Russia and Ukraine Escalate Food Sanctions

Tensions continue to rise between Russia and Ukraine, and now food is the weapon of choice.

Ukraine has stopped importing a range of goods from Russia including meat, fish and vegetables, after Russia imposed a similar ban on Friday.
The government of Ukraine said in a statement that Moscow continues to cause “substantial damage” to the Ukrainian economy, and it vowed to match every move made by Russia.

Russia said in December it would ban imports “of agricultural products, raw materials and foodstuffs produced in Ukraine,” starting Jan. 1.

Relations between the neighboring countries have deteriorated rapidly since Russia seized Crimea from Ukraine in March 2014. Ukraine turned to the West for financial support, and signed a wide-ranging trade and political agreement with the European Union in June 2014.

The preferential trade aspects of that agreement came into force on Jan. 1, which led Russia to suspend its own free trade deal with Ukraine the same day.

via CNN

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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 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