Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS


Sanctions War: Who Benefits from the Food Embargo
August 16, 2019 17:41


(Source: https://mtdata.ru/u19/photoA93C/20304202686-0/original.jpg)
Five years ago (on August 6, 2014), Russia imposed retaliatory sanctions against the countries of the European Union, the USA, Canada, Australia, and Norway. 

By a decree of the Russian President, a ban was imposed on the import of fish, meat, vegetables and fruits from the EU, USA, Canada, Australia and Norway into Russia. Everything that could get to the market from this list past customs was to be destroyed. The annual volume of imports that fell under the food embargo was then estimated at $ 9 billion. So, Russian consumers immediately lost high-quality European products, and the domestic agro-industrial complex got a chance for recovery and growth.

Over five years, agricultural production in the country has grown by more than 20%. “This is called a breakthrough without exaggeration,” Vladimir Putin said at a meeting in autumn 2018.

Import substitution occurred on the food market, but, as noted in the KPMG report, the consumer paid the highest price for this, since the embargo limited access for cheap imported products to Russia, and the devaluation of the ruble significantly increased the cost of Russian production.

Read More Articles about Russian Business

Domestic agribusiness is still heavily dependent on state support (56 kopecks of state funds fall on 1 ruble of investments in agricultural projects) and  imports (equipment, feed, seed). KPMG experts warn that in certain categories,  if sanctions are lifted, Russian products run the risk of losing their competitiveness. But the sanctions war continues, and  its five-year results are below.

Fruits

Import*:
2014: $ 5.4 billion. Largest suppliers: Ecuador, Turkey, China, Poland, Spain.
2018: $ 5 billion. Largest suppliers: Ecuador, Turkey, China, Azerbaijan, Egypt.
The security of Russia due to domestic production **:
2013: 31%
2018: 33%
Growth in average consumer prices since 2013:
Apples: 35%
* Source: International Trade Center
** Source: KPMG

Vegetables

Import:
2014: $ 3 billion. Largest suppliers: Turkey, China, Israel, the Netherlands, Egypt.
2018: $ 1.8 billion. Largest suppliers: China, Azerbaijan, Belarus, Israel, Egypt.
The security of Russia due to domestic production:
2013: 83%
2018: 85%
Growth in average consumer prices since 2013:
Cabbage: 62%

Meat

Import:
2014: $ 5.5 billion. Largest suppliers: Brazil, Belarus, Paraguay, Canada, Argentina.
2018: $ 2 billion. Largest suppliers: Belarus, Paraguay, Argentina, Brazil, Chile.
The security of Russia due to domestic production:
2013: 77%
2018: 93%
Growth in average consumer prices since 2013:
Beef: 35%
 
Fish
 
Import:
2014: $ 2.6 billion. Largest suppliers: Norway, Chile, China, Iceland, Faroe Islands.
2018: $ 1.8 billion. Largest suppliers: Chile, Faroe Islands, China, Belarus, India.
The security of Russia due to domestic production:
2013: 68%
2018: 81%
Growth in average consumer prices since 2013:
Frozen fish: 68%
 
Milk products
 
Import:
2014: $ 3.8 billion. Largest suppliers: Belarus, the Netherlands, Finland, Argentina, Uruguay.
2018: $ 2.3 billion. Largest suppliers: Belarus, Argentina, Uruguay, the Netherlands, New Zealand.
The security of Russia due to domestic production:
2013: 76%
2018: 84%
Growth in average consumer prices since 2013:
Butter: 79%
 
Cheese
 
Import:
2014: $ 1.6 billion. Largest suppliers: Belarus, the Netherlands, Lithuania, Finland, Argentina.
2018: $ 0.97. The largest suppliers: Belarus, Argentina, Serbia, Switzerland, Uruguay.
 

 




Author: Anna Dorozhkina

Tags: Russian business Russian economy Russian companies   

Next Previous

You might also find interesting:

Buzz Barometer: Sanctions Send Ripples Across World Foreign Investors Withdrew More Than 1.6 Billion Dollars From Russian Stocks Alisher Usmanov Lost Three Positions in the Ranking of the Wealthiest People of Great Britain Damage of Forests In Khabarovsk Region Pension Savings Moratorium









Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
St. Petersburg  Painting  Erarta Museum of Modern Art  Resources  Russian tourism  Rostov Oblast  incident  Arbat  Kaliningrad Oblast  International Film Festivals  Constitution  aircraft  Colourization   Communists   Exhibitions in Moscow  Russian Animation  Russian business  Museum of Religious History   Ivan Bilibin  Russian Cinema  Opposition Rally  Krasnoyarsk  Roman Viktjuk  Magnitsky Act  Khodynka Park  Mercedes-Benz Fashion Week Russia  Rich Mnisi  Sberbank  Dunno  tourism  Gelendzhik  Russian regions  Historical Exhibitions  Multimedia Art Museum  Russian places of interest  Gourmet Tours  Sochi  Russian Photographers  Museums of Russia  Andre Geim  Arctic  summer in St. Petersburg  Domodedovo  Festivals in Moscow  Vagai island  Moscow  travel to Russia  Mstislav Dobuzhinsky  society  Balls in Moscow 


Travel Blogs
Top Traveling Sites