Russian Farmers Struggle as Conflict Drives Grain Prices to Record Lows
Russia's agriculture sector is facing a severe crisis due to the ongoing conflict in Ukraine. According to former Ukrainian official Anton Gerashchenko, one in five Russian farmers are on the brink of bankruptcy.
The main reason for this financial ruin is the record low prices for grain. Many farmers have been forced to abandon their harvests rather than collect them, as it would be more profitable to throw away part of the crop than to harvest it.
The situation has worsened due to Ukraine's long-range drone attacks that knocked out a significant portion of Russia's oil refining infrastructure. This has led to severe diesel shortages in the primary grain-producing regions during peak harvest season.
In southern territories, fuel costs have more than doubled in certain locations, with supplies either rationed or held up for weeks. Small and medium-sized operations, which account for the bulk of Russia's grain output, face the greatest impact.