(Adds quote, comment from analyst)
MOSCOW Aug 6 Russia will impose "quite
substantial" bans on the U.S. and EU food imports and has
already decided to suspend U.S. poultry imports as part of
President Vladimir Putin's order to prepare a list of food
import bans, its veterinary service said.
Putin signed a decree on Wednesday banning or limiting
imports of agricultural products from countries which have
imposed sanctions on Russia because of its support of rebels in
Putin ordered his government to come up with a list of goods
to be banned for imports into Russia and to last one year, the
Russia's Veterinary and Phytosanitary Surveillance Service
(VPSS) will ban the U.S. poultry imports, VPSS spokesman Alexei
Alekseenko told Reuters on Wednesday evening.
He declined to say what other products would be included in
the list, but said the ban on the U.S. and EU food imports will
be large. Russia imported $43 billion worth of food last year.
"In relation to the U.S., the country which was imposing
sanctions, the decision (on food import bans) will be quite
substantial," Alekseenko said. The same "of course refers" to
the European Union, he added.
Apart from boosting local production and expanding
cooperation from sanction-resilient countries, Putin's decision
may well become a self-made sanction on the population, Dmitry
Polevoy, ING chief economist in Russia & CIS, said in a note.
"Even though from political point of view the move may look
appropriate, and it will indeed hit countries supplying food to
Russia, the move will likely only amplify the effects of
financial/sectoral sanctions imposed on Russia," Polevoy said.
"This will likely add to overall sanction costs via higher
food inflation and, so, will have a widespread effect on
households," he added.
To see the list of Russia's top food imports:
(Reporting by Polina Devitt, editing by David Evans)