been postponed to 2023-2024.

The Ministry of Economic Development of the PMR is currently working on the introduction of standards:

1) GOST 33980-2016 “Products of organic production. Rules for production, processing, labeling and sale”;

2) GOST PMR GOST R 56104-2023 “Organic food products. Terms and definitions”, harmonized with GOST R 56104-2014;

3) GOST PMR GOST R 57022-2023 “Products of organic production. The procedure for conducting voluntary certification of organic production, harmonized with GOST R 57022-2016.

The introduction of other regulatory documents (standards) for introduction on the territory of the Pridnestrovian Moldavian Republic on organic farming will be carried out after the adoption of a legislative act and regulatory legal acts that establish requirements and criteria for the safety of organic farming products on the territory of the republic.

7. On the issue of establishing criteria for the efficiency of land use and liability for improper use of agricultural land

Decree of the Government of the Pridnestrovian Moldavian Republic dated December 27, 2018 No. 473 “On approval of the Regulations on the procedure for exercising state powers in the field of land legislation on proper land use, rational, efficient use of agricultural land plots, as well as on the procedure for the forced termination of rights to agricultural land plots ” (hereinafter referred to as the Decree of the Government of the Pridnestrovian Moldavian Republic dated December 27, 2018 No. 473) provides for criteria for the rational and efficient use of land. At the same time, the efficiency of the use of agricultural land is defined as the achievement of certain results and obtaining the maximum possible volume of production from the available amount of resources. Efficient land use requires the use of all available land resources, strict adherence to technology in the production of agricultural products; carrying out soil research, the use of modern technology for a more productive and high-quality use of land resources.

Paragraph 2 of the Appendix to the Decree of the Government of the Pridnestrovian Moldavian Republic dated December 27, 2018 No. 473 determines that proper land use is a prerequisite for the use of a land plot and is expressed in:

a) use of the land plot in accordance with its intended purpose and permitted use specified in the documents establishing (certifying) the right to land;

b) conservation of soils, prevention of their degradation, restoration and improvement of their fertility and other useful properties;

c) implementation of measures for the protection of land, the fight against weeds, the observance of the procedure for the use of forests, water and other natural objects, as well as the prevention of damage to the natural environment;

d) timely submission to the relevant state authorities of information on the state and use of land: on the facts of degradation; on the use of fertilizers and plant protection products; on contamination with radionuclides, pesticides and other harmful industrial emissions;

e) ensuring the protection of land from water and wind erosion, landslides, flooding, waterlogging, secondary salinization, desiccation, compaction, pollution with industrial waste, chemical and radioactive substances and other processes leading to soil degradation;

f) ensuring protection against contamination of agricultural land and other lands by quarantine pests and plant diseases, from overgrowing with weeds, shrubs and small forests, and other types of land degradation;

g) assistance in carrying out soil, agrochemical, phytosanitary and environmental-toxicological examination of agricultural land;

h) reclamation of disturbed lands, restoration of their fertility and other useful properties of the land and its timely involvement in economic circulation;

i) creation and preservation of adjacent forest protection plantations, etc.

In addition, the obligatory conditions for the use of the land plot for agricultural land plots are: achieving the standard yield of cultivated crops, observing the conditions of land exploitation, crop rotation structure in accordance with agrotechnical recommendations, preventing excessive use of agrochemicals and phytosanitary preparations, compliance with special requirements (norms, rules, regulations ) carrying out agrotechnical measures, reclamation, phytosanitary and anti-erosion measures approved by legal acts of the executive body of state power, which is entrusted with the function of state land control (supervision).

In turn, the Land Code of the Pridnestrovian Moldavian Republic in Articles 85, 86, 87, 88 provides grounds for the forced termination of rights to a land plot in case of its improper use. Article 91 of the Land Code of the Pridnestrovian Moldavian Republic, in correspondence with the Decree of the Government of the Pridnestrovian Moldavian Republic dated December 27, 2018 No. 473 provides for the procedure for applying liability measures for improper land use of agricultural land plots, as well as the procedure for the forced termination of rights to an agricultural land plot due to its improper use.

The liability measures for improper land use are as follows:

a) administrative liability for violation of the land legislation of the Pridnestrovian Moldavian Republic;

b) liability, expressed in the forced termination of the right to a land plot due to its improper use.

The above list of criteria for the rational and efficient use of land plots as well as the established grounds for the forced termination of rights to a land plot in case of its improper use are sufficient to assess the effective use of land plots.

8. On the issue of creating a republican center for the accumulation, refinement, packaging and supply of agricultural products to retail chains and for export

Appropriate conditions have been created at present for agricultural producers to sell their products on the domestic market. Agricultural markets, weekend markets, stationary retail outlets selling vegetables and fruits, vegetable sections in retail chains are organized in each region of the republic, satisfying the demand of the population in this type of product.

