Russian President Vladimir Putin said on Thursday that sanctions imposed because of the conflict in Ukraine risk leading to global food price inflation, as Russia will no longer be able to export enough fertilizer.
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“If it continues like this, it will have serious consequences (…) for the food sector as a whole, the rise in inflation will be inevitable”, he said, during a government meeting, while Russian fertilizer exports are to be suspended.
Russian fertilizers are not per se affected by Western sanctions. On the other hand, the finance and supply chain sectors are affected, which affects Russia’s ability to export.
“If we continue to create problems for us to finance this work, to ensure it, in the logistics, the delivery of our products (…) then the prices will increase more and more, and this will be felt on the price of the product. end, food products,” noted Mr. Putin.
Russia, like its harshly sanctioned neighbor Belarus, are major global suppliers of mineral fertilizers and supply both Europe and South America.
Following the announcement of massive sanctions against Russia and its economy, in retaliation for the conflict in Ukraine, the Russian Ministry of Industry last week recommended that Russian fertilizer producers temporarily suspend their exports.
Among other consequences, the sanctions prevent some of Russia’s largest banks from operating internationally.
The economic retaliation measures taken by Western countries against Russia have led to a spectacular drop in the price of the rouble.