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Guns and butter: Russia chooses both

Dairy industry insulated from slowing war economy thanks to subsidies and pause in investment by western rivals

Russia’s dairy industry has emerged as a surprisingly robust bright spot in Vladimir Putin’s war economy, propped up by state subsidies and the pullback of western rivals since Moscow’s full-scale invasion of Ukraine.

While cracks deepen elsewhere, a central bank report this month singled out agriculture as the only sector to defy the slide in consumer demand this year — now at its lowest since late 2022.

Moscow has prioritised developing the domestic food industry to ensure the country is self-sufficient in as many categories as possible.

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