Paul Goble reports:
The embargo on the export of grain Vladimir Putin has announced will hurt Russia’s image as a reliable supplier to the world, Moscow experts say. Moreover, they say, it will not necessarily keep bread prices down as Putin said but rather may allow Russian companies and officials to profit through the sale of grain later after prices rise. At the end of July, Russia’s agriculture ministry said that Moscow had no plans to impose an export embargo on grain despite indications of a serious decline in the size of the crop because of the drought and despite already dramatic increases in the price of bread and other products in some regions.
But then, last week, Putin called for and the Russian government imposed a temporary embargo on the export of grain for the period August 15 through December 31 in order to ensure that there would be enough grain for the domestic market to prevent any further increases in bread prices.