Russia is imposing a one-year ban on food and agricultural products from the United States, European Union, Canada, Australia and Norway who have imposed economic sanctions on Russia over the conflict in Ukraine. The ban will include pork, beef, poultry, fish, fruit, vegetables, dairy, cheese, nuts, etc. Russia is also considering “protective measures” or sanctions on aviation, manufacturing, shipbuilding and auto industries.
Russian President Vladimir Putin in announcing the sanctions called on the Russian government to boost domestic supplies with the help of producers and retailers and to avoid increased food prices. However, due to Russia’s dependence on imported food and agricultural products, a number of economists believe this action by Russia will lead to higher food inflation for its consumers.
Last year Russia imported $43.1 billion of food and agricultural products, including $1.2 billion from the United States. The largest exports from the United States were poultry ($300 million), nuts ($170 million) and soybeans ($160 million).