Sanctions Squeeze: Russia's Agriculture Crumbles Under War's Weight

Moscow, May 30, 2025 – A new report from Moscow reveals the crippling impact of Western sanctions on Russia's agricultural sector. The sanctions, imposed in response to the ongoing conflict in Ukraine, have led to a dramatic rise in food prices. "Potatoes, a staple food here, have become two or three times more expensive compared to last year," reported an NTV correspondent in Moscow. This price surge is compounded by the challenges faced by major agricultural machinery manufacturers, hampered by difficulties in accessing necessary parts and financing. High-interest rates, currently at 21%, further exacerbate the situation, making it difficult for farmers to obtain credit and invest in new equipment. The reporter also noted that poor weather conditions have worsened the harvest. The combined effects of sanctions, high-interest rates, and poor weather are pushing Russia's largest agricultural machinery manufacturer towards insolvency, illustrating the far-reaching consequences of the war in Ukraine on the Russian economy. The situation underscores the interconnectedness of global events and the profound impact of geopolitical instability on even seemingly disparate sectors.