Thursday, August 14, 2014

Finland decided on retaliatory sanctions against Russia – RBC

Finland decided on retaliatory sanctions against Russia – RBC

Finland does not intend to respond to the Russian embargo and introduce retaliatory sanctions against Russia. This was announced on the eve of the air of Yle Prime Minister Alexander Stubb. According to him, relations with Russia have always been characterized as a good and mutually beneficial.

His position, he brought to the attention of the EU leadership. “My message consisted of two parts. Firstly, we will not introduce any retaliatory sanctions. Second, the agricultural sector in Finland need help, “- said the Finnish politician. Note that in 2013 Finland delivered in Russian only food for € 400 million.

A request for assistance from the Finnish sounded on August 6. It is noteworthy that the Compensation Stubb mentioned at the press conference, a few hours before Vladimir Putin’s statement on the responses of Russia against countries that have imposed sanctions against her regime.

Finland is not the first country to apply for assistance to the EU. Today in Brussels called an emergency meeting of the EU Standing Committee on the Food Chain and Animal Health, dedicated to the Russian antisanktsiyam and their impact on European manufacturers. The meeting was initiated by the EU Commissioner for Agriculture Dacian Ciolos. While experts are preparing the response to Moscow’s actions, more and more European countries are turning to Brussels for compensation of damage from a fall in exports. The first of the 28 countries in the bloc’s intention to get compensation even 5 August said Poland. “As soon as possible we need to apply to Brussels to compensate for our farmers,” – then said Polish Minister of Economy Janusz Pihochinsky. On August 1, Moscow imposed a ban on imports of Polish fruit. According to the Minister of Agriculture of Poland Marek Sawicki, the loss of the country from the “apple embargo” could reach € 500 million. “After the Russian sanctions exports of food products from Poland to Russia halved. Without these measures, it would be about € 1,6 billion in 2014, “- said Pihochinsky.

Seventh August of plans to seek compensation from Brussels said Foreign Minister of Lithuania Linas Linkevichyus. On Monday, the government discussed the possibility of a response plan for the protection of Lithuanian enterprises of Russian import restrictions. As reported by Delfi referring to the Minister of Economy of Lithuania Evaldas Gustasa, at the meeting it was decided to support the convening of an emergency meeting of the European Commission on Thursday. Afternoon after the head of the Ministry of Agriculture of the country Virginia Baltraytiene announced, the government organizes a centralized purchasing food from farmers, to compensate for the state budget as it should be the European Commission. Only one dairy Lithuania in 2013 set in Russia at € 7,3 млн.

In addition to these countries, potentially to demand compensation may join Greece, Spain and France. According to Greek Ekathimerini, August 12 the government has supported the demand of farmers for compensation of losses from the EU, as the supply of vegetables to the Russian market had an important place in the structure of Greek exports. According to calculations of the Ministry of Economy, Trade war between Russia and the EU could cost the Greek economy in the € 7,5 млрд (about 4% of GDP). Ministry of Agriculture of Spain estimates that Russia occupies only 1.8% of Spanish exports of products for which Moscow has banned. Nevertheless, Madrid fears a collapse in food prices. In addition, French President Francois Hollande urged Brussels to “take appropriate measures” to combat the effects kontrsanktsy. Compensation from the crisis fund
 Total volume of imports from the EU to Russia now banned products in 2013 amounted to $ 6.02 billion. European Commission also has a € 400 million ($ 535 million) crisis fund, from which it is planned to pay compensation to European farmers. According to the documents of the European Commission, Crisis reserve fund in the amount of € 400 million per year (in 2011 prices) was established in late 2013 as part of the agrarian reform in the EU. It is formed by direct deduction from revenue. Proceeds in excess of the amount reserved “return to farmers in the subsequent financial year».

In fact, this fund is a part of the budget each year to eliminate redundant cases of crisis in agriculture. This amount is cumulative – each year the size of the fund increased by € 400 million. Since the reform program adopted by the European Commission, is designed for 2014-2020 by the end of this period, the reserve will increase to € 2,8 billion. However reform acts first year, and the hands of the Brussels now only € 400 million to compensate European farmers. According to Reuters, this is the first use of this provision.

August 14, 2014

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