Page 48 - bne IntelliNews Russia OUTLOOK 2025

Since early 2022, Russia has faced double-digit food inflation, prompting authorities to freeze prices on essential goods in 38 regions. While these measures have temporarily eased pressure on consumers, experts warn they could lead to long-term supply shortages and further inflationary spikes.
Russia's agriculture exports reached $45bn in 2024 – a new record as the state continues to pour resources into the sector.
The record-breaking figure is attributed to a combination of high global food prices and Russia’s robust production of key agricultural commodities such as wheat, sunflower oil and barley. Wheat remained the cornerstone of Russia’s agricultural exports, with the country maintaining its position as the world's leading wheat exporter. According to industry analysts, favourable weather conditions in key growing regions contributed to a bumper harvest, allowing for greater export volumes.
Another contributing factor was the diversification of export markets. While traditional buyers in the Middle East and North Africa (MENA) continued to dominate, Russia expanded its reach into Asia, particularly China, which has increased imports of Russian soybeans and poultry. This diversification helped offset fluctuations in demand from other regions.
The Russian government played a pivotal role in facilitating this growth. Policies aimed at boosting agricultural production, such as subsidies for farmers and investments in modernisation of infrastructure, contributed to the momentum. Enhanced logistics networks, including new grain terminals at key ports, reduced bottlenecks and enabled smoother transportation of goods.
Furthermore, a weak ruble made Russian exports more competitive on the global market, further driving demand.
The agricultural sector is grappling with rising costs for inputs such as fertilisers and fuel, partly due to global supply chain disruptions. Additionally, geopolitical tensions pose risks to trade flows, particularly with European markets.
48 Russia OUTLOOK 2025 www.intellinews.com