Agricultural producers sell products for export either through traders, or independently conclude contracts for the supply of agricultural products. At the same time, the procedure for confirming the quality of products will be difficult in the case of organizing a republican center for agricultural products, when organizing the export of agricultural products received from a large number of different farms.

9. On the issue of creating processing industries for the production of ketchup, mayonnaise, mustard and other types of agricultural products for domestic consumption

CJSC Kamensky Cannery and JSC Baby Food Canning Plant operate in the canning industry on the territory of our republic.

Products manufactured at these enterprises are sold to the retail chains of the republic, although the main volume is export-oriented.

It should be noted that the plant's capacities are very energy-intensive and are designed to process significant (50 or more tons per day) volumes of raw materials.

It is necessary to purchase and install new technological lines and equipment, which entails additional costs for the enterprise for the production of such types of products as mayonnaise, mustard, ketchup. However, a guaranteed market for the above products is needed to ensure cost-effective production.

Taking into consideration the fact that the foreign markets of neighboring countries are provided with a wide range of presented products, the release will be focused only on the domestic market.  At the same time, taking into account the “low capacity” of the domestic market as well as the fact that this group of goods is not a product of “wide consumption”, the installed production capacities will operate a small number of days a year, which ultimately will lead to an increase in cost of manufactured products, making it uncompetitive in relation to similar products presented in the retail chains of our republic.

10. On the issue of ensuring further subsidies, concessional lending, favorable customs regime in the implementation of export-import activities by the subjects of the agricultural sector

In terms of providing further concessional lending, starting from 2018 and up to the present, as part of the provision of state support to the real sector of the economy, including the agricultural industry, a program of long-term concessional lending is being implemented for the purpose of modernizing and updating fixed assets, in accordance with which the state subsidizes part of the interest rate in the amount of 6% of the outstanding loan amount through financing from the republican budget. The procedure for implementing the program is fixed by the Decree of the Government of the Pridnestrovian Moldavian Republic dated April 20, 2021 No. 128 “On Approval of the Regulations on the Procedure for Implementing Measures for Preferential Lending to Business Entities for Investment Purposes” (Collection of legislative acts21-16).

Over the 5 years of the program of long-term lending to agricultural producers (including peasant farms), 125 loans were issued in the amount of 33.8 million euros in equivalent, 2/3 of the loans of which were for the development of land reclamation.

The implementation of the concessional lending program gave a powerful multiplier effect for the development of the agricultural sector of the economy. So, 327 additional jobs (balance) were created at agricultural enterprises (excluding peasant farms) over 5 years, the volume of production in 2022 compared to 2018 increased by 29.3%, the volume of taxes paid – by 29.7%. The total amount of state support (for all loans issued) in the form of subsidizing part of the interest rate for 2018-2022 amounted to 96.5 million rubles.

The PMR Government is aimed at maintaining and continuing the implementation of the current program of long-term concessional lending for the purpose of updating fixed assets, including for agricultural producers.

It should be noted in addition that other programs of concessional lending to subjects of the agro-industrial complex and interest-free borrowing are being implemented through the PMR State Reserve Fund.

In terms of ensuring further subsidies in accordance with the State Program for the Development of the Agro-Industrial Complex of the Pridnestrovian Moldavian Republic for 2019-2026, one of the goals of livestock development is to create conditions for the sustainable functioning of organizations involved in the production of milk, as a result of which, on February 27, 2020, the Decree of the Government of the Pridnestrovian Moldavian Republic No. 44 approved the Regulations on the procedure for providing subsidies for reimbursement of part of the costs for the purchase of breeding heifers of dairy cattle for imports.

The purpose of this program is to create a breeding core in the country to increase the genetic potential in dairy cattle breeding and increase milk production as a result, which directly depends on the milk yield of cows.

Providing subsidies to milk producers has a positive impact on the development of the dairy farming industry. The result of the state support measures provided was not only an increase in the number of dairy herds, but an increase in the milk productivity of animals in organizations that imported livestock into the territory of our republic (Appendix).

State support for livestock breeding organizations of the republic continues in 2023 to reimburse part of the costs of acquiring breeding heifers of dairy cattle for imports. The PMR Agriculture Support Fund provides funds for 2023 in the amount of 4.471.000 rubles in the direction “Subsidizing part of the costs for the purchase of breeding heifers of dairy cattle”.

Positive trends in the dairy industry were promoted by state support in the form of subsidies for milk delivered for processing of own production at the rate of 1 rub. per 1 kg of cow's milk with a basic fat content of 3.5% (in 2018 - 0.5 rubles per 1 kg of milk) as part of the implementation of the State Program for the Development of the Agro-Industrial Complex of the Pridnestrovian Moldavian Republic for 2019-2026. the Fund for Support of Agriculture in the current year provides for funds in the amount of 17.994.000 rubles to achieve the goals set.

Applications were accepted in the first quarter of 2023 for the provision of subsidies for cow's milk from 47 agricultural organizations, including 32 peasant (farmer) households, of which 2 peasant (farm) households used this support measure for the first time in accordance with the Decree of the Government of the Pridnestrovian Moldavian Republic dated March 30, 2018 No. 96 “On approval of the Regulations on the procedure for spending funds planned to finance the costs of subsidizing the volumes of delivery of cow’s own milk for industrial processing to domestic producers”.

It is planned to maintain the current state support measures in order to further reduce import dependence and develop dairy farming.

In terms of a favorable customs regime in the implementation of export-import activities by the subjects of the agrarian industry in order to reduce the costs of export-import operations of organizations engaged in the production of their own products (including the subjects of the agrarian industry), the current legislation in the field of customs and tariff regulation provides for a number of benefits.

1. In accordance with the norms of Article 8 of the Law of the Pridnestrovian Moldavian Republic dated April 26, 2000 No. 286-З "On the customs tariff" (Collection of legislative acts 00-2), organizations (including agricultural ones) engaged in the production of their own products are exempted from paying import customs import duties on the customs territory of the Pridnestrovian Moldavian Republic:

a) raw materials, equipment, including machines, mechanisms, as well as materials included in the supply of the relevant equipment, and components used in their own technological process in the manufacture of their own products, including organizations that perform part of the technological operations for the production of a single product in accordance with the service agreement;

b) non-consumable items - equipment, vehicles, including air and water vehicles, complete equipment and other means of production imported for technical re-equipment and modernization of production under a financial lease (financial leasing) agreement;

c) containers and packaging made of various materials used in the production and (or) processing of agricultural products.

2. As part of the Decree of the Government of the Pridnestrovian Moldavian Republic dated September 30, 2022 No. 360 “On approval for 2023 of the Customs tariff for goods imported into the territory of the Pridnestrovian Moldavian Republic, and the Commodity nomenclature used in the implementation of foreign economic activity” (Collection of legislative acts 22-38) zero rates of customs duties on the following goods imported for agricultural production:

a) young live animals, cows, sheep, chickens and laying hens of poultry;

b) planting material (seeds for sowing, bulbs, tubers, tuberous roots, corms, rhizomes, unrooted cuttings and layering: trees, shrubs and shrubs, grafted or ungrafted, bearing edible fruits or nuts);

c) agricultural machinery and equipment (tractors for agricultural work, trailers and semi-trailers self-loading or self-unloading for agriculture, tank trailers and tank semi-trailers engines used for wheeled agricultural tractors, liquid pumps with or without flow meters, liquid lifters, compressors, used in refrigeration equipment, fans, packaging or wrapping equipment, agricultural or horticultural irrigation sprayers, etc.).

3. In order to provide support to domestic economic agents engaged in foreign economic activity, a number of benefits were extended for 2023, established by the Law of the Pridnestrovian Moldavian Republic dated June 2, 2022 No. 96-З-VII "On amendments and additions to the Law of the Pridnestrovian Moldavian Republic" On measures of state support for economic entities of the Pridnestrovian Moldavian Republic in connection with the negative consequences of external factors” (Collection of legislative acts 22-21):

a) the rates of customs fees for customs operations have been reduced by 50% in respect of goods transported from the following countries (to the following countries): the Russian Federation, the Republic of Belarus, the Republic of Kazakhstan, Ukraine;

b) deferrals or installment plans for the payment of customs payments are granted without charging interest;

c) the possibility of extending the period of validity of the customs procedure for temporary import, provided for in paragraph 1 of Article 93 of the Customs Code of the Pridnestrovian Moldavian Republic is established, taking into consideration the period of extension and (or) determined by the Government of the Pridnestrovian Moldavian Republic in accordance with paragraph 2 of Article 93 of the Customs Code of the Pridnestrovian Moldavian Republic, for more a long term, but based on the application of the declarant not more than 5 (five) years;

d) before the expiration of the customs procedure for temporary import established by the customs authority, this customs procedure may be completed by placing temporarily imported goods under the customs procedures applicable to foreign goods, with the exception of the customs procedure of customs transit, without their actual export from the customs territory of the Pridnestrovian Moldavian Republic.

4. Work is being carried out to assist the export to the Russian Federation of Pridnestrovian agricultural products subject to the Decree of the Government of the Russian Federation dated July 31, 2014 No. 736 “On the introduction of import customs duties on goods whose country of origin is the Republic of Moldova”.

5. Article 6 of the Customs Tariff Law provides for the possibility of establishing special types of duties: seasonal, special, anti-dumping and countervailing to protect domestic producers.

Thus, Decree of the Government of the Pridnestrovian Moldavian Republic dated November 18, 2022 No. 431 established an import seasonal customs duty on apples imported without concluding a foreign economic contract (for the period from November 22, 2022 to April 30, 2023) in order to protect domestic agricultural producers of apples.