MIL OSI Translation. Region: Russian Federation –
Russian manufacturers of plant protection products faced a problem when exporting products from the country. After the amendments were made to the law “On ecological expertise” when exporting their products, they are forced to test them inside the country. The problem is aggravated by the fact that a significant part of the drugs is used in the production of cocoa beans, bananas, coconuts that do not grow in the Russian Federation. Industry companies have already asked senators and the Ministry of Agriculture to resolve the issue. Otherwise, they will be forced to relocate their production facilities and laboratories abroad.
Amendments to the Law on Environmental Expertise, signed by President Vladimir Putin on June 28, 2021, impede the export of biological plant protection products. Rustam Ramazanov, General Director of one of the largest manufacturers of microbiological preparations “Bionavatic”, wrote about this in his address to the Speaker of the Federation Council (SF) Valentina Matvienko and the head of the Ministry of Agriculture Dmitry Patrushev. On Sunday, Ms. Matvienko’s office and the Ministry of Agriculture were unable to receive comments.
After the adoption of the amendments in relation to microbiological plant protection products, requirements similar to those required for the registration of chemical pesticides began to apply, Bionavatics explained. To obtain the right to manufacture and export pesticides, it is necessary to undergo state registration of drugs, this is still technically impossible for biological products. At the same time, the circulation of some of these funds in the Russian Federation is not planned, since they are used to protect crops, for example, cocoa, banana or coconut trees, which do not grow in Russia.
Due to the impossibility of testing the preparations within the country for such plants, registration is basically impossible. But even if a procedure is developed, the time and financial costs will exceed those that foreign competitors are subject to in order to enter the Russian market. The law in its current form forces manufacturers to consider options for transferring production and research laboratories outside Russia, warns Rustam Ramazanov.
He proposes to abandon the mandatory registration of bioagrochemicals exported from the country, placing control over the quality of products on the importing countries. Sergey Belousov, deputy head of the Federation Council committee on agrarian-industrial policy and environmental management, agrees with the existence of the problem. He said that the committee plans to conduct parliamentary control of the law enforcement practice of the adopted law and, if necessary, develop amendments.
Alexei Matyukhov, Managing Partner of BMS Group, points out that the largest manufacturers of plant protection products and fertilizers most often have a ownership structure distributed across different jurisdictions. In addition, there is a high concentration of players in the industry, which attracts close attention of the antimonopoly authorities and leads to tough government regulation. In this regard, the export problem will hardly significantly affect the investment attractiveness of the industry for international players, but it can significantly hit local players, whose laboratories and production are concentrated in Russia, the expert agrees.
Irina Koziy, general director of the Berry Union, points out that the current rules for the registration of pesticides and bioagrochemicals hinder not only the export of drugs, but also the efficient production of berries within the country. According to her, the drugs included in the State Catalog of Pesticides and Agrochemicals are either outdated long ago or have no proven results of use. At the same time, the cost of testing and examining a new name of a means of protection for one crop ranges from 4 million to 9 million rubles. The market volume for each individual drug does not exceed 1 million rubles. in year. With such a comparison of numbers, no supplier will consider it reasonable to register even the best drug, says Irina Koziy. As a result, she concludes, berry growers suffer, who annually lose about half of their harvest due to pests and diseases.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.