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Russia Sanctions Blowback: Finland's Largest Dairy Lays Off 800, Spain Seeks EU Aid, Poland Complains To WTO

OWoN: Blowback is a bitch, especially when the economies of the EU hang by a thread. But of course all blame can be on the Russians, after all they started it - did they not? As if! While in Egypt and South America celebrations occur on their trade windfall.

In a interrelated trade world actions of many can be justified against one, until one takes action that hurts the many who started taking action in the first place. Today, in a world where it is wrong to bully or socially intimate one single person, you have to wonder at the logic of it all. It would be quite funny if it were not all so sad to see.

Payback will be viral here.

But do these inept Grunts in power ever pay? Thank the Cabal for this new giant Cluster F*** - Again!




Zero Hedge
By Tyler Durden
13 August 2014

Well that didn't take long. Mere day after Russia announced its ban on Western nation food imports, European countries are scrambling (as we explained why here). Greece has already expressed dismay, but now Spanish officials will meet with EU leaders to discuss offsetting the country’s estimated up to $800 million in food and agriculture losses due to sanctions. Poland is pissed and has complained to the WTO claiming "Russia has broken international law in both its embargo;" and Finland's largest dairy producer has announced 800 layoffs due to the sanctions. When does Europe tell Washington - enough!

Spain demands aid... (despite Rajoy's support for anti-Russia sanctions)

Spanish Agriculture Minister Isabel Garcia Tejerina said the restrictions have prompted her ministry to convene a meeting with the European Commission in Brussels on Thursday.
...

The Spanish government has estimated that agricultural losses will amount to €337 million, or about 1.8 percent of Spanish exports. Other groups, like Spain’s opposition Socialist Party, have estimated the losses to be higher- €581 million.
Last year, 37,000 tons of tomatoes, 35,000 tons of peaches, and 33,000 tons of mandarin oranges were exported from Spain to Russia, according to Spain’s Small Farmer’s Association (UPA).

“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,” Lorenzo Ramos, Secretary General of UPA, told RT.

Finland suffers...

The largest Finnish dairy producer Valio send a forced leave of the staff with factories working for export to Russia. This is stated in the message of concern.

Restructuring will affect Finnish enterprises' Valio: Plant in Haapavesi ( cheese Oltermanni), Seinäjoki ( oil Valio), Vantaa ( cream cheese Viola) and warehouse in Lappeenranta. Concern revise employment contracts of all the employees of these companies. "Some of the staff ( according to preliminary estimates, 800 people) can go on forced leave to fully clarify the situation, with a portion of employees will not be renewed temporary employment contracts, "- said in a statement.

Poland complains...

Poland's agriculture minister went on television to announce the country was taking action against Russia's new import ban. "We believe Russia has broken international law in both its embargo against Poland and its embargo against the EU," Marek Sawicki said.

Russia banned the import of Polish fruit and vegetables in early August - a move Sawicki said would cost Poland 0.6 percent of GDP.
...

"If a WTO member state believes another WTO member state has taken a measure that is not in conformity with WTO rules, the affected WTO member state may request mediation," attorney and WTO expert Eric Pickett said.

And the Czechs are in for some EU assistance...

  • *ZEMAN BACKS EU AID TO CZECH AGRICULTURAL COS. AFTER SANCTIONS

* * *

S&P 500 nears all-time highs as US companies do not seem to suffer at all... We are sure Merkel is watching carefully.

read more

4 comments :

  1. If the US has been cutting off its nose to spite its face with sanctions against Russia, the EU has been cutting off its face to spite its nose! Ha.

    This is an excellent site: The Vineyard of the Saker, with accurate up-to-date news on the situation in Ukraine. This recent article, also featured on ICH, shows how counter-productive sanctions are for the West. We live in a world that is more interconnected and closely-woven than ever. Isn't that what the globalists wanted?

    The birth of a new financial-economic system: the example of Russia and Argentina

    http://vineyardsaker.blogspot.co.uk/2014/08/the-birth-of-new-financial-economic.html

    Also, watching the Polish squirm over the Russian ban on apple imports was priceless. "If Europe wants to be America's bitch, it has to pay the price."

    ReplyDelete
  2. Bunch of idiots...they are dead set on starting WWIII. All this suffering has to stop!

    Which Country Is Hit Hardest By Russian Food Sanctions?
    by Wolf Richter • August 8, 2014

    US exports to Russia plunged 34% in June, according to the Commerce Department, as sanctions and countersanctions ricochet elegantly around the world. Imports from Russia fell 10%, the third month in a row of declines. But US Trade with Russia is minuscule when compared to our trade with China. So the US doesn’t have a lot to lose.

    It would never occur to Washington to impose radical sanctions on China. A tit-for-tat with China would be lethal, for both countries. So we trample on the ones we can afford to trample on.

    Now Russia has issued a new round of counter-sanctions. “There’s nothing good about sanctions,” Prime Minister Dmitry Medvedev said as he announced them. “I’ve already said that many times, and this retaliation wasn’t easy for us.”

    This time, among other goodies, it’s a one-year ban on beef, pork, poultry, fish, fruit, vegetables, cheese, milk and other dairy products from the US, Canada, the EU, Norway, and Australia.

    Presumably, the US would get hit hard by the ban on poultry – with $300 million last year, the largest American agricultural export product to Russia. But Russia already expressed its displeasure with the US months ago by banning US poultry under the pretext of food-safety concerns. And a spokesman for top poultry producer Tyson Foods told the Wall Street Journal that the company would likely sell that excess poultry to other countries. So it’s not going to hurt that much.

