Russian farms perform well but face challenges

Significance

State-supported substitution of banned Western foodstuffs has boosted agriculture, which in 2016 enjoyed its most successful year in the post-Soviet period. Both the wheat harvest and meat production posted record highs.

Impacts

• Food will be a key export item, as it already exceeds the value of arms sales.
• Wheat export revenues may decline owing to the strengthening ruble.
• The food substitution policy will prolong Russian import barriers.
• Agricultural exports to China are rising and will include soya as well as wheat, other cereals and vegetable oil.