Sanctions against Russia benefit Canadian farmers and commodity producers – by Andrew Willis, Niall McGee and Brent Jang (Globe and Mail – February 23, 2022)

Planned sanctions against Russia are boosting the fortunes of domestic farmers, miners and fertilizer producers. Russia and Canada are the dominant competitors in commodities such as wheat, gold and potash, with rivalries that match the two countries’ storied hockey history.

By punishing Russian President Vladimir Putin for his aggression against Ukraine, Western countries are potentially eliminating a major player from commodity markets and possibly increasing the profits for Canadian producers.

“Any increased tensions between Russia and the West would be considered positive for agriculture and fertilizer, for commodity-related reasons,” analyst Andrew Wong at RBC Capital Markets said in a report published ahead of this week’s escalation in the crisis, when Russia recognized the independence of two Ukraine regions.

“Russia and Ukraine are major wheat exporters, so tensions there were a positive driver for global grain prices.” Mr. Wong said. “Russia is also a major potash and phosphate exporter, so any potential sanctions on Russia could be positive for other fertilizer producers.”

For the rest of this article: