Drought in Russia: Grain region particularly affected
In Russia, the main region for grain cultivation has been experiencing dry conditions for weeks. This is likely to result in lower yields and poorer quality than previously expected.
Russia is facing a potato shortage. Alongside economic pressure, labor shortages, sanctions from other countries, and high inflation, the country is now heading towards a supply crisis. A serious crisis for the country.
In a recently broadcasted TV address, Russian President Vladimir Putin stated after a meeting with his economic advisors: "It turns out that we do not have enough potatoes."
Prices for potatoes are skyrocketing in Russia. Following a particularly good potato year in 2023 and the resulting low prices for the tubers, Russian farmers significantly reduced the potato cultivation area. Russia's strategy of simultaneously restricting food imports and imports of seed potatoes from Western countries is now hitting the country hard: basic food supplies are scarce, and food prices have risen sharply.
Especially potato prices in Russia have soared like no other food since the beginning of the war. Following a poor harvest due to frost and drought with a yield decline of 12%, the price increase for potatoes in the past year amounted to 92%.
This is additionally troubling for the Russian economy. The gross domestic product only increased by 1.4% compared to the previous year, three times less than at the end of 2024 and four times less compared to the same time a year ago. This roughly equates to a loss of around 65 billion euros. Nevertheless, Putin insists that the Russian economy has only incurred a slight deficit per year since the start of the war and continues to support its military with large sums.
Putin has now asked the close ally Belarus for assistance, but Belarus is also facing empty warehouses. All of the country's reserves have already been sold to Russia, stated Belarusian President Alexander Lukashenko.
Belarus has also struggled in recent years with poor weather conditions, resulting in significant yield reductions. However, Lukashenko seems determined not to disappoint his friend and has instructed Belarusian farmers to increase potato cultivation - even if it means using greenhouses.
As a result, Belarus is changing its stance towards the West: potatoes and other basic food supplies can now be imported, including from the EU. The European Union, in turn, is preparing to increase tariffs on agricultural products from Russia and Belarus in July.