IKAR in Mass and Industry Media

Putin bans US food and EU fruit, veg

Theland.com.au

IN A broad-ranging response to Western sanctions imposed over its support for rebels in Ukraine, Russia has announced it will ban all imports of fruit and vegetables from the European Union and all food from the United States.

Reuters reported the threatened ban will impact Russian consumers seeking cheaper imports, but also farmers in the West who rely on supplying food products and produce to Russia.

"Moscow is by far the biggest buyer of European fruit and vegetables and the second biggest importer of US poultry," the report stated.

"On Wednesday, Putin ordered his government to come up with a list of agricultural products from countries that had imposed sanctions on Russia, which would be banned in retaliation. He told the government to avoid measures that would hurt Russian consumers, but the blanket bans reported by RIA were about as sweeping as could be."

According to the European Commission, Russia imported $US43 billion worth of food last year, 28 per cent of EU fruit exports and 21.5pc of its vegetables in 2011.

Threats of retaliatory sanctions have been widespread in the three weeks since the downing of a Malaysian Airlines flight over pro-Russian rebel territory, killing all 298 people on board, including 38 Australians who will be honoured at a national multi-faith memorial today in Melbourne.

Speaking at last week's Australian grain industry conference in Melbourne, Russian Institute for Agricultural Market Studies director Dimitri Rylko said European Union sanctions in response to the MH17 fallout were predicted to have minimal impact on Russia's grain industry.

According to CBH Group eastern Australian trading manager Scott Haughton, changes in credit to grain industry operators may be the early gauge.

“This may cause Black Sea farmers to liquidate quicker than they would like to, and this will create need for exporters to ship out quicker, which could increase export competition,” he said.

“In the short term, this may not be good for Australian competition and price."

07.08.14

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