EU agro-business suffers from Russian Embargo

The article discusses the significant impact of the EU's sanctions on Russia and the subsequent Russian embargo on European fresh food imports, particularly affecting the agricultural sector in the EU. In 2013, trade between the EU and Russia was robust, with EU exports to Russia valued at €5.1 billion. However, the sanctions and Russian counter-sanctions, especially the 2014 ban on European fresh food, severely affected various sectors, including dairy and fisheries, leading to substantial financial losses.

Countries heavily dependent on agriculture, like Lithuania, Poland, Finland, Greece, and Spain, were most affected, with Lithuania alone suffering losses of around €1 billion. Some EU agricultural businesses attempted to circumvent the embargo by rerouting exports through Switzerland and Belarus, with the latter being more successful. Despite these efforts, many faced legal challenges, as contracts with Russian companies often did not mention the embargo.

The embargo led to a significant shift in Russia's import sources. Previously, 73% of its agricultural products were imported from the EU, but it turned to other regions like Latin America, Belarus, and Turkey. This shift benefited these regions, as evidenced by increased meat exports from Brazil and fish exports from Chile.

The article also highlights the opposition to the embargo's extension from various European officials, including those from Italy, Bavaria, Spain, Greece, and the Czech Republic, indicating the ongoing economic strain the embargo places on the EU's agricultural sector.