From Reuters como newsletter:
Russia bans all U.S. food, EU fruit and veg in sanctions response; NATO fears invasion
Russia will ban all imports of food from the United States and all fruit and vegetables from Europe, the state news agency reported on Wednesday, a sweeping response to Western sanctions imposed over its support for rebels in Ukraine.
Any thoughts on the market impact of such ban ? Did US or EU prices open lower due to a lack of exportability to Russian markets ? Was the import ban already priced in the forward/future prices ?
This is not my field of como at all but thought it would be quite interesting to get to know what the guys in the trenches think of such news. @"BOTT1702" any thoughts ?
*** Update ***
Weirdly, nothing really happened.
http://www.reuters.com/article/2014/08/07/ukraine-crisis-russia-wheat-idUSL6N0QD4HK20140807
*** Update ***
This is literally like a child refusing to eat his vegetables, I'm cracking up.
Does Russia produce enough food to sustain itself? Seems like that could backfire pretty quickly.
don't know why they even bothered importing, Siberian broccoli is to die for.
I think they will be able to do something with this issue. People did not want imported American chicken anyway. Uzbekistan, Kyrgyzstan, and Tajikistan will probably increase vegs and fruit export to Russia. So no shortage is expected.
Geez, all this tense manipulation is making me regret voting for Vladimir. He seemed like such a nice guy when we had him over for dinner.
I just hope that such bans exclude pineapple from Hawaii because it would be tragic for the Russian children not to taste the juice.
DoleI can tell you're going to last a very long time.
@16rl, I don't think this won't have a huge impact on the grain markets. Now, if Russia decides to ban all wheat exports, that will be a different story. But until then, we're just not seeing the impact. There will be some other markets that feel this, but not grains.
Some countries will feel it more than others. Finland for example will be hit quite hard as some of its companies that export milk to Russia will lose up to fifty percent of their volumes...
Now, having banned imports of some products, Russia has joined the US and EU in imposing sanctions on Russia and Russian people. That would be funny if not so sad.
Sad for who ? Russians definitely prefer to eat less fruits and vegetables than letting the USA and the EU walk over them while saying nothing. I have several friends from Russia and I assure you they're the proudest people I know and it's almost impossible for any of us (ie not Russians) to understand how strongly they're attached to their country.
It depends on people. Imagine if you were buying Finnish lactose-free milk because you can't have regular milk. Then Russia bans imports of it, and there are no alternatives on the market. Who benefits from this decision? Or imagine you liked to have some cheese from EU, and now you can't have it. So you can't buy the products not because they are bad, or too expensive, or aren't produced anymore; you can't buy them just because they are banned as a result of a political action. Peaceful people don't live better as a result of such decisions. It is using power for the sake of using/protecting power and showing how cool and powerful of a guy you are, not for the sake of helping the people of your own country live better. The prices on local products will go up now as well. I was born there, and as a matter of fact, I know that the middle class people in Russia are highly critical of not having some groceries they really like. The thing is that "middle class" in Russia is so small that it doesn't really fall under those 80% who are supporting Vlad. Majority of those 80% never experienced any decent standards of living (and unfortunately never will), so for them nothing really changes as their whole life is surviving anyway. All they need is to turn on the TV and be told how great of a country they live in. Then Russians are proud, it is true, but not everyone is too much attached to the country. Those who are more ambitious, educated, intelligent quite often tend to go abroad searching for a better life.
Go long Uzbekistan.
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