First BRICS Bank, Now BRICS Food Bank

俄國人來同我地爭糧食, 想唔通脹都唔得啦 !

www.zerohedge.com

Despite President Obama's dictating that Russia is increasingly "isolated," it appears they have found a whole new set of friends to play with in the global trade sandpit. In retaliation to Western sanctions, Putin yesterday unveiled a total food import ban from all sanctioning nations, and, just as the BRICS created their own 'IMF-lite' away from Washington's prying eyes, Russia plans to substitute banned goods with not just domestic supplies but imports from Latin America, China, and several other nations. Agriculture Minister Nikolai Fedorov said "no food shortages are expected," but more isolation for the West...

Russia is already turning away trucks at the border and cancelling orders (as FruitNet reports)

Catalan producer association Afrucat is urging its members not to send lorries to Russia until the situation regarding the ban on EU imports has been fully clarified, following reports that trucks laden with fruits and vegetables are already being refused entry at border crossings.

“Initially it seemed that the Russian government was making its decision on a product-by-product and country-by-country basis after discussions with its producer associations to ascertain the possibility of meeting demand with local production, but as the morning wore on, a growing number of Russian importers starting cancelling orders – first as a precaution and subsequently as it was confirmed that trucks would be turned away at the border,” Afrucat said in a statement.

As Bloomberg reports,

Russia plans to substitute banned goods with domestical products, supplies from Latin America, China, North Africa, Israel, Turkey, former Soviet allies, Agriculture Minister Nikolai Fedorov tells reporters in Moscow.

Russia may revise or narrow food import restrictions, not planning to widen them yet

Restrictions could have been tougher; “That’s a necessary measure, we were forced to make these decisions”

No mid-term pressure on inflation expected; import restrictions may lead to short-term, “emotional” CPI jump

No food shortages expected

Russia should spend additional 137b rubles in 3-4 yrs on agricultural industry, according to ministry est.

Country ready to defend position on food ban in WTO

Food ban doesn’t apply to Switzerland

Russians won’t feel dramatic changes, incl. in restaurants; “bon appetit” to all, Fedorov says

• Russia can replace meat imports from U.S., EU, Canada, Australia with supplies from Brazil, Uruguay, Paraguay, Argentina, Belarus
• Russia will try to replace Norwegian red fish with domestic supplies, shipments from other countries
• Country consumes 2.345m mt of beef/yr, incl. 59kt from 5 banned suppliers
• Pork: consumption 3.415m t/yr total vs 450kt from 5 sanctioned suppliers
• Poultry: 4.28m t/yr total vs 338kt from banned countries
• Fish: 3.44m t/yr total vs 457kt from banned countries
• Dairy: ~36m t/yr total vs 459kt; cheese, butter, powdered milk can be imported from South America, New Zealand
• Vegetables: 16m t/yr vs 900kt; subsitutions possible from Turkey, Argentina, Chile, China, Uzbekistan, Azerbaijan
• Fruits and berries: 11m t/yr vs 1.6m t; apples, pears can be imported from Argentina, Chile, China, Serbia; cherry, apricots, peaches from Uzbekistan, Azerbaijan, Armenia, Israel, Turkey, Iran; citrus from Egypt, Morocco, Turkey, South Africa

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Seems like once again, US sanctions have forced retaliation from Russia that economically impacts the US (and European) economies - just like Jack Lew said it would not...