US, WASHINGTON (ORDO NEWS) — Due to the introduction of a quota for the export of Russian wheat and its early production, the world risks losing grain at a time when a number of countries are just about to make additional purchases, Bloomberg reports.
The agency emphasizes that Russia is the largest supplier of wheat, and because of previously imposed restrictions on supplies to the world, food shortages and price increases could be threatened.
Many countries, from Egypt to Turkey, are trying to increase grain imports while it is possible. Until recently, this demand was met by Russian suppliers, but “this window quickly slammed,” notes RBC.
Recall, on April 26, it became known that the Ministry of Agriculture of the Russian Federation suspended the export of grain crops outside the Eurasian Economic Union until July 1, 2020. Limitations apply to wheat, rye, meslin (a mixture of wheat and rye), barley and corn. Amid the crisis caused by the pandemic, the Russian government decided to introduce a non-tariff quota for grain exports to stabilize prices on the domestic market.
“After the export of all wheat declared for the grain quota, the export of wheat, meslin, rye, barley and corn to non-member states of the Eurasian Economic Union will be stopped until July 1, 2020. FCS has stopped issuing new declarations for export purposes, ”the ministry said.
Thus, the authorities hope to meet the country’s domestic needs for grain and its processed products.
We add that the Russian economy in February – March 2020 was under the powerful influence of two negative factors at once: the rapid spread of the COVID-19 coronavirus pandemic and its detrimental effect on the global economy, as well as the collapse of oil prices. Against this background, the ruble depreciated significantly against the dollar and the euro. In response to the situation, the government and the Bank of Russia approved several packages of measures to support the economy and citizens.
On April 16, Russian Finance Minister Anton Siluanov specified that about 2 trillion rubles from the National Wealth Fund in 2020 would be allocated to the economy for anti-crisis measures while maintaining oil prices at $ 20 per barrel.
On April 21, the Russian government reported that the cost of measures taken by the Cabinet to support the economy has already amounted to 2.1 trillion rubles. Earlier, the head of the Ministry of Finance of the Russian Federation Anton Siluanov said that the amount of budgetary measures to combat coronavirus and its consequences in the Russian Federation is about 2.8% of GDP. On the whole, the Ministry of Finance estimated the total amount of fiscal support for citizens and businesses of all industries in the context of the coronavirus pandemic at 6.5% of GDP.
What government measures to support the economy can be most effective today, and what the Russian leadership fears, are the economist Alexander Auzan in the Rosbalt podcast.
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