Monday, 27 October 2014

Russia asking farmers to increase production

Russia is asking and presumably expecting farmers to increase domestic production to fill the gap left by banning imports from the US and EU.

However boosting output requires investment and no-one knows how long the import ban will be in place.

It is supposed to be for one year but as it was brought in overnight it equally could be lifted at the stroke of a pen.

This is not a situation that will encourage major investment.

What will be required is for tangible action to be put in place to tackle issues such as high interest rates and problematic regulations before significant investments will be made.

Then Russia might see businesses looking to take advantage of the situation.