russia’s Agro–Industrial Complex Is Losing Profitability

Despite the rf government’s statements about “self-sufficiency” in grain, oil, sugar and meat products, for the kremlin, in the context of high cost of credit resources, the challenge remains to maintain the investment attractiveness of the agricultural sector and reduce dependence on imports.

Today, the following problems are observed in russia’s agro-industrial complex:

1 – a decline in the profitability of the agricultural sector from 20.3 % in 2022 to 18.2 % in 2025. At this, to attract investments, the sector’s profitability should be at least 30 %;

2 – the seed base’s dependence on imports. The most problematic is the issue of self-sufficiency in sugar beet and potato seeds;

3 – a rise in the cost of loans and, accordingly, of agricultural equipment. In January–April 2025, sales of russian agricultural equipment declined by 32 %.

At this, there is an increase in the rf’s imports of products of the agro-industrial complex to USD 12.9 billion (+12.5 % compared to the same period in 2024).