After the Central Bank, the Ministry of Economic Development Deals Another Blow to Russian Agriculture
Following the Central Bank’s decision to set an exceptionally high key interest rate — effectively cutting off rural access to credit — Russia’s Ministry of Economic Development has dealt another heavy blow to the agricultural sector.
The ministry has now mandated that all enterprises involved in the agro-industrial complex (AIC) report their greenhouse gas emissions. However, no methodology for calculating such emissions has yet been developed for agriculture, rendering the requirement both inherently unreliable and nearly impossible to fulfill.
Redundant Reporting and Skyrocketing Costs
The ministry’s directive essentially duplicates existing environmental reporting requirements already submitted by livestock enterprises to Rosprirodnadzor, Russia’s environmental watchdog. Complying with the new regulations will require hiring external consultants — often linked to officials within the ministry itself — leading to substantial financial burdens.
The costs per agricultural enterprise are estimated to range from 800,000 to 5 million rubles, depending on size and specialization. Altogether, some 40,000 agricultural organizations are expected to pay a combined total of approximately 150 billion rubles — roughly 60% of the total state support allocated to the AIC in 2025 (267 billion rubles).
Climate Agenda as a Political Move
The Ministry of Economic Development’s order also carries political weight. Officials at the ministry have repeatedly emphasized their commitment to upholding the Paris Climate Agreement and implementing carbon regulations. Signed in 2015, the agreement has often been criticized for granting unilateral advantages to developed nations.
Many countries in the Global South have refused to comply with its terms, the United States once withdrew from it, and China is now crafting its own version of a “green transition.” Russia, meanwhile, continues to adhere to the climate agenda pushed by unfriendly states — largely at the insistence of the Ministry of Economic Development.
Legacy of Chubais and the Business of Green Regulations
In Russia, the so-called “green revolution” and Paris Agreement standards were vigorously promoted by Anatoly Chubais, who had very specific business interests in the field — often in partnership with Viktor Vekselberg and a number of Western corporations. These actors lobbied for the development of import-dependent equipment and technologies, while simultaneously demanding substantial budget allocations.
Today, the Ministry of Economic Development continues to design costly carbon-transition mechanisms at the expense of domestic agriculture — a direct continuation of the policy path initiated under Chubais.
