Ñompensational and preferential forms of support to agriculture

The paper presents an analysis of the difference in the meaning between such concepts as “innovation” and “modernization”. For the first time ever in the literature two new conceptions are introduced, that being compensational and preferential forms of support to agriculture. Their content is theoretically analyzed. Transition to a new policy of entering the WTO is proposed implying that both parties — Russia and the European Union — switch to compensational budget support to the agriculture.