Russia eyes further expansion of agriculture

Significance The decree targeted a rise in the value of agricultural production of at least 25% above the output of RUB7.6tn (USD86bn at current exchange rates) recorded in 2021. Putin also aims to increase agri-food exports to USD55bn by the end of the decade, which would amount to a 50% increase on 2021 exports of USD37.1bn. Putin stated that meeting his targets would show that Russia is “a sustainable and dynamic economy”, help it maintain domestic food security, and retain its status as a major player in the international food market. Impacts The unusual May freeze could cause grain exports to decline slightly and mean Russia misses its USD45bn export target. Exports of cereals and vegetable oils will account for 50% of Russia’s agri-food earnings. Fish and seafood exports will account for 25% of Russia’s agri-food earnings. Output is highly concentrated: in 2023, ten regions accounted for 69% of Russia’s agri-food exports.