Russian Agriculture Faces Declining Profitability - Intelligence

In Russia, a decline in the profitability of the agro-industrial sector and an increase in imports of agricultural products have been recorded. This was reported by the Ukrainian Foreign Intelligence Service.

'Despite the statements of the Russian government about 'self-sufficiency' in grain, oil, sugar, and meat products for the Kremlin, in the conditions of high cost of credit resources, a challenge remains to support the investment attractiveness of agriculture and reduce import dependence,' the message says.

Dependence on Imports and Rising Credit Costs

According to the Ukrainian Foreign Intelligence Service, the profitability of the agro-industrial complex in Russia is declining from 20.3% in 2022 to 18.2% in 2025. At the same time, to attract investments, the profitability of the industry should be at least 30%.

Moreover, Russia is dependent on the import of its seed base. The most problematic issue is self-sufficiency in sugar beet and potato seeds. The intelligence noted the rising costs of credit and, accordingly, agricultural machinery. Sales of Russian machinery from January to April 2025 fell by 32%.

'Instead, there is a noted increase in the import of agricultural products into the Russian Federation to 12.9 billion US dollars (+12.5% compared to the same period in 2024),' they said in intelligence.

The Ukrainian intelligence has recorded a decline in the profitability of the agro-industrial sector in Russia and an increase in imports of agricultural products. The stability of the agricultural market in Russia depends on many factors, including rising credit costs and external dependence in the seed domain.