Putin ally warns agriculture supplies could be limited to 'friends'

Published 04/01/2022, 02:26 AM
Updated 04/01/2022, 02:40 AM
© Reuters. FILE PHOTO: Deputy Chairman of Russia's Security Council Dmitry Medvedev gives an interview at the Gorki state residence outside Moscow, Russia January 25, 2022. Sputnik/Yulia Zyryanova/Pool via REUTERS

(Reuters) - One of President Vladimir Putin's allies warned on Friday that Russia, a major global wheat exporter, could limit supplies of agriculture products to "friendly" countries only, amid Western sanctions imposed on Moscow over the Ukraine crisis.

Dmitry Medvedev, who served as president from 2008 to 2012 and is now deputy secretary of Russia's security council, said he would like to outline "some simple but important points about food security in Russia," given the sanctions imposed.

Most of them have been part of the country's agricultural policy for years.

"We will only be supplying food and agriculture products to our friends," Medvedev said on social media. "Fortunately we have plenty of them, and they are not in Europe or North America at all."

Russia already supplies wheat mainly to Africa and the Middle East. The European Union and Ukraine are its main competitors in the wheat trade.

The priority in food supply is Russia's domestic market and price control within it, Medvedev said. Russia has been using grain export quotas and taxes since 2021 to try to stabilise high domestic food inflation.

Agriculture supplies to "friends" will be both in roubles and their national currency in agreed proportion, Medvedev said.

Currency of payment can already vary in each grain export contract subject to the needs of buyers and sellers. However, Medvedev's remark comes after Russia's recent demand for foreign buyers to pay for Russian gas in roubles.

© Reuters. FILE PHOTO: Deputy Chairman of Russia's Security Council Dmitry Medvedev gives an interview at the Gorki state residence outside Moscow, Russia January 25, 2022. Sputnik/Yulia Zyryanova/Pool via REUTERS

Russia banned most Western food imports in 2014 when it annexed Crimea from Ukraine but may expand the list further now, Medvedev added.

Many foreign companies such as producers of chocolate halted sales of their brands in Russia last month.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.