As you know, autumn is harvest time. On the threshold of the season, the Old World decided to assess the losses caused by the retaliatory sanctions by Russia. According to the report prepared the EU officials, the alliance might lose up to $16 billion due to the embargo Russia imposed.
"We are yet to analyze in detail what goods fall under sanctions, but it may reach up to 12 billion euro. Food amounts to 10 percent of what we export to Russia," Vygaudas Usackas, the EU ambassador to Russia, stated.
The ban applies to imports of agricultural products and raw materials. In particular, the United States, EU nations, Canada, Australia, and Norway are prohibited to import beef, pork, poultry, fish, dairy products, vegetables and fruit to the Russian Federation. Prime Minister Dmitry Medvedev pointed out that such a step Russia took creates openings for the local farmers. No doubt, it will take a while to reorder the trade within the country and ensure regular supplies of goods. Besides, the price hikes are inevitable. But the Russians have no choice.
Sergey Yushin, the head of Russia’s Meat Association, said that the biggest problem is to replace foreign fruit and vegetables. “Now we can provide the nation with our products as it is harvest time. But the closer the winter gets, the more troubles arise,” he added. The thing is that local suppliers are pushing prices up and are not going to put the brakes on that. In Yushin’s opinion, retailers will try to restrain price growth, but meat and dairy products are likely to appreciate 5-10% anyway.
