The United States has quietly been pushing companies to ramp up the Russian fertilizer trade as global food costs rise and food shortages loom.
The U.S. government is quietly pushing companies to buy and carry more Russian fertilizer. Russian fertilizer exports dropped 24 percent this year. Sanctions fears created a supply shortage, and have fueled a food crisis around the world.
The global food crisis has caused the U.S. reportedly to move to alleviate the pressure with the United Nations by boosting deliveries of certain supplies from Russia, including fertilizer, and grain.
The U.S. faces the challenge of putting more pressure on Moscow while also simultaneously limiting repercussions for both the global economy and the global food supply. The world’s food supply relies on a range of Russian products.
The U.S. and the European Union have included fertilizer exemptions in their sanctions against Russia according to new reports, which allows trade to continue for the commodity.
According to Russia’s Grain Union, wheat exports doubled last month in May. More than 25 million tons of grain, sunflower oil, and other goods are still stuck in Ukraine, however, due to security concerns.
Western officials have criticized Russia and its president, Vladimir Putin, for using food as a weapon of war, as the Kremlin continues to prevent Ukraine from exporting. The U.S. and European Union have slapped Russia with crippling sanctions since Moscow invaded Ukraine in February.
Reports and analyses say sanctions are hitting Russia hard enough to hurt it, if not even completely stop it. Economic analysts say that while the assault on Ukraine continues, it seems clear that real damage is being done to Russia’s economy.
Reports say that sanctions exceeded the public’s expectations, and most likely also exceeded Putin’s expectations as well. Companies pulling out of Russia on their own accord were not expected, experts say, including the massive food chain McDonald’s.
Around 1,000 major businesses pulled out of Russia that was not forced to under sanctions, hurting the economy even more.
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