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EU Farmers To Lose $16 Billion as Russians Support Food Embargo

OWoN: The reality of cost for hopping on board the ship of fools running America. Europe's loss is the emerging worlds gain. These markets will not be coming back.

More reasons for the UK to leave the EU and to dump its US dependency.





RIA Novosti
14 August 2014

Moscow - The EU commissioners are seeking ways of reducing the harmful impact that Russia's food import ban is causing the European economy, although it is early to speak of exact numbers of losses, experts say.

"We still feel it's a little bit soon to discuss the cost implications. We are looking at every product individually," said Roger Waite, a spokesman for the EU’s executive Commission, earlier this week as cited by the International Business Times.

According to the Associated Press, the EU agricultural export to Russia reached $15.8 billion in 2013. Thus, the estimated loss for the European economy could be about $16 billion, experts claim. Moreover, Russian sanctions may draw Europe into a market crisis, the French National Federation of Unions of Agricultural Operators warns.

Poland, Norway and Netherlands are among the "hardest-hit" economies due to the Russian food import ban, according to the International Business Times. Poland and Norway annually export over one billion dollars in agricultural goods to Russia, while Netherlands, Spain, Germany and Demark, supply about $850 million in food to the Russian market each year.

Meanwhile, Russia's sanctions have already caused a serious blow to the European agricultural sector, causing a sharp drop in prices. Apart from the Russian embargo, the European fruit market had also been hit by unfavorable weather conditions in spring and early summer this year.

"Following the recent decline in prices on the peach and nectarine markets, urgent action is needed to prop up the market," stated Dacian Ciolos, EU Agriculture Commissioner as quoted by the BBC, "We are monitoring markets closely and I will not hesitate to do likewise to assist other sectors dependent on exports to Russia, should it be necessary," he added.

The European Commission is thinking of ways to stabilize the situation. One option would be paying compensations of around 400 million euros ($535 million) to farmers. The aid will cost the EU up to $40 million in total, according to the BBC. Poland, Spain and France have already asked the EU leadership to compensate their financial losses.

"The decision that was adopted involves many political issues that exist between Russia and the European Union, and not just the EU. As a result, it may be necessary to compensate us for these political decisions - the producers who work all year and want to at least be paid enough at least to cover production costs," said Lorenzo Ramos, Spain’s Small Farmer’s Association representative in an interview with RT.

With the sanctions already implemented, the media are widely discussing the Russian view on the embargo. "Creamy French cheeses, Australian Ribeye steak and seafood risottos are heading off the menu at restaurants after the ban on imports of all fish, meat and dairy produce," writes The Chicago Tribune gloomily. However, no one looks to be shocked by such a prospective: "I am proud that we've stopped being the boy who gets bullied. It's about time," says Russian restaurateur Andrei Dellos, as quoted by the media outlet. "There won't be oysters, but we'll make do. We'll live without oysters."

Russia's independent Levada Center pollster admits that about 72 percent of Russians approve of the imposed sanctions. Vladimir Putin's approval ratings in Russia remain at their highest point as well.

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3 comments :

  1. Chile’s 12 companies to supply food products to Russia
    http://en.itar-tass.com/economy/745307



    MOSCOW, August 16, /ITAR-TASS/. Russia’s agricultural authorities have added twelve companies to the list of food suppliers from Chile.

    Chile’s twelve companies added to the list will supply fish and seafood. The authorities say the companies are ready to comply with the veterinary and sanitary requirements of the Customs Union (of Russia, Belarus and Kazakhstan).

    In response to Western sanctions, President Vladimir Putin signed a decree to ban for one year the imports of agricultural, raw and food products from the countries, which imposed sanctions against Russia.

    Prime Minister Dmitry Medvedev announced that the Russian government imposed a one-year ban on imports of beef, pork, poultry, fish, cheeses, fruit, vegetables and dairy products from Australia, Canada, the European Union, the United States and Norway.

    The list of the banned products includes cattle meat (fresh, chilled and refrigerated), pork (fresh, chilled and refrigerated), poultry meat and all poultry edible by-products, salted meat, pickled meat, dried meat, smoked meat, fish and shell fish, clams and other water invertebrates, milk and dairy products, vegetables, edible roots and tuber crops, fruits and nuts, sausage and analogous meat products, meat by-products or blood, as well as products made of them, ready-to-eat products including cheeses and cottage-cheese based on vegetable fats.

    Besides Latin American countries, China has demonstrated high interest to the Russian market. China has offered supplies of pork. The issue will be on the agenda of the visit of Russian delegation to China. The delegation of the agricultural authority will discuss with Chinese counterparts terms of possible supplies on Monday, the ministry’s head Sergei Dankvert told ITAR-TASS.

