USSEC Remains Optimistic about Impact of Soy Imports to Russia
- General News
USSEC has not seen any signs of impact on U.S. soy imports to Russia due to that country’s economic turmoil. Russia’s financial woes began in December when the country’s currency, the ruble, began to gyrate wildly, raising the possibility of a broader financial crisis. Russia was hit by Western sanctions over the conflict in the Ukraine and a sliding oil price, which sent the Russian ruble down by around 40 percent against the U.S. dollar in December.
According to USSEC Regional Director - Europe & Middle East/North Africa Brent Babb, Russia has been expanding its poultry and livestock industry for several years. He says, “Of course, recent financial events will impact current feed industry growth and domestic meat consumption. However, longer term, we still see opportunities for continued growth in soy utilization within the Russian feed industry.”
Russia has imported 93,000 metric tons of U.S. soybeans valued at approximately $35 million this marketing year, which began in September.
Last year, Russian imports on U.S. soy totaled 500,000 metric tons or around 1 percent of U.S. soybean exports.
Mr. Babb states, “We have not heard of any cancellations or renegotiations of contracts at this point but that would be private discussion with the exporter.”