The Russian ban on agricultural products

Briefing 21-04-2016

In response to the EU's economic sanctions against Russia in the context of the situation in Ukraine, a Russian ban on certain EU agri-food products has been in place since August 2014. The agricultural sectors most affected by the ban include dairy, fruit and vegetables and meat, reflecting products of which the EU has been an important supplier. Since the ban, the EU has lost more than €5 billion per year of agri-food exports to Russia. This loss has been partially offset by the 6% increase in the overall value of EU agri-food exports in 2015 in comparison to 2014, with major gains in export values in the USA, China and other key markets. The effects of the ban are not distributed evenly across EU Member States, impacting more on those whose agri-food sector had been more closely connected with the Russian market. In response to the ban, a set of actions have been pursued at EU level, ranging from specific market-support measures, including private storage aid, to actions aimed at promoting EU products either within or outside the EU. The European Commission has also intensified bilateral and regional trade negotiations to create new market opportunities. This includes actions to reduce market barriers in respect of sanitary and phytosanitary (SPS) measures. Member States will decide later this year whether sanctions on Russia are to be renewed.