The U.S. Treasury department issued a clarification this week that sanctions imposed on Russia do not include the agricultural sector.
The U.S. government has imposed numerous sanctions on Russia over the February invasion of Ukraine. The sanctions are designed to stymie Russian economic development so longs as the war goes on. However, Russian-made equipment and spare parts, fertilizer, and commodities are exempt from the sanctions.
"The United States strongly supports efforts by the United Nations to bring both Ukrainian and Russian grain to world markets and to reduce the impact of Russia’s unprovoked war on Ukraine on global food supplies and prices," the statement reads in part.
That's good news for growers who may buy Russian-made equipment or parts, and buy or sell commodities to Russia.
However, separate sanctions against Kremlin ally Belarus remain in place. Belarus accounts for more than 17% of global potash production. Potash is a key ingredient in the manufacture of potassium-based fertilizers.