Russian agricultural sector in terms of sanctions

The purpose of this article is to show how the sanctions have affected the development of the agricultural sector in Russia.

Russia is a big, rich country, with plenty of resources. However, nowadays our agricultural sphere can’t meet all our needs, that’s why the development of this sector is a priority. Moreover, agriculture is a base for economic growth, since without it Russian industry will not be able to develop in future. Therefore, it is time to consider the causes and the effects.

According to Dmitry Medvedev, our agricultural industry has been developing quite steadily over the past few years. Livestock breeding and the food industry have reported good results. Nevertheless, some basic problems remain. Russian farmers could not afford to use modern scientific technology to enjoy a higher yield. Furthermore, they are short of financial resources indispensable for obtaining modernized machines and equipment. On the other hand, there are no companies in Russia with the complete production cycle, starting from the creation of goods to selling them, which causes other problems, when most producers are not able to sell their goods as the market is highly monopolized and the laws are not working well.

Fortunately, there is a hope for better prospects in the agricultural sector. Firstly, it is through the development of small businesses, which are becoming the driving force of our economy. Moreover, new regulations (если речь идет о правительстве) of the market processes will help small farmers get their own share in the market. In turn, the government is organizing local fairs, where producers and customers would be able to deal effectively without any intermediaries. In fact, our farmers need both short-term loans for seasonal field work and additional capital for buying fodder. It is absolutely necessary to initiate co-financing of this sphere.

All these measures are to bring about the economic benefits. The first advantage is largely due to the fact that we will be less dependent on other countries, stronger, less vulnerable and will be able to implement the program of import substitution in full amount, which will require to create more jobs and will help reduce unemployment. All these factors are to increase the gross domestic product and promote the stability of the economy, thus improving the standard of living in the country.

Over the years the agricultural sector in Russia has been facing huge problems. And surprisingly, the sanctions with restrictions on imports turned out to be a strong impetus for domestic producers reducing the competition in the market and booming the demand for their agricultural goods. All these factors are creating favorable conditions for the development of our agribusiness. Therefore, the government is focused on the solution of the existing problems and is taking all the necessary steps to encourage the farmers.