Food fight as Moscow bans imports from countries that have launched sanctions

There are sweeping restrictions on fruit, vegetables, meat, fish, milk and dairy from the 28 countries of the European Union, the United States, Australia, Canada, Norway and Ukraine - effective for one year.

In Moscow, Irina Kashkadova, a shopper at a high end food store was untroubled saying: "I don't think we'll lose anything from this and at the same time we'll develop our agriculture and make new trade links with other countries."

Imported food accounts for 43 percent of what Russians eat according to the Moscow-based think tank the Institute for Complex Strategic Studies which used Russian government and Eurostat figures.

Half of the cheese consumed comes from abroad nearly two thirds of the vegetables, and around a quarter of the beef and pork.

Some countries stand to benefit - places such as Turkey, Brazil and Chile as well as Serbia, Belarus and Armenia. They can step up food exports.

But Russians will suffer through higher prices and shortages of some goods. That will push up already rising inflation.

As for farmers in Western producing countries, Stefan Bielmeier, Chief Economist at Germany's DZ Bank, said: "Southern Europe will be hit hardest, especially Spain and Greece. And Poland will be affected as well as several smaller Eastern European countries. And there's a chance the United States and their meat exports will be affected.

But overall, I don't expect a great impact."

Russia has also said it is considering banning European and US airlines from flying through Russian airspace to the Asia-Pacific region.

Preventing the use of transit routes over Siberia would be very costly for European carriers as they would be forced to fly longer distances and burn more fuel.

But it would also hurt Russia's Aeroflot which gets the hundreds of millions of euros of fees that foreign airlines pay for the overflight rights.

Source: Euro News

Photo source: Celeberty Birthdays, Chanel News Asia