OREANDA-NEWS. August 19, 2009. Russian Ministry of Agriculture plans to establish a state-run agricultural insurance company to insure agricultural risks related to harvest loss or shortfall, the ministry reported.

“We will have a body to control the insurance system in the agricultural sector”, the minister of agriculture Elena Skrynnik was reported in the press release as saying. The timing and terms for creating the new company were not specified. According to officials, the formation of this entity “will make it possible to cut insurance expenses of agricultural producers and avoid shadow schemes on the market”.

The Ministry of Agriculture is coordinating the issue of establishing the insurance company with the other relevant agencies, the press release says.