Kazakhstan’s decision represents a blow to Kremlin chief Vladimir Putin.
Russian agriculture safety watchdog this week temporarily banned imports of tomatoes, peppers, fresh melons, wheat, flax seeds and lentils from Kazakhstan.
“The decision was made due to the failure of competent authorities in Kazakhstan to take action and in order to ensure the phytosanitary safety of the territory of Russia,” the Rosselkhoznadzor authority said on its website.
The restrictive measure comes shortly after Kazakhstan, Central Asia’s largest economy, refused to join BRICS, the bloc of emerging economies of which Russia currently holds the presidency.
They can probably find substitutes further away. It all has a cost though, and shows up as further inflationary pressure. Their interest rate is 19% and counting.
Minor correction: key rate is 19%, interest rates are higher than that as a result.
More of a detail than a correction. That’s usually what people mean when they say the interest rate, but yeah, what you actually get on your mortgage will be different.
Actually, the rate you end up paying is lower in a lot of cases in Russia right now, because there’s lots of subsidised programs in place to keep the plebes happy. Which, of course, they’re paying for with more inflationary pressure…
It’s businesses, elites and the really poor who don’t participate in organised finance that get left holding the bag right now.