Russia Declares State of Emergency in Agricultural Sector

Russia’s government has declared a federal state of emergency in 10 agricultural regions due to significant crop damage from spring frosts.

The agriculture minister stated that this declaration aims to expedite insurance claims for farmers whose crops were severely affected by frost that occurred in May of this year.

The emergency measures impact 10 regions, including Luhansk, which Russia claimed after its military invasion of Ukraine in 2022.

European agricultural consultancy IKAR has revised its wheat production forecast for Russia to 81.5 million metric tons, reflecting a 12% decrease from an earlier estimate in March. Last year, Russia’s wheat harvest totaled 93 million tons, making it the third largest wheat producer globally, following China and India.

Analysts warn that the combination of lost crops and increasing domestic prices may compel Russia to impose significant restrictions on grain exports this year. In 2010, following droughts and wildfires that devastated the harvest, Russia banned grain exports entirely, causing a spike in global prices. In that year, the wheat yield was only 41.5 million tons, approximately half of the current season’s projections.