Russia has created one of world's most competitive agricultural markets in 10 years of food embargo - minister

MOSCOW. Aug 6 (Interfax) - Russia has established one of the world's most competitive, flexible and technologically advanced agricultural markets in the 10 years since the food embargo was imposed, the Russian Agriculture Ministry said.

"Today, we are not only self-sufficient in the widest range of all the staple foods but we also have one of the most competitive, flexible and technologically advanced markets in the world. Russian companies are capable of producing almost all that is necessary and adapting to any external conditions - this was well proven by the situation in 2022-2023, when several foreign brands left the country. As in 2014, empty niches were quickly occupied by domestic businesses, and consumers did not feel any changes," the Agriculture Ministry's press office quoted Agriculture Minister Oksana Luth as telling Interfax.

She also said the trends of recent years indicated Russia was on a path towards the intensive development of the agricultural sector and strengthening its position as a guarantor of global food security.

The food embargo was imposed ten years ago by a Russian presidential decree No. 560 of August 6, 2014 on special economic measures to ensure Russia's security and which prohibited imports of agricultural produce and food from countries that introduced or supported anti-Russian sanctions in connection with the reunification with Crimea. The vacated niches were filled primarily by domestic producers.

The Agriculture Ministry said that Russia's agricultural output rose 33.2% from 2014 to 2023, and food sector output 42.9%. During this period, the agro-industrial complex only increased output significantly but also guaranteed the country's global food market leadership in many key areas.

Both the agro-industrial complex as a whole and its individual sectors are developing robustly.

The ministry said the country's agro-industrial complex had been developing dynamically thanks to systemic decisions by the state to protect and support Russian producers, as well as to stimulate specific areas.

Funding for the state agriculture development program has increased 2.2-fold from 198.1 billion rubles in 2013 to 442.6 billion rubles last year.

The food embargo has enabled Russia not only to achieve self-sufficiency in many food sector indicators has also changed the model for the agro-industrial complex's progression from import substitution to export orientation.

"In 2013, 2.5 times more food was imported to the country than was supplied to other countries. Since 2020, Russia has become a net exporter of food: exports exceed imports, and the gap is widening every year. Exports in 2023 were 24% higher than imports," the ministry said.

Russian agricultural exports increased 2.6-fold to $43.5 billion in 2023 from $17.1 billion in 2013.

"Today, Russia ships food to more than 160 countries and is the world leader in the supply of wheat, peas, barley, oilseed flax and frozen fish, and is among the leaders in sunflower oil and a number of other products," the ministry said.