The import ban will not result in a food deficit in Russia, and the short-term impact will be moderate. However, it is likely to push up food prices
ANKARA - The Russian trade ban on foods imported from Western countries in retaliation to the last wave of sanctions imposed on Russia will affect the country’s domestic markets more than it will western countries, Ratings Agency Fitch said Friday.
In a statement released on its website, Fitch said Russia’s domestic market will suffer the most from the measures and U.S. producers also expect to see considerable losses.
"Russia's trade ban is likely to hurt its domestic market the most," Fitch said and added the U.S. protein industry which relates to companies who process main protein sources consumed by humans such as beef, pork, poultry and byproducts of these foods, is also poised to lose while the Latin American market will see some gains.
The ban is not expected to affect the EU market significantly Fitch said, noting most big companies have their production facilities in Russia.
"The import ban will not result in a food deficit in Russia, and the short-term impact will be moderate. However, it is likely to push up food prices, which have already picked up after the rouble devaluation during the first half of this year." Fitch said.
On Wednesday, Russian President Vladimir Putin signed a decree suspending procurement of "beef, pork, poultry, fish, cheese, milk and vegetables" from sanction-imposing countries for a year.
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