Spain lost over 785 million Euro in 2015 due to Russian veto

putinThe value of Russian food imports from Spain fell by 785.3 million Euro in 2015, according to the report on the impact of the Russian sanctions carried out by the Institute for Foreign Trade (ICEX).

The document contains an analysis of data corresponding to the years 2015 (the latest available) and 2012 (the last year when trade relations developed normally).

Already on 6 August 2014, Russia, following the crisis in the Crimea, decreed a ban on certain agricultural products, foodstuffs and raw materials from the United States, the European Union, Norway, Australia and Canada.

This “Russian veto” was expected to last for a year, but has already been extended until December 2017.

By sectors, fruits and nuts have been the most affected, with a reduction of 272.8 million Euro, representing 43% of the overall drop.

The revenue generated by stonefruit such as apricots, cherries, peaches and plums has decreased by 153 million Euro, while that of citrus is down 98.8 million and apples, pears and quinces have recorded a 17.2 million Euro drop.

Russia has replaced the declining entry of fruits from countries subject to sanctions with increased purchases from Belarus, the Maldives, Pakistan and Georgia, as well as more imports from Ecuador, Turkey, China, Morocco, South Africa, Serbia and Egypt.

In the case of vegetables, the fall between the two years analysed, amounts to 136 million Euro, with tomatoes as the main food affected.

In this case, Russia has used Egypt, Iran and Macedonia as “alternative suppliers.”

In sectors where the local industry is unable to meet the customers’ needs due to climate issues (such as fruits and vegetables), Russia has focused on identifying new suppliers.

Therefore, the ICEX concludes that “after a possible reopening of the market to imports,” Spain would still find it hard to recover its share of this market in sectors where Russia is developing its domestic production.

Published Tumbit 19 September 2016

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