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  2. Turkey ready to increase agricultural exports to Russia - minister of economy
    http://en.itar-tass.com/world/745283

    A Rosselkhoznadzor delegation has recently visited Ankara where an agreement was reached to increase the number of food suppliers to Russia

    ANKARA, August 16 /ITAR-TASS/. Turkish Minister of Economy Nihat Zeybekci said on Friday that Turkey and Russia had great potential for developing trade in food and agricultural products. “Turkey is a major supplier of food and agricultural produce to Russia. It is ready to increase its food exports to Russia if necessary,” the minister said in an interview with Itar-Tass.
    EU Council asks third countries not to replace European food on Russian market

    He noted that Turkey had exported 1.18 billion U.S. dollars worth of agricultural products to Russia in 2013. The bulk of it was made up of fruit and vegetables (877 million dollars). Agricultural exports to Russia were valued at 409 million dollars in 2014.

    Zeybekci said Turkey’s global exports of agricultural products were valued at 17 billion dollars in 2013 of which fresh fruit and vegetables accounted for 2.3 billion dollars.

    Turkish agricultural exports Russia accounted for 6.9% last year, but the two countries have great potential for developing trade in agricultural products.

    The Turkish minister said that in conditions of reciprocal Russia-EU sanctions Russian and Turkish agencies would work hard to ensure access to sufficient amounts of qualitative and low-cost food products for the Russians.

    Meanwhile, Sergei Dankvert, the head of the Russian agricultural watchdog (Rosselkhoznadzor), said a day earlier on Thursday that Turkey wanted to supply agricultural products to Crimea.

    “We have done a good job in searching for suppliers in Turkey given that we have a piece of land located right opposite Turkey and it should be provided with food,” Dankvert said at a teleconference on the situation in the food market held under the chairmanship of Vice-Premier Arkady Dvorkovich.

    A Rosselkhoznadzor delegation has recently visited Ankara where an agreement was reached to increase the number of food suppliers to Russia.

    Rosselkhoznadzor or the Federal Service for Veterinary and Phyto-Sanitary Control has held talks with 16 countries with an aim to ensure the Russian food market with alternative supply sources, Dankvert said.

    The list of countries included Brazil, Uruguay, Argentina, Chile, Paraguay, Ecuador, Colombia, Peru, Mexico, Sri Lanka, Turkey, Belarus, Kyrgyzstan, Mauritius, Mozambique and China.

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  3. EU Council asks third countries not to replace European food on Russian market
    http://en.itar-tass.com/world/745277

    BRUSSELS, August 15 /ITAR-TASS/. The European Union regrets that Russia imposed a food embargo on Western food products and is asking third countries not to replace European food on the Russian market, the EU Council said Friday in a final communique following an extraordinary foreign ministerial meeting on Ukraine.
    Russian import ban may cause Europe to “choke" with own products — official

    The statement said the move is designed to ensure unity of the international community and compliance with international law. The EU, it said, hopes third countries and countries applicants for EU membership will abstain from measures aimed at using new trade opportunities due to the current situation.

    In response to new Western sectoral sanctions against Russia, Moscow imposed on August 6 a one-year ban on imports of beef, pork, poultry, fish, cheeses, fruit, vegetables and dairy products from Australia, Canada, the EU, the United States and Norway.

    The banned products list includes cattle meat (fresh, chilled and refrigerated), pork (fresh, chilled and refrigerated), poultry meat and all poultry edible by-products, salted meat, pickled meat, dried meat, smoked meat, fish, clams and other water invertebrates, milk and dairy products, vegetables, edible roots and tuber crops.

    The list also contains fruits and nuts, sausage and analogous meat products, meat by-products or blood, as well as products made of them, ready-to-eat products including cheeses and cottage-cheese based on vegetable fats.

    The EU Council also welcomed on Friday the European Commission’s work to assess losses from Russian countersanctions and discuss a proper response. The Council confirmed that a special meeting of 28 EU agriculture ministers to discuss the problem will be held in September.

    The EU foreign ministers did not speak about new sanctions against Russia but noted in their final statement that new restrictions against Russia were possible.

    Russian officials and companies have come under sanctions, including visa bans, asset freezes and other punitive measures, on the part of Western nations following reunification of Crimea with Russia in mid-March.

    Despite Moscow’s repeated statements that the Crimean referendum on secession from Ukraine was in line with the international law and the UN Charter and in conformity with the precedent set by Kosovo’s secession from Serbia in 2008, the West and Kiev have refused to recognize the legality of Crimea’s reunification with Russia.

    The US-led West has threatened Russia with further penalties, including economic ones, for incorporation of Crimea and what the West claimed was Moscow’s alleged involvement in mass protests in Ukraine’s war-torn Southeast.

    Russia has repeatedly dismissed Western allegations that it could in any way be involved in protests in the Southeast of Ukraine, which started after Crimea refused to recognize the authorities propelled to power during a coup in Ukraine in February and reunified with Russia in mid-March after some 60 years as part of Ukraine.

    Moscow has said the language of sanctions is counterproductive and will strike back at Western countries.

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