The Russian food embargo may extent to another seven countries because of their support for anti-Russian sanctions. The new measures will affect production to the value of more than €460 million and the hardest hit manufactures will be Japan, Iceland and Ukraine. It is not yet known whether Switzerland will be black listed.
Work on this subject was ordered by the Prime Minister Dmitry Medvedev. According to Medvedev, “There are a number of countries that have introduced retaliatory measures, in spite of the sanctions not being applied to them.” In the near future a request may be made to the Russian President Vladimir Putin to increase the number of countries subject to the food embargo, in response to their adherence to anti-Russian sanctions.
Counter sanctions from the Russian side were a retaliation to the economic prohibitions first introduced by the West on 6 August 2014. These mean a ban on the importation to Russia of certain types of agricultural products, raw materials and food from countries which are imposing economic sanctions against Russia or acceding to those measures. The food embargo was extended to meat and dairy products, vegetables, fruits and fish from the European Union, the USA, Australia, Canada and Norway.
The list of countries which were not affected includes Japan, Switzerland, Albania, Liechtenstein, Montenegro, Georgia, Iceland and Ukraine.
These countries have all introduced their own sanctions - as in the case of Japan and Switzerland, or have joined existing restrictive measures by the European Union- like Albania, Liechtenstein, Montenegro and Iceland. As for Georgia and Ukraine, they have joined the anti-Russian sanctions against the Crimea and Sevastopol.
Expansion of the embargo will hit farmers in most countries which may be included in the list of food sanctions. Restrictions on the supply of fruit will also hit most of the countries which joined the sanctions, but mainly Georgia and Ukraine. Over the past ten months Georgian and Ukrainian fruit sent to Russia amounted to sums of €14.3 million and €9.2 million respectively.
The cost of fruits and nuts, imported in the same period from Albania and Switzerland, was €4.2 million and €2.1 million.
Ukraine will also be heavily affected by the embargo on the supply of vegetables; from August 2014 to May 2015 Ukrainian vegetable exports to Russia exceeded the value of €35.6 million. The Swiss Ambassador to Russia, Pierre Helg explained how neutral Switzerland resolves the problem of exports, “We do not give any preferences to Europe or Russia.”
Food exports from Montenegro are not substantial: the value of their fruit and vegetable produce arriving in Russia is less than €56,000. With regards to Liechtenstein, according to the Federal Customs Service, no food produce was exported to Russia from this country.
The final list of countries that may fall under the extension of the counter sanctions is still unknown. The main issue today is whether Switzerland will come under Russian sanctions. However, in March of this year, Economic Development Minister Alexei Ulyukayev said that Moscow does not plan to respond to the Swiss expansion of sanctions against Russia.
Russia to destroy banned Western food
The Russian president has ordered authorities to destroy all banned Western food smuggled into the country.
But Russian food producers and farmers have complained the embargo is not being enforced properly.
The government says banned products are still finding their way onto Russian supermarket shelves even after shipments are sent back at the border. So it has decided to get tough.
According to the presidential decree published by the Kremlin, the destruction will be supervised by two officials, and documented on video and in photos.
Border police will also start inspecting food warehouses and supermarkets, looking for smuggled foods.
Critics of the government say the confiscated food should be used to feed the poor, rather then destroyed.
"Russian pensioners, veterans, families with many children, the disabled and other needy citizens are hurt as a result of these sanctions, and forced to restrict their diet up to starvation," wrote Olga Savelieva in a letter to the government. "If the food can simply be eaten, why destroy it?"
Savelieva has organized a petition against the decree. So far over 200,000 people have signed it.
Egypt to increase exports to Russia
Egypt reportedly wants to increase its exports to Russia. The Egyptian Ambassador to Russia, Mohamed El Badri, commented on the subject saying, “for every dollar we gain from exports we spend 10 dollars on imports. We want to maintain a balance in this regard. Since the beginning of 2015 the volume of trade between Russia and Egypt was $ 5.5 billion. This figure is not what we wanted,” he said.
El Badri believes that, the free trade area negotiations between the Eurasian Economic Union and Egypt will allow the increase of trade volumes between the two countries.
According to the Federal Customs Service data, the volume of trade between Egypt and Russia in 2014 increased by 86% to 5.48 billion dollars. Russia made 4.94 billion dollars of exports to Egypt and Egypt exported 539 million dollars worth of goods to Russia. In general the product being exported from Egypt to Russia are citrus, potatoes and onions. Russia realised exports of wheat, lumber and metal.
