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All news / Export of Russian agricultural products increased by 17%

  • 22 Sep 2022, 10:11

Despite the difficult geopolitical situation, by September 2022, Russia increased the export of agricultural products by 17% compared to the same period last year. This was announced by Deputy Minister of Agriculture Sergei Levin at the conference "Measures to increase the competitiveness of Russian exporters of agricultural products in the context of transformation", RIA Novosti writes.Export of Russian agricultural products increased by 17%

According to him, the export of oil and fat products increased by 29%, meat and dairy products - by more than 20%. “All of our largest buyers have increased purchases of Russian agricultural products this year. Deliveries to Turkey, for example, increased by almost 30%, to China - by 27%, to India - more than doubled, ”RIA Novosti quoted Levin as saying.

He noted that the dynamics and geography of exports indicate that when planning the federal export project, priority areas were correctly identified with an emphasis on promising markets in Asia, Africa and the Middle East. “Export growth is observed despite serious difficulties for foreign trade in general, which have arisen due to the imposition of unlawful sanctions by unfriendly states,” the Deputy Minister emphasized. “First of all, financial and logistical restrictions, restrictions on the operation of our ports and transport companies.”

To mitigate the negative effect of these sanctions, the Ministry of Agriculture has taken a number of measures to support exporters. In particular, as part of the capital expenditures support program, the conditions for granting subsidies have been eased, and the requirements for the required volumes of product sales to foreign markets have been reduced. According to Levin, further development of exports of agricultural products is possible on the basis of joint efforts of state bodies, export support institutions and business. In 2021, Russia exported agricultural products worth $37.1 billion compared to $30.5 billion in 2020. According to the forecast of the Ministry of Agriculture, this year exports can reach up to $40 billion.

Georgy Ostapkovich, director of the HSE Center for Market Research, said that the increase in the rate of exports of agricultural products is not surprising. “The cost of these goods on world markets has greatly increased, so there is an increase. We could take out more,” the expert believes. At the same time, he noted that the Russian economy is now in a force majeure situation, so "it is not clear how other countries will relate to Russian goods." “The big question is whether we can continue to sell our products in the same volumes,” Ostapkovich said. In general, our export potential is “absolutely normal,” Ostapkovich believes.

General Director of the Russian Export Center (REC, part of VEB.RF) Veronika Nikishina, speaking at the conference, noted that the export of agricultural products for Russia is now becoming even more of a priority than before, writes RIA Novosti. According to her, recently it has become a very important driver for the development of the Russian economy, and measures to support it show that the government pays great attention to the development of this area.

Meanwhile, the head of the Ministry of Economic Development Maxim Reshetnikov during the government hour in the Federation Council said that exports in general next year will slow down the decline in real terms and in 2024-2025 will return to growth mainly due to non-oil and gas supplies.