Experts Work to Assess Impact of Russia’s Import Ban

12 Aug 2014 --- European Union regulators are still analysing the impact of Russia’s one year ban (announced last week), on imports of meat, fish, dairy, fruit and vegetables from a range of countries including the United States, the EU, Canada, Australia and Norway.

The move bars imports from countries which have imposed sanctions on Russia over the conflict in Ukraine.

Experts believe they will be able to assess some of the cost implications by Thursday this week, when they will have a clearer picture of the impact of the ban. 

So far analysts believe the ban could well hurt Russian consumers more than it affects Western exporters. 

In the UK, Sinclair Banks, who heads up fish processing firm Lunar, reportedly said the ban will have a big impact on his business. The company, which exports 16 % of its mackerel and herring to Russia, said it has already had to cancel a boat which was due to export herring to the region. 

Others have reported of similar impacts to their business. Cheese-maker Belton Cheese said it has cancelled a £30,000 cheese order due to go out to Russia. The company reportedly had an expansion plan in place for the Russian market which was expected to generate £2m over the next three years. 

For UK consumers though, the ban may have some positive effects. 

"The banning of these exports does not mean the goods will not be sold or consumed elsewhere. Households are likely to benefit from the fall in food prices, helping free up income for other spending," Schroders economists Azad Zangana and Craig Botham wrote in an analyst note.