Russia turns to UAE and Turkey for butter to contain soaring prices

Blocks of butter are seen on shelves in a store in Moscow, Russia November 1, 2024. REUTERS

Russia is importing butter from the United Arab Emirates and Turkey, in a move aimed at containing soaring prices that have alarmed consumers.

Agricultural watchdog Rosselkhoznadzor said on Saturday that deliveries of butter from the UAE began on Oct 18. "Previously, there had been no deliveries of butter from the UAE to Russia," it said in a statement.

The price of a block of butter has risen by 25.7% since last December, according to Russia's statistics service. That compares with an inflation rate of 8.6% and has prompted a spate of butter thefts at some supermarkets.

The UAE has so far supplied 90 metric tons of butter to Russia, which also started importing butter from Turkey in October.

Russia is seeking to increase supplies of butter to stabilise prices and ensure availability for the domestic market.

Butter imports to Russia from Latin America fell to 2,800 tons this year from 25,000 tons in 2014, Rosselkhoznadzor said, citing Western sanctions are one of the factors behind declining deliveries.

"The reduction in the volume of butter imports from Latin America to Russia may be related to transport and logistics issues, sanctions, and the lack of agreements between businesses," it said.

Belarus, the largest supplier of butter to Russia, has increased exports by 9% this year to 110,000 tons.