According to Russian law, foreign individuals and companies that are more than 50% owned by foreign entities are not permitted to own agricultural land in Russia. However, they are allowed to lease agricultural land on a long-term basis. Agricultural land is subject to special zoning and regulatory rules. For example, a house built on farmland is not legally considered part of the agricultural land itself. As a result, foreign nationals may legally own such a house and the surrounding plot of land used for crop cultivation. This means that foreign nationals wishing to relocate to Russia and live in a rural area, growing their own food and keeping livestock, may purchase or build a home with full ownership rights. Those planning to engage in commercial farming, however, must either lease agricultural land long-term or obtain Russian citizenship in order to legally own such land outright.

One of the fastest legal routes to Russian citizenship, which allows full ownership of agricultural land, is through employment in Russia. This can be achieved by either working for a third-party employer or by registering and working within your own Russian company.

Important: Those employed in agricultural occupations may be eligible to apply for permanent residence after six months and for Russian citizenship after twelve months.

If you want to set up your own farming business and obtain permanent residence or citizenship in Russia, follow these steps:

Register your own company in Russia. Any foreign national may establish a company in Russia, even while present on a tourist visa. The most common legal structure for foreign entrepreneurs is the limited liability company (OOO in Russian), which can be 100% owned by a foreign national or company. There is no requirement to appoint a Russian national as a director.

Use your company to secure a work permit for an approved profession from the qualified list, then work in that role for at least six months.

After six months of continuous employment, you may apply for a permanent residence.

After twelve months of employment, you may apply for Russian citizenship, which grants you the legal right to purchase agricultural land in Russia.

GOVERNMENT SUPPORT

The Russian government has set up a comprehensive support system for the agricultural sector, which is open to both new and experienced farmers. These measures include non-repayable forms of support such as grants, subsidies, and subventions, as well as repayable instruments, including leasing programs and concessional (preferential) loans.

SUBSIDIES

The purpose of subsidies is to partially reimburse farmers for the costs associated with running and developing a farming business. Farmers who grow vegetables, fruit, and grain may qualify for additional land allocations and partial or full reimbursement of eligible expenses. Subsidies are also available for planting perennial crops, such as vineyards and orchards, and for using certified, high-quality seeds. They can also cover insurance for fields against frost or fire, as well as the construction of agricultural infrastructure, such as storage facilities and grain elevators.

Special subsidy program are available for new farmers whereby peasant (small-scale farming) enterprises may receive up to 300,000 RUR to improve drainage systems, upgrade electrical infrastructure, or purchase agricultural equipment. Another program supports family farms that have been officially registered as agricultural producers for at least one year. In order to qualify, applicants must submit a business plan, demonstrating that they have secured at least 40% of the total project budget from their own resources as confirmed by a bank deposit statement.

Subventions are provided to farmers free of charge to be used strictly for their designated purposes. Subventions are most commonly allocated for the construction of housing for farm workers or non-residential agricultural buildings, such as cowsheds and storage facilities. If subvention funds are not used as intended, they must be returned to the government.

GRANTS

Grants are awarded on a competitive basis and do not need to be repaid, provided that all program conditions are met. The amount of funding from the government depends on the type of agricultural activity. Capital-intensive sectors with higher labor requirements, such as animal husbandry, typically enjoy higher levels of support than crop production.

Grant limits vary by region. In the Moscow region, for example, the maximum grant amount is 5,000,000 RUR for cattle breeding and 3,000,000 RUR for gardening, fishing and other agricultural activities. Grant funds may be used for purchasing land, acquiring equipment that is less than three years old, construction and infrastructure development, purchasing livestock (excluding pigs), covering up to 20% of overall farm development costs.

Applicants are required to submit a detailed business plan along with a presentation outlining projected expenses and financial forecasts. In the Moscow region, farms registered locally for no more than two years and generating an annual revenue of up to 120,000,000 RUR may qualify for substantial support.

The farm director must either have specialized agricultural training or at least three years' relevant professional experience. Grant recipients are required to use the allocated funds within 18 months and must create and maintain new jobs as part of the funding agreement.

Grant payments are made in installments, with applicable taxes due after each one. Given the substantial amounts involved in supporting farmers, the application process requires extensive documentation. Farmers should be aware that the use of subsidy funds is subject to strict post-approval monitoring by the grants

LOANS

On December 29, 2016, a regulation known as "Program 1528" was adopted to support agricultural producers. This program, initiated by the Ministry of Agriculture, aims to identify systemically important credit institutions that participate in the state program providing preferential loans to agricultural enterprises.

The preferential loan offered under Program 1528 features a reduced interest rate, making banking products more accessible and easing the financial burden on producers. The government compensates banks for part of the lost profit, ensuring transparency and minimizing the risk of corruption through strict financial oversight and reporting mechanisms.

This form of preferential lending has proven to be a valuable economic stimulus tool. Farmers do not receive these funds directly, but indirectly they benefit agricultural enterprises.

However, not every head of an enterprise is eligible for a preferential loan. Applicants must meet certain requirements, including demonstrating consistent or stable positive profits, making timely payments on existing loans, and complying with other program conditions. When applying for a loan under Program 1528, borrowers can choose from approved financial institutions designated by the Ministry of Agriculture.

SPECIAL LEASING TERMS AND CONDITIONS

In addition to grants, subsidies, and loans, the government support framework includes preferential leasing programs for essential farming equipment. This includes specialized equipment for farming operations.

Want to start a farm in Russia?

Our team provides end-to-end support at every stage of the process — from developing a business plan and registering a company to securing government grants and obtaining citizenship.