Russia to impose food embargo on Ukraine to protect its market

Russia to impose food embargo on Ukraine to protect its market
By bne IntelliNews November 19, 2015

Russia will impose a food embargo on Ukraine following Kyiv's decision to join international sanctions against Russia, Economy Minister Alexei Ulyukayev told Rossiya 24 television channel. The embargo is scheduled to come into effect on January 1, 2016.

"Since Ukraine joined in the sanctions against the Russian Federation - economic and financial - we have resolved to introduce protective measures in the form of food embargoes," Ulyukayev told the channel, TASS news agency reported on November 19.

The minister warned that some European producers may also be affected as Russia will protect its market from an uncontrolled inflow of goods from EU via the customs territory of Ukraine.

The Ukraine-EU Association Agreement that establishes free trade between Ukraine and the 28-country bloc will also come into force on January 1. Russia failed to negotiate any special conditions for its goods and has responded with its plan for a food embargo and higher duties on Ukrainian products. 

Ukraine's losses from retaliatory Russian measures can amount to about $600mn, Prime Minister Arseny Yatsenyuk told a government meeting in Kyiv on November 18. If Kyiv also raises duties, the losses of Russian exporters will be insignificant as Ukrainian duties are generally much lower. 

Russian consumers also may not feel the effect of the embargo because the share of Ukrainian goods on Russian market is already low. Imports of fruit and vegetables fell 20-fold to $6mn since relations between the countries deteriorated in 2014, and imports of cheeses by more than 30 times to $3mn.

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss