Russia is taking further export-restricting measures. A tax will be introduced on soya from February 1 to June 30. This was announced by the Russian government this week. The rate is 30%, but only for shipments from €165 per tonne.
The import tax should limit price increases on the internal market, the Russian Ministry of Economic Affairs reports. It was already announced in mid-December that the wheat exports is charged a levy of €25 per tonne and maximum prices have been imposed on essential foodstuffs for the major supermarket chains.
However, the import tax will not have a major impact on the global soy market. Russia is a small player in this regard. The country accounted for an average of 5% of global production over the past 1,1 years. The Russian soy price was 65% higher in December than in the same month 1 year earlier.
Image problem
Rising food prices, expected negative economic growth and rising unemployment pose a threat to President Vladimir Putin. According to analysts, the measures are mainly intended to boost its own image. After the war with Ukraine in 2014, the West imposed sanctions on Russia. In response, Russia banned the import of Western foodstuffs. The country has since been trying to increase its own agricultural production and aims to become self-sufficient in the long term.
Culinary patriotism has therefore become one of the pillars of Putin's policy. Direct state aid to the agricultural sector has therefore risen from 200 billion rubles (approximately €2,19 billion) in 2012 to more than 308 billion rubles (approximately €3,38 billion). The Russian business newspaper Kommersant recently reported that the expected increase in production is lagging behind and the country is still dependent on imports.