Just as Europe and the United States were plotting to introduce the seventh round of sanctions against Russia, the Russian Satellite News Agency said on July 15 that the U.S. Treasury Department had issued a pass allowing transactions with Russia, which listed several major categories of products. Let's take a look together.
Mainly include the following categories:
(1) Production, manufacturing, sale or transportation of agricultural products, agricultural equipment, medicines, medical products, spare parts and accessories for medical equipment or software updates;
(2) Prevention, diagnosis or treatment of new coronavirus ( Including research or clinical studies related to the new coronavirus); or (3) ongoing clinical trials and other medical research.
Why did the US Treasury Department issue this pass? Now that the sanctions against Russia are increasing one after another, aren't you just slapping yourself in the face? In fact, the main reason is that the long-term impact of non-release is far greater than sanctions on the United States. The U.S. government cannot sit still, and neither can American companies.
The categories allowed by the U.S. Treasury Department are seeds, fertilizers, food, drugs and medical equipment. Let’s explain the United States’ calculations point by point.
First of all, chemical fertilizers. Russia is rich in natural gas, ranking first in the world in reserves and second in comprehensive output. Last year, it was also ranked fourth in the world in liquefied natural gas. It is rich in potash resources and is the world's second largest producer of potash fertilizer, ranking first in the world. A major fertilizer producer and exporter. Exported to , Asia, Africa, Latin America, , Europe, North America and other major crop producing areas in the world, including of course the United States.
"The crops are like a flower, and they all depend on fertilizer." The world is currently facing a food shortage. Although countries have planted a lot of grains, sugar crops, oil crops, etc., the price of chemical fertilizers is too high and they are reluctant to use them, but the output is still not satisfactory. If the United States does not let go, it will be the main culprit of the world food crisis.
Of course, there are reports that some farmers in the United States have reduced their planting scale because of the high price of fertilizers. This is something the U.S. government cannot tolerate. This is the most important thing.
Second, the seed problem. Many people have said before that Russian seeds are a big problem and they rely heavily on imports from Europe and the United States. In fact, this is wrong. The seeds of Russia's staple food crops ( wheat , buckwheat ) can be absolutely guaranteed, which is confidence. corn seeds rely on imports, and because of the climate, the output is not large.
What needs to be imported in large quantities are seeds of cabbage, potatoes, beet, sunflowers, etc., but this does not mean that Russia does not have them. For example, Tambov Oblast imported more than 93% of sunflower and sugar beet seeds in 2021. By the end of March this year, sunflower seeds own seed sowing had reached 55%, 60% of sugar beets, and 100% of beans.
As long as European and American agricultural input companies dare to withdraw, who will lose? Russian local seed companies can immediately fill the gap. Compared with imported seed production, the output may be lower, but it has also supported a large number of seed companies.
Another point is that even if some varieties are not available in Russia, there are many kinds of seeds in our country. If European and American companies throw away the market they have been operating in for decades, will the U.S. government be sued by those companies?
Therefore, if the United States imposes sanctions on Russian seeds, it will not starve Russia. It will also dig holes for its own enterprises. Who has seen the United States do this kind of loss-making business? Of course, it doesn't matter if European companies are losing money, but it's another matter if it's American companies that are losing money.
Third, food, this is something the United States has never dared to mention sanctions. Russia ranks first in wheat exports in the world. Europe does not want it, but many developing countries want it. If the United States stops it, it will be accused of undermining international food security and offend a large number of oil-producing countries in the Middle East that need to import Russian grain. Now, it wants to win them over to increase production.
The most important thing is that the skyrocketing food prices of European allies have made domestic food prices in the United States much higher than before, and people are under great pressure. Therefore, the United States will not do anything that would harm others but not benefit itself, such as imposing sanctions on Russian grain.
Fourth, drugs and medical equipment. The United States is also afraid that Russia has corresponding brands of nuclear magnetic resonance, CT, color ultrasound and that it is proud of. If you leave, you will never come back. We have that too.
There are many drugs, especially high-end drugs. Don’t forget that India is the world’s largest producer of generic drugs. Europe and the United States do not sell them. India is doing it, and there are many in our country.
As for COVID-19 testing reagents, vaccines, and oral drugs, the United States does not need to worry about this, because it knows what its domestic brands are like. Russia is very confident in its own reagents and vaccines, but it is also afraid of American biochemical reagents!
In short, what the United States liberalizes is what it needs domestically. Its domestic corporate interests may be damaged, but it cannot sanction Russia. As long as the benefits of sanctions in a certain area outweigh the disadvantages, the United States will never let go. For example, cars, 3D printers, smart devices, chips, cameras, etc., and even luxury goods.
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