Touch the Soil News #368
Amid Western economic sanctions against Russia – for its intervention into the Ukraine – Russia decided to fight back economically to the Western World. One of Russia’s actions included the stopping of food imports from Europe and other Western nations.
At stake are historical Russian purchases (imports) of foreign food to the tune of almost $44 billion a year. By 2015, Russia had cut those purchases by almost 40 percent. They plan more cuts in the future. Farmers in Europe and other parts are feeling the economic pain of this large market loss.
A recent Bloomberg report found that Russia is working diligently to increase its agricultural operations to fill the gap historically filled by food imports. Leading the effort is Russian agricultural conglomerate – Ros Agro PLc – owned by Russian billionaire Vadim Moshkovich.
The Russian flag, oddly enough, is made up of the same colors as the U.S. flag – red, white and blue. Russia has a population of 145 million (U.S. population is 323 million). Russia’s land mass of 6.6 million square miles is roughly 70 percent larger than the U.S. Russia has natural resources to grow its own food.
Other billionaires, who are friends of Russian President Vladimir Putin- including Gennady Timchenko will invest heavily in tomatoes and fruit orchards.
There is a big irony in the Russian effort to raise its own food at the expense of huge market losses to Western nations. Some of the Russian companies doing the agricultural expansion are getting investments and funding from Western Nations. In specifics, Ros Agro Plc has been approved on the London Stock Exchange where funds will be raised. Analysts at Bank of America Merrill Lynch have positive outlooks for investments into Russian agricultural ventures.
Following is a brief video on the Ros Agro Plc agricultural expansion: