SPUTNIK, Moscow--The Russian government decree shows that starting from January 1, 2024, the amount of subsidy for dairy exporters' transportation costs will increase from 25% to 100%.

This document identifies milk, milk fat, whey, butter and cheese as priority products for shipment.

The mechanism for paying subsidies to exporters was established in 2017. The USDA subsidizes all exporters selected on a competitive basis at the same rate - 25% of the logistics costs of all modes of transport from origin to final recipient.

Artyom Belov, director-general of the National Union of Milk Producers, told reporters that with this expanded support, Russian companies will be able to gain advantages in foreign markets. Overall, this will help promote increased supply and diversification of sales channels, as well as help reduce inventories and stabilize the domestic market situation, he added.

Belov emphasized: "At the same time, it is crucial to provide funds for new support methods for dairy companies."

According to him, at present, many companies are actively establishing supply relationships with foreign markets that were previously closed to Russia.

He explained: "These are not the traditional partners of the CIS countries for us, but countries in Africa, Asia and the Middle East. The main obstacle to stronger development of exports has always been logistics, which used to be very expensive and made Russia Dairy is not competitive."