Russia Bans All Food Imports From U.S., EU, Australia, Canada, Norway
Russia banned most food imports from the West on Thursday in retaliation for sanctions over Ukraine, an unexpectedly sweeping move that will cost farmers in North America, Europe and Australia billions of dollars but will also likely lead to empty shelves in Russian cities.
The announcement shows that while President Vladimir Putin doesn’t appear ready to head Russian nationalists’ calls to send troops into Ukraine, he is prepared to inflict significant damage on his own nation in an economic war with the West.
The ban, announced by a somber Prime Minister Dmitry Medvedev at a televised Cabinet meeting, covers all imports of meat, fish, fruit, vegetables, milk and milk products from the U.S., the European Union, Australia, Canada and Norway. It will last for one year.
Chris Weafer, an analyst at Macro Advisory in Moscow, said the ban will likely speed up inflation and further cloud an already grim economic outlook. “Along with higher interest rates, higher food costs will mean that households have less money to spend and that will depress the economy,” he said.
If the West doesn’t change course, Russia may introduce restrictions on the import of planes, navy vessels, cars and other industrial products, Medvedev warned.
He also said that in response to EU sanctions against Russian low-cost airline Dobrolyot, Russia is also considering a ban on Western carriers flying over Russia on flights to and from Asia, which would significantly swell costs and increase flight time.
He announced a ban on Ukrainian carriers operating transit flights over Russian territory.
Source: sptimes
