Hunger Games:

Hunger games: How the world's farmers have become collateral victims of sanctions against Russia

RT

The rush to impose sanctions on Russia, and the departure of scores of companies from the country, following the launch of the military operation in Ukraine was done with a specific calculus: To devastate the Russian economy. However, in a globalized world where everything is linked, all actions have consequences.

Russia is one of the world’s leading exporters of fertilizers. According to the Fertilizer Institute in the US, in terms of the global export market, Russia accountsfor 23% of ammonia, 14% of urea, and 21% of potash, as well as 10% of processed phosphate exports.

The World Bank’s Fertilizer Price Index rose nearly 10% in the first quarter of 2022, to an all-time high in nominal terms. The increase follows last year’s 80% surge. According to the projections, the prices will rise by almost 70% this year before falling – presumably – twelve months hence.

Prices soar higher than ever

In April, the EU adopted another package of sanctions against Moscow that included a ban on the import of fertilizers – plus, vessels registered under the Russian flag were banned from EU ports. “Derogations are granted for agricultural and food products, humanitarian aid, and energy,” the bloc said. 

Back in March, the EU sanctioned another important fertilizer exporter for its role in the Ukraine conflict – Belarus. Potash, one of the major sectors for the country’s trade, was already under sanctions since 2021, when the EU decided to punish Belarus for alleged human rights abuses and artificially creating a migrant crisis – allegations that Minsk has denied.

Adding to the delivery disruption, since the beginning of the conflict in Ukraine, several major shipping companies, including the world’s biggest container ship operators – A.P. Moller-Maersk A/S and Mediterranean Shipping Co. – suspended services to Russian ports. In response, the Russian Ministry of Industry and Trade advised fertilizer manufacturers to halt exports, citing transport “sabotage.”

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