The last time I looked, Russia was still an importer of grains, part of the prolonged hangover from the good old days of the Soviet Union. But things have changed quite a bit.
Russia continues its climb out of the middle; it is a BRIC country (Brazil, Russia, India, and China) and towards the economic top fueled by oil and wheat. It is supplying oil to Europe, but the price remains controlled by the cartel we call OPEC. Often, Russia acquiesces to the needs of other OPEC members, particularly Saudi Arabia that needed a price change to balance its budget. (Odd how everyone kowtows to Saudi Arabia)
It currently supplies about 20% of the world’s wheat, spread out to the Middle East, Asia, and Africa. It is a growing source of currency, both real and diplomatic, for Russia. And of course, the wheat and other grains can be used to produce cattle; meat too is becoming a Russian export.
“The world does not only have oil and Kalashnikovs to get from Russia, but also green land, blue water and clean food.” Andrei Guriev, chief executive of Phosagro [1]
In addition to being a large country East to West, Russia is large North to South, which makes for mitigating climate change, at least to a degree. As the permafrost melts to the North, it is opening up new farmlands. While they lag behind us in mechanization, that only means more productivity in the coming years.
[1] one of the largest fertilizer producers in Russia and Europe
Source: Russia starts to sow seeds of ‘wheat diplomacy’ Financial TImes
