Russia’s agricultural sector facing declining profitability – Ukraine’s intelligence

This was reported by the Foreign Intelligence Service of Ukraine (FISU), according to Ukrinform.

Despite the Russian government's claims of "self-sufficiency" in grain, oil, sugar, and meat products, the Kremlin is still struggling to maintain the investment appeal of its agricultural sector and reduce import dependency, especially amid high credit costs.

Currently, several problems are evident in Russia’s agro-industrial complex.

For instance, the sector’s profitability has decreased from 20.3% in 2022 to 18.2% in 2025. According to FISU, to attract investments, the sector's profitability should be at least 30%.

There is also notable dependency on imported seeds. The most critical issues concern self-sufficiency in sugar beet and potato seeds.

In addition, increasing loan costs are making agricultural machinery more expensive. From January to April 2025, sales of Russian-made equipment fell by 32%.

At the same time, FISU notes a rise in agricultural imports, totaling $12.9 billion — a 12.5% increase compared to the same period in 2024.

As previously reported by Ukrinform, delivery times for goods from Armenia, Kazakhstan, Kyrgyzstan, and Georgia to Russia have increased to 45 days due to customs inspections — particularly for dual-use goods.