Medvedev ratifies law on agriculture insurance services

MOSCOW, Aug 8 (PRIME) — Russian President Dmitry Medvedev said Monday that he has ratified a law on the development of agriculture insurance services in Russia, RIA Novosti reported.

The law is expected to make insurance mechanisms a part of life for agricultural producers, Medvedev said, adding that agriculture insurance services have not been adequately developed in Russia.

This (lack of agricultural insurance) was a great problem and carried serious consequences for us. Last year, most of the countrys harvest was affected by the drought. Unfortunately, our insurance mechanisms did not work. We had to do it (compensate the damage) at the expense of government funds, Medvedev said, speaking at a meeting with Russian agricultural producers.

Earlier in August, Russias Audit Chamber said that the cost of the direct damage to Russian agricultural producers as a result of the severe drought in 2010 is estimated at 41.8 billion rubles.

Also at the meeting, Medvedev said that he planned to discuss measures that should be taken to improve the competitiveness of the agricultural sectors products with agricultural producers.

The president also said he believed that Russian regional governments should partly finance ameliorative projects in the sector. In turn, Russian Agriculture Minister Yelena Skrynnik said that ameliorative projects could be included into the second stage of agricultural sector development program.

Medvedev also reiterated that the Russian government should maintain its positions over issues concerning Russias agricultural sector in talks on the countrys accession to the World Trade Organization (WTO).

Russia is the only major economy still not included in the WTO and has been in negotiations to join the organization since 1994. The country is expected to join the WTO later this year, according to earlier statements by Russian officials.

(28.3382 rubles U.S. $1)


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