Russia promises "quite substantial" U.S., EU food import bans

MOSCOW - Russia will impose "quite substantial" bans on the U.S. and EU food imports and has already decided to suspend U.S. poultry imports as part of President Vladimir Putin's order to prepare a list of food import bans, its veterinary service said.
Putin signed a decree on Wednesday banning or limiting imports of agricultural products from countries which have imposed sanctions on Russia because of its support of rebels in Ukraine.

Putin ordered his government to come up with a list of goods to be banned for imports into Russia and to last one year, the Kremlin said.

Russia's Veterinary and Phytosanitary Surveillance Service (VPSS) will ban the U.S. poultry imports, VPSS spokesman Alexei Alekseenko told Reuters on Wednesday evening.
He declined to say what other products would be included in the list, but said the ban on the U.S. and EU food imports will be large. 

• Russia imported $43 billion worth of food last year.

"In relation to the U.S., the country which was imposing sanctions, the decision (on food import bans) will be quite substantial," Alekseenko said. The same "of course refers" to the European Union, he added.

• Apart from boosting local production and expanding cooperation from sanction-resilient countries, Putin's decision may well become a self-made sanction on the population, Dmitry Polevoy, ING chief economist in Russia & CIS, said in a note.

• "Even though from political point of view the move may look appropriate, and it will indeed hit countries supplying food to Russia, the move will likely only amplify the effects of financial/sectoral sanctions imposed on Russia," Polevoy said.

"This will likely add to overall sanction costs via higher food inflation and, so, will have a widespread effect on households," he added.................http://www.todayonline.com/world/russia-ban-us-poultry-imports-veterinary-service
7/8/14
--------------------------

• A one-year ban has been imposed on certain agricultural produce, foods and raw materials from countries that have sanctioned Russia. A law on economic measures to protect the country's security has been signed by President Putin.

The decree “on the use of specific economic measures” has been signed in response to sanctions imposed on Russia by a number of states over the Ukrainian crisis, the Kremlin said on its website.
While the law comes into force immediately, the government has been tasked to come up with a concrete list of imports to be banned.
The decree orders the Cabinet to take measures to provide a balance on product markets and prevent rapid price growth. The government has also to join efforts with manufacturers, businesses and retail store chains to increase the Russian goods supply.
Meanwhile, ministers are already drafting a list of products that could be affected by the ban, Natalia Timakova, a press-secretary for PM Dmitry Medvedev told RIA Novosti.
Russia came up with retaliation sanctions after the EU and the US introduced their own economic measures against Russia over the Ukrainian crisis.
Speaking on Tuesday, ahead of signing the decree, Putin stressed that Moscow’s response should be “cautious.” “Obviously we need to do it cautiously in order to support domestic manufacturers, but not hurt consumers,” he said.

• Putin described the political tools of pressure being used against the Russian economy as unacceptable and added that they go against international rules and norms.

• A day earlier, Medvedev said that Moscow would consider possible responses to EU sanctions against Russian airlines.

Vedomosti daily has been reporting Russia would limit European flights to Asia that cross Siberia, in response to EU sanctions that caused Aeroflot subsidiary, Dobrolet, to suspend flights on Monday. However, Foreign Minister Sergey Lavrov said Wednesday the report was a baseless rumor. DETAILS TO FOLLOW  http://rt.com/news/178484-putin-russia-sanctions-agriculture/
6/8/14