Thursday, August 7, 2014

The effects of sanctions against Russia by the US and EU.

The effects of international sanctions come full circle in the latest from Russian President Vladimir Putin.
As he moves into a full ban of all US agricultural products, including poultry, as well as EU fruit and vegetable imports in response to Western sanctions imposed on Russia over the Ukrainian crisis.

This is the effect of reciprocity, as one government causes losses to another the other shall reciprocate in kind with sanctions of their own. None of these sanctions shall have much effect on the government or its employed people, but have detrimental effects on the citizens of the countries under these governments.


As RT (Russia Today) reports "All agricultural goods produced in the US and imported into Russia will be halted for one year, the assistant to the head of Rosselkhoznadzor, Aleksey Alekseyenko, told RIA Novosti.
The list of banned products will be published on Thursday, he added.
EU fruits and vegetables also fall under the ban, Alekseyenko added. A source told Itar-Tass that dairy products from the EU will be included on the list, as well.
“The list includes milk powder, butter and cheese,” the source said, adding that this also includes mass production cheeses"

The U.S. imports $19.6 million dollars of these products into Russia each year, but other countries are willing to step up and fill the void left in importation of these products. "Alekseyenko stated that many countries that did not sanction Moscow are ready to increase their exports of similar products to Russia."


This is of course the only expected response from Russia short of declaring War upon the US and EU.

http://rt.com/business/178540-russia-ban-us-poultry/

http://rt.com/news/178484-putin-russia-sanctions-agriculture/

No comments: