The Russian government temporarily banned the export of grain to the EAEU and sugar to third countries
The Russian government has decided to temporarily ban the export of grain to the states of the Eurasian Economic Union (EAEU) and raw cane sugar to third countries. The relevant decrees were signed by the Prime Minister of the Russian Federation Mikhail Mishustin. website cambina.
Grain restrictions will be in effect until June 30, sugar – until August 31. For cereals, the ban applies to wheat and meslin, rye, barley and corn.
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It is noted that the government provided a number of exceptions for the export of sugar and grain. So, they are allowed to be delivered outside the country, including for the purpose of providing humanitarian assistance and as part of international transit traffic.
Export of wood and artificial sapphires
The Russian Ministry of Industry and Trade has proposed by the end of this year to ban the export of timber and its products to “unfriendly countries”, including the United States and the European Union.
Banned birch pulpwood (the main raw material for paper production) and fuel chips are critical commodities for the EU
The department noted that Russian manufacturers account for 10 to 15 percent of Finland’s consumption of these goods. The ministry added that the country would not be able to quickly replace such supplies.
Also, the Ministry of Industry and Trade reported that the department of Russia’s share in the world supply of artificial sapphires is about 40 percent, but considers it possible to limit their export only as a last resort.
We do not seek to develop unfriendly action scenarios and reserve this right to respond only in the most extreme situations.
The department also added that leading Western companies are interested in these products from Russia.
Export of fertilizers
The Ministry of Industry and Trade asked Russian fertilizer producers to leave them in the country and not send them for export. The ministry said that now “due to the sabotage of deliveries by a number of foreign logistics companies,” farmers from Europe and other regions are facing difficulties in obtaining the contracted volumes of fertilizers.
This creates obvious risks of crop failure and, as a result, food shortages for the countries of Western and Eastern Europe, Latin America, South and Southeast Asia – after all, it is either extremely difficult or even impossible to replace Russian fertilizers today.
The ministry called on fertilizer producers to temporarily suspend shipments of products for export until carriers “resume rhythmic work” and provide them with guarantees for the fulfillment of contractual obligations.
Russian goods needed by the West
Acting head of the Liventsev Department of International Economic Relations and Foreign Economic Relations at MGIMO Maria Maksakova said that Western countries will not survive without metals and fertilizers from Russia.
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According to her, the refusal to export fertilizers may have a negative impact not only on the European, but also on the global food market. This will cause shortages and higher prices for products, as the country is in the top 5 of the world’s leading fertilizer producers, and two-thirds of its production is exported.
Maksakova added that Russia’s retaliatory restrictive measures could affect the export of metals: nickel, palladium, aluminum and commodities.
Russia accounts for about 10-12 percent of world nickel exports, 13 percent of titanium and 40 percent of palladium
The expert said that restrictions on the export of palladium could negatively affect the European automotive industry, and a ban on the export of nickel and cobalt could increase the cost of producing electric vehicles.
The risk of world hunger
The official representative of the UN World Food Program (WFP), Thomson Peary, said that due to the situation in Ukraine and rising food prices in the world, the risk of global famine is increasing.
The Black Sea Basin, known as the breadbasket of Europe, is one of the most important regions for the production of grain and agricultural products.
Piri emphasized that Ukraine and Russia account for 30 percent of world wheat exports, 20 percent of corn exports and 76 percent of sunflower supplies. He stated that disruptions in production and supply chains would push prices up.
As a result, millions of people who have already been adversely affected by food inflation will suffer as a result, he said. The representative of the organization added that the current situation increases the cost of WFP’s activities.
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