World Economy

Putin Wheat Tax Stalls

Putin Wheat Tax StallsPutin Wheat Tax Stalls

The sun is shining and Russian wheat exporters should be making hay. Farmers are reaping one of their biggest harvests. On top of that, a slump in the ruble that’s hurting domestic businesses should be a boon for exports as many costs shrink in dollar terms, Bloomberg reported. Instead, shipments of wheat abroad are seen down by a quarter for August. For that, the industry can thank President Vladimir Putin’s efforts to restrain prices of staples such as bread as Russians suffer collapsing economic growth and inflation near a 13-year high. His government has imposed a sliding-scale export tax with a burden that grows as the ruble weakens, curbing the price that exporters are willing to pay for the local crop.