    But not all countries have as little at stake as the US. Prices could rise for Russian consumers if they lust for the banned products, which would hit Russians in the two places where it hurts the most: the wallet and the stomach. European food producers too would get hit hard – and none harder than Norway whose salmon fisheries have been targeted, though Norway, a direct neighbor of Russia, isn’t exactly the biggest instigator in all this:

    And the sanctions are already hitting the powerful engine that is supposed to pull Europe out of its quagmire, Germany. Its economy is stalling. The “disaster of 2008” is evoked, then hastily denied. Read…. Russia Sanctions Exact Their Pound of Flesh – from Germany

    http://wolfstreet.com/2014/08/08/which-country-is-hit-hardest-by-russian-food-sanctions/

    ReplyDelete
  3. Sanctions Are Destroying Europe; Nations Look to Russia

    August 13, 2014 • 10:26PM

    http://larouchepac.com/node/31543
    http://theunhivedmind.com/wordpress3/sanctions-are-destroying-europe-nations-look-to-russia/

    German Economy Also Plunging into the Abyss

    German factory orders from Europe fell 10.4% in June, according to a column by Ambrose Evans-Pritchard in today’s Telegraph, which also emphasized that the “ZEW confidence index” fell to a 20 month low in June, because of the Russian counter-sanctions on Europe. Predictably, Evans-Pritchard argues that “crisis stalks Europe again,” and then quotes a Royal Bank of Scotland banker saying that “the ECB has to act now… They cannot wait until February or March to start thinking about quantitative easing.” He also quotes another market analyst arguing that “the latest inflation figures call for the ultimate bazooka from the EC,” meaning massive quantitative easing. But no amount of “ultimate bazookas” is going to put food on the table, a fact that the British Empire seems to be trying to deny.

    Austrian Fruit Growers: “The Russian import ban is a catastrophe for the whole of Europe”

    Rupert Gsols, a regional leader of Austria’s fruit growers association, told the Salzburger Nachrichten newspaper that the “Russian ban is a catastrophe for the whole of Europe.”

    The Russian one-year ban on food imports from EU nations was taken in response to the escalating sanctions and other economic warfare being waged against Russia by the Obama administration, the EU, and the British. Gsols explained that Austrian growers can only invest if the average price they receive is over 35 cents per kg; previously they were getting 40 cents, but now it has dropped to 20 cents/kg. That indicates that massive bankruptcies across the sector are coming, in Austria and other European nations. The Salzburger Nachrichten further reported that Russia will now get most of its fresh fruit and vegetables from Turkey and possibly Brazil. A RIA Novosti wire notes that increased Brazilian trade with Russia could antagonize the west, but

    “despite this, Brazilian media reports indicate a strong willingness by Brazilian companies to fill the gap left by the food embargo.”

    Gsols is only the latest European voice to be raised in angry protest at the economic havoc being produced by the insane policy of sanctions against Russia. More will follow, as the reality sinks in that Russia, as well as China and India, are systematically reorienting their physical economic trade patterns towards countries that they believe they can rely on—such as the BRICS nations, and those working with them, including the nations of South America.
    Argentina Moves Quickly to Expand Food Exports to Russia

    In the wake of Russian President Vladimir Putin’s announced cutoff of agricultural imports from the EU, Canada and the U.S., the Argentine government is responding quickly to Russia’s request to increase its purchase of the country’s agricultural products, in the context of the strengthening strategic alliance between the new nations. This weekend, a high-level Argentine delegation will travel to Moscow, including cabinet members and other government officials as well as executives from agro-industrial companies, to discuss with their Russian counterparts how Argentina’s food exports to Russia can be quickly increased, as per instructions from President Cristina Fernandez de Kirchner, Infobae reported today. The Russian point-man on this issue is Sergei Dankvert, head of the Russian Agriculture and Cattle Inspection Service.

    New Moves To Enlarge Russia-India Trade

    There is increasing evidence that Moscow and New Delhi are involved in plans to enlarge Russia-India trade at a time when the United States and the European Union have imposed economic sanctions on Russia over the security crisis in Ukraine...

    ReplyDelete
  4. Norway salmon producers hit hard by Russia sanctions

    Thu Aug 7, 2014 10:36PM GMT

    http://www.presstv.ir/detail/2014/08/07/374456/norway-hit-hard-by-russian-sanctions/

    Norwegian salmon producers have felt the brunt of a set of sanctions imposed by Russia on European agricultural goods as their share prices plunge on the Oslo Stock Exchange.

    Shares in the world’s biggest salmon producer, Marine Harvest, fell by nearly 8.48 percent by Thursday afternoon.

    Norwegian officials say Salmon producers are among the first victims of Russia’s ban on agricultural goods from the West.

    “It’s a challenging situation for Norwegian seafood exporters,” said Terje Martinussen, director of the industry group, Norwegian Seafood Council.

    Russia has been Norway’s biggest export market for fishery products in recent years, but Moscow included the Norwegian producers on its sanctions list.

    The latest developments come as the Russian government announced year-long sanctions against the European Union, Norway, the United States, Canada and Australia in retaliation against Western sanctions due to the ongoing conflict in Ukraine.

    On Wednesday, Russian President Vladimir Putin ordered government agencies to restrict agricultural imports from countries that imposed sanctions on Moscow.

    The economic tit-for-tat followed a recent decision by the EU and US to tighten sanctions on Russia, with Brussels extending them from individuals to sectors of the Russian economy.

    The sanctions also include an arms embargo and restricting sales of sensitive technology, as well as the export of equipment for Russia’s oil industry.

    The Western powers accuse Moscow of playing a role in the crisis in eastern Ukraine, which broke out when Kiev launched military operations to silence pro-Russia protests in April.

    The Russian president stressed that the tools of pressure being used against the Russian economy go against international rules and norms.
    http://theunhivedmind.com/wordpress3/norway-salmon-producers-hit-hard-by-russia-sanctions/

    ReplyDelete

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