Russia curbs sugar exports to stabilize domestic market amidst challenges

Russia has suspended sugar exports until the end of August. "This is aimed at increasing stability in the domestic food market," the Russian government announced on Friday evening. This move marks another challenge for Moscow, which had previously halted fuel exports.

Russian sugar exports will still be possible to the former Soviet republics - Belarus (around 5 tonnes), Armenia (about 28 tonnes), Kazakhstan (approximately 120 tonnes), and Kyrgyzstan (roughly 28.5 tonnes) - but only in limited quantities.

The Russian Ministry of Agriculture proposed the ban in March, explaining that it would help prevent a rise in sugar prices.

It's worth noting that a "sugar panic" occurred in Russia in March 2022—right after the full-scale invasion of Ukraine and the imposition of Western sanctions on the Kremlin. Russians began to stockpile staple products such as sugar and buckwheat, leaving store shelves empty. The issue with product availability arose from excessive demand.

During the autumn, Russians complained about exceptionally high fuel prices at stations, by Russian standards. The Kremlin introduced a temporary export ban on gasoline and diesel fuel to manage the situation. This measure aimed to ensure adequate domestic supply.

From March 1, Russia suspended fuel exports again - this time until September. However, Moscow established exceptions. Countries of the Eurasian Economic Union (besides Russia, its members are Kazakhstan, Belarus, Armenia, and Kyrgyzstan), South Ossetia, Abkhazia, Mongolia, and Uzbekistan are exempt from the embargo.

The Kremlin explains that the ban is intended to prevent fuel shortages in spring and summer when the demand for gasoline increases with holiday trips.