Putin BANS agricultural imports from sanctioning countries for 1 year

EU farmers complain €125mn compensation is just a drop in the ocean

The €125 million in emergency EU support to its food producers may not be enough to cover the damage, as some estimates have it more than a hundred times higher.

On Monday, the European Commission announced €125 million in emergency funding for European farmers hit by the Russian trade ban

Economists at ING estimate the embargo could cost the European Union €6.7 billion ($9 billion) during a year of lost production. The report also sees 130,000 jobs at risk in the trade row between Russia and the West over Ukraine.

The European statistics office, Eurostat, said the ban - which bars meat, dairy, cheese, fruit and vegetables from all 28 EU member states, affects €12 billion ($16 billion) worth of EU exports, or 10 percent of the total.

Hit hardest will be Poland and Norway, both of which export over $1 billion in sanctioned foods to Russia, followed by the Netherlands and Spain, both which have strong trade ties with Russia.

rt.com...

American money flight from Europe

American investors shun the EU. In six weeks they pulled some $ 4 billion from the European market. The amount invested in the Netherlands is halved. According to figures from Markit data bureau.

Investors fear that Europe will be hit hard by Russian sanctions. But also disappointing growth of the European economies and the strong dollar chase American investors away from Europe.

Especially investments in Germany declined.

nos.nl...

Germany exports 15% less to Russia

Exports from Germany to Russia shrank firmly in the first half of this year. That was announced by the German statistical office on Wednesday. German exports to Russia declined with 15.5% (15 billion euro) in the first half of this year.

Especially importers of cars and machines were taking a heavy burden. Exports of German cars declined by nearly a quarter, while about a fifth fewer machines were shipped from Germany to Russia.

www.rtlnieuws.nl...

EU looks at legal action against Russia

Brussels still hasn`t decided on any legal action against Russia because of the Russian ban on imports of European agriculture. A decision will be taken in the coming weeks.

The European Commission in Brussels is analyzing the situation, a spokeswoman insisted Wednesday. Especially Poland calls for a complaint to the World Trade Organisation (WTO), of which Russia is a member for almost 2 years now.

The advantages and disadvantages of a step to the WTO should be carefully considered, diplomats say. The European Union doesn`t wants the crisis to worsen, but have tensions reduced.

www.rtlnieuws.nl...

It seems our American amigos get hurt also somewhat (of course offset by the bigger defense orders of the NATO partners) :

Russia Shuts Moscow McDonalds Due To "Sanitary Breaches"

www.zerohedge.com...

Very good read from Paul Craig Roberts :

The Russian government cannot rely on diplomacy and good will if the West is relying on violence.

www.paulcraigroberts.org...

a reply to: BornAgainAlien


Wow thats funny they shutdown 4 McDonalds because they have nasty employees that dont wash their hands. And you really think 4 stores shutting down hurts them in the least?? As for Us investors pulling money out the EU isnt about sanctions its about the strong dollar. in a weak dollar investors hide in the Euro. When the dollar becomes stronger you invest in the dollar happens all the time. Will sanctions hurt investments depends on the company and what they do. Meat and dairy are opening up new markets so unlikely to change much for them. fruit and vegetables however could be a different story we will have to see.But it does far more damage in the long run to Russia i really cant believe Putin is that stupid.

originally posted by: BornAgainAlien
Very good read from Paul Craig Roberts :

The Russian government cannot rely on diplomacy and good will if the West is relying on violence.

www.paulcraigroberts.org...

What's more, the contrary is also true. Diplomacy is not going to work against a man who will nerve gas his own citizens, as Putin did in 2002. Putin has used violence in Chechniya, Georgia and, now, Ukraine. He has left no space for diplomacy.

.....and the hits keep on coming..

Tourism tanks in Crimea under the Russian flag

Sevastopol (AFP) - Restaurant owner Galina Anchukova looks out across the seaside promenade in sunny Feodosia, with its straggle of strolling tourists, and sees a wasted financial opportunity.

"The season is ruined, there is nobody here," she said.

The first summer season in Crimea under the Russian flag has been a disappointment, local business owners complain, blaming fighting in eastern Ukraine for their troubles.

The Crimean peninsula was once the pearl of Soviet vacation spots, with hotels and spas dotting towns along the Black Sea coast.

Russia annexed the majority Russian-speaking region from Ukraine in March after a pro-Western government took power in Kiev.

But in a cruel irony for Crimea, the pro-Russian rebellion that broke out in eastern Ukraine just afterwards, in which around 2,200 people have died, has trapped its most loyal visitors.

"Normally most of the tourists have been coming from southeastern Ukraine, but that's where the war is and there are no more direct trains from those regions," Anchukova said.

"We've got tourists from Russia, but not that many of them. We hope that next season will be better," she added.

