Assassination attempt highlights Russia's egg crisis

Gennady Shiryaev (middle) was ambushed by a gunman who fired two shots at the BMW that the "Egg King" was driving (Photo: Telegraph).

One day in late 2023, Gennady Shiryaev, 59, owner of the Tretykov poultry farm, the largest in Russia’s western Voronezh region, was driving home when a stranger ambushed him. The attacker fired two shots, but Shiryaev was not hit.

Police have not yet released a motive for the killing, but Mash ’s Telegram channel reported that the incident was prompted by “locals dissatisfied with the price hikes” by Mr Shiryaev. Two days earlier, authorities had opened an investigation into Mr Shiryaev and two other egg producers for raising egg prices.

The reason for the increase in egg prices is the convergence of many factors that the Wall Street Journal said are characteristic of the Russian economy at this time.

In particular, Western sanctions have disrupted the supply chain of agricultural equipment that previously came from Europe, creating a negative impact on the Russian poultry industry.

A weak ruble has also made imports of animal feed and veterinary products more expensive, while labor shortages have left some suppliers without enough farm workers. Meanwhile, booming government spending has boosted wages, boosting demand for food and other goods.

All of which makes the egg shock a manifestation of the imbalances building in Russia's wartime economy, according to the Wall Street Journal .

In recent months, Russians from Belgorod to Siberia have lined up to buy eggs as the staple food has been in short supply and prices have soared. President Vladimir Putin has publicly apologized for the high cost of eggs.

Egg prices rose about 60% in December 2023 compared to the same month a year earlier, according to data released on January 12. The egg crisis shows that Russia is trying to balance conflicting economic needs such as funding the war, appeasing public sentiment and keeping the economy balanced, including stabilizing prices.

Long lines were seen waiting for eggs ahead of the New Year holidays. Some supermarkets in Siberia and the Crimean peninsula, which Russia annexed from Ukraine in 2014, sell eggs by the egg, for about 12 rubles each. One local leader even gave eggs as holiday gifts to his subordinates.

Some supermarkets in Siberia and the Crimean peninsula, which Russia annexed from Ukraine in 2014, sell eggs by the egg (Photo: Zuma Press).

The social network Telegram was quickly flooded with hundreds of posts from people worried about the egg shortage, exchanging tips on buying cheap eggs or simply joking around.

“People keep saying bitcoin, bitcoin, but I said you need to invest in eggs,” another user wrote.

After Mr Putin admitted the government was at fault for failing to import enough eggs in a timely manner, authorities took action. Russia increased egg orders from Türkiye, Belarus and Azerbaijan and eliminated import duties on the product.

Authorities are also launching antitrust investigations into egg and chicken producers, including the Tretykovskaya poultry farm run by Mr Shiryaev, known as the “Egg King”.

One factor that could be difficult to overcome is a shortage of vaccines after Western sanctions complicated imports of the product.

“There is nothing to vaccinate against, so the birds get sick,” said a veterinarian in St. Petersburg. “Poultry are quite fragile, and because they are kept in flocks, when one gets sick, almost all of them get sick.”

Eggs are a relatively small part of the consumer basket, but people often notice when egg prices rise sharply, according to Tatiana Orlova, lead emerging markets economist at Oxford Economics.

Experts predict that egg inflation will stabilize soon, but prices will remain high. Developments in other countries, including the United States, show that after sharp price increases, consumer sentiment continues to be affected long after inflation has stabilized.

Source: https://dantri.com.vn/the-gioi/vu-am-sat-hut-neu-bat-cuoc-khung-hoang-trung-tai-nga-20240122150148143.htm