Russia's Growing Agricultural Imports: Causes and Outlook

Overview

During the 2000s, Russian agricultural imports have grown considerably, from $7 billion in 2000 to $33 billion in 2008. This import growth has made Russia the second largest agricultural importer among emerging markets, after China. The main reasons for the import rise are macroeconomic-high growth in Russian gross domestic product, which increases consumer income and purchasing power, and real appreciation of the ruble, which makes imports less expensive vis-a-vis domestically produced goods. The economic crisis that hit Russia (and the world) in autumn 2008 makes the outlook for Russia's agricultural imports uncertain in the short term. However, the Russian economy is expected to stabilize within a year or two, at which time agricultural imports should continue to grow, although at a lower rate than in past years.