US officials are “quietly” urging agricultural firms to boost Russian fertilizer imports amid growing shortages and a looming international food crisis, Bloomberg reported on Monday, citing unnamed sources familiar with the discussions.
Companies fearful of US sanctions had apparently all but ceased purchases, despite loopholes built into the penalties.
The US and most EU countries have imposed tough trade restrictions on Moscow since its attack on Ukraine in late February, and are now facing a dilemma as shipping firms seek to avoid carrying Russian fertilizer. The penalties make exemptions for the product – of which Moscow is a key global exporter – but companies have nonetheless been reluctant to buy, helping to drive a 24% drop in Russian fertilizer sales this year.
The conflict in Ukraine has exacerbated food shortages around the globe, as both Russia and its neighbor account for a large portion of worldwide grain exports, and this has driven prices to record highs.
Hellbound and Down 