US wants to reduce the world market’s dependence on Russian agricultural products

The U.S. House of Representatives has passed the “No Russian Agricultural Products” Act, a bill designed to reduce dependence on Russian food.

The bill obliges the U.S. Treasury Secretary to use his “voice and influence” to support investments in projects that can reduce the dependence of countries around the world on Russian agricultural products, including grain and mineral fertilizers.

Some projects with Russian participation may be granted an exception, but only if it promotes US national interests. “The world cannot rely on Russia or other adversaries in any way, but especially in getting the food we need. This bill reduces our dependence on Russian farmers and puts the focus back on supporting American farmers,” explained Congressman Zach Nunn, one of the bill’s co-authors.

Russia is the largest supplier of wheat (25%) and mineral fertilizers (20%) to the global market. The US wants to squeeze Russia out of these segments first of all

The law will be in effect for five years from the date of approval by the US president. However, it can be canceled if the president reports to Congress that it is necessary to protect US national interests.

Russian media in response to the law accuse the United States of increasing the number of hungry people in the world, while keeping silent about the fact that the invasion of Ukraine, which is a very large food supplier, has put many poor countries in danger of starvation. In addition, Russia is preventing Ukraine from exporting food in every possible way, while it is trying its best to win as many markets as possible and get as many countries hooked on its food as possible, in order to dictate its terms to them or demand political concessions. Below are the opinions of Russian experts.

The problem may arise with an expanded interpretation of the law rather than the implementation of the formal text of the document, estimates Eduard Zernin, chairman of the board of the Union of Grain Exporters, according to a Russian newspaper. “The name itself already carries a serious negative message. We know very well from the example of hidden sanctions and problems with banking support for transactions with Russian grain that it is messages, not formal texts of documents, that have the most influence,” he says. According to Zernin, the main losers will be the population of the poorest countries, which may be subject to further pressure. According to the UN World Food Program (WFP), the number of food insecure people increased by 100.2 million over the year to 716.1 million.

The United States continues to move toward fragmentation or division of the global economy into two blocs, one of which will be led by the United States, says Ekaterina Novikova, associate professor of economic theory at the Plekhanov Russian University of Economics. Under this paradigm, the US wants to get rid of any areas that are dependent on Russian supplies, including agriculture. “This process of disengagement will take years, but it is unlikely to be stopped under current conditions,” she said.

Tags: Russia, grain, USA, legislation, restrictions