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Putin's potato crisis: Most expensive prices in years and dramatic bottlenecks!
Russia's economy is on the brink of collapse because of the Ukraine crisis. Potato prices are rising dramatically, while sanctions and crop failures are exacerbating the situation.
Putin's potato crisis: Most expensive prices in years and dramatic bottlenecks!
On May 30, 2025, Russia and President Vladimir Putin in particular will face a serious crisis that will have far-reaching economic and social consequences. Negotiations to end the Ukraine war have failed and the next round of talks could not take place until June 2 at the earliest. Amid this unstable situation, Putin makes an alarming admission on state television: “We don’t have enough potatoes.”
The potato crisis in Russia is the result of several factors. After a 12% drop in crop volumes to just 7.3 million tonnes in 2024, 1.2 million tonnes below actual needs, prices for the staple crop have exploded. Last year, potato prices rose by 92% and in May 2025 by an incredible 166.5% compared to the previous year. This is particularly worrying since potatoes are considered one of the most important staple foods in Russia, right behind wheat.
Causes of the potato crisis
The reasons for this crisis are complex. Extreme weather conditions such as spring frost and drought have drastically reduced yields. In addition, a record harvest in 2023, which led to a collapse in prices, led to many farmers reducing their acreage. The war in Ukraine also resulted in a labor shortage as many young men were sent to the front.
In addition, Western sanctions are putting pressure on Russian agriculture, particularly with regard to access to modern agricultural technology. A drastic 93% drop in seed imports in just one year has further exacerbated the situation. Despite all efforts, Belarus, which traditionally has close ties with Russia, has lifted its ban on imports of fruit and vegetables from the EU in response to the critical situation.
Managing the food crisis
The increase in food prices, noted with food inflation of 12.66%, is significantly affecting the purchasing power of the population. Potatoes are vital for many poorer households in Russia, which spend an average of 34.6% of their income on food. Inflation and sanctioned economic conditions have reduced real wages by 12%.
In comparison, the EU, which supports its farmers with 58.7 billion euros annually, has better cushioned crop failures. While the decline in yields in the EU averaged only 4.7%, the decline in Russia is much more pronounced at 12%. This highlights the structural problems of Russian agriculture, which were further exacerbated by the Ukraine war and the associated conscriptions.
In a unique moment of concession, Putin addressed the dire state of potato supplies in Russia. This situation is part of another mosaic of failures in Russia's agricultural economy, while 47% of the national budget goes to military activities and just 0.3% to agriculture. The challenge of overcoming the potato crisis could prove fateful for Russian society.