What! U.S. government now encourages fertilizer purchases from Russia.

FERTILIZER AND GRAIN PURCHASES NOW EXEMPT FROM SANCTIONS

WHAT WILL BE NEXT?

It was reported yesterday that the U.S. government is now encouraging business and farm supply companies to purchase fertilizer from Russia. Many were wary of making such purchases for fear of going afoul of sanctions. The government found it necessary to assure those companies that they had the approval of the Government. It seems this also includes grain shipments from Russia.

The grain of Russia and the Ukraine have not been getting to market, due to the conflict in Ukraine. Ukraine has mined the port of Odessa, the only remaining Black sea port under Ukraine control. Many feared to purchase grain and fertilizer that originated from ports controlled by Russia, this was all made clear yesterday. It seems that there are negotiations going on between Russia and the U.N. in an attempt to guard against major food shortages this fall.

It also appears that the Black sea ports will not be under Ukraine control any time soon as Russia has been able to consolidate its gains and the hopes of pushing Russia out of Ukraine are diminishing by the day. This relaxing of sanctions on these items may be just the beginning, as four months of sanctions have not brought Russia to its knees as expected. Will EU countries soon feel they need Russian energy to be available in the fall. So far, Russia has not curtailed shipments to Europe as long as they are willing to pay in rubles. I suspect that grain and fertilizer will also be paid for in rubles.

former Mcdonald's in Moscow

It should also be noted that the 800 former McDonald's restaurants in Russia have now reopened with a new logo, and a new Russian owner. While we are repeatedly are told that the Russian's are suffering greatly from the sanctions and the exodus of western countries from the country, it appears that Russia is adapting to their new place in the world.

This week the average gas price in Russia was $2.10 a gallon.

One must wonder if sanctions are an effective way of deterring bad behaviour, so far it seems that they have never worked anywhere, not in Iran, North Korea, Venezuela or Cuba. It seems most countries can survive without having relations with the bigger countries in the world. This probably is especially true of places like Russia and China, who have the resources to be independent of other nations.