Russia economy meltdown as potato prices soar by 50% | World | News
Russian economy, the country’s reserve fund is decreasing and simple staples such as potatoes have shown more than 50%rockets at cost. President Vladimir Putin may have to remove his attention from the headline covering the foreign policy movements in Iran and Ukraine and convert his attention to the diminishing chests of his country.
Work inside The Russian Ministry of Finance reported that liquid assets in the country’s national reserve fund shows that in May was 2.8 trillion rubles or about 26 billion £. Bloomberg’s calculations have fallen by 68% since the beginning of the Ukrainian War. And for ordinary Russians, the price of a kilogram of potatoes has rose from 60 rubles in January, as they use it as a staple known as “second bread”.
A report on the War Research Institute said that terrible market conditions may affect Russia’s ability to continue Ukrainian invasion.
“The continuation of increasing oil prices against Iran after Israel’s strikes against Iran can increase Russian revenues from oil sales and increase Russia’s ability to maintain war efforts, but only if the oil price remains high and Russian oil is not under additional international sanctions.”
The Russian newspaper Realnoe Vremya reports that the Russians had to replace potatoes with pasta and bread, because they have become very high to meet most of the prices.
According to the Federal State Statistics Service in January, the average price of the “second bread” was about 60 rubles per kilogram, today retail chains were called “super price üble per kilogram, while the average market price exceeds 100 rubles per kilogram.
In response to the shortage of vegetables, potato bread areas were expanded this year in Tatarstan region of Russia.
Dmitry Gordeyev, an expert from VM Gorbatov Federal Food Systems Research Center, Newspaper: “This trend can be observed in Russia and even in Belarus, where efforts to expand potatoes are actively continuing.
“The key issue is to understand the existing potato shortage and the sharp increase in prices in the domestic market.
“First of all, this is the relatively low potato prices in the previous years and that many farmers abandon potato cultivation in favor of more economically applicable products and thus increase profitability.”
