It's a dark day for tulip growers in Holland as Russia threats to ban flower imports from the country
"From the European Union (EU), there are four different sanctions regimes in place in connection with the embezzlement of Ukrainian state funds, the illegal annexation of Crimea and the destabilization of eastern Ukraine. These sanctions have implications for businesses"The above quote is a short introductory description to Russian sanctions that appears on the official website of the Netherlands Enterprise Agency. The sanctions against Russia vary from an export ban on certain equipment, technology and services for deep water oil exploration and production in Russia, to capital market restrictions against several Russian state-owned companies in the defense sectors. As the description explains, these sanctions have been imposed on Russia due its alleged aggression and 'crossing the line' in Ukraine. The only problem with the rationale for sanctions against Russia is that they are baseless.
As one of Europe's most famous Professor Emeritus' in public and civil law, Karl Albrecht Schachtschneider, said:
"The self-determination of Crimean citizens can not be eliminated by treaties or the Ukrainian constitution. Crimea has, and had as autonomous republic, the right to choose their own path, even if it means separation from Ukraine. The help that Russia offered was legitimate and certainly no violation of international law."Despite what warmongers in Washington and the EU would like the world to believe, there was no illegal annexation of Crimea, and it is the West itself that is guilty of the destabilisation of and conflict in eastern Ukraine. Yet, despite these facts, sanctions were imposed against Russia by the EU - which were recently extended until January 31, 2016. The fact that the sanctions amount to the EU shooting itself in the foot is apparently irrelevant to the EU power brokers because, after all, only ordinary Europeans will suffer. The Netherlands is no exception when it comes to its farmers and employers feeling the pressure as a result of this recklessness by the EU.
Before the sanctions, the Netherlands exported €1.5 billion worth of agricultural products to Russia, the most important products being flowers and plants, with a total export value of €390 million in 2013. The second most important export to Russia is milk products. In 2013, cheese, milk, butter, and eggs accounted for €301 million worth of Dutch exports. In third place are vegetables and fruit, with an export value of €184 million. All these exports have seen marked decreases as Russia imposed its own sanctions against the EU in August 2014. Russia has boycotted vegetables, fruit, dairy products, meat, and fish from the Netherlands: bad news for the biggest exporter of fresh produce to Russia - and Russia's second-largest market after Germany.
Before the anti-Russian propaganda: Russian president Putin having a beer with the Dutch King Willem-Alexander in the Holland Heineken House.
Between 2009 and 2013, cheese exports to Russia trebled to €233 million a year. Since the sanctions were imposed they have dropped to €96 million.Sanctions hit Dutch fruit exports as well:
Russian counter-sanctions slashed an estimated €300 million off Dutch fruit exports in 2014. Some firms have scrapped plans to enter the Russian market due to the economic crisis, while others fear doing business there could hurt their image.As previously mentioned, due to the sanctions, it is forbidden for Western companies to cooperate in the production and exploration of oil in the Arctic or in shale gas projects in Russia. The services surrounding that are, among others, drilling, deep-sea exploration, testing and delivery of specialized vessels capable of moving on water. "When a company like Shell must stop these activities, it means that major Western suppliers also have to abandon their activities," says director Bart Jan Koopman of the Fenedex export organization. "Then the whole supply chain is hit and Dutch companies are affected by it too."
"In any case, it is likely that in such a case, companies from South America and Asia will fill the gap left by Western and Dutch companies," says Koopman. This fear also exists at Damen Shipyards, the largest shipbuilder in the Netherlands. "Shipbuilding is an industry where projects need months or even years to come to fruition. The short-term effect on pending cases is limited as long as we do not get requests from companies or individuals affected by sanctions. But the medium-term effect is that Russian consumers will look for alternative suppliers, which are generously present in Asia. That uncertainty alone leads to stagnation here," said a spokesman.
In addition, as reported by BNR Newsradio, a Russian oil terminal with a capacity of 3 million m3 of crude oil was to be built in the port of Rotterdam. The Russian oil would have been exported to the rest of the world and involved a contract of about 30 years, which would have generated more than €700 million in revenue. Due to the economic sanctions and political tensions between the West and Russia, Russians are not able to finance it and the terminal has been cancelled.
© ANPRotterdam foregoes millions in revenues due to economic sanctions
Indeed, sanctions have created favorable conditions for Russian industry. As Russian Industry and Trade Minister Denis Manturov said: "...now sanctions provided them [companies and consumers] with additional motivation, and they are turning to Russian companies. This generates demand for the Russian industry. So, to me, this was an advantage, in a sense."
Bye bye, Dutch flowers
Things are yet worse for the flower exporters who are highly exposed to Russia. "Their customers have just seen a 30-40 percent cut in purchasing power in a very short period of time," said Robert Roodenburg, director of the Dutch Union of Flower Wholesalers. A 10 percent fall in sales in the autumn deepened to "more like 25 percent" in November and December, he said.With this year's exports decline, this puts Russia temporarily in eighth place on the list of markets for flowers and plants. Last year the country ranked fourth.
Russia's recent threat to ban flower imports from the Netherlands has Dutch flower-growers even more worried. Chrysanthemum grower Hein van Wordragen from Bruchem, who exports 10% of the thirteen million chrysanthemums that are normally exported to Russia, said: "A boycott has consequences. It always leads to a loss. First we had the crisis in Ukraine and now this boycott. This is certainly not what we've been waiting for."
As Western leaders continue to play their childish game of 'let's get Russia', it is ordinary EU citizens that must shoulder the burden of the cost. One thing is clear, the relationship between the Netherlands and Russia may never be the same. Jeroen Ketting, the director and founder of Lighthouse Russia B.V., a consultancy for Western companies operating in Russia, said as much: "The relationship has changed, and the effects will be felt for years to come. The boom period, let's call it 1999-2013, is never coming back."
As a Dutch citizen, I can only echo the words of President Putin: "It would be great to see Europe show more independence and sovereignty, and the ability to stand up for its national interests - the interests of its peoples and countries."
"This will hurt me more than it will you". Western governments do not act in support of thier peoples, and have not for some time now. Idealogy, like a bad fever, cripples them and all that they rule.