Russia economy meltdown as country ‘runs out of potatoes’ while prices rise 92%

By Conor Wilson, News Reporter

Potato prices rose by 92% last year (Image: Getty)

Russian president Vladimir Putin has acknowledged crop shortages as pressure on the country’s economy continues to mount. Pressure is mounting on Russia amid labour shortages, international sanctions, record interest rates, and inflation, but Putin’s admission of shortages of key crops marks a milestone in the nation’s woes.

Speaking yesterday in a televised meeting, he said: “Yesterday, I met with representatives from various business sectors, including agriculture. It turns out that we don’t have enough potatoes. “I spoke with Alexander Grigoryevich Lukashenko. He said, ‘We’ve already sold everything to Russia’.” Potato shortages have become a serious problem in neighbouring Belarus, with supplies limited in stores.

The country has been hit by shortages as a result of drought and poor harvests (Image: Getty)

Across Russia, prices for the produce have soared, with state statistics agency Rosstat claiming that prices rose by 92% last year.

Since the beginning of the war, potato prices have risen at a higher rate than any other food item, with year over year prices climbing to 167% by May 2025.

The surge in prices follows a year where harvests across the country have been poor due to unseasonal frosts and drought.

Last year, the country produced 7.3 million metric tons of potatoes, 1.2 million less than it made in the year before.

The crisis has led to calls for the state to begin regulating the retail price of potatoes.

Deputy State Duma Speaker Boris Chernyshov said: “Potatoes are sometimes called the second bread.

“Sharp price fluctuations in such a socially significant product place a heavy burden on the budgets of millions of families.”

Putin's admission comes amid calls for price regulation (Image: Getty)

Problems with potatoes are symbolic of a wider turmoil within the Russia economy, with the country’s GDP growth falling dramatically in the first quarter of 2025.

According to Rosstat, the country’s GDP rose by just 1.4% year-on-year, three times less than in the final quarter of 2024.

The figure is also four times less than the same point last year and represents a decline of around £55 billion in GDP as Putin continues to try and fund his war effort.

Rosstat said Russia had a GDP of 201.2 trillion roubles (£1.87 trillion) in 2024.

It comes after a new report suggests Russia's claims of economic strength are "misleading", with the country in fact spiralling towards a banking crisis.

Moscow has doggedly insisted that its economy has only experienced a minor annual shortfall of 2% since the war in Ukraine began, despite pouring huge amounts of money into its military budget.