With Russia’s worst heatwave on record expected to last for the next ten days, experts begin to worry about the potential for devastating economic losses; in this case, a possible $14 billion off economic growth.
On August 5th, Russia’s prime minister, Vladimir Putin, announced a ban on grain exports after more than a third of Russia’s cultivable land was destroyed by a dreadful drought, caused by wild fires. Putin has suggested that Russia’s ban on exports could extend into 2011 as the damage to this summer’s grain output may reach nearly 40%.
Russia’s export ban has pushed wheat prices to a 23-month high on the commodities market raising concerns over an increase in food prices worldwide. On Tuesday, World Bank President, Robert Zoellick, responded by warning countries against compounding market uncertainty by implementing export bans similar to Russia’s.
For now, Russia waits in eager anticipation of autumn’s first heavy rainfall.
Posted by Emma Fursland