US wants companies to buy Russian fertilizers as agricultural commodity markets soar and global food crisis looms: report

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  • The United States has been quietly pushing companies to step up trade in Russian fertilizers as a global food crisis looms, Bloomberg reports.
  • This year, Russian fertilizer exports fell 24%, according to the report.

The United States wants companies to increase their purchases of Russian fertilizers as global food prices rise and shortages loom, according to a Bloomberg report on Monday.

Sources told Bloomberg that the government is quietly pushing companies to buy and transport more Russian fertilizers. Punishments fears have created a supply shortage and fueled a global food crisis, and the United States is working to ease pressure on the United Nations by increasing shipments of fertilizer, grain and other supplies from Russia.

This year, Russian fertilizer exports have fallen by 24%, according to data from Bloomberg. Russia and Ukraine together account for a quarter of the world grain trade.

The challenge facing the United States is that it must balance putting more pressure on Moscow while limiting the impact on the global economy and the global food supply, which relies on a range of products from from Russia.

The United States and the EU have included fertilizer exemptions in their sanctions against Russia, according to the report, allowing trade to continue to flow for the key product.

According to the Russian Grain Union, wheat exports doubled in May. Meanwhile, Bloomberg reports that more than 25 million tonnes of grain, sunflower oil and other goods are stuck in Ukraine due to security concerns.

While Western officials have called out the Kremlin for using the food as a weapon to prevent Ukraine from exporting, Russia said it had not attacked any ports, instead pointing to disruptions to shipping resulting from the sanctions.

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