© AFP Photo / Sam Panthaky
Russian President Vladimir Putin signed Wednesday a decree imposing a one-year ban on agricultural produce, foods, and raw materials from countries that have sanctioned Russia. The list of banned or restricted goods is expected to be approved by the government later in the week.
European agricultural businesses responded by saying they are worried that the Russian import ban may have serious negative consequences for them.
Finland may lose as much as 400 million euros (US$535 million) as a result of Russia's retaliatory sanctions. According to Heikki Juutinen, the managing director at the Finnish Food and Drink Industries' Federation, sanctions would be "very bad news" for his country, as about a quarter of Finland's exports go to Russia, local Yle radio station reported. The situation may affect such big players as Valio - Finland's biggest dairy producer.
"This has the potential - and I stress potential - to become Economic Crisis 2.0," Prime Minister Alexander Stubb told reporters in the Finnish city of Espoo, Reuters quotes.
However, Stubb also made clear the burden of retaliation had to be shared among EU members: "If sanctions hit Finland disproportionately, we will seek aid from our EU partners."
The German Farmers' Association (Deutscher Bauernverband) said the move could cause an increase of supply on the EU's internal market, which, as a result, would put additional pressure on local producers.
"Russia is an important market for our key export goods, primarily meat and dairy products," said the group's deputy head, Udo Hemmerling, as quoted by Itar-Tass.
Comment: Putin said the sanctions would backfire, and he tends to be right about these sort of things. The EU will come to regret backing the insane Americans...