- Visitor numbers cut in half -

Click link for remainder of article...

a reply to: Xcathdra

Russian tourism is having major problems this tells you the economy is going in the wrong direction. First thing people cut back on in hard economic times is vacations. We are seeing that in Russia now the tourism industry is dying a quick death in Russia. This tells us the economy is even worse than what Russia is letting on.

MOSCOW (AP) — Last week, tens of thousands of Russians sunning themselves on Italian beaches and Turkish resorts received an unpleasant surprise: their tour companies had gone bust, stranding them and forcing them to pay double for a ticket to get home.

Related Stories

Moscow may force European airlines to fly around Russia Reuters
Thousands of Russians stranded abroad after tour operator fails AFP
Finland's Niinisto to Putin: sanctions bite both, let's discuss Ukraine Reuters
Putin ally Timchenko says business will not turn on him over sanctions Reuters
Russia threatens overflight block between Europe, Asia AFP
The bankruptcy is the fifth among major Russian tour companies in less than two months — a sign that cracks are appearing in Russia's economy after a months-long conflict in eastern Ukraine and an escalating stand-off with the West.

It's not just sanctioned Russian billionaires who are feeling the pinch now — uncertainty over the future has caused the currency to drop, hurting the average Russian's ability to travel abroad and buy imported goods. And as new sanctions by the U.S. and the European Union start to bite, companies worry about a looming recession and a future without access to the West's massive financial markets.

news.yahoo.com...

The next moves by Russia :

Serbia ready to start dairy deliveries to Russia in 2-3 weeks

rt.com...

Moscow: insect venom in whiskey Jack Daniel's

The "suspicious substance" that Russian inspectors have found in a shipment of American whiskey brand Jack Daniel's is an agent used in insect venom. That`s being told by inspectors of the consumer rights service, according to the Russian news agency Itar-Tass.

www.ad.nl...

originally posted by: BornAgainAlien
The next moves by Russia :

Serbia ready to start dairy deliveries to Russia in 2-3 weeks

rt.com...

Moscow: insect venom in whiskey Jack Daniel's

The "suspicious substance" that Russian inspectors have found in a shipment of American whiskey brand Jack Daniel's is an agent used in insect venom. That`s being told by inspectors of the consumer rights service, according to the Russian news agency Itar-Tass.

www.ad.nl...

What do you think gives Jack that extra "kick?"

And of course EU tries to stop Serbia (Serbia wants to join EU, so they might succeed) :

EU Demands from Serbia Not to Increase Exports to Russia – Reports

BELGRADE, August 22 (RIA Novosti) - Serbia has received a call from the European Union not to increase exports to Russia and not to take place of other European suppliers on the Russian market, Belgrade newspaper Blic reported.

At the same time, the Serbian national agency Tanjug, citing its sources, has reported about a certain "demarche" that the European Union sent to the Serbian government on Thursday. The topic or any other parts of this document have not been disclosed. The EU Delegation in Belgrade has refused to comment on the situation.

It is expected that the details concerning the demands from Brussels and the Serbian position on this issue will be announced on Friday afternoon at a special press conference of Prime Minister Aleksandar Vucic. The conference will be devoted to "the EU demarche."

en.ria.ru...

Putin Turns Poles Into Cider Lovers Amid Russia Food Ban

Poland’s Agriculture Minister Marek Sawicki asked the finance ministry for a temporary suspension of the tax on cider production, Puls Biznesu reported Aug. 8. Cider should be exempt from restrictions on alcohol advertising in order to boost demand for apples, the Economy Ministry proposed Aug. 11.

Guess this will encourage Poles to drink cider and be merry. Poland will have to diversify their market so as not to rely on Russia.

I'm not surprised to see the same team maneuvering this thread too

About the "ban", how do you like your prices now, back there in Russia? Or did you honestly think Turkey and China would not take advantage of you? Meat prices up 60% in some places (Moscow has it better, with just 10% increase), vegetables and milk not feeling too good also. And your beloved Putin cancelled the "ban" on some items already.

I dare you to ban ALL things coming from the EU! You could survive just fine by eating oil and sipping natgas, right?

originally posted by: negue
I'm not surprised to see the same team maneuvering this thread too

About the "ban", how do you like your prices now, back there in Russia? Or did you honestly think Turkey and China would not take advantage of you? Meat prices up 60% in some places (Moscow has it better, with just 10% increase), vegetables and milk not feeling too good also. And your beloved Putin cancelled the "ban" on some items already.

I dare you to ban ALL things coming from the EU! You could survive just fine by eating oil and sipping natgas, right?

My veggies and fruits have gone down, but I fear my gas-bill.

a reply to: dragonridr

Yeah their economic issues are coming from those pesky sanctions that they, and members here, claim are not working / effective.

