The government of the Russian Federation will not cancel the contractee, despite losses from food embargo / Akishin Vyacheslav

Russia will not be the first to abolish the restrictive measures imposed in response to sanctions against the current policy of Moscow, Prime Minister Dmitry Medvedev

The press service of the Russian Government

Russia will not be the first to abolish the restrictive measures imposed in response to sanctions against the current policy of Moscow, Prime Minister Dmitry Medvedev at a press conference after talks with Prime Minister of Finland Antti Rinne.

«If we discuss some first steps by Russia, the abolition of some of our restrictive measures, the response of restrictive measures, the answer is: of course we do cancel will not» — said Medvedev, answering a question, whether Russia can go on the cancellation counter in the initiative order.

The head of government noted that «no sanctions are not encouraging» as many are not encouraging and the Russian retaliatory measures. However, according to Medvedev, the Russian companies in favour of retaining the Russian response to EU sanctions forever, RIA «Novosti».

The Prime Minister stressed that retaliatory counter-sanctions can be stored for a long time, but in these conditions, Russia could develop relations with European countries separately. «We’ll see if we can move forward primarily in Ukraine itself to resolve the internal conflict can be, our relationship with the EU, which put it in a relationship, the better. Well, if you can not move forward, then these sanctions will remain for a long time, our contractee will continue too for a long time. But in these conditions it is possible to live and develop,» — said Medvedev.

International sanctions against Russia have been introduced in 2014, after the annexation of Crimea and the conflict in the Donbass. In response, President Vladimir Putin signed a decree on the introduction of counter-sanctions, which were directed against citizens — it was forbidden to import to Russia agricultural products, raw materials and food products from countries that imposed anti-Russian sanctions: US, EU States, Canada, Australia and Norway. A ban were beef, pork, poultry, fish, seafood, cheeses, milk, other dairy products, vegetables, fruits some other products. August 13, 2015 to the list of countries where it is prohibited to import products that were included joined the anti-Russian sanctions Albania, Montenegro, Iceland, Liechtenstein and, since 1 January 2016 — Ukraine (the LIST of prohibited products).

In June 2019, the President of Russia Vladimir Putin extended the food embargo against countries that adopted in 2014, the anti-Russian sanctions in response to the annexation of Crimea and Russian actions in the Donbass.

Because of this five-year food embargo of the Russian consumers annually lose 445 billion rubles (in prices of 2013), the study said economists in the Academy and the Center for economic and financial research and development (CEFIR). These losses amount to about 3,000 rubles per person per year or 4.8% of the cost of the minimum food basket. This lost money is redistributed in favor of Russian producers (84%) and importers (3%). Another 13% were net losses for the Russian economy.

The presidential administration and the government believed that food counter-sanctions will allow Russia to revive belgorodtsev, but time showed that over the past five years about the unequivocal success of import substitution can only speak in the production of tomatoes, pork and poultry. Total benefit from the sale amounted to 75 billion rubles a year.

And most of the items from the list of sanctioned goods to replace failed.

Thus, five years after the imposition of counter-sanctions, Russian consumers continue to pay for them out of pocket. Only a few industries showed a positive effect of the policy of import substitution, and most of them are not effective enough to change the price dynamics.

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