Russia, facing sanctions from the West for its invasion of Ukraine, will now export grains to other nations only in exchange for rubles. In addition to grains, the Russian government has added sunflower oil and extracted meal to the list of export items to be paid in rubles. A resolution to this effect was adopted on Friday. Russia is the largest exporter of wheat in the world and a major supplier of sunflower seeds. The government resolution also extends a provision to pay for exported sunflower oil and meal duties in rubles until Aug. 31, 2023. As part of this payment mechanism, the base price for calculating wheat’s export duties has been set at 15,000 rubles ($263) per ton. The grain crisis is being felt across the globe as wheat prices have surged to record highs over the past two months. The global food market, already affected by weather and the Covid pandemic, was dealt another blow due to the Russia-Ukraine conflict and Western sanctions on Moscow. This has sparked fears of global food insecurity and hunger.
Russia imposes ruble restriction on countries buying wheat and sunflower oil
Published on: July 4, 2022 9:51 AM