Russian Import Ban

Russia’s import ban on agricultural products looks likely to be extended until the end of 2017.  However, there will be an easing of the ban for products which can be shown to be used for the production of baby food, as manufacturers are finding it difficult to source the necessary ingredients.  The ban on products including dairy, pork, beef, poultry, fruit and vegetables from the EU, US, Canada and Australia was introduced in mid 2014 in retaliation to the sanctions imposed on Russia due to the situation with Ukraine.  There is no doubt the emargo has contributed to the fall in agricultural commodity prices, coming at a time of increased supplies and also a slowing of economies, particularly in China.  EU leaders will meet at the end of June to discuss whether to extend sanctions against Russia which expire in July.  There is a level of resistance to the extension because of the hardship being felt by EU farmers, but world leaders are unlikely to lift them until the situation between Russia and the Ukraine improves.

However, there is hope that Russia may be prepared to lift a ban on some pig products.  Pig farmers have been particularly affected.  Russia imposed a separate (earlier) ban due to food safety concerns after the African Swine Fever outbreak in the EU in January 2014.  But there is now talk that it may be prepared to lift its restriction on pig products not covered in the wider political ban (such as fats).  This would be dependent on the EU meeting a list of demands, including lifting the EU travel ban on Russian agriculture minister, Alexander Tkatchev.