First, the situation with the global food market did not become worse yesterday, or even with the launch of Russia’s special military operation in Donbas in Ukraine. The situation took a downturn in February 2020 during the efforts to counter the pandemic, when the global economy was down and had to be revived. The financial and economic authorities in the United States found nothing better than to allocate large amounts of money to support the population and certain businesses and economic sectors. We, generally, in Russia, did almost the same thing, but I assure you that we were much more accurate, and the results are obvious. We did this selectively and got the desired results without affecting macroeconomic indicators, including excessive inflation growth.
The situation was quite different in the United States. The money supply in the United States grew by 5.9 trillion dollars in less than two years, from February 2020 to the end of 2021. Unprecedented productivity of the money-printing machines, the total cash supply grew by 38.6 percent. Apparently the financial authorities believed the dollar was a global reserve currency, and it would spread as usual, as it did in previous years, would dissolve in the global economy, and the United States would not even feel it. But that did not happen–not this time. As a matter of fact, decent people–and there are such people in the United States–the Secretary of the Treasury recently said they made a mistake. So it was a mistake made by the United States financial and economic authorities. It has nothing to do with us, or with our actions in Ukraine. It is totally unrelated. And that was the first step, and a big one towards the current unfavorable food market situation: because in the first place, food prices immediately went up. They grew. This is the first reason.
The second reason, with the European countries’ short-sighted policies, and above all, the European Commission’s policy in regard to energy. We see what is going there. Personally I believe that many political players in the United States and Europe have been taking advantage of people’s natural concerns about the climate, climate change, and they began to promote this green agenda, including in the energy sector. It seems fine, except for the unqualified and groundless recommendations about what needs to be done in the energy sector. The capabilities of alternative types of energy are overestimated–solar, wind, any other types, hydrogen power–there are good prospects for the future, probably, but not today. They cannot be produced in the required amount, with required quality, and acceptable prices.
And at the same time, they began to belittle the importance of conventional types of energy, and above all, hydrocarbons. What was the result of this? Banks stopped issuing loans, because they were under pressure. Insurance companies stopped insuring deals. Local authorities stopped allocating plots of land for expanding production, reduced the construction of special transports, including pipelines. All this led to a shortage of investment in the world energy sector, and price hikes as a result. The wind was not as expected during the past year, winter dragged on, and prices instantly soared. On top of that, the Europeans did not listen to our persistent requests to preserve long-term contracts for the delivery of natural gas to European countries. They started to wind them down. Many are still valid that [or but] they started winding them down. This had a negative effect on the European energy market, the prices went up. Russia has absolutely nothing to do with this.
But as soon as gas prices started going up, fertilizer prices followed suit, because gas is used to produce some of these fertilizers. Everything is interconnected. As soon as fertilizer prices started growing, many businesses, including those in European countries, became unprofitable, and started shutting down altogether. The amount of fertilizer in the world market took a dive, and prices soared dramatically, much to the surprise of many European politicians. However, we warned them about this, and this is not linked to Russia’s military operation in Donbas in any way. This has nothing to do with it. But when we launched our operation, our so-called European and American partners started taking steps that aggravated the situation in both the food and fertilizer production. But Russia accounts for 25 percent of the world fertilizer market, as to potash fertilizers. Alexander Lukashenko told me this, but we should double-check it, of course, although I think it’s true. When it comes to potash fertilizers, Russia and Belarus acquired [sic] for 45 percent of the world market.
The crop yield depends on the quality of fertilizer put into the soil. As soon as it became clear that our fertilizers would not be in the world market, prices instantly soared on both fertilizers and food products, because if there are no fertilizers, it is impossible to produce the required amount of food. One thing leads to another, and Russia has nothing to do with this.