The Russian government has expanded economic sanctions against Ukraine. Starting January 1st food from the Eastern European country is banned. The reason being Ukraine's rapprochement with the EU. France hinted at the intention to resume the export of agricultural products to Russia during talks with the country. Ecuador is working on measures to increase export to Russia, and Russian inspection held 20 tons of Chinese pomelos on the border.
Russia boycotts Ukraine
The Russian Prime Minister, Medvedev, signed a decree stating food from Ukraine will be boycotted starting January 1st. The boycott is a reaction to Ukrainian support for anti-Russian sanctions. The boycott has already been announced and will take effect when Kiev signs an association agreement with the EU, or no later than January 1, 2016. All trade benefits that Ukraine had for export to Russia are cancelled.
The Prime Minister says that the sanctions will cause Ukraine to lose 600 million dollars. Ukraine projects the loss to be closer to 800 million dollars for 2016, "The most vulnerable sector is dairy, followed by meat and fruit," says Leonid Kozachenko, President of a trade association. "Together these sectors account for 800 million dollars worth of export. That is what we will lose in 2016."
A free trade agreement between Ukraine and the EU will go into effect in January. This is why Russia suspended the free trade agreement with Ukraine. According to the Kremlin, Ukraine cannot be part of two free trade zones.
The EU has already indicated that they are not prepared to compensate Ukraine for losing the Russian market. According to the European Commissioner Johannes Hahn, the EU has given Ukraine enough money to find new markets, and the country has had enough time to invest in the new markets.
France in talks with Russia
There was a meeting between representatives from France and Russia, as requested by France. According to the Russian inspection service website, France made clear their intention to resume trade in agricultural products. Before the boycott several dozen trucks would leave Brittany, France daily for Russia. Russia indicated that the sanctions were imposed in reaction to European sanctions against Russia.
Ecuador wants to increase fruit export
The State Secretary for International Trade of Latin American countries said that Ecuador is considering increasing it's fruit export to Russia, "We are taking measures to increase our presence in Russia. We are working on different ways to increase the export," says the official.
Russia sends Chinese pomelos back
The Russian inspection service sent twenty tons of pomelos back to Kazakhstan. The documents for the products that came from China were in Chinese. According to Russia, pomelos are a risky product. The truck was sent back to the exporter.
