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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.