Russian European Food Sanctions Start to Hurt

Russia, the biggest buyer of European pears, last month banned an array of food imports from the European Union, U.S. and other countries that supported sanctions against it over conflicts in Ukraine. The restrictions pushed prices lower for everything from Spanish peaches to Latvian cabbage to Finnish dairy products, according to Brussels-based farm lobby Copa-Cogeca.

In the wake of the Russian ban, the EU announced support measures for fruit and vegetable producers worth 125 million euros ($162 million), which include payments for non-harvesting of crops and for free distribution of fruit to charities, hospitals or schools. About 82 million euros of the total will be allotted to apple and pear producers, said Roger Waite, a spokesman for the European Commission, the EU’s administrative arm.

Exports of all EU food products now banned by Russia were worth 5.1 billion euros last year, representing 4.2 percent of the bloc’s total agricultural shipments, according to the European Commission. About 29 percent of the EU’s fruit and vegetable exports went to Russia, and the sector is the most affected by the ban because the products are perishable, the Commission said in a Sept. 3 report.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza