embargo - a sanction that applied by some countries to the state, which violated international law.What is an embargo on products?This means the cessation of supplies of certain goods and trade in general.If the embargo applied to the country, it involves the detention of ships with cargoes and prohibiting them to enter the ports of the States that have made this a full ban.
What is an embargo on products?
embargo - ban.This means that the country can not import goods of those countries which imposed sanctions on Russia.This applies to agricultural products, raw materials and food.The embargo on the import of products in the Russian Federation was introduced August 6, 2014 President Vladimir Putin.
Under the ban on the import of the country were the European Union, the United States, Australia, Norway and Canada.But since the EU is almost independent of Russian exports (less than 1%), the economy has not suffered serious losses.EU countries also intend to pay a sum of money to states that have suffered from the embargo.The money will be used for this purpose, take from the fund for assistance to victims of political persecution.
The sanctions caused the least damage Luxembourg.A huge damage suffered Lithuania, Poland, Estonia and Finland.In general, the European Union reacted differently to the ban.Someone's economy suffered more, and someone less.
The list of products that are prohibited from being imported into the Russian Federation, were cattle meat (in any form), pork (in any form), edible offal of poultry, different kinds of fish and aquatic invertebrates.And milk, sausage and cheese products, vegetables, fruits and nuts.
recently published an updated list of products, which has replaced the old one.He has a few differences.For example, the requirements for lactose free products have become tougher.If previously allowed to import milk or lactose-free products now can be imported only one list, which is intended for the treatment or prevention of diet.
Due to the embargo list of products that are now under the ban, about the meat, edible offal, shellfish, milk and dairy products, a variety of vegetables and fruits.A ban on the export of edible roots and tubers are not canceled.
product that is not touched ban
Some names are not limited in supply in the Russian Federation: baby food, specialized lactose-free milk, supplements, concentrates, protein, vitamin and mineral supplements.Russia has allowed the import of vegetables, which are intended for sowing potatoes, corn, onions and peas.
also not included in the forbidden list pastries and flowers.
economic consequences for Russia
addition that reduced range of certain products, a ban on imports is also brought some unwanted changes in the economic sphere.The embargo on the import of products in the Russian Federation in conjunction with other factors, has had negative consequences for the economy.Only for half of this year, wages fell by 8.5% and the half-price food for one month, in contrast, has increased by more than 14%.You can see that people began to save money on purchases, especially in the food.
Companies that specialize in the supply of food, too, suffered from the embargo on food.They began to produce new products from low-quality ingredients, but cheap, and the price for such products has also become smaller.Some firms also reduce the quality of packaging, container changing to cheaper.
changes in product mix
To replace all of the forbidden products to a new need three to four years.Some grocery stores, despite the prohibition of the import of products in Russia, trade in contraband.Transit of goods through Kazakhstan or Belarus.
In connection with the embargo on the import of products in the Russian Federation, there are problems with the amount of power necessary for the treatment of patients with lactase deficiency.There may be a problem with the number of products for diabetics and allergy sufferers, as with sports and nutrition - such goods are simply not enough.
prices of some products have risen very strongly, for example, buckwheat has become more expensive than doubled.The price of eggs, sugar, fish, tea, flour and sunflower oil also rose.
In response to the continuation of sanctions by the European Union The Russian Federation also will extend the embargo on the importation of food.Renewal period has become known - for one year.
Also, the country conducted a survey among the population about how people relate to the extension of the embargo, and how this ban has changed their lives.
According to the survey, more than 80% of Russians support the idea of the extension of the embargo on the import of products in the Russian Federation from EU countries and the USA.
People believe that the ban on imports affected the economy positively.Also, half of the respondents said that they did not notice any changes.
It was a statement that sanctions against Russia are illegal.It is also said that Russia will act on the basis of reciprocity.If sanctions are lifted, the country and abolish the embargo.
reaction of the countries where the ban has not spread
Countries that are not extended the embargo on Russian products, gained much.For example, it is a chance for Serbia to develop its economy through delivery of products of the country to the territory of the Russian Federation.They will deliver quality products in a huge range.Macedonia already exports fruit and vegetables into the country.Belarus set to help Russia: it will not allow EU countries to supply products through its territory.It also gives us the mussels, coconuts and octopus.
Brazil actively supplying beef and chicken.Turkey - one of the largest suppliers in Russia.And this country, in addition to fruits and vegetables, has signed a contract for the supply of milk and honey.
Chile's seafood exports to Russia, as the largest supplier of fish.Mauritius and Ecuador are going to become suppliers of fish in the Russian Federation.South Africa brings a lot of different fruits.
Egypt, moreover, that he was going to join the Customs Union, also promises to be a supplier of various products.
Some countries have gained much of the imposed ban on the importation of goods in several countries in Russia, because in this way they have decided the issue of increasing profits.And if profits will be huge, it will provide an opportunity to raise the country's economy to a higher level.Moreover, domestic producers an opportunity to prove that our products are not worse than in Europe.