Russia's harvest crisis: Faith urged amid economic surge
Russian Agriculture Minister Oksana Lut has appealed to citizens to go to church and light candles for Prophet Elijah, regarded as the patron of rain and harvests, due to the severe drought, the Moscow Times reported on Tuesday.
According to the portal, the rate of winter grain sowing has dropped to its lowest point in 11 years as a result of the drought. In the European part of Russia, rainfall over the past 30 days has amounted to merely 20 percent of the average. The issue could be especially critical in regions where the growing season concludes early and the first frosts start to appear.
In an interview with Interfax, the minister acknowledged that Russia has been struck by all possible natural phenomena this year. "Initially, we experienced recurring frosts, then the drought began in April. Siberia is flooded. We are also facing a locust infestation, and recently, there have been sandstorms in the south," she detailed.
According to estimates from the Russian Grain Union, farmers will harvest 120-125 million tonnes of grain this year instead of the anticipated 145 million.
This is how the war affects Russia's economy
According to the "Financial Times", contrary to expectations, the Russian economy is experiencing a surge in consumption and real wages. Russians have more money and are keen to spend it, fuelling a consumption boom. This occurrence is a result of increased government spending and labour market shortages.
According to data from the Russian statistical office Rosstat, real wages in Russia have increased by nearly 14 percent, and the consumption of goods and services by about 25 percent. This marks a significant change compared to the beginning of the invasion of Ukraine in 2022 when many entrepreneurs feared an economic collapse.
Rising wages are leading to increased consumer spending. Russians are eager to spend money on domestic tourism, restaurants, and durable goods.
The boom is also evident in the property sector. Sergei Skatov, an expert on the Russian real estate market, notes that developers can sell nothing for the entire year and still be profitable. They have already sold everything they can build over the next three years.
