Russian answer to sanctions

In Russian import the share of agricultural products of countries felt under Russian sanctions made 46% at year-end 2013.

In response for sanctions against Russia from Western countries the Government of the RF published the list of agricultural products, raw materials and provision prohibited for importation into the territory of Russia. The list includes cattle meat, pork meat and edible by-products of poultry, fish, crustaceans, molluscs and other aquatic invertebrates, milk and dairy products, as well as vegetables, edible roots, tuber crops and fruit.

Herewith the sanctions won’t concern baby food and goods, which people buy and bring from abroad by themselves in accordance with customs rules in force.

The import ban, coming into force since the 7th of August 2014, is valid for countries of European Community, the USA, Canada, Australia and Norway for the term of one year. However, the embargo term can be reconsidered by the change of political situation.

According to estimates of the experts from Credinform, the total volume of importation of agricultural products, raw materials and provision felt under embargo into the territory of Russia made 597,3 bln RUB at year-end 2013, herewith 46% of supplies or 275 bln RUB in monetary value were accounted for countries from Russian list of sanctions.

Following organizations can be distinguished among the largest companies-importers regarding the results of the previous year: Finnish manufacturer of dairy products Valio, Norwegian company for seafood production MARINE HARVEST, as well as International French private dairy concern Lactalis (ТМ President). Note, that after publication of sanctions the stock prices of MARINE HARVEST felt down by 12%, showed the worst dynamics for last six months.

It should be also noted, that in spite of an exacerbation of economic and political inter-relations between Russia and Western countries because of Ukrainian crisis, regarding the results of the 1st quarter of the current year, the volume of import from countries included in the black list of agricultural products increased by 54% in comparison with the 1st quarter of the previous year and reached 160,7 bln RUB.

The Government of the RF is expecting internal positive impact from imposed restrictions. It is believed, that domestic agricultural producers win first of all, who complained many times, that it is difficult for Russian goods to make it into trading networks.

However, consumers express fear by now concerning possible deficit and price increase. The Government is instructed to ensure the balance of product markets and prevent the speedup in growth of prices on agricultural products, raw materials and provision.