Russia will aim to strengthen agricultural sector

Subject

Russian agriculture

Significance

On June 24 President Vladimir Putin signed a decree to prolong Russia's food embargo in retaliation for the continuation of Western sanctions. Putin said the counter-sanctions would benefit domestic producers. The extension will last until August 2016. Russia's food embargo was initially introduced in August 2014 against EU members, the United States, Canada, Australia and Norway. The August 2014 embargo applied to most imports of fruit, vegetables, meat, fish and dairy and milk products.

Impacts

• Russia will remain a large global exporter of grain, but increased investment will be needed, particularly on machinery.
• Moscow may expand the embargo to new sectors to inflict greater pain on Western producers.
• Simultaneously, it will seek to increase agricultural ties with non-Western markets to ensure food security.