Russia's embargo on foodstuffs coming from several western and European countries may mean no brie on the shelves in upscale Moscow supermarkets, but it also means less cheese sold (and, thus, less income) for French cheesemakers.
In fact, it appears that the Kremlin's moves against western foods -- which came in response to sanctions imposed on Russia because of the ongoing crisis in Ukraine and Moscow's role in stoking it -- is starting to take a bite out of the European economy, forcing the European Union to respond. Reports the EUobserver website:
The EU is preparing to unveil new aid for EU fruit producers hit by the Russia food ban.
Agriculture commissioner Dacian Ciolos promised extra assistance in the coming days for suppliers of citrus fruit, apples, and pears at a hearing with MEPs in Strasbourg on Monday (15 September).
The European Commission has since August earmarked €158 million for aid to fruit and vegetable growers who have had to take products off the market, as well as €30 million for dairy suppliers who are putting stock into cold storage.
The money is to come from a “margin” - money allocated by EU countries but unlikely to be needed - in the EU’s 2015 Common Agricultural Policy (CAP) budget....
....Ciolos also noted the compensation for citrus, apples, and pears will be paid out using new rules, to enter into life next week, which tie the money more directly to volumes affected by the Russia ban.
The change comes after Polish producers filed massive claims - worth €145 million - in the €125 million envelope.
Meanwhile, the Ukraine crisis is causing some ecomomic uncertainty for another foodmaker, in this case Ukrainian president Petro Poroshenko, who also happens to be the owner of Roshen, a very succesful chocolate and sweets manufacturer which had previously been the target of Russian sanctions.
After becoming president, Poroshenko vowed to sell off Roshen. But as Reuters recently reported, despite the company's impressive market share in Ukraine and the surrounding region, the current political uncertainty in Ukraine is making buying Roshen seem like less than a sweet deal.