Russia reveals huge cost of Western bans

Russia reveals huge cost of Western bans

By AFP

The agriculture minister told the Rossiya 24 rolling news channel that "the volume of additional support needed to substitute for the embargoed items in full - if we are talking about short-term, through the end of the year - is tens of billions of rubles".

Russia's agriculture minister has warned that Moscow must spend billions of dollars in the coming years subsidising farmers in order to avoid a shortage caused by its ban on most Western foods.

Agriculture Minister Nokolai Fyodorov's stark comments on Wednesday represented Moscow's first admission that its decision to strike back at US and EU sanctions with sweeping food bans, including those against Australia, may have long-term costs for both its budget and consumers.

Russia's economic slowdown has limited the government's tax revenues while jitters over Ukraine's future and possible additional Western sanctions have kept investors from filling the void left by cautious levels of state spending.

Ten billion rubles is now worth $US275 million ($A297. 5 million). "But there are also medium-term measures: next year and in the subsequent years, you could say that this sum will be measured in the hundreds of billions of rubles," Fyodorov said.

Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report.

Read more here: Business Spectator

    

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