Russia Faces a Potato Crisis Following the Gasoline Crisis
Russia faces the threat of a repeat of the potato crisis due to a reduction in the area planted with this crop for commercial production to an 18-year low—277,800 hectares. According to forecasts, this year’s potato harvest in Russia will decline by approximately 12%—to 7.5 million metric tons, down from last year’s 8.5 million metric tons—resulting in a shortfall of between 0.5 and 1 million metric tons relative to annual consumption levels.
Due to a shortage of domestic production, Russia will have to begin purchasing potatoes abroad approximately one month earlier than usual. As of the end of August, retail prices for potatoes in Russia had risen by 35% year-over-year—to 59.1 rubles per kilogram (31 UAH)—while wholesale prices jumped by 33%. At the same time, other vegetables in the “borscht mix” also became significantly more expensive: cabbage by 35.2%, onions by 27.2%, beets by 20.4%, and carrots by 17.7%.
The sharp rise in vegetable prices is driven by rising production costs. In particular, the cost of seeds, fertilizers, crop storage, and transportation has risen, a trend further accelerated by the fuel crisis and a more than 20% increase in gasoline prices in Russia since the beginning of the year.
This is reported by analysts at “AB-Center.”
The fuel crisis in Russia has added 0.7–0.8 percentage points to the overall inflation rate. This was stated by Andrei Gangan, director of the Bank of Russia’s Monetary Policy Department.
As a reminder, on the morning of August 13, drones attacked the “Gazprom Neftekhim Salavat” oil refining and petrochemical complex in Bashkortostan. Smoke rose above the plant’s territory following the attack.
Prior to this, the Russian oil refinery “Orsknefteorgsintez” had suspended oil processing following an attack by Ukrainian drones on August 11.
Video: An oil refinery caught fire after the attack in Orsk.
