When Economic Sanctions Backfire

The only other option is to trigger war, and that’s how a typical bully behaves.

Sanctions bite-back: Bickering, EU infighting over Russia retaliation

Published time: August 11, 2014 07:51
Edited time: August 11, 2014 10:55
russia-sanctions-europe-protests.si

There is growing dissent in the EU over policies that led to a de fact trade war with Russia. Meanwhile the countries not toeing the line are reaping the benefits, irritating those who jumped on the sanctions bandwagon.

China to start direct sales of fruit and vegetables to Russia

Poland asks US to buy apples banned by Russia

Greek members of the European Parliament demanded Sunday that the EU cancel sanctions against Russia. MEPs Kostantinos Papadakis and Sotiris Zarianopoulos said in a letter to some senior EU officials that Russia’s ban on food import from the EU, which was Moscow’s response to anti-Russian sanctions, was ruinous to Greek agriculture.

“Thousands of small- and middle-sized Greek farms producing fruit and vegetables and selling them primarily to the Russian market have been hit hard now as their unsold products are now rotting at warehouses,” the letter said.

The MEPs are representing the Communist Party of Greece and blame the EU leaders and their own government for supporting what they called “an imperialist intervention by the US, the EU and NATO” in Ukraine at the expense of good relations with Russia.

Greece is one of the EU members hit hardest by the Russian import ban, partially due to its economy still being in turmoil. Greek farmers stand to lose an estimated 200 million euro in direct damages due to Russia’s move, with more long-term consequences expected even if year-long ban is not renewed on expiry. The producers may find it very hard to win back the market share they had before the ban as non-affected countries would certainly weight in.

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Europe Furious That Putin Dares To Retaliate To Sanctions, Blames Economic Slide On Kremlin

Tyler Durden's picture

Either Europe is run by a bunch of unelected idiots, or… well, that’s about it.

After blindly doing the US’ bidding over all propaganda matters Ukraine-related, and following just as blindly into round after round of US-inspired sanctions, sanctions to whose retaliation Europe would be on the frontline unlike the largely insulated US, Europe appears to be absolutely shocked and is apoplectic that after several rounds of sanction escalations, Russia finally unleashed its own round of sanctions and yesterday announced a 1 year ban on all European food imports, something which will further push Europe into a triple-dip recession as already hinted by Italy yesterday.

In fact, Europe is so stunned by this unexpected “politically-motivated” retaliation by Russia, it issued a press release.

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Russia’s import ban means big business for Latin America

Published time: August 07, 2014 15:27 
Edited time: August 09, 2014 16:32
latin agri

Russia’s 1-year ban on food products from the EU, US, Canada, and Norway will force Russia to increase food imports from Latin America, specifically Ecuador, Brazil, Chile, and Argentina.

Russia will ban meat, dairy, fruit, and vegetable imports from countries that have imposed sanctions on Russia over the Ukraine conflict, which opens the door to Russia’s partners on the other side of the world.

Russia will have to fill an 8 percent gap in its total agricultural imports that it sources from the EU, USA, Canada, Australia, and Norway. The Netherlands, Germany, and Poland are currently Russia’s biggest food suppliers in the EU.

Meat and dairy products from Ecuador, Chile and Uruguay may appear on Russian supermarket shelves as early as September, said Julia Trofimova, a at Rosselkhoznadzor, Russia’s consumer watchdog.

On Wednesday the three countries confirmed they are ready to start supplying Russia with agricultural goods and Moscow will soon hold meetings with ambassadors from Brazil and Argentina.

Import bans could be expanded to any country that has a sanction policy against Russia, including: Albania, Australia, the United Kingdom, Germany, the European Union, Iceland, Canada, Latvia, Liechtenstein, Lithuania, Moldova, New Zealand, Norway, Poland, the USA, Ukraine, France, Montenegro, Switzerland, Estonia and Japan.

Here’s what the key Latin America economies have to offer.

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Russian Sanctions Begin To Backfire

Here’s the downside of sanctions: They hurt the countries applying the sanctions as well the target countries.A fresh measure of investor sentiment from Sentix shows confidence in the eurozone plunging sharply because of the sanctions being imposed on Russia.

From Reuters:

The Sentix research group’s index tracking morale among investors in the eurozone slumped to 2.7 in August, its lowest level in a year, from 10.1 in July. The consensus forecast in a Reuters poll had been for the sentiment index to ease slightly to 9.0.

“After last month’s recovery the eurozone Sentix index has suffered a painful setback,” Sentix said in a statement, attributing it to sharply reduced growth expectations because of the sanctions.

“As this slump derives from an event which is subject to politics and power play, the central banks, particularly the European Central Bank, will have difficulty in trying to counter this,” Sentix added.

The report notes that Germany, in particular, is seeing a sharp downturn.

germanyfeelstherussiaeffect

Sentix

It should be noted that by and large, the sanctions that have been imposed on Russia are not considered to be that steep. And yet already signs of pain are being felt in Europe. No wonder no true action is likely to be taken against Putin.

Obama’s War Against Russia Backfires

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