Russia has had a really successful wheat harvest this year, in fact so successful that it could be hitting a record 100 million tons this year.
While the country and the local Russian farmers are excited about the successful harvest, it might not turn out to be such a great year for them after all.
Even though Russian food exports are not sanctioned, many countries and private firms are cautious about trading with the country.
Russian trade deals have taken a dive since the country invaded Ukraine at the beginning of the year.
The irony is that the world is currently facing a food crisis and Russia is the world’s top wheat exporter. The country exports about one-fifth of the world’s wheat exports, according to the US Department of Agriculture data.
An independent analyst, Alexandra Prokopenko, told Business Insider that “although food supplies are exempt from Western sanctions in the interests of combating food insecurity, bankers and insurers are wary of doing business with Russia, while shipping lines are reluctant to risk sending their vessels into a conflict zone”.
Image credit: Refinitiv