I am still waiting for BRICS to come to the rescue....

oh.. wait, China just send military units into India in the same region as last year.

originally posted by: fernalley
Putin Turns Poles Into Cider Lovers Amid Russia Food Ban

Poland’s Agriculture Minister Marek Sawicki asked the finance ministry for a temporary suspension of the tax on cider production, Puls Biznesu reported Aug. 8. Cider should be exempt from restrictions on alcohol advertising in order to boost demand for apples, the Economy Ministry proposed Aug. 11.

Guess this will encourage Poles to drink cider and be merry. Poland will have to diversify their market so as not to rely on Russia.

There is a growing market here in America for hard cider. My sister, who studied in Wales, will welcome a competitively priced addition to the field. I'd like to try some myself, this autumn.

Russian food ban to cost EU $6.6bn a year

Russia's decision to impose a food embargo in response to Western sanctions may cost the European Union €5 billion ($6.6 billion) a year, according to an internal EU document.

"The overall temporary restrictions currently applied by Russia potentially jeopardize €5 billion worth of trade," the report seen by Reuters states.

The document, which was presented to European Commissioners in Brussels, shows that the EU's total food exports to Russia were worth €11.8 billion ($15.5 billion) in 2013, while the products covered by the Russian ban represented €5.1 billion ($6.7 billion).

In terms of losses, Germany, Poland and the Netherlands are the top three food suppliers hit hardest by the embargo.

Food destined for Russia made up around 3.3 percent of German exports worth $1.83 billion in 2013.

Poland is the leading exporter of apples, and one of those countries feeling the greatest impact from the Russian food ban, which has lost a $1.55 billion export market.

RT

a reply to: Hellas

Food imports ban backfires on Russia's economy

An embargo on food imports from the West has sent grocery prices in Russia soaring and greatly worsened inflation. The move is seen as a severe blow to the country's stagnating economy.

The cost of banned foodstuffs started to rise days after the embargo took effect in early August. According to figures released by Russia's State Statistics Service on Wednesday, consumer prices rose by 0.1 percent last week, following a similar increase a week earlier. This trend indicates that already by the end of 2015 Russia's annual inflation rate might hit the five-year maximum of 8 percent, far above the official target set by the Russian authorities, analysts warned.
The weekly price increase was especially sharp for foodstuffs like chicken (+1.4 percent), pork (+0.9 percent), frozen fish (+0.5 percent) and cheese (+0.4 percent), the State Statistics Service said. The retail price for apples rose by 0.5 percent from the previous week. This is the most glaring example of the market's reaction to the imports ban, analysts at Raiffeisen Bank said in a research note. Apple prices tend not to increase in summer, when new crops are harvested, they added.

www.dw.de...

Consumer prices up 0.1% after only one month? Winter is coming, too. What was Putin thinking?

a reply to: DJW001

PPutin is going to create a humanitarian crisis in Russia the rich will be fine they have investments in other currencies. The poor will just see the amount of food decrease as the inflation rate increases.

originally posted by: dragonridr
a reply to: DJW001

PPutin is going to create a humanitarian crisis in Russia the rich will be fine they have investments in other currencies. The poor will just see the amount of food decrease as the inflation rate increases.

So like it was during the hey days of the Soviet Union? check.

I don't think the current population is going to be as accepting as it would have been during the cold war. the more info that leaks out about Ukraine and what Putin has been up to the more I see him leaving politics, or killing a lot of civilians to remain.

a reply to: Xcathdra

Well there is alot of people that cant do anything this will have to come from the rich and the famous such as the author i quoted who is saying Putin is bad for Russia. The only thing i do see is maybe people will get sick of sending their sons to die in Ukraine?? If Ukraine is smart it need to change its battle tactics NOW! no more encircling cities. They need to pull their troops back and create one front against the Russian advance. They need to stop trying to gain territory that gives the advantage to Russia allowing them to make surgical strikes destroying entire units. They need to set up kill zones and allow the Russians to continue to advance. Than they send units in to kill off the russians when they advance between two units. Destroy all airports and train depots make the Russians haul all their stuff by road. And theyll find that they will send so many Russians hom in coffins that the people will demand Putins head.

And if their are really American advisors there they will tell Ukraine to do just that Russia always has a major weakness they are slow and cumbersome they have almost know force projection what so ever. Theyll supply lines will be insufficient to maintain and advance. And if i was Obama he doesnt have to supply weapons just supply support and help with troop transport and this would be over in a couple of months.

Just checking in and bumping this thread. Here is the latest data on the "fruits" of Putin's sanctions:



www.tradingeconomics.com...

The rate of inflation of food prices has doubled since the beginning of the year. Good going, Vlad!