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Russia’s 1-year ban on food products from the EU, US, Canada, and Norway will force Russia to increase food imports from Latin America, specifically Ecuador, Brazil, Uruguay, Chile and Argentina.
Russia's ban opens the door to Russia’s partners on the other side of the world. Russia will have to fill an 8 percent gap in its total agricultural imports that it sources from the EU, USA, Canada, Australia, and Norway. The Netherlands, Germany, and Poland are currently Russia’s biggest food suppliers in the EU.
On Wednesday the three countries confirmed they are ready to start supplying Russia with agricultural goods and Moscow will soon hold meetings with ambassadors from Brazil and Argentina.
Agricultural products dominate Argentina’s export. Russia imports Argentinian pears, grapes, apples, citrus fruits, and other food. In 2012 trade turnover exceeded $1 billion.
In 2013, Chile exported $567 million worth of agricultural products to Russia. Regionally, Chile exports an array of fruits, including grapes, avocadoes, berries, plums, and kiwis.
Even though Ecuador primarily sends exports to the US and EU, it still has the potential to cut into the Russian agriculture and raw materials market. At present, bananas, cut flower, and coffee and tea are sent eastward to Russia.
Publication date: 8/11/2014
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