Russian agricultural watchdog Rosselkhoznadzor has said that the ban on Western products, and a dip in the value of the Russian currency, has resulted in a deluge of fake dairy products in the market.
According to the Russian newspaper Nezavisimaya Gazeta, almost 50% of dairy products in the country's market are counterfeit products.
The newspaper also quoted analysts as saying that the rise in such products is resulting in an increase in the import of palm oils, which is cheaper and is used extensively in the production of pastries, biscuits, cooking oils and dairy products.
The Rosstat state statistics service has revealed that there was a 36.9% increase in the import of palm oil in the first two months of the year.
Russia has also increased its cheese production due to the ban on dairy products imported from the European Union and United States.
Russia had imposed a one-year ban on imports of food products, including meat, fish, fruits, vegetables, cheese and milk from the US, EU member states, Norway, Canada and Australia in August.
The move was in retaliation for sanctions imposed by these countries on Russia following the Ukraine crisis.
Russia had been accused of being involved in the crisis by providing pro-Russian rebels in eastern Ukraine with weaponry and other support, allegations that the country has denied.
While Russia's cheese market has also grown 34% this year, its milk production and the volume of imported milk has gone down by 3% and 34% respectively, which indicate the possibility of the increase in the use of palm oil for producing cheese.