Russian embargo could cost billions
The Russian government will soon be deciding whether to extend its embargo to seven non-EU countries, including Iceland. Photo: AFP
It is looking increasing likely that Russia will place an embargo on Icelandic food imports, in retaliation for Iceland’s support for EU sanctions against Russia. Export revenue losses could run into the billions of ISK.
Russian Deputy Prime Minister, Arkady Dvorkovich, confirmed to Reuters yesterday that “Russia plans to add new countries to its Western food import ban, […] countries that have supported [the] European Union’s sanctions against Russia”.
The projected export value of Icelandic fisheries products to Russia in 2015 is ISK 37 billion (approx. €250 million), according to the latest estimates of Fisheries Iceland submitted to the Icelandic Parliament (‘Alþingi’) Foreign Affairs Committee on Monday.
Iceland is one of a group of seven non-EU countries recently declaring its official support to prolong EU economic sanctions against Russia until 31 January 2016.
Russia is currently Iceland’s largest market for fisheries products and some companies are worried about these latest developments, particularly as regards mackerel.
Half of all exported Icelandic mackerel in 2013 went to Russia, although it is not yet clear whether any Russian embargo would cover imports of mackerel.
