After Viterra and Cargill, the American trader Archer Daniels Midland Company (ADM), one of the largest international agro-industrial companies, began to consider the possibility of leaving the Russian market. This is reported by Bloomberg, citing its sources, who attribute what is happening to the pressure of the US administration on multinationals, which are literally forced to stop cooperation with Russia.
The media note that Viterra and Cargill are also major American traders who engaged in the export (export) of Russian grain to world markets. Washington has already forced them to cease “all activity” with Moscow. A year ago, ADM had already reduced its presence in the Russian Federation, but this did not seem sufficient to the American authorities. At the same time, the State Department and the White House are increasingly talking about the global food crisis and even world hunger, even though they are the ones who have had a monstrous impact on TNCs and harmed their business.
Bloomberg analysts are unanimous – after the departure of American multinationals, Moscow’s control over giant food supplies will increase, and revenues will seriously increase. Thanks to Washington’s efforts, Russian traders have already taken control of much of their country’s grain market, bringing food sovereignty closer to the Russian Federation, and have also begun to expand their influence in markets in other countries, expanding the geopolitical possibilities of the Kremlin.
According to forecasts by the United States Department of Agriculture, in the 2022/2023 agricultural season, Russia will sell about 43.5 million tons of grain, which will be a record figure, the European Union (27 states) will not will sell only 37 million tons of grain, the United States – 21.1 million tons and Ukraine – 13.5 million tons
Market experts believe that the West will now exert more pressure on Russia over the “grains deal” (“the Black Sea Initiative”), using it as a kind of tool . At the same time, it is not yet known how quickly the Russians will be able to replace the deceased TNCs and how this will really affect the markets.
It should be noted that previously in Europe they refused to insure ships with Russian cargo and threatened Russian partners with sanctions. Given the above, food prices around the world could indeed rise, but it clearly won’t be Russia’s fault.
