EU Supports Food Producers Impacted by Sanctions on Russia

The European Commission today (18 August) announced that it will provide support for European food producers who have been affected by Russia’s ban on imports of agricultural products.

A total of €125 million will be available to producers, allowing the removal of some surplus products from the market, which are then distributed free, with farmers being compensated. The aim is to keep prices relatively stable. The measures will apply until the end of November.

Russia announced an import ban on food products from the EU and the US on 7 August in response to the sanctions imposed on it because of its actions in Ukraine. Since then, many producers have been faced with a surplus and have seen prices fall dramatically.

Dacian Cioloș, the European commissioner for agriculture, said that the money, which is made available through emergency measures as part of the Common Agricultural Policy (CAP) will reduce the overall supply of several fruits and vegetables. “Acting early will provide an efficient support to the price paid to producers on the internal market, help the market adjust and be cost-effective,” he said.

Farmers’ group Copa-Cogeca, which had written to Cioloș calling for a quick and effective response, welcomed today’s “swift action”.

Distribution of the money will take place through producers’ organisations, but will be available for producers that are not members of such organisations. The following products are affected: tomatoes, carrots, white cabbage, peppers, cauliflowers, cucumbers, gherkins, mushrooms, apples, pears, red fruits, grapes, and kiwi fruit.

An estimation of the volume of food concerned could not be given, the Commission said. According to a Commission spokesperson it depends on the prices per product and the evolution of the market.

Russia is the EU’s largest export market for food and agricultural products, and exports of the goods banned by Russia represent about 7% of EU exports. Agriculture ministers from the EU’s member states will meet on September 5th to discuss the food ban.

EU and Russia

 

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