Vlad Talks About Food Prices And Shortages – Investment Watch

by Stucky

Mr. Putin discusses Russia’s function  relating to excessive costs/shortages of meals, gasoline, fertilizers, and the utterly fabricated bullshit story that he’s blocking wheat from being shipped out of nation 404.  As soon as  once more, he isn’t counting on notes, crib sheets, or a teleprompter.  In line with the Bible (as some interpret it)  it’s GOD who locations leaders in energy. Perhaps one among you bible specialists right here — we’ve so many — can inform me why God determined to fuck us over??

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Pavel Zarubin: Mr President, we’ve simply adopted your assembly with the head of Senegal who can be the present chief of the African Union. He expressed, and really in the previous week many international locations have expressed concern not a lot in regards to the meals disaster, however they’re afraid of large-scale famine as a result of world meals costs are climbing and so are oil and fuel costs, These points are interrelated.

Naturally, the West blames Russia for this, too. What’s the actual state of affairs at this level, how is it growing? And what do you assume will occur in the meals and power markets?

President of Russia Vladimir Putin: Sure, certainly, we’re seeing makes an attempt to place the duty on Russia for developments in the world meals market and the rising issues there. I should say that that is one other try to pin the blame on another person. However why?

First, the state of affairs with the world meals market didn’t grow to be worse yesterday or even with the launch of Russia’s particular navy operation in Donbass, in Ukraine.

The state of affairs took a downturn in February 2020 through the efforts to counter the coronavirus pandemic when the world financial system was down and needed to be revived.

The monetary and financial authorities in the United States, of all issues, discovered nothing higher than to allocate massive quantities of cash to assist the inhabitants and sure companies and financial sectors.

We usually did nearly the identical factor, however I guarantee you that we have been way more correct, and the outcomes are apparent: we did this selectively and received the desired outcomes with out affecting macroeconomic indicators, together with extreme inflation progress.

The state of affairs was fairly completely different in the United States. The cash provide in the United States grew by 5.9 trillion in lower than two years, from February 2020 to the finish of 2021 – unprecedented productiveness of the cash printing machines. The complete money provide grew by 38.6 %.

Apparently, the US monetary authorities believed the greenback was a world foreign money, and it could unfold, as standard, as it did in earlier years, would dissolve in the world financial system, and the United States wouldn’t even really feel it. However that didn’t occur, not this time. As a matter of reality, respectable folks – and there are such folks in the United States – the Secretary of the Treasury just lately stated that they had made a mistake. So, it was a mistake made by the US monetary and financial authorities – it has nothing to do with Russia’s actions in Ukraine, it’s completely unrelated.

And that was the first step – and a huge one – in the direction of the present unfavourable meals market state of affairs, as a result of, in the first place, meals costs instantly went up, they grew. That is the first purpose.

The second purpose was European international locations’ short-sighted insurance policies, and above all, the European Fee’s coverage in regard to power. We see what’s going on there. Personally, I imagine that many political gamers in the United States and Europe have been profiting from folks’s pure considerations in regards to the local weather, local weather change, and they started to promote this inexperienced agenda, together with in the power sector.

All of it appears effective, aside from the unqualified and groundless suggestions about what must be accomplished in the power sector. The capabilities of various kinds of power are overestimated: photo voltaic, wind, every other varieties, hydrogen energy – these are good prospects for the future, most likely, however immediately, they can’t be produced in the required quantity, with the required high quality and at acceptable costs. And at the identical time, they started to belittle the significance of standard kinds of power, together with, and above all, hydrocarbons.

What was the results of this? Banks stopped issuing loans as a result of they have been underneath strain. Insurance coverage corporations stopped insuring offers. Native authorities stopped allocating plots of land for increasing manufacturing and diminished the development of particular transport, together with pipelines.

All this led to a scarcity of funding in the world power sector and value hikes as a outcome. The wind was not as sturdy as anticipated through the previous 12 months, winter dragged on, and costs immediately soared.

On high of all that, the Europeans didn’t take heed to our persistent requests to protect long-term contracts for the supply of pure fuel to European international locations. They began to wind them down. Many are nonetheless legitimate, however they began winding them down. This had a destructive impact on the European power market: the costs went up. Russia has completely nothing to do with this.

However as quickly as fuel costs began going up, fertiliser costs adopted go well with as a result of fuel is used to produce a few of these fertilisers. Every little thing is interconnected. As quickly as fertiliser costs began rising, many companies, together with these in European international locations, turned unprofitable and began shutting down altogether. The quantity of fertiliser in the world market took a dive, and costs soared dramatically, a lot to the shock of many European politicians.

Nonetheless, we warned them about this, and this isn’t linked to Russia’s navy operation in Donbass in any method. This has nothing to do with it.

However once we launched our operation, our so-called European and American companions began taking steps that aggravated the state of affairs in each the meals sector and fertiliser manufacturing.

By the method, Russia accounts for 25 % of the world fertiliser market. As for potash fertilisers, Alexander Lukashenko informed me this – however we should always double-check it, of course, though I assume it’s true – with regards to potash fertilisers, Russia and Belarus account for 45 % of the world market. It is a great quantity.

The crop yield relies on the amount of fertiliser put into the soil. As quickly as it turned clear that our fertilisers wouldn’t be in the world market, costs immediately soared on each fertilisers and meals merchandise as a result of if there aren’t any fertilisers, it’s unattainable to produce the required quantity of agricultural merchandise.

One factor results in one other, and Russia has nothing to do with it. Our companions made a host of errors themselves, and now they’re in search of somebody to blame. Of course, Russia is the most fitted candidate in this respect.

Pavel Zarubin: By the way, it has simply been reported that the spouse of the head of our largest fertiliser corporations has been included in the new European package deal of sanctions.

What is going to all this result in in your opinion?

Vladimir Putin: It will make a dangerous state of affairs worse.

The British and later the Individuals – Anglo-Saxons – imposed sanctions on our fertilisers. Then, having realised what was occurring, the Individuals lifted their sanctions, however the Europeans didn’t. They’re telling me themselves throughout contacts: sure, we should give it some thought, we should do one thing about it, however immediately they’ve simply aggravated this example.

It will make the state of affairs in the world fertiliser market worse, and therefore the crop prospects will likely be way more modest, and costs will preserve going up – that’s it. That is an completely myopic, misguided, I would say, merely silly coverage that results in a impasse.

Pavel Zarubin: However Russia is accused by high-ranking officers of stopping the grain that’s really there, in Ukrainian ports, from leaving.

Vladimir Putin: They’re bluffing, and I will clarify why.

First, there are some goal issues, and I will point out them now. The world produces about 800 million tonnes of grain, wheat per 12 months. Now we’re being informed that Ukraine is able to export 20 million tonnes. So, 20 million tonnes out of 800 million tonnes quantities to 2.5 %. But when we proceed from the indisputable fact that wheat accounts for merely 20 % of all meals merchandise in the world – and that is the case, this isn’t our knowledge, it comes from the UN – which means these 20 million tonnes of Ukrainian wheat are simply 0.5 %, virtually nothing. That is the first level.

The second. 20 million tonnes of Ukrainian wheat are potential exports. At the moment, the US official our bodies additionally say that Ukraine may export six million tonnes of wheat. In line with our Ministry of Agriculture, the determine shouldn’t be six however about 5 million tonnes, however okay, allow us to assume it’s six, plus it may export seven million tonnes of maize – that is the determine of our Ministry of Agriculture. We realise that this isn’t a lot.

In the present agricultural 12 months of 2021–2022, we’ll export 37 million and, I imagine, we’ll elevate these exports to 50 million tonnes in 2022–2023. However that is apropos, by the method.

As for delivery out Ukrainian grain, we’re not stopping this. There are a number of methods to export grain.

The first one. You’ll be able to ship it out through the Ukraine-controlled ports, primarily in the Black Sea – Odessa and close by ports. We didn’t mine the approaches to the port – Ukraine did this.

I have already stated to all our colleagues many occasions – allow them to demine the ports and let the vessels loaded with grain go away. We are going to assure their peaceable passage to worldwide waters with none issues. There aren’t any issues at all. Go forward.

They need to clear the mines and elevate the ships they sunk on function in the Black Sea to make it troublesome to enter the ports to the south of Ukraine. We’re able to do that; we won’t use the demining course of to provoke an assault from the sea. I have already stated this. That is the first level.

The second. There may be one other alternative: the ports in the Sea of Azov – Berdyansk and Mariupol – are underneath our management, and we’re able to guarantee a problem-free exit from these ports, together with for exported Ukrainian grain. Go forward, please.

We’re already engaged on the demining course of. We’re finishing this work – at one time, Ukrainian troops laid three layers of mines. This course of is coming to an finish. We are going to create the obligatory logistics. This isn’t a drawback; we’ll do that. That is the second level.

The third. It’s attainable to transfer grain from Ukraine through the Danube and by Romania.

Fourth. Additionally it is attainable by Hungary.

And fifth, it’s also attainable to do that through Poland. Sure, there are some technical issues as a result of the tracks are of completely different gauges and the wheel bogies should be modified. However this solely takes a few hours, that’s all.

Lastly, the simplest way is to transport grain through Belarus. That is the best and the least expensive method as a result of from there it may be immediately shipped to the Baltic ports and additional on to anyplace in the world.

However they must carry the sanctions from Belarus. This isn’t our drawback although. At any fee, President of Belarus Alexander Lukashenko places it like this: if somebody desires to resolve the drawback of exporting Ukrainian grain, if this drawback exists at all, please use the easiest way – by Belarus. Nobody will cease you.

So, the drawback of delivery grain out of Ukraine does not likely exist.

Pavel Zarubin: How would the logistics work to ship it from the ports underneath our management? What would the circumstances be?

Vladimir Putin: No circumstances.

They’re welcome. We are going to present peaceable passage, assure protected approaches to these ports, and make sure the protected entry of overseas ships and passage by the Sea of Azov and the Black Sea in any route.

By the method, a number of ships are caught in Ukrainian ports at this level. These are overseas ships, dozens of them. They’re merely locked up and their crews are nonetheless being held hostage.

SOURCE:  thesaker.is