How Russia Is Lowering Its Food Prices

Russian food prices are relatively high, and likely to remain so in the near to medium term. The Kremlin has pledged to stem price hikes, increase domestic production and import food from new sources, but the situation could contribute to social unrest. Nevertheless, redirected goods from the European Union will give Russian consumers some relief. Russia imposed a ban on Western foods as a response to EU and U.S. sanctions, but allowing some black market imports helps Moscow prevent the rise of a mass protest movement. Despite desires to become less dependent on the West, in order to maintain stability, Russia will continue to rely somewhat